1. INDIAN INSTITUTE OF MANAGEMENT
AHMEDABAD
Term Paper Assignment
The Conscientious Employee
Making, enabling and mobilizing socially responsible employees
Submitted to
Prof. Manjari Singh & Prof. Biju Varkkey
In Partial fulfillment of the requirements of course
Foundations of HRM
Submitted on: September 18th
, 2014
By
Shiva Kakkar

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3. The Conscientious Employee
Making, enabling and mobilizing socially responsible employees
Shiva Kakkar
‘Corporate Social Responsibility’ (CSR) is today a buzzword in the business world.
Organizations have realized that CSR presents a host of intangible benefits for the firm in terms
of positive public perception and increased business opportunities. The key to the success of any
CSR strategy is the active participation of all stakeholders. Out of all stakeholders, the
employees form the biggest stakeholder group with tremendous social and environmental impact.
Therefore, without their participation, the CSR strategy cannot succeed. The objective of the
paper is to understand and answer three fundamental aspects of employee participation in CSR:
1. Why CSR is a matter for collective interest for both employers and employees. 2. How does an
organization enable employee participation in CSR? 3. What is the role of the HR department in
employee mobilization and overall CSR strategy?
“We do not claim to be more unselfish, more generous or more philanthropic than other people.
But we think we started on sound and straightforward business principles, considering the
interests of the shareholders our own, and the health and welfare of the employees, the sure
foundation of our success.” - Jamsetji Tata, founder of the Tata group.
These words by Jamsetji Tata, founder of the Tata group, succinctly capture the sentiment of
business and its responsibilities towards the larger social environment in which it operates. It is
notable that Jamsetji Tata held this view much before the advent of the modern concept of
‘Corporate Social Responsibility’ (CSR). Back in 1917, the Tata group was the first in the world
to commission a modern pension system, worker’s compensation, maternity benefits and profit
sharing plans for its employees. Jamsetji’s philosophy of ‘giving back to the society’ went on to
form the core business ethic of the Tata group, based upon which it has acquired tremendous
goodwill and respect among the Indian populace today. Many of Tata group’s employee policies
went on to serve as a foundation for the social security framework laid by the Indian
Constitution. At the time of inception, these voluntary provisions by the Tata’s could have very

4. well been termed as part of their CSR, since they were not mandated by the British law to do so.
The case of Tata’s illustrates how conscientious business can build a sustainable future for itself
as well as the society surrounding it by fulfilling its social responsibilities. Also, it is one of the
first and only instances in the world wherein ‘social responsibility’ has served as a differentiating
factor for a business corporation, lending it a respectful and distinct identity among its peers.
The origin of ‘Corporate social responsibility’ (CSR) as a stream of study can be attributed to
Howard R. Bowen whose book ‘Social Responsibilities of the Businessman’ serves as the first
known literature over the subject (Archie B Carroll, 1999). While Bowen initiated the study in
the subject, the first precise definition of Corporate Social Responsibility came from William C.
Frederick, who defined it as follows:
‘Social responsibility means that businessmen should oversee the operation of an economic
system that fulfills the expectations of the public. And this means in turn that the economy’s
means of production should be employed in such a way that production and distribution should
enhance total socio-economic welfare’ (Frederick, 1994).
A major role in bringing CSR to the world stage was played by the Washington DC based think-
tank CED (Committee for Economic Development). In its seminal statement issued in June
1971, CED put forth the value proposition of CSR in front of corporations. It observed,
‘Business must play a greater role in national community. They should resolve all inherent
conflicts with human values and the surrounding social environment and aim to work with social
and governmental institutions for a sustainable future (Allen, 1971)’.
CED proposed the concept of ‘Enlightened self-interest’ to explain the benefits of corporate
social responsibility to businesses. The concept can be understood from the classical viewpoint
of the ‘Buy vs. Build’ concept of human resources. A myopic organization may prefer to buy
resources from the market on the short term and train them extensively to be utilized in the
organization. This is a phenomenon rampant in many services sector industries. On the other
hand, another organization may prefer to partner with graduation schools (and colleges) and try
to impart the required skills in an academic environment. This way, it can enhance the quality of
pedagogy and at the same time, assure a sustained supply of quality manpower. This approach
works to its own benefit and the society as a whole. Such an organization would be termed as an

