Hr in Sustainability

COLOGNE BUSINESS SCHOOL (CBS)

CSR in Human Resource Management

Term paper for "Corporate Social Responsibility"

Winter Semester 2015

Lecturer: Prof. Dr. Rene Schmidpeter

Anastasiia Kukova

MA 15 in International Business / Financial Management

Student-No. 1155500010

List of contents

1. Competition and choice 1

2. People and skills 2

3. Competing for people 4

3.1. McDonalds Case 7

4. Conclusion 9

5. References 10

6. Affidavit 12

1. Competition and choice

For the past years competitiveness has risen both in respect of product markets (markets for goods and services) and in the financial field (gaining access to capital). Because of that, customers are becoming more and more demanding, and it is becoming more and more difficult for the companies to gain these consumers. In addition, the costumers are not as loyal as they were before. At the same time, shareholders (investors) have placed managers under real pressure for insurance of swift and good return. Moreover, we can expect that this pressure will grow in the future. We can assert that Human Resources Management is increasingly affected by competitive intensity, which is growing

(Taylor, 2011, p.15).

There are some ways of measuring the extent of competitive intensity, but none of them is accurate enough. Many economists use the Herfindahl index (it shows the measure of industry concentration), but it is also unsatisfactory. Therefore, there are two approaches, which are used for measuring the increasing level of competition in product market.

First, proxy measures could be used. By their own, these measures are not sufficient enough for describing competitive intensity, but when you examine them collectively it makes sense. There are many examples of such measures: increase in the extent of churn in “industry membership” and of “discounting” (price reductions), increase in the length of time that episodes of financial instability last, etc.

(McNamara, Vaaler and...