So is responding to ethical issues strategic?
The same applies. If by ethical behaviour you mean reaching an agreement to pay an enhanced pension to a member of staff who has been injured at work, no. That is an operational issue. A policy of increasing the employer's pension contribution in line with inflation is managerial HR activity. However, a strategy to change an organisation's culture to promote social, environmental and human rights would need to be strategic because of the wide ranging and long term nature of the issues involved. So is corporate social responsibility strategic?
By definition CSR is 'corporate' and therefore, almost certainly calls for a strong strategic approach. HOW DOES RESEARCH SHOW THAT STRATEGIC HRM ADDS VALUE TO AN ORGANISATION? What evidence is there, that people management policies can actually influence corporate performance? CIPD-Sponsored Research
A number of projects have attempted to identify a link between progressive human resource management policies and practices and organisational performance. The CIPD in particular, has sponsored much research into the subject and, in the early part of 2001 it published the results of its summary of the research carried out on its behalf, entitled: The case for good people management.
It concluded that a positive relationship had been identified between employee attitudes, organisational culture, human resource management practices and company performance. It emphasised that, if managers wish to influence the performance of their companies, the most important area they should focus on is the management of people. It also concluded that employee commitment and a satisfied workforce are fundamental to improving performance.
Arthur conducted a number of investigations, chiefly into the US steel industry, in the first half of the 1990s. In particular,Arthur examined the effect of high-commitment strategies (where the focus is on shaping employee behaviours by...