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Sustainability-and-Stakeholder-Theory.pptx
- 1. A Stakeholder Perspectivefor Sustainable HRM Misbah Buksh FA22-MBAI-0001
- 2. A Stakeholder Perspectivefor Sustainable HRM
- 3. Sustainability and stakeholdertheory and management have three main similarities, which are: (1) they “build on normative foundations”, and have significant ethical implications; (2) they “rely on participation”, and are supposed to be implemented by societal consensus finding processes; (3) they both “aim at the integration of economic, social and environmental performances”. Sustainability and stakeholder theory are closely intertwined. Stakeholders' claims and interests impact an organization's social, environmental, and economic performance. Understanding and engaging stakeholders is crucial for achieving sustainability goals. stakeholder support companies must focus on three bottom lines- financial, social, and environmental which are often described as ‘profit, people and planet’. Sustainability and Stakeholder Theory
- 4. Role of HRM Thecontribution of the HRM system is we believe one of the most relevant for improving corporate sustainability, and this implies that those systems must be designed, implemented, managed, and evaluated assuming a multi-stakeholder perspective. that HRM has to support the development of corporate sustainability by adopting a multi-stakeholder approach to the role of HRM in generating value for the different corporate stakeholders. In the following paragraphs, we report the findings of the main contributions included in this stream of research, which – from different points of view – have focused on the following issues: (1)Why HRM should adopt a stakeholder perspective; (2)who are the stakeholders of the HR system; (3)what are the specific managerial actions and activities that the HR department might take for effectively orienting the HR system towards the stakeholders’
- 5. Focusing on organizationalperformance mainly from the financial stakeholders’ perspective is no longer sufficient because the need to satisfy multiple stakeholders requires changing how companies measure the effectiveness of human resource management systems. Indeed, a stakeholder-oriented HRM system is crucial for monitoring intended and unintended impacts, and its effects on the stakeholders’ satisfaction. This pushes organizations towards finding new HR metrics, to be integrated with the more traditional ones typically based on the financial outcomes. The 3 pillars of sustainability: environmental, social and economic. Why Adopting a Stakeholder Perspective in HRM
- 6. Objective The stakeholders ofthe company HRM system are of four groups: investors and customers (considered external stakeholders) and employees and managers (considered internal stakeholders) (1)Which stakeholders are to be considered in the design, implementation, management, and evaluation of the HRM system (2)What the stakeholders’ stakes are and, in particular, which of the stakeholders’ needs and interests are to be considered by the HRM professionals (3)Which actions and activities a HRM department can take to contribute to the satisfaction of those stakeholders’ needs and interests (4)How a stakeholder-oriented HRM department can measure the effects of the HRM system in way that satisfies the stakeholders’ evaluation needs
- 7. Key process andstrategy The proposed integrated framework identifies the main factors influencing the evolutionary process and outcomes of an HRM-driven sustainable development effort. The formulation envisions three major sets of interrelated factors/processes with several variables that affect the sustainable development process and outcomes: (1)Contextual factors that include macro-level factors (such as societal trends, industrial trends, cultural/political features), business factors (such as key organization features, business strategy, business design – structures and processes), and leadership factors (such as vision, perceived need for change, capacity to mobility resources for change). (2)Stakeholders (i.e. who they are, what are their attributes and stakes), and stakeholders dynamics (i.e. the relations between the companies and specific stakeholders groups, stakeholders alliances) and key HRM features (i.e. HRM processes or specific HRM practices). (3) Sustainable effectiveness features, that include economic, environmental, and social performance indicators
- 8. Stakeholder Engagement and Collaboration Communication Establish open,transparent, and frequent communication with stakeholders. Collaboration Work together with stakeholders to identify and solve sustainability challenges. Feedback Actively seek and incorporate stakeholder feedback into decision-making. Transparency Disclose information about the organization's sustainability performance and practices.
- 9. Impacts Social Impact How sustainabilityaffects stakeholders' well-being, equity, and community. Environmental Impact How sustainability affects natural resources, ecosystems, and the planet. Economic Impact How sustainability affects financial performance, costs, and long-term viability.
- 10. Identify Conflicts Recognize potentialtrade- offs between stakeholder interests and sustainability objectives. Negotiate Solutions Collaborate with stakeholders to find mutually beneficial, sustainable solutions. Prioritize Alignment Align stakeholder interests with the organization's long- term sustainability goals. The proposed integrated framework identifies the main factors influencing the evolutionary process and outcomes of an HRM-driven sustainable development effort Outcome
- 11. Conclusion Effective sustainability requiresa holistic approach that incorporates stakeholder engagement, collaboration, and the balancing of diverse interests. By aligning sustainability goals with stakeholder needs, organizations can create long- term value and drive positive social, environmental, and economic change.