OIT - Productivity and decent work

 ILO Brief 1

Productivity and decent work:  Research Brief

May 2026

Productivity and decent work: Achieving synergies between social and economic dimensions at the enterprise level1

 Enterprises should better understand and further develop links between the functions of human resource management and corporate social responsibility that can be mutually reinforcing.  Businesses can be more innovative in identifying opportunities to create synergies between their economic and social goals to fulfil their corporate social responsibility.  Trade unions can play a positive role in facilitating enterprises to adopt decent work and productivity enhancement initiatives, aligning the interests of business and workers more closely.  Governments at all levels can support enterprises to balance their economic and social performance by setting regulatory standards, providing policy incentives, and promoting organizational transparency.  Research can help identify pain points for enterprises as well as examples of good practices for dissemination across national boundaries and industrial sectors. This research brief outlines the relationship between corporate social responsibility (CSR) and human resource management (HRM) corporate functions in contributing to enterprises’ economic and social performance, exemplified by enhanced productivity and de cent work. It provide s a brief overview of current research on the topic and highlights several areas for future research.

1 By Fang Lee Cooke, Professor of Human Resource Management and Asia Studies, Monash Business School, Monash University, Melbourne, Australia. And Nikolai Rogovsky, Senior Economist, Research and Statistics Department, International Labour Office, Geneva, Switzerland. Introduction The relationship between productivity and decent work is a key question for achieving sustainable development and social justice goals. These goals are impossible to meet without productive and sustainable enterprises that are able to achieve higher levels of productivity through the “high road” approach characterized by decent work and social dialogue. A “high road” approach is driven by a Key points ILO Brief 2

Productivity and decent work:

without productive and sustainable enterprises that are able to achieve higher levels of productivity through the “high road” approach characterized by decent work and social dialogue. A “high road” approach is driven by a Key points ILO Brief 2

Productivity and decent work: combination of policy measures and responsible corporate practices. Such practices aim to increase corporate productivity and decent work, while also accounting for societal needs, given the important role of business in social and economic development. This approach requires synergies to be developed between corporate management and sustainability functions. This research brief aims to summarize the current state of research on this topic and identify research gaps to be filled by future research, with policy implications.

Background Sustainable enterprises refer to those whose activities are based on a “triple bottom line” approach. This approach has enterprises simultaneously prioritizing economic, social and environmental performances (Elkington, 2018; LopezCabrales and Valle-Cabrera, 2020). For the purpose of this brief, we focus on the economic and social dimensions. Economic performance , as measured by productivity and other economic and financial indicators, is improved by the successful implementation of sound management policies and practices .2 Many of these policies and practices are contributing to what the International Labour Organization (ILO) defin es as “high road to productivity.” This means that economic success is achieved through better working conditions, decent wages, access to training and development, employee involvement, safety and health measures, and, most importantly, respect for workers’ rights to collective bargaining and freedom of association. At the corporate level, these policies and practices are mainly developed and implemented by the HRM function within organizations.3 It is important to stress in this context that the role of HRM extends beyond the HR department and involves line managers , workers, and other stakeholders . For example, line managers play an important role in hiring and managing operational activities, while workers contribute to work organization

function within organizations.3 It is important to stress in this context that the role of HRM extends beyond the HR department and involves line managers , workers, and other stakeholders . For example, line managers play an important role in hiring and managing operational activities, while workers contribute to work organization through their participation in productive behaviour, quality circles, and various gain-sharing initiatives.

2 See, for example, Cooke and Rogovsky (2025). 3 It is important to note that in this brief, we adopt a traditional approach to HRM and therefore are not focusing on the issues related to freedom of association and collective bargaining that are broader than HRM. 4 There are a number of current studies that look at transformation from strategic HRM (firm-oriented and profit-driven) to sustainable HRM (society-oriented and value-based). See Cooke (2025) for an overview. At the same time, the social dimension is closely related to the CSR function, which is now often called the corporate sustainabilit y function (Gond et al., 2022). The European Commission (EU, n.d.) defines CSR as “the responsibility of enterprises for their impacts on society.” This requires companies to integrate social, environmental, ethical, human rights, and consumer concerns into their core strategy and operations in close collaboration with stakeholders. In this formulation , the social, ethical, and human rights dimensions of CSR are closely related to decent work, which the ILO argues can improve productivity in the long term. This represents a “high road” approach to HRM, as it treats the workers with fairness and dignity while granting employees voice and the right to organization and representation. Although both economic and social functions have the same scope and cover all employees, they were traditionally viewed by senior management as separate, and coordination between them was rare. However, in recent years, a clear trend towards a “sustainable enterprise” model that creates synergies between these two dimensions has emerged . In principle, improved productivity enables firms to invest in human capital

