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HR helps businesses act sustainably, says CIPD
HR News |
07/02/2012
Human resources professionals are well-positioned to help business leaders and employees to act in a sustainable way, it has been suggested.
According to the Chartered Institute of Personnel and Development (CIPD), HR has "a pivotal role to play" in embedding a responsible and sustainable mindset within UK organisations.
This is vitally important in modern business, with employers required by law to consider the interests of a variety of stakeholders, such as employees, the environment and local community when making strategic decisions.
Historically, the board of directors has been responsible only to the shareholders, and charged with maximising the value of their equity stake.
But this changed with the Companies Act 2006, which fully enshrined the principle of corporate social responsibility (CSR) into law.
CIPD said globalisation, demographic changes in the workforce, environmental and social issues all form part of the "challenging context" organisations are forced to operate in today.
The organisation said navigating a way through can prove testing, but HR departments can help companies achieve sustainability goals despite the difficulties they face.
Catrin Ballinger, research associate at CIPD, said HR has a crucial role to play in achieving CSR goals.
She noted that human resources professionals have the skills and status to engage employees at all levels so they understand the shift in thinking and how it affects what they do in their day-to-day jobs.
"HR's skill set and overarching view of the organisation means they are well placed to identify and challenge any business decisions that go against the organisation's values," Ms Ballinger added.
If a policy will have a negative impact on stakeholders, or the future health of the business, HR professionals may be able to issue and early warning, she suggested.
Posted by John Lynes
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