The Impact of Human Resource Management on Corporate Social Performance Strengths and Concerns

Although high-performance human resource practices do not directly affect corporate social performance (CSP) strengths, they do positively affect CSP strengths in companies that are highly innovative or have high levels of slack. High-performance human resource management (HRM) practices also directly and negatively affect CSP concerns. Drawing on the resource-based view and using secondary data from an objective, third-party database, the authors develop and test hypotheses about how high-performance HRM affects a company's CSP strengths and concerns. Findings suggest that HRM and innovation are important capabilities because they create and enhance other capabilities.