traditionally viewed by senior management as separate, and coordination between them was rare. However, in recent years, a clear trend towards a “sustainable enterprise” model that creates synergies between these two dimensions has emerged . In principle, improved productivity enables firms to invest in human capital development and better working conditions, which, in turn, will increase workers’ motivation, skills, work efficiency, and intention to stay with the firm. They may also go the extra mile to demonstrate organizational citizenship behavio ur, such as making suggestions to reduce operational costs and acting in a more environmentally friendly way, which would help achieve the firm’s other performance goals. In practice, this joining of social and economic functions is also related to the simultaneous development of employee-focused CSR and the social dimension of HRM; the former is related to socially responsible HRM practices (e.g., providing decent work), and the latter refers to how the enterprise uses HRM practices to carry out their CSR externally (e.g., giving employees time off to do charity work).4 Cross-national supply chain management presents an example. In managing supply chains, enterprises may deal with a large number of non -employee workers. However, both public opinion and the legal framework often hold enterprises responsible for these workers. One ILO Brief 3

Productivity and decent work: way to address this is to develop a nd introduce corporate codes of conduct that mandate the enterprises’ suppliers to apply certain HR -related conditions for their employees, often well beyond legal requirements in their countries.

This is an example of how a CSR -driven product (a code of conduct) developed by the buyer company ’s CSR department leads to HR actions in the supplier company (c.f., Gond et al., 2022) . Bruton et al. (2025) examined how a leading MNE balanced market and social objectives through an inclusive supply chain, that is, the purposeful inclusion of specific under -represented groups, in its Mexican business unit. They found that the MNE was able

a leading MNE balanced market and social objectives through an inclusive supply chain, that is, the purposeful inclusion of specific under -represented groups, in its Mexican business unit. They found that the MNE was able to manage both dimensions successfully, despite the prioritization of the economic dimension. A similar approach applies when the company assumes responsibility for workers employed by temporary employment agencies or hired for short-term assignments via job platforms. The relationship between HRM and CSR in this context could be grounded in a shared understanding of the principles that underpin both HRM and CSR policies and practices. Such common principles are reflected in the spirit of a number of ILO International Labour Standards, which are often referenced in the staff regulations (for corporate employees) and codes of conduct (for workers in supply chains, temporary workers, etc.). These and other related trends in the business world have recently attracted the attention of the academic community. Voegtlin and Greenwood (2016), Gond et al . (2017), Xiao et al. (2020), and Ren et al. (2023) have provided comprehensive reviews of publications in recent decades that examined the relationships between CSR and HRM functions and the implications they have for corporat e responsibilities, social sustainability, and social justice. These publications also highlighted research gaps that need to be filled. We will highlight three key gaps below. Research gaps and suggestions

1. Geographical coverage. Most publications on CSRHRM have focused on countries in the Global North and on firms from those countries .

However, over the last decade, Asia has also become a strong focus of analysis. At the same

5 Greiner et al. (2025, 1) hold that political CSR occurs when MNEs “engage in activities that were often perceived as functions of government.” The authors also found that “firms appear to engage in political CSR to generate a benefit for themselves rather than out of a commitment to corporate citizenship” (Greiner et al. 2025, 2).

