HR can prevent repeat of another WorldCom

first_img Comments are closed. The CIPD believes the WorldCom crisis illustrates the need for HR to becomemore involved in corporate social responsibility. Last week the communications company announced that 17,000 jobs would go –including 150 from its 4,000-strong UK workforce – after a US$3.8bn fraud ledto a massive slump on worldwide stock exchanges. Chief economist at