The relationship between corporate social responsibility (CSR) and human resource management (HRM): A study of multinational companies (MNCs) and supply chain companies in the Thai automobile industry

The automobile industry in Thailand began to receive government support in 1960s (TAPMA, 2014). By 2012, the industry in Thailand had been developed to such an extent that it now stands within the top ten locations for car manufacturers in the world (Pisitpattanapong, 2012). However, the path to this accomplishment, though widely supported, has also been beset by a multitude of challenges. Some multinational companies and supplier companies within the industry claim to have addressed pressing environmental and social problems. Such problems, left unchecked, have the potential to obstruct the development of the automobile industry in terms of efficiency, production technology, raw material imports, and workforce challenges, and especially in attracting and developing skilled labourers and engineers. This thesis addresses the workforce challenges, which fall under the responsibility of the human resource management (HRM) departments. This study examines the nature of the existing HRM departments in the industry, and their practices, as well as current understanding of key players at companies concerning the connections between the HRM department and corporate social responsibility (CSR) in the industry. The research questions, for empirical research, were framed as follows: • What are the interpretations and perceptions of CSR, HRM and sustainable HRM of companies operating in Thailand? • What are the CSR practices of companies operating in Thailand? • What are the interpretations and perceptions of the relationship between CSR and HRM of companies operating in Thailand? • What are the roles that HRM plays in CSR for companies operating in Thailand? • What are the factors that shape the interpretation of, and engagement in, CSR? • What is the role of CSR in HR department of companies operating in Thailand? This means that alternative HRM functions and roles and CSR theories, especially concerning social issues, are used as part of the theoretical base for this study. HRM functions, activities, and roles help to explain the position of car companies as regards the relationship between CSR (in terms of human beings) and company benefits, with resources being critical in the purpose of the balance between people satisfaction and company profits. Moreover, one significant purpose of this study is also compare the relationship between CSR and HRM as currently practised and how it is understood at domestic and multinational companies. The study was both quantitative and qualitative, and involved interviews with and surveys of employees in the different automobile companies that comprise the industry in Thailand (car manufacturers, auto part companies). Participants consisted of both supplier companies and multinational companies. The gathered quantitative and qualitative data was analysed via thematic analysis, with the aim of finding out how the responses provided by respondents could provide insights into their perceptions, experiences and actions to explain related phenomena. The objective of this thesis is to utilise CSR in the HRM model, whereby the HRM department can implement CSR in their functions, activities and roles. For the varying objectives that can be achieved as outcomes, certain methods are applied appropriately to explain the relationships between human resource management and CSR. This model is clarified through interview transcripts, questionnaires, data from company websites, CSR reports, sustainability reports, and annual reports, which influence these relationships as reflected by the different features of these resources. The findings show that such dynamic relationships are also established by the management teams through the CSR activities undertaken by the automobile companies operating in Thailand. Thus, CSR is often viewed in the country by human resource management departments as consisting of social requirements. The study asserts that the definition and identification of CSR in human resource management should not be based on their relationships with the firm, but on their CSR activity relationships with society and its resources. This should be considered the most important point. This study makes significant contributions to knowledge, especially in relation to the advancement of human resource management and CSR debate and theory. However, the study also highlights the different challenges and complexities of managing human forces in companies that might not be directly related to CSR due to internal constraints or differing perceptions of their place in society. Insight into these situations also provides valuable information for companies wishing to deploy management visions, HRM strategies, regulations, and CSR awareness among human resource staff