Chapter 1: Socially Responsible Human Resource Management: Charting New Territory

Corporations face increasing pressure from activists, journalists, and management scholars to take their role as good citizens in society seriously (see also Matten & Crane, 2005). Yet, even in the aftermath of an unprecedented earthquake of corporate scandals, a definitive response from the business community has been slow in coming. One reason for this resistance is that a greater emphasis on corporate social responsibility can be construed as costly (Frederick, 1995; Swanson, 1995). But this perception may be more a force of habit than based on fact. Until recently, theoretical explanations of how managers can simultaneously pursue economic and other social goals have been scarce. The a priori assumption that these goals are incompatible may help explain why so few companies are beacons of corporate social responsibility. As some observers have noted, most organizations eschew leadership in this area, preferring the status quo instead (Skeel, 2005; Thomas, 2004).