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Unit 13: GHRM Trends and Future Challenges

3. Performed by Non-governmental Organisations (NGOs); Notes
4. Greater social awareness among consumers;
5. Increased competition among corporations.
The growing interest in CSR issues has motivated entities – such as the United Nations, The
Organisation for Economic Cooperation and Development (OECD) and assessment Organisations
in Europe and North America – to establish and enhance standards that will serve as a benchmark
for multinational corporate behaviour, and to strengthen mechanisms evaluating that behaviour.
In Japan, too, there is a growing realisation of the need for CSR. This is partly due to a series of
corporate scandals that have prompted Japanese industry and the government to introduce a
range of counter-measures.



Caselet Case of Colgate Palmolive

published case is that of the American company Colgate Palmolive. Many such
American companies have developed social responsibility programmes in South
AAfrica under the guidelines of the Sullivan Code. Its contributions have been to
found various educational projects at schools and university and community projects. The
list includes a number of health and dental projects. The management and allocation of
funding to projects was a responsibility of the company-appointed management rather
than being carried out by representatives of the various stakeholder communities stand to
benefit from these projects. The code requires that the company directs 12% of its salary
budget to such projects. The company had been criticised by the trade union for not
involving them, and at times for funding projects, for example in the area of dental care,
out of enlightened self-interest rather than altruism or a sense of what is required to
contribute to the development of people within the community.

Source: Jackson, Terence (2002). International HRM: A Cross-Cultural Approach. Sage Publications Ltd.
London.

Task
Critically examine the social responsibility undertaken by a big corporate – Tata Steel.

To achieve the goal of corporate social responsibility, HR professionals in multinationals may
be required to:
1. Minimise the exposure of employees to corrupt conduct by assisting in the development,
publication, and implementation of appropriate codes of conduct.
2. Ensure training programmes cover areas of ethical concern – such as bribery, human
rights, justice, and the common good – in a manner consistent with the multinational’s
objectives in this regard.
3. Align performance appraisal and compensation systems so that they support the ethical
stance taken.
4. Be conversant with the type of requests that may be made of staff operating internationally
– not just expatriates but also those who visit foreign markets in various capacities – and

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