5. ‘enlightened self-interested’ organization which through its interests profits both - itself and the
community. The CED doctrine inherently assumes that if businesses do not accept a fair measure
of responsibility for social improvement, the interests of the corporation will be jeopardized in
the future (Archie B Carroll, 1999).
The doctrine by CED gave special attention to employees and their social responsibility as
stakeholders of the organization. CSR is not a one-man-job and it involves extensive
participation from employees (Ciprian-Dumitru, 2013). CED realized this and made specific
observations regarding employee contribution to CSR. It observed,
‘Large corporations like GE and GM employ more than one million people. These employees
are dependent on the organization for their livelihood. On the other hand, these employees wield
considerable power inside organizations through their skills or through labor unions and exert
great influence on community affairs’ (Allen, 1971).
An ‘organization’ by definition is an ‘organized setup of people’, the majority of which are
employees. A major part of population is involved in some kind of work with small or big
organizations. Employees form the first point of contact of the organization with society. Being
the primary stakeholders, it is important that employees whole-heartedly engage in CSR
activities. The agenda of this paper is to study why employees should participate in CSR
initiatives and how organizations and HR departments can create a conducive environment for
their participation. The structure of the paper is divided into three topics that build upon each
other:
 The importance of CSR: A matter of collective interest for employers and employees
 The conscientious employee: Assuring active employee engagement in CSR
 The CSR-HRM mix: The critical role of HRM as a mediator and facilitator to CSR
1. CSR: A matter of collective interest for employers and employees
Research suggests that CSR enhances the company’s image and the employees’ positive
perception of the company. According to Stawiski (2010), the employees’ perception of
the corporation’s concern for community and environment is significantly linked to their
organizational commitment. This is because the employee’s personal identity is closely

6. linked to the organization’s identity and a positive association between the two enhances
the individual employee’s pride. Brammer (2007) explains this through the use of
‘Social-identity theory’. Social-identity theory states that individuals see themselves as
members of social groups (organizations are also social groups). Belonging to a social
group establishes and enhances the individual’s self-worth and positive self-concept. The
individual compares the characteristics of his or her group with other groups. If the
person perceives his or her group better off than the rival group, the individual’s own
self-worth increases leading to a positive self-concept (Ashforth & Mael, 1989; Brammer
et al., 2007). In an organizational context, this means that the individual is more willing
to work with the organization and engage in its activities provided it’s well-respected
among his/her peers. High levels of engagement are positively linked to better work
performance on the job (Zhang, Fan, & Zhu, 2014)
Being positively perceived by employees is tremendously advantageous for the
employers. In a research on organizational attractiveness by Turban & Greening (1997),
the researchers found that businesses with a better record of corporate social performance
attracted larger number of potential applicants. Applicants perceived such organizations
to be more ethical and morally upright. Therefore, socially responsible organizations
have the advantage of having a larger applicant pool to select from, giving them a
competitive advantage over their peers. This is synonymous to the resource based view of
competitive advantage (Barney, 1995). Resource based view states that resources which
are valuable, inimitable, rare and non-substitutable provide sustained competitive
advantage to the business. It can be argued from the case above that CSR acts as a
differentiator and can provide a sustained competitive advantage by enabling
organizations to attract quality talent (Brammer et al., 2007; Surroca, Tribó, & Waddock,
2010). This is very much apparent in the case of Tata group which draws large number of
applicants from all parts of the country and is often looked upon as a prestigious
organization to work with.
While attracting talent is one part of the game, retaining talent is another activity that
demands considerable efforts. It is interesting to note that CSR has a positive effect on
talent retention. Jones (2010) found that increased organizational commitment emerging
from CSR resulted into higher retention, lower absenteeism and increased performance.

