Corporate Social Responsibility and Performance Management
In today’s global marketplace, competition evolves at a rapid pace and organizations are increasingly concerned with sustainability and corporate social responsibility. The human resource function is uniquely positioned to assist in both developing and implementing sustainability strategies. Therefore, it is critical for organizations to understand the benefits of performance management. As you have been learning, performance management should align with organizational strategy. Similarly, it is also important for organizations to balance organizational strategy with sustainability objectives. Performance management and sustainability go hand in hand in support of an organization’s long-term success, as well as corporate social responsibility efforts.
To begin this Assignment, select an organization of your choice that meets one of the following requirements:
An organization you have worked with and are familiar with its corporate social responsibility (CSR) initiatives.
An organization about which enough literature has been published to describe the current state of its CSR initiatives or provide enough information for you to make an assessment.
Then, to complete this Assignment, review the Learning Resources for this week, and other resources you have found in the Walden Library or online, and respond to the following bullets in a 3- to 5-page academic paper.
Provide a brief background on the organization, including industry, location, size, and products or services offered.
Analyze the organization’s CSR.
Discuss 3 ways an HR professional can ensure the organization’s performance management system has a positive, dynamic relationship with corporate social responsibility initiatives.
Outline strategies to improve or establish the organization’s program of CSR.
Corporate Social Responsibility and Performance Management
Background on General Motors
General Motors (GM) is a global company that deals in automobiles and automobiles spare parts. The company manufactures and distributes cars, automobile parts, trucks, and crossover to different parts of the globe. GM was established by William Durant and its headquarters are located in Detroit. Since its establishment, the company owns and operates various manufacturing and assembly plants in different parts of the world. In addition, the company deals with multiple products such as automobiles, automotive parts, engines, and trucks. The company runs an automotive business and produces some of the highly selling brands in the world. Some of the company’s major brands include Chevrolet, Cadillac, Chevrolet, Opel, Holden, GMC, Cadillac, Baojun, Buick, and others. General Motors also run financial services that boost the company’s business and performance (General Motors, 2019). For strategic operations and performance, the company directly distributes its products through its dealers, corporate customers, rental car companies, a fleet of customers, and leasing companies. The company has spread its global operations due to a well-developed value chain and corporate social responsibility. This paper analyzes the company’s corporate social responsibility (CSR). Further, the paper outlines how human resource professionals can ensure that the company’s performance management system develops a dynamic and positive relationship with CSR initiatives. Lastly, the paper discusses various ways of improving the company’s CSR programs.
Analysis of GM’s Corporate Social Responsibility
GM has a CSR that enhances the company’s growth in the global automotive industry. According to Archie Carroll’s CSR model, corporate social responsibility has a significant impact on both business and its stakeholders. GM’s corporate social responsibility brings together all parties interested in the performance and output of the company Kissinger, (2017). Just like other companies, GM runs a CSR strategy that is based on the interests of stakeholders. For example, whenever the company manufactures, sells, distributes automobiles and automobile parts, it aims to satisfy the interests of customers and local communities and minimize negative impacts on the environment (Ditlev-Simonsen & Wenstop, 2013). The satisfaction of stakeholders’ interests enables General Motors to fulfill its corporate social responsibility goals and strategies. Consequently, GM has been successful in achieving its corporate citizenship. To perform well in the automotive market, the company’s management ensures that it runs a corporate social responsibility that matches the stakeholders’ expectations. Every company’s corporate social responsibility should support business growth and achievement of the company’s goals, mission, and vision. GM is not left behind for its corporate social responsibility is linked to its vision and mission.
General Motors has different stakeholders across the world. However, it applies its CSR in the entire organization to suit the stakeholders’ identified interests. For example, the company runs a corporate social responsibility approach that enhances sustainability and address the interest of the customers and the community. The most significant initiative of GM’s CSR approach is to ensure that its operations have little or no negative impact on the environment. Through preservation and environmental sustainability programs, GM has a social responsibility that benefits the stakeholders. As a result, it attracts more customers leading to better performance. The company believes in the importance of CSR towards building a close working relationship with stakeholders.
Performance Management System and Social Corporate Responsibility
Enhancing business performance involves incorporating various frameworks, including managing the organization’s operations strategically to ensure success. There is a close relationship between strategic performance and corporate social responsibility. Nonetheless, human resources play a critical role in managing performance system and promoting corporate social responsibility in the organizations, and this is done in various ways.
First, HR can use a performance management system to track and offer frequent performance feedback on CSR. GM has a system that allows HR to communicate company and individual goals. Upon communicating the goals, HR periodically checks if employees adhere to CSR goals. Providing CSR performance feedback reinforces strong and positive behavior with vivid paths for improvement. Timely CSR performance feedback is a better way to affirm employees while effectively shaping up their CSR attitude. General Motors has adequate performance software that collects frequent feedbacks on employee performance. Proper management of the performance system enables HR to give feedback and adequate room for improvement on CSR. Another way through HR can improve the performance management system is through using the performance management software. HR can use performance management software to streamline corporate social strategies and employees’ performance. HR can use performance management software to stay on top of things that effectively enhance CSR activities. Finally, HR should clearly define and communicate CSR goals and performance objectives. Employees cannot meet performance expectations when CSR goals are not clearly defined and communicated. Excellent communication is the first step towards the management of employees’ performance on a particular issue. Often, HR can use goal tracking software to create a performance chart and hold meetings with employees about CSR. Communication. Outlining goals and objectives offer employees a vision to be CSR competitive.
To build sustainable CSR programs, GM should develop its CSR strategies around its competencies. Focusing and aligning CSR strategies to what the competencies are essential. For example, GM supports environmental sustainability. Since GM has developed strength and research towards environmental sustainability, taking part in more of these activities can build the companies name (Carroll, Brown, & Buchholtz, 2017). This can also help the company win strategic partners with clear visions and revenue streams. Another way of developing better CSR programs is through recognizing the issues that matter most to the customers. Many consumers are likely to purchase products of companies that support social and environmental problems. Therefore, General Motors should manufacture and sell automotive and automotive spare parts that are environmentally friendly. Consumers are rewarding for CSR sensitive companies through brand loyalty and purchasing more company products. Therefore, recognizing what consumers need most is a better way to win the hearts of customers. Customers prioritize the following business actions as necessary: being a good employer, operating in a way that protects and benefits society, and the environment. Further, customers like companies that create and sell products that enhance the wellbeing of individuals, communities, and supporting social justices. Therefore, GM should focus its CSR strategies towards recognizing customer issues.
In conclusion, corporate social responsibility is critical for business growth and development. General Motors has CSR that focuses on providing the best for the customers and enhancing environmental responsibility. Through excellent CSR performance, General Motors has established its manufacturing plants and distribution centers in different parts of the world. Notably, developing a proper CSR strategy is ideal for GM to build corporate citizenship and brand enhancement. Despite producing the right CSR strategies, GM should focus on activities that suit its stakeholders’ interests.
Carroll, A.B., Brown, J., Buchholtz, A. (2017). Business and Society: Ethics, Sustainability, and Stakeholder Management. Cengage Learning
Ditlev-Simonsen, C. D., & Wenstop, F. (2013). How stakeholders view stakeholders as CSR motivators. Social Responsibility Journal, 9(1), 137-147.
General Motors. (2019). General Motors’ annual report. AnnualReports.com. https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_GM_2019.pdf
Kissinger, D. (2017). General Motors’ generic strategy & intensive growth strategies. Panmure Institute. https://panmore.com/general-motors-generic-strategy-intensive-growth-strategies