The authors also found that “firms appear to engage in political CSR to generate a benefit for themselves rather than out of a commitment to corporate citizenship” (Greiner et al. 2025, 2). time, HRM -CSR studies covering South America, Africa, and other parts of the Global South are very limited. This trend is related to differences in how important CSR is considered by public opinion in various countries and geographical areas. The scarcity of studies on Asia, South America, and Africa prevents a comprehensive understanding of how CSR and HRM intertwine across diverse economic, cultural, legal, and political contexts. Future research should aim to fill in some gaps in North American and Europ ean CSR -HRM frameworks by providing examples and case studies from other parts of the world. Special attention should be paid to global supply chain management, where, as we stated earlier, CSR and HRM functions can closely interact to ensure decent labour standards and eliminate exploitative practices. It is here that multinational enterprises (MNEs) are exposed to diverse, and often competing, institutional, political, ideological, and cultural pressures from home and host countries that are often hard to reconcile and that make the adoption of CSR difficult. It is equally difficult to identify the key challenges and outcomes in this regard. For example, Reinecke and Donaghey’s (2021) study of the Bangladesh garment sector reveals how the international entities that promote high labour standards work with the v arious stakeholders at different levels to legitimize their political CSR initiatives (e.g., workplace democracy). 5 By contrast, Huq’s (2019) study of the same sector documented how local actors (e.g., grassroots unionists and workers) express concerns and enumerate examples of possible responses that have been ignored and suppressed, highlighting the role of host cou ntry governments in shaping their labour regimes and HRM practices in order for the country to secure its position in the global

documented how local actors (e.g., grassroots unionists and workers) express concerns and enumerate examples of possible responses that have been ignored and suppressed, highlighting the role of host cou ntry governments in shaping their labour regimes and HRM practices in order for the country to secure its position in the global garment supply chain. T wo studies on the same issue in the same garment sector highlight how different research angles and stances adopted by the researchers will reveal different sides of the story. For the Western researchers, they focus on ILO Brief 4

Productivity and decent work: the top level of the management and present a success story of how the managers succeeded (i.e. « the victor »). In contrast, the second study was conducted from the grassroots workers’/labo ur activists’ perspective, finding that their interests circumvented. In other words, it is the story of « the conquered ».

Cross-country differences are important to understand when it comes to the roles of governments and social partners along the global supply chain (see Point 3 below), as national priorities, ethical principles, and views of CSR differ. Although in the global supply chain, companies are under pressure/incentives to comply with the global framework, with key performance indicators as demonstrative outcomes of the Code of Conduct for social audits, not all firms are exposed to, or at the same level of exposure to, social audits and global supply chain governance. Local actors still have considerable autonomy as to whether, and how, they assume their CSR. Moreover, many global buyer firms are primarily interested in demonstrable evidence (e.g., certificates, evidence of unionization) that the supplier meets the CSR target without getting involved in how the targets are met or whether they have truly benefited the workers. Therefore, motivations, incentives, means and processes of CSR differ across countries, so do the outcomes for workers. Future research should capture these global

supplier meets the CSR target without getting involved in how the targets are met or whether they have truly benefited the workers. Therefore, motivations, incentives, means and processes of CSR differ across countries, so do the outcomes for workers. Future research should capture these global tensions and local struggles to reveal how the respective power of different institutional actors plays out, how they impinge on MNEs’ legitimacy in the eyes of diverse stakeholders (Kirste, 2024), and the extent to which there are genuine gains for workers, especially those at the bottom of the supply chain.

2. Relationships between CSR and HRM. Current research is dominated by two distinct approaches.

Some studies view HRM as an element of CSR ,

6 However, an example of such an integrative approach could be found in the publications on “green HRM” and “sustainable HRM” that specifically target environmental sustainability (Jackson et al., 2011; Ren and Jackson, 2020; Ren et al., 2023). These publications are based on two assumptions: 1. HRM practices elicit workers’ ability, motivations and opportunities that contribute to sustainability, which is a key organizational outcome; and 2. Employers can proactively develop HRM practices to address societal demands. while others view CSR as an element of HRM. The former mainly focuses on the ethical dimension and/or on the social aspect of HRM, which contributes to CSR. Ethical HRM practices are often viewed as an enabler of CSR (a top -down approach). Adopting an employee suggestion scheme is also seen as contributing to CSR, as it gives workers a voice that helps enhance the company’s social and environmental goals, which will, in turn, contribute to improving its economic performance, although few studies in this category (i.e., HRM as an element of CSR) focus on economic performance. By contrast , the latter views CSR as a strategic tool for enhancing effective HRM and therefore focuses on the