7. Glavas & Kelly (2014) state that CSR has a positive correlation with organizational
commitment and job satisfaction. According to them, organizational commitment is a
result of the perceived ‘work meaningfulness’ imbibed by CSR into the job. Employees
derive meaningfulness not only from the act of working with the organization, but also by
observing how the organization is making a social impact on the community surrounding
them. If the community holds a good view of the organization and its initiatives, the
employees’ faith that the organization is working towards greater social good is
reaffirmed and they find their work to be meaningful. (Grant, 2008; Pratt & Ashforth,
2007; Rosso, 2010 as cited in Glavas & Kelley, 2014).
Similar studies relating corporate social responsibility with increased organizational
commitment and job satisfaction were done in Taiwan by Hsieh and Chan (2012)
wherein 250 top Taiwanese firms were surveyed. The hypothesis was that CSR effort has
a positive effect on organizational commitment and job satisfaction. Hsieh and Chan
arrived at similar conclusions. The interesting part is that both Hsieh & Chan (2012) and
Glavas & Kelly (2014) made observations about the role of CSR as a mediator between
organizational justice and employee perception. The question of justice arises from the
fact that employees continuously try to infer how the organization treats them with
respect to others. In organizational behavior terms this is known as ‘distributive justice’
(Greenberg & Baron, 2008). CSR provides an opportunity to witness first-hand the
organization in action over its commitments. If the organization indulges in socially
responsible and just behavior, the employee’s sense of identity and belongingness for the
organization is enhanced (Rupp, Ganapathi, Aguilera, & Williams, 2006). The employee
tries to ascertain the organization’s behavior and treatment of him/herself by observing its
behavior with other individuals/entities. This reaffirms Brammer’s (2007) findings cited
earlier that individuals prefer to belong to social groups that affirm to their values and
which enhance their self-concept.
CSR also influences employee attitudes by motivating them and giving them the
opportunity to speak their minds which helps in generating new ideas and corporate
practices. The knowledge and engagement derived from these activities differentiates a
firm’s human capital from its peers and acts as a source of sustained competitive
advantage (Surroca et al., 2010).

8. 2. The conscientious employee: Assuring active employee engagement in
CSR
The previous section elucidated on the inherent potential of CSR to act as a differentiator
by providing meaningfulness and value to work. While CSR can be a source of
sustainable competitive advantage, a more fundamental question is how to mobilize
employees into CSR participation? For an organization it is not only sufficient that
employees understand CSR but rather become active advocates of CSR. The fact that
employees perceive CSR as important is apparent from the research conducted by Towers
Perrin in 2007 which lists ‘social responsibility’ as one of the top 10 engagement drivers.
Figure 1: Towers Perrin 2007 Global Workforce Study (as cited in Europe, 2010)
Rather than mandating people to engage in CSR, the trick is to use CSR as an
engagement tool in itself. For this, it is important to communicate the sincerity and value
of CSR initiatives to the employees. In order to actively engage employees in CSR, the
following steps must be taken by the organization:
1. Communicating Value
A CSR-Europe report (2010) aptly titled ‘Internal CSR communication and employee
engagement’ cites communication as the primary engagement tool in CSR activities.

9. The report (2010) states that though CSR is one of the most important factors
stimulating employee engagement, until the value of organization’s CSR policies is
conveyed to the employees, they would not participate in CSR activities. In order to
communicate effectively, four modes have been suggested:
1. Education: The organization must reiterate its commitment through training,
workshops and seminars to ensure proper understanding of the goals and
objectives of its social responsibility initiatives.
2. Volunteering activities: Employees must be given a chance to volunteer in CSR
activities so as to get a hands-on approach and a deeper understanding of the
initiatives.
3. Individual participation: Apart from formal education and volunteering activities,
individuals must be encouraged to share their ideas on process improvement,
environmental issues, etc. through informal groups and meetings, casual clubs and
impromptu conversations. The objective is to use the meets for idea generation
and implementation.
4. Employee feedback: CSR is not a one-way, top-down approach. Participation of
employees is crucial to a successful CSR strategy. Hence surveys, focus group
interviews and discussions should be organized to let employees share their
feedback in order to improve the CSR strategy.
Communication regarding CSR is not just routine information dissemination but a co-
ordinated activity with the strategic objective of communicating value. The facts
stated should be credible and trustworthy in order to build confidence in the
employees. Accordingly, a proper communication strategy is required to cater to
employee expectations. One strategy is to communicate CSR at two levels, namely: 1.
Expert CSR communication and 2. Endorsed CSR communication (Morsing, Schultz,
& Nielsen, 2008).
1. Expert CSR Communication: Expert communication is aimed at employees and
stakeholders who already possess sound knowledge of CSR and the firm’s
initiatives and are essentially interested in learning about the organization’s
participation in such activities. The communication is more scientific in nature,

