The Role of HR in Corporate Social Responsibility (CSR) Initiatives in Pharma

In today's business environment, corporate social responsibility (CSR) has become a vital aspect of any business strategy, especially in industries that focus on public health, like the pharmaceutical industry. Through their CSR initiatives, pharmaceutical companies address the various societal and environmental challenges today.

As pharmaceutical companies address these challenges and strive to give back to their stakeholders beyond profit generation, they are becoming increasingly aware of the critical role of human resources (HR) in ensuring the success of CSR initiatives. HR professionals are uniquely positioned to help the company meet its CSR initiatives because they can leverage their expertise in employee engagement, talent management, and organizational culture to complete CSR goals successfully.

How does HR support CSR initiatives in the pharmaceutical sector?

HR acts as the bridge between the organization's strategic goals and the practical implementation of CSR activities. To this end, some of the critical roles of HR are as follows:

HR promotes employee engagement and participation.

HR promotes employee engagement and participation in CSR activities, which is crucial to the initiative's success. HR professionals organize volunteer programs, awareness campaigns, and other internal events to encourage employees to participate in the company's CSR initiatives. Providing these opportunities allows HR to boost employee morale and build a socially conscious workforce.

HR aligns CSR initiatives with company culture.

CSR initiatives that do not resonate or align with the company culture will have low employee engagement. Hence, HR ensures the company's CSR goals are not isolated activities but are integrated into the company culture. To this end, HR communicates the importance of the company's CSR initiatives and how these help meet the company's mission.

HR incentivizes CSR activities.

HR is often tasked with overseeing employee engagement and participation in CSR initiatives, so they usually incentivize it. For example, HR may offer paid days off for volunteering or include CSR as a goal in the employee's performance appraisal sheet. Various pharmaceutical companies have already implemented these examples. For example, Johnson & Johnson encourages employees to volunteer by providing up to four days of paid time off for volunteering or CSR initiatives. Pfizer offers five days of paid time off for volunteering activities.

HR develops strategic partnerships to promote CSR initiatives.

HR develops partnerships with external organizations such as non-profit organizations, community groups, and businesses to improve their company's CSR initiatives. These partnerships provide resources, expertise, and opportunities for collaboration. For example, Johnson & Johnson is in a long-term partnership with Humana People to People India, a non-profit organization. The partnership aims to strengthen the capacity of Anganwadi Centers and government healthcare centres in Telangana and Himachal Pradesh.

HR promotes employee participation in the company's foundations.

Several pharmaceutical companies have established foundations that support various non-profit organizations. For example, Moderna has established the Moderna Charitable Foundation in 2022. The foundation supports organizations that promote public health and access to quality healthcare. In this context, HR can encourage participation in these foundations. Employee engagement can be incentivized by providing employees compensation for their volunteering time.

Briefly, HR leverages its expertise in employee management to ensure employee participation in the company's CSR initiatives. However, increasing employee participation is not as straightforward as it seems. Here are some strategies HR can implement to ensure effective CSR initiatives in the pharmaceutical sector.

HR strategies to ensure effective CSR initiatives in the pharmaceutical sector

Start employer contribution programs.

One way to incentivize CSR initiatives is to integrate employee contribution programs. Employer contribution programs are relatively simple: a company can offer monetary compensation for an employee's participation in CSR initiatives. This compensation can be provided to any charitable organization of the employee's choosing, which will encourage employee engagement in volunteering. For example, Moderna offers 8 hours of paid time for volunteering, and their Dollars for Doers program matches additional volunteering time with cash donations.

Reward and recognize employee contributions.

HR can establish reward programs that recognize employees who are actively participating in the company's CSR initiatives. These rewards may include bonuses, awards, or public recognition within the company. These actions boost employee engagement and interest in the company's CSR initiatives, allowing it to reach its goals.

Develop pair-and-volunteer programs.

Employees are more likely to participate in CSR initiatives that resonate with them. Consequently, HR should engage with various strategic partners from multiple areas and organizations. Then, employees may choose to volunteer with any of these partners. Novartis has developed a Giving and Volunteering program that pairs employees with a CSR initiative of their choice. The company partners with 63 causes and beneficiary areas, allowing employees to volunteer their time, skills, and generosity where their expertise will make the most impact.

Organize on-site volunteering programs.

HR can promote CSR initiatives by providing on-site CSR initiatives. For example, GSK has launched the PULSE Volunteering Program that matches employees with a non-profit for three to six months of paid full-time work. Through this program, employees lend their expertise to non-profits. Since its launch in 2009, the PULSE Volunteering Program has enabled 600+ employees to help 110+ organizations from 65 countries, providing nearly £22 million worth of skilled service to partners.

Conclusion

HR plays a crucial role in supporting the pharmaceutical company's CSR initiatives. HR aligns organizational values with employee engagement, community impact, and business practices through their expertise. By aligning the company's CSR initiatives with employee culture, HR ensures the success of the company's CSR goals. As discussed in this article, HR can use well-defined strategies to promote employee engagement in CSR initiatives. Ultimately, the role of HR in CSR is about more than compliance; it is about creating a positive social impact and building a sustainable future for the business, its employees, and the wider community. As the CSR activities of all pharmaceutical companies come into more public focus, HR will play a more critical role in promoting the culture of giving back.

FAQs

1. What is CSR?

CSR refers to a company's commitment to operate ethically, contribute to economic development, and improve the quality of life for its employees, the local community, and society.

2. Why is CSR important for pharmaceutical companies?

For pharmaceutical companies, CSR is important because it helps build stakeholder trust, enhances its reputation, and demonstrates a commitment to improving public health and social welfare.

3. Why is employee engagement critical in CSR initiatives?

Employee engagement is necessary because it ensures that the company's CSR initiatives are embraced at all organizational levels, creating a more committed and motivated workforce.