will, in turn, contribute to improving its economic performance, although few studies in this category (i.e., HRM as an element of CSR) focus on economic performance. By contrast , the latter views CSR as a strategic tool for enhancing effective HRM and therefore focuses on the economic dimension (a bottom-up approach). For example, the enterprise’s CSR reputation and practices could help attract, retain, and motivate talent. Few studies , however, emphasize an integrative, synergetic HRM-CSR approach.6 Xiao et al. (20 20) developed a conceptual framework (see figure 1) that explores how CSR and HRM can jointly, through CSR strategy and HRM strategy, policies and practices, contribute to favourable societal outcomes (e.g., employment creation, social stability, and environmental protection), organizational outcomes (e.g., enterprise reputation and financial performance) and individual outcomes (e.g., j ob satisfaction, organizational commitment, and employee wellbeing). They also illustrate the role of contexts at the macro, meso, and micro levels in influencing CSR-HRM strategy, policy and practice, and vice versa, as dynamic relationships. Future research should aim to test this model by examining quantitative data and case studies to shed light on how these two functions may create synergies within the framework of sustainable enterprise (with emphasis on developing countries, where information is lacking). ILO Brief 5

Productivity and decent work:  Figure 1. An integrative framework for CSR-HRM research

Source: Xiao et al. (2020, 10)

3. Roles of communities, governments and trade unions There are several studies that explain the growing importance of CSR for firms in light of shifting power relations between business organizations, trade unions and government towards a more prominent role played by business, due to such megatrends as globalization and polycrisis (Cooke and Wood, 2026; Luo and

growing importance of CSR for firms in light of shifting power relations between business organizations, trade unions and government towards a more prominent role played by business, due to such megatrends as globalization and polycrisis (Cooke and Wood, 2026; Luo and Tung, 2025). The increased power of MNEs has led to renewed interest in examining how businesses can be structured as forces for good, such as by requiring a social license to operate (Chua et al., 2024; George et al., 2023; McPhail et al., 2024). We would like to note that the concept of ‘social license to operate’ refers to the perceived legitimacy of a business, or informal approval by its broad ILO Brief 6

Productivity and decent work: stakeholders, especially the public and the local communities. As the Australian Institute of Company Directors (n.d.) states, ‘[the] concept of social licence to operate has become increasingly important for organisations across all sectors in recent years’ as public trust in institutions and businesses declines arou nd the world, and ‘companies must work harder to earn and maintain the approval of their stakeholders and communities’. In the context of labour relations, this means providing decent work for workers and structuring CSR for the greater benefits of communities and society at large. More research is needed to understand how firms are granted such a license in various sectors and countries. This includes community ’approval’ that can result in a mutually beneficial relationship between business and community. For example, firms’ support for the local communities and skill development can help build a pool of skilled labour for the businesses, and grassroots -level innovations can improve firms’ economic performance.

The role of government as one of the major enterprise stakeholders remains critical in promoting productivity and decent work by setting regulatory standards, providing policy incentives, and promoting organizational transparency . Like businesses, governments must balance between economic prosperity and social development.

improve firms’ economic performance. The role of government as one of the major enterprise stakeholders remains critical in promoting productivity and decent work by setting regulatory standards, providing policy incentives, and promoting organizational transparency . Like businesses, governments must balance between economic prosperity and social development. Government regulation and policy initiatives have often been designed and implemented on a trialand-error basis ( Pourrezzat, 2021) . This incrementalism may help governments refine their regulation and policies to be more effective in response to the complexity of social systems. In developing countries, regulatory frameworks and policy incentives are often introduced at the local or industry -specific level. This not only creates flexibility but also leads to opportunistic behaviour in implementation, as local actors can design, interpret and implement the regulation to suit their local conditions, often in favour of businesses (e.g. Cooke, 2011). Future research should examine how governm ent policy, including local government actions, can help enterprises improve the functions of corporate social responsibility/sustainability and human resource management that, in turn, might contribute to businesses’ economic and social performance. Future research may also explore how the national government can prevent opportunistic behaviour by local governments and what institutional and policy innovations may be adopted to promote social and economic goals. Moreover, just like the firms, governments need to demonstrate their responsibility in improving the economic and social well -being of workers employed in their administration. Governments might further their economic and social goals by seeking firms’ experience with CSR policy that could help contribute to decent work and improved productivity in government work. Given the perceive d trade -off between economic and social performance, governments may focus on the former at the expense of the latter. Future research should examine how governments learn from business when introducing HRM and CSR policies for their employees. Another important aspect of further strengthening of CSR and HRM functions and their synergies is

