Over the past few years, we have seen seismic shifts in the demands of the modern workplace, with consumers and employees increasingly expecting companies to be more socially and environmentally responsible and focus on CSR strategies.

The tragic death of George Floyd in May 2020 sparked a global movement for DEIB (Diversity, Equity, Inclusion, and Belonging), prompting organisations to make genuine commitments to anti-racism more than ever before. And the emergence of COVID-19, back in March 2020, has seen organisations transition to remote and hybrid working at an unprecedented scale.

Socially Responsible Business Practices

From wellbeing initiatives to workplace diversity, organisations are constantly being judged on the moral and ethical decisions they make. Research shows that consumers are placing a preference for companies that make a positive impact on the world. Similarly, a recent survey conducted by HR software, Qualtrics, found that employees and job seekers are placing higher importance on working for organisations that are in alignment with their core values.

This has led to a renewed focus on corporate social responsibility (CSR), with organisations having to ask themselves difficult questions about the culture and how it is address in their business model, they are creating and the values they are upholding. Sustainable practices and corporate governance are becoming important considerations for business operations.

Though, as Jill Larsen, Chief People Officer at Medidata highlighted on the Digital HR Leaders podcast: "One of the missed opportunities many HR organisations have, is around Corporate Social Responsibility (CSR)." This is largely because many organisations still need help to capture and measure their initiatives' impact.

So in this article, we're going to take a closer look at how HR analytics can provide insights into corporate social responsibility in three key areas:

• Environmental impact,

• Ethical leadership,

• Community engagement.

Corporate Responsibility And Environmental Impact

Let's start with CSR efforts and environmental impact. With the UN warning of the devastating effects of global warming, organisations are expected to play a role in addressing this crisis by both their customers and employees. As a result some companies have begun to change their corporate social responsibility practices.

In fact, research from Deloitte found that companies that focus on corporate sustainability tend to have higher employee engagement, lower employee turnover and enhanced talent attraction.

HR analytics can provide a great starting point for organisations to assess their environmental impact by providing insights into resource usage, energy consumption and waste management.

By tracking employee work patterns through time-tracking tools, organisations can gain visibility into how much energy is being used in the workplace and understand the amount of carbon emissions associated with business trips, shipping, and production that are adding to their footprint. This then not only creates a positive impact on environmental sustainability but can create operational cost savings.

Organisations can then use these insights to plan and implement sustainable initiatives such as reducing energy consumption, investing in renewable energy sources, and switching to more eco-friendly suppliers.

Also, by monitoring employee engagement with the company's sustainability initiatives, organisations can better understand whether their efforts are being appreciated. In this way, HR analytics can provide insights into how effective these initiatives are and which ones need to be scaled up or abandoned.

Corporate Responsibility And Ethical Leadership

Ethical leadership has been thrust into the spotlight over recent years, with organisations having to take a stand on complex issues such as discrimination and pay inequality and genuinely supporting the wellbeing of their employees.

And while in recent years, we are seeing more organisations take a stand on moral and ethical issues; there is still a need for organisations to ensure their leadership is held to a higher standard.

As Diversity Strategist, Torin Ellis points out during his conversation with David Green on the Digital HR Leaders podcast:

"I think that too many people operate with plausible deniability. They know that the data is there, but they do not want to really pay attention David, to that data. They know that this particular business unit, this particular department, this particular team is operating in a way that is probably a bit nefarious or counterproductive to what it is we are trying to do. But if I don't ask for the data, then I have plausible deniability. I can pretend like I didn't see that."

It's in moments like this where emphasis on HR analytics can provide visibility into whether their ethical values and behaviours are actually being upheld. By effectively measuring the correct data and understanding the implication of the results, organisations can genuinely gain a snapshot of their ethical climate and how it plays out in practice.

For instance, data such as recruitment and promotion patterns, employee sentiment and diversity reports can provide insight into whether organisations uphold their ethical values. Organisations could look at metrics such as employee absenteeism and turnover rates to further understand how their values impact employee wellbeing.

Either way, rightly used, HR analytics can provide an invaluable tool for organisations to uncover their corporate responsibility and ethical leadership.

Corporate Responsibility And Community Engagement

Corporate responsibility also extends to the broader community and contributes to the larger social good. This could be in the form of the following:

• Volunteering and sponsoring local events such as charities or schools,

• Donating to causes that align with the company's mission,

• Hosting events for employees and their families,

• Offering discounts to customers who use eco-friendly products.

Research from Research from Deloitte found that community engagement initiatives positively impact employee and customer loyalty, as well as brand recognition. But to determine whether these initiatives are having an impact, organisations need to be able to measure their success.

HR analytics can provide a simple way of doing this. By monitoring employee engagement with community-based initiatives, organisations can better understand how their efforts are making a difference internally. They can provide insight into how employee participation in community activities impacts their performance and productivity to help organisations determine which initiatives are worth investing in, as well as ensure that the time spent on these activities is actually providing a return.

HR Analytics And Its Role In Defining Corporate Culture

Quoting Jolen Anderson, Global Head of Human Resources at BNY Mellon, from a previous Digital HR Leaders podcast episode, HR analytics helps 

"tell us where we need to design the interventions, but also what was working, what wasn't, how we could pivot, how we could be agile, what was the story and the impact that we were trying to have, for what we were bringing to bear."

HR analytics can play a vital role in defining how an organisation's corporate culture is perceived by both its employees and the wider public and how it impacts business.

By understanding the data being collected and analysed, organisations can ensure that their practices align with their ethical values. They can use these insights to identify areas of improvement and make changes accordingly, helping them to remain competitive in an ever-changing and dynamic business environment.

In essence, HR analytics can help organisations become more sustainable by understanding their actions' impact on the environment, employees and communities. It opens up a world of possibilities, allowing organisations to make more informed decisions regarding their corporate social responsibility and uncover any discrepancies between what they say their values are and how these values are playing out in practice.

If you are looking for support in understanding how your HR data can help you identify areas of improvement and make meaningful changes, get in touch. Our courses can provide you with the tools and knowledge necessary to understand how your organisation's practices are shaping your culture - and what you can do about it!

ABOUT THE AUTHOR

Jasmine Panayides is a seasoned HR Writer and Editorial Lead on the Digital HR Leaders podcast. She writes about all things HR, from recruitment, HR tech, L&D, to people analytics. Jasmine holds qualifications in psychology and HR, and has a wealth of experience in the field. She is a firm believer in the power of data, and is passionate about educating and inspiring her audience to think differently about the future of work.

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