10. involving facts, figures and statistics to explain the impact of CSR activities.
Internal advertising, research findings, websites, email are preferred ways for
expert CSR communication.(Morsing et al., 2008)
2. Endorsed CSR Communication: Endorsed CSR communication uses third parties
like media, certification authorities, rating agencies, etc. to communicate the CSR
achievements/initiatives of the organization to the general public. Endorsed
communication is often simpler in nature and explained in layman terms so as to
achieve maximum publicity. For employees, it is effective as less knowledgeable
(or less aware) workers not well versed with the concepts of CSR can be easily
made to understand its value through this mode. Also, third party endorsements
reassure employees of the legitimacy and credibility of CSR activities.(Morsing et
al., 2008)
In a worldwide study of CSR initiatives at CSC Energy Corporation, the researchers
concluded that CSR should ideally follow an ‘inside-out’ approach (Bolton Sharon,
2011). An ‘inside-out’ approach means that CSR initiatives (including
communication) should be well translated and explained to employees first and
customers/public later. CSR communication begins at home by taking the employees
into confidence first as they are the primary stakeholders. As an example of expert
communication, CSC Energy, in addition to publishing sustainability reports for
stakeholders and the government, publishes a special ‘Sustainability Review for Staff’
report for employees. The importance of communication can be judged by the
following comment of a senior functionary of CSC (as cited in Bolton Sharon, 2011):
‘Without the internal stakeholder’s consensus and achievement of the work, whatever
and however you raise your voice on CSR to externals, it is all a castle in the air.
Because, who basically ‘implements’ CSR to externals is the employee. (Vice
President, CSC, Korea, 2007)’
2. Motivating employees
Bolton’s study of CSC Energy gives important cues on how to motivate employees to
participate in CSR initiatives. Foremost, in order to be perceived trustworthy and
credible to the external stakeholders, the organization must behave in a trustworthy

11. and credible manner with the internal stakeholders. As discussed earlier, employees
(the internal stakeholders) tend to make moral judgments about the firm by
comparing its behavior with themselves and others. According to Bolton (2011), the
objective of CSR is to create a ‘moral-community’ out of the whole organization. If
an organization tries to act as a morally upright firm outside but mistreats its own
employees, it would be judged as hypocritical and would not garner any support from
employees. Ethical treatment of employees is the most important characteristic in
order to prepare employees for participation in CSR (Chen & Hung-Baesecke, 2014).
In fact, Morsing (2008) cites Reputation Institute’s industry wide study of Danish
firms in which nearly half the respondents rated ‘ethical employee treatment’ as a
social responsibility in itself for the owners of the firm. If employees are expected to
behave in an ethical and socially responsible manner, then they need to be reassured
that the organization would itself stick to the ethical framework it preaches (Collier &
Esteban, 2007).
Given that an organization is ethical, setting up a culture of ethical and responsible
behavior for employees is the job of senior management and leadership (Chen &
Hung-Baesecke, 2014). The managers (or leaders) need to act as role models for
ethical and socially responsible corporate citizens in order to illicit the same
behaviors from the employees. Carroll (1991) in his seminal work ‘The Pyramid of
Corporate Social Responsibility’ explains that ‘moral managers’ are the most
important factor in building a culture of social responsibility. According to Carroll,
there are three kinds of managers:
1. Immoral managers: Immoral managers have little or no concern for employees.
For them, human resources are factors of production, meant to be used, exploited
and manipulated.
2. Amoral managers: Such managers are neither immoral nor moral. They accord
little respect to employees and fulfill requirements of employee treatment only to
the extent as mandated by law.
3. Moral managers: Moral managers consider employees as contributors to
organization’s objectives and treat them with dignity and respect. They believe in

12. a consultative/participative approach. They try to build trust and ensure
commitment and consider it as a reciprocal activity.
CSR in any organization cannot take off without moral managers who are able to take
all the stakeholders into confidence, especially employees. The manager’s advocacy
of CSR initiatives is a major motivator for participation in employees. A credible and
trustworthy manager would be believed and followed by one and all (Chen & Hung-
Baesecke, 2014).
On a pan-organizational level, this duology between the manager’s (and/or
leadership’s) behavior and employee behavior is well explained by the ‘Double
pyramid’ model proposed by Ciprian and Dumitru (2013). The organization’s
objectives should be aligned with those of the employees’ to ensure their
participation. The ‘Double pyramid’ model juxtaposes Maslow’s hierarchy of needs
pyramid with Carroll’s pyramid of CSR.
Figure 2: Maslow’s pyramid vs. Carroll’s CSR pyramid (adapted from Archie B. Carroll,
1991; Ciprian-Dumitru, 2013)
According to Ciprian and Dumitru (2013), the basic idea behind this juxtaposition is that if the
employees follow Maslow’s pyramid and the organization follows the CSR pyramid, moral
behavior would automatically result without conscious effort. The underlying thought is that

