Academic journal article International Review of Management and Business Research

Corporate Social Responsibility as a Recruitment Strategy by Organisations

Academic journal article International Review of Management and Business Research

Corporate Social Responsibility as a Recruitment Strategy by Organisations

Article excerpt

Introduction

Challenges of the contemporary business environment has made it even more compelling for organisations to keep attracting and retaining the best hands available in the labour market (Lado & Wilson, 1994; Wright et al, 1995). The current labour shortage in a number of fields and projected future shortages has further brought the importance of attracting and retaining requisite human resources for competitive advantage to the fore (Rynes, 1991; Marti, 2008). However, the ever changing needs of today's worker have made employee recruitment even more challenging (Backhaus, Stone & Heiner, 2002).

Several authors have suggested what organisations should do to make them attractive enough for job seekers that possess the needed knowledge, skills and abilities. Such factors as reward system, work environment, congruence between organisation and jobseeker's value, diversity policies, treatment of the environment have been proven by researchers as factors that attract job seekers to organisations (Bretz et al, 1989; Cable & Judge, 1994; Lievens, Decaesteker and Coetsier, (2001), Bhattacharya, et al, 2008). Corporate Social Responsibility (CRS) has also been proven to positively influence organisation attractiveness to job seekers (Greening & Turban, 2000).

The objective of this paper is to study the influence of CSR on organisational attractiveness and recruitment. The approach of this paper is literature survey; looking at the outcome and opinion of several researchers and experts in the area of recruitment and CSR. It is anticipated that this paper will shed more light on the CSR - organisational attractiveness relationship.

Corporate Social Responsibility

One of the most widely talked about concept in the management research today is Corporate Social Responsibility (CSR) (Geva, A; 2008). In spite of the havelange of literature on this subject, there is a clear absence on consensus on its definition. Some authors are even of the opinion that there exists no definition for CSR (Jackson & Hawker, 2001), an assertion with which many other authors disagree. Some author prefer to use the term 'Social Responsibility' to clarify that related issues are not restricted to profit making organisations (Heath & Ni, 2008). Others use the term 'corporate societal responsibility, corporate social responsiveness, corporate social performance, corporate citizenship, business citizenship, stake holding company, business ethics, sustainable company etc (Valor, 2005). Dahlsrud (2006) believes CSR is a social construction and as such, it is difficult to develop an unbiased definition. However, for the purpose of this paper we will define Corporate Social Responsibility as ways in which organisations achieve commercial success using methods that honour ethical values, respect people and communities and the natural environment (Business for Social Responsibility, 2003). This definition covers five key dimensions of CSR: stakeholders, economic, social, voluntariness and environmental dimensions thus incorporating most of the divergent views of the meaning of CSR (Dahlsrud, 2006).

There are four main theories that explain the nature and motive for CSR:

Classical View: The classicalists and neo classicalists believe that management's only social responsibility is to maximise profit (Robbins & Coulter, 2006). Prof Milton Friedman is one of the neo classicalist economists who believe that the CSR of any firm should be to maximise profit. Milton Friedman (1970) believes that in most cases, the relationship between CSR and profitability is a negative one. He believes that firms pursuing CSR initiatives use funds that would have formed part of profit of shareholders, wages and salaries of workers and/or increase in price of their products to pursue these initiatives. The only exception to this according to him is that it is in the interest of firms operating that is a major employer in a small community to devote resources to providing amenities to that community. …

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