social performance, governments may focus on the former at the expense of the latter. Future research should examine how governments learn from business when introducing HRM and CSR policies for their employees. Another important aspect of further strengthening of CSR and HRM functions and their synergies is the role of trade unions. Trade unions have long been a driving force for promoting fair wages, workplace health and safety, flexible work arrangements, and other HRM practices to improve workers’ working conditions and employment outcomes. All these have a broader societal impact. However, the involvement of trade unions in CSR initiatives remain insignificant. For example, Zientara et al. (2025 : 2749) analysed “81 CSR reports from US and European hospitality and tourism companies ” and found that most companies did not mention unions at all, some only made passing references, such as employees’ rights to freedom of association, and only a minority provided “detailed information that covers various aspects of union relations, including the number of unionized employees and the company’s framework for interacting with unions.” In general, Zientara et al.’s (2025) study suggests the limited involvement of trade unions in CSR. This is perhaps because many CSR initiatives are company-led, some involving the appointment of a CSR manager, and are intended as strategic tools for reputation management or external stakeholder engagement. By contrast, trade unions are seen as prioriti zing workers’ economic ILO Brief 7

Productivity and decent work: gains, often presenting a challenge to the company.

Moreover, trade unions may view the discretionary nature of CSR (which is always stressed as ‘voluntary’) as camouflage for continuing to violate workers’ rights rather than a means to improve employment relations and workers’ employing terms and conditions through collective bargaining (e.g., Anner, 2012; ILO, 2003) . Trade unions have also been critical of the

‘voluntary’) as camouflage for continuing to violate workers’ rights rather than a means to improve employment relations and workers’ employing terms and conditions through collective bargaining (e.g., Anner, 2012; ILO, 2003) . Trade unions have also been critical of the environmental, social and governance framework, which they view as overly focused on financial outcomes rather than impacts on workers. At the same time, trade unions can play a pivotal role in CSR -HRM. For example, unions could be influential with regard to the development and implementation of private initiatives such as corporate codes of conduct in making sure that the workers have proper channels to express their support for or dissatisfaction with v arious corporate policies and practices including the ones that have impact on the environment and society, and in developing their own CSR strategies that become part of the social dialogu e (Gond et al., 2022). Trade unions can also play a broader role in promoting CSR initiatives, both in the workplace and more generally in society, by collaborating with CSR managers and companies to promote good corporate citizenship in communities. Future research can examine the role of trade unions, including new initiatives they may have to promote decent work and productivity through the CSR lens. Research in this light will not only contribute to revit alizing labour relations research but also provide material evidence for the legitimacy and critical role of trade unions as key labour organizing bodies. Conclusion Productivity and decent work can be seen as a symbiotic ecosystem. In this research brief, we outline the relationship between CSR and HRM in contributing to enterprises’ economic and social functions, exemplified by enhanced productivity and decent work. We provide a simplified overview of current research on the topic and highlight several areas for future research. We believe that businesses, trade unions and governments can all play a critical role in promoting good labour relations via CSR and ethical HRM. Promoting CSR with trade union support can

enhanced productivity and decent work. We provide a simplified overview of current research on the topic and highlight several areas for future research. We believe that businesses, trade unions and governments can all play a critical role in promoting good labour relations via CSR and ethical HRM. Promoting CSR with trade union support can help firms enhance their credibility and reputation. Future research in this area will help policy makers and enterprise managers (particularly in developing countries) better understand how enterprises can improve their economic and social performance through more closely aligned HRM and CSR practices.

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