Creating Long-Term Sustainable Value For Stakeholders With Effective HR System

Roles of HR

Explain how an effective human resource system creates long term sustainable value for stakeholders.

Business processes are focusing on the sustainability changes in business and changing public perception is the key issue in business to maintain their sustainability in this globalized business market. The choice of business and their implemented innovations are completely under the belt of business innovation but the situation of business is not good in all standard, rather the changes are diverse and it influences a better business dimension for sustainability. The business approach needs to be changed as customers want to look the business in a different view, so the organization has to impress their business stakeholders to motivate them and allow them to engage with the company at the initial level of the new business dimension.

Long-term benefit is the sustainable practice of maintenance the social, economic and environmental consideration of business and the approach of the business will be ever changing as per the requirement of customers (Blackburn 2012). Creating a sustainable value, vision and strategy is the key concern to run the business. In an organization, the leader is also effective as the leader has to take decisions to maintain a good growth of the organization and maintain a good relationship with stakeholders.

Stakeholders’ initiation in business is important for the development of business and that will influence the market acceleration also. The external stakeholders are like suppliers, customers, society, government, and creditors, on the other hand, internal stakeholders contribution is the asset for what organization is improving a lot. They are employees, managers, and owners and their involvement and intrinsic and extrinsic motivation of them is the key concern for the HR department (Bennett et al. 2015). In case of sustainable business practice, some of the key responsibilities that HR department has to take for the development of the business.

Figure 1: Factors of Sustainable development

(Source: Created By Author)

• The theme of sustainable management as an implement in the vision of employees' behavior.
• Build the leadership channel from which better aspects have come and that will evaluate the success of organization objectives.
• Manage the brand value of the organization in case of communication and promotional aspect.
• Maintain work-life balance for employees and deliver training for their future development situation (Daily, Kieff and Wilmarth 2014).
• Understand the sustainability concept in business and drive the organization for the positive changes.
• Spearhead the stakeholders' engagement process and coordinate with stakeholders for some specific reason and to supervise the reason in a proper way.

Business guidelines are based in mind over the objectivity of sustainable activities. The basic principle of business and its sustainable rationale are making the process in an effective way.

Table 1: Principles and rationale of business management

(Source: Gleeson et al. 2012)

In case of sustainability in business, there are some key aspects that business needs to consider the process and manage all the system for use of development of the business.

Brand and Reputation is the first aspect and sustainability activities will improve the product visibility as well as company’s responsibility to deliver some quality product to their customers. In a survey, an interesting fact has come up, when this sustainability condition is liable for better opportunities of business and the organization has to maintain their reputation also (Gleeson et al. 2012).

Principles and rationale with the stakeholders

Improved access to capital is another concern that business process has to formulate at the initial establishment of business. Engagement of stakeholders, reduced agency cost and transaction cost for business will proceed the long-term way in business.

Some sustainable and better business processes always have financial support for long-term establishments. The process of supply chain needs to be there for the development of business and to gain financial benefit from the business market.

Innovation and efficiency in business is the most crucial fact and that will increase the productivity and responsiveness in business (Starik and Kanashiro 2013). Before problems of sustainability converted international matters of anxiety, innovation inclined to be ambitious by the desire for better infrastructural conveniences, enhanced machinery, enhanced schemes of creation, devising new gears that make human everyday lifetime easier - more and more of substantial affluence. The changes in innovation will help to sustain the business process and expand the business opportunities as well.

The last benefit concerns with the socially beneficial form and that are the reason promotion of every aspect of the green environment, the social initiative for children all these issues illustrates the perimeter of business.

The key challenges for sustainability are the concerned process for HR flagship to identify the business establishment challenges for the long run business cases. Sustainability signifies an ideal communal state where persons live long, exalted, happy, and dynamic lives, nourishing their desires in ecologically sound and communally make customs for the better chances (Ehnert and Harry 2012). Thus, negotiation is the aptitude the future process needs to be there and that will encourage the business opportunities as well.

Lack of leadership support is the key concern of this business and leaders have to identify the key quality of the organization and sharpened those for the future development. If the process is not identified, the social and economic betterment is not access in right way.

This is difficult to measure the return on sustainability and CSR department need to take extra responsibility to engage stakeholders and make the long-term business success (Baumgartner 2014). Driving lower financial benefit to create the obstacle in business and that will forecast in business opportunities and consider as challenging aspects.

Limited understanding and involvement of sustainability level is the key prospect that will manage the functional acceleration. The challenge, in that case, is to maintain a proper relationship with stakeholder sand implement some planning that will encourage the business understanding also

Figure 2: Critical success factors in business practice

(Source: Created by Author)

All these factors are liable for the business positioning and sustainable business condition. In case of the long run in business, these factors help to motivate the key responsibilities that ensure the better outcome in business (Ehnert and Harry 2012). Motivated people and employee engagement opportunities are the involvement factors that create business operation and deal with the suitable process in business

Conclusion

Therefore it can be concluded that Sustainable business approach needs to take from the HR lining as external and internal business focus are aligning with the organizational design, validation of support system and commitment to the process and in that case, all the stakeholders' initiation persisted on the importance of business establishment

References

Baumgartner, R.J., 2014. Managing corporate sustainability and CSR: A conceptual framework combining values, strategies and instruments contributing to sustainable development. Corporate Social Responsibility and Environmental Management, 21(5), pp.258-271.

Bennett, E.M., Cramer, W., Begossi, A., Cundill, G., Díaz, S., Egoh, B.N., Geijzendorffer, I.R., Krug, C.B., Lavorel, S., Lazos, E. and Lebel, L., 2015. Linking biodiversity, ecosystem services, and human well-being: three challenges for designing research for sustainability. Current Opinion in Environmental Sustainability, 14, pp.76-85.

Blackburn, W.R., 2012. The sustainability handbook: The complete management guide to achieving social, economic and environmental responsibility. Routledge.

Daily, j.e., Kieff, f.s. and Wilmarth jr, a.e., 2014. Introduction. In Perspectives on Financing Innovation (pp. 13-16). Routledge.

Daniel, T.C., Muhar, A., Arnberger, A., Aznar, O., Boyd, J.W., Chan, K.M., Costanza, R., Elmqvist, T., Flint, C.G., Gobster, P.H. and Grêt-Regamey, A., 2012. Contributions of cultural services to the ecosystem services agenda. Proceedings of the National Academy of Sciences, 109(23), pp.8812-8819.

Ehnert, I. and Harry, W., 2012. Recent developments and future prospects on sustainable human resource management: Introduction to the special issue. Management revue, pp.221-238.

Gleeson, T., Alley, W.M., Allen, D.M., Sophocleous, M.A., Zhou, Y., Taniguchi, M. and VanderSteen, J., 2012. Towards sustainable groundwater use: setting long?term goals, backcasting, and managing adaptively. Groundwater, 50(1), pp.19-26.

Starik, M. and Kanashiro, P., 2013. Toward a theory of sustainability management: Uncovering and integrating the nearly obvious. Organization & Environment, 26(1), pp.7-30.