13. there should be complete sync between the organization and individual’s expectations. If the
organization is profitable and fulfills its mandated legal, ethical and social responsibilities, the
employees’ physiological and safety needs would automatically be taken care off. The
employees’ in-turn would develop a sense of belongingness and pride working for the
organization. If the organization is ethical, grants all employee rights and takes care of them (and
their families) employees too would work enthusiastically and participate in its initiatives. As
committed workers, this rewarding relationship with the organization would help them lead a life
of happiness and fulfillment and achieve their life goals.
3. The CSR-HRM mix: The critical role of HRM as a mediator and facilitator
to CSR
Human resource management has moved on from a passive backend role to a proactive business
partner role. With the advent of strategic human resource management (SHRM), HR has the
required resources and authority to implement processes and policies. From the perspective of
CSR, HRM can be termed as the ‘friend, philosopher and guide’ for the employees of the
organization. The primary responsibility of HRM is to mobilize and channelize employee energy
towards CSR (DuBois & Dubois, 2012). According to Bhattacharya (2012), employees like to
undertake CSR activities because they often find it emotionally rewarding. The problem is that in
many organizations employees are not aware of what to do in order to participate in such
activities. They may be mildly aware of the CSR initiatives of the company, but without a clear
cut guide/policy most of them would be marooned in their daily routines. This is where the
‘friend, philosopher and guide’ role of HR comes in. The objective of the HR department is to
plan, structure and implement CSR activities (Sharma, Sharma, & Devi, 2011). It can do this by
undertaking some initiatives, like:
1. Policy formation: The primary responsibility of HR is to develop a CSR policy that
employees can follow (Inyang, Awa, & Enuoh, 2011; Sharma et al., 2011). For example,
IBM’s policy explicitly states that each employee has to devote certain amount of time
every year towards CSR activities of the company. IBM’s HR policy mandates that the
entire employee base should participate in CSR initiatives. For this purpose, it has
developed reward and incentive systems that encourage employee participation. To give

14. employees a feel of the difference CSR makes, IBM HR deputes employees on various
public work projects involving their engineering skills, so that they can witness the
impact first hand (Pohle & Hittner, 2008).
2. Orientation of employees and trainees to CSR: The paper earlier covered the importance
of communicating value of CSR to employees. This is one of the most important tasks
wherein HRM can play an extremely crucial role. According to Bhattacharya (2012), it is
important that employees understand how they benefit from the organization’s CSR
activities and how these benefits in turn result into favorable company outcomes. HR has
to impart this knowledge to employees and trainees through training and induction
sessions. Organizations like IBM and Wipro start imparting this knowledge during the
induction itself so that socially responsible behaviors can be developed in the incoming
employees from the beginning (Sharma et al., 2011).
3. Initiating a ‘code of conduct’: As CSR is an activity with moral implications, it is
beneficial that the HRM devises a code of conduct that informs employees of the ‘do’s
and don’ts’ in the organization. The code of conduct is important in order to inculcate a
value system in the employees that translates into responsible behavior (Sharma et al.,
2011).
4. Training for CSR: The HR Department should be responsible for conducting training
analysis and imparting the requisite training for participation in CSR activities. A good
example of such training is Cadbury Schweppes which has devised a training programme
under the banner “CSR: Living our values learning tool” for employees that readies them
for participation in CSR activities every year (Sharma et al., 2011).
5. Job Design-CSR integration: The paper earlier cited the importance of CSR in providing
context and meaningfulness to work. Extending the same, the HR department can play a
crucial role in integrating CSR activities with job design. The ‘Job Characteristics model’
(Hackman & Oldham, 1976) states that a job must possess the certain core characteristics
like skill variety, task identity, task significance, autonomy and feedback. CSR can go a
long way in equipping jobs with these characteristics and making work more meaningful.
6. Sustainability reports: HR can play a crucial role in consolidating data of CSR activities
and using it to issue sustainability reports. Sustainability reports help in communicating
the positive effects of CSR to the employees and general public, and ensure their future

15. commitment to these activities. The example of CSC Energy and IBM cited above are
pertinent in this regard (Bolton Sharon, 2011; Hsieh & Chan, 2012; Inyang et al., 2011;
Sharma et al., 2011) .
7. Ensuring union compliance: In manufacturing and industrial sectors, unions exert
tremendous power over workers. Due to the nature of manufacturing industries, CSR
activities like environmental sustenance, carbon control, etc. require participation of
unions. It is the responsibility of HR to ensure that unions understand the importance and
scope of these activities and are agreeable to the CSR policy of the organization (Ciprian-
Dumitru, 2013).
8. CSR during downsizing: As cited earlier, employee treatment is one of the most
important internal CSR activities upon which the organization is judged both by
employees and the public (Morsing et al., 2008). During unavoidable circumstances
leading to downsizing, the HR department has the responsibility to explain the condition
of the organization to the employees and facilitate their exit with dignity (Preuss,
Haunschild, & Matten, 2009). The HR department needs to take charge of issuing
severance packages and providing outplacement services, so that there is minimal impact
on the organization’s reputation.
Limitations of the paper
CSR is a broad topic with wide ranging implications. There is no unique definition of CSR
(Inyang et al., 2011) which classifies a particular set of activities as being part of the
organization’s social responsibility. CSR is often divided into ‘internal’ and ‘external’ CSR
depending upon the focus of the study. Topics dealing with environmental implications are often
treated as ‘external CSR’, while topics like ethics, corporate governance and employee treatment
are often deemed as ‘internal CSR’. This paper discusses CSR as a holistic set of activities
without distinguishing between external and internal CSR activities. The reason for this is that
the primary focus of the paper is employee engagement and the role of HRM in CSR.
Irrespective of which CSR activity (internal or external) an organization undertakes at any point
of time, the employee base and human resource department would always need to be mobilized
to attend to the cause. Hence, differentiating the two headers would not make much impact on
the scope of the paper.

16. Emerging topics and future research
All said and done, CSR is still in nascent stages of development. As the scope of the field
broadens, more subjects are being covered under the umbrella of CSR. A recent study in Europe
tried to link CSR with the psychosocial risk employees face at their jobs (Jain, Leka, &
Zwetsloot, 2011). Similarly, with the rise of the IT services sector, the subject of ‘ergonomics’
has come to the limelight. Medical research has linked seating posture and overexposure to
workplace equipment like computers to various lifestyle diseases. Proponents of CSR argue that
ensuring sound health of the employees is the moral responsibility of the employer and hence
‘ergonomics’ is essentially a part of CSR. While research is scant, Bolis (2013) and Hermans
(2006) have studied this topic from the perspective of CSR. Thus, in times to come the scope for
identifying and studying a whole new variety of subjects awaits the field of CSR.
Conclusion
The objective of the paper was to understand the role of employees in the CSR initiatives of the
organization. The paper discussed the collective importance of CSR for both employers and
employees. It went deeper to analyze what it takes for the organization to make employees a part
of its CSR campaign. The traditional understanding of CSR as an ‘extra non-essential activity’ is
today on the wane. Social responsibility has numerous benefits for the organization in terms of
public preference and reputation. The paper discusses how these factors can create a large
applicant pool for the organization and become a source of sustained competitive advantage.
On the other hand, employees are also benefitted by knowing that they are working with an
ethical and morally upright organization. Studies have shown that this reassurance acts as a
positive motivator which brings about stronger employee commitment. More committed
employees are less likely to leave the organization or skip work, thereby preventing attrition and
loss of performance.
Lastly, we saw how HRM plays a crucial role in mobilizing and channelizing employees to bring
about their participation in CSR activities. HR plays the critical role of formulating policies,
implementing procedures and establishing processes that actually lead to employee participation
in CSR. It is said that ‘an idea stays an idea if it is not brought onto paper and implemented’. The

17. HR department is the force that puts ideas into action and acts as the prime enabler for
employees to participate into CSR leading to its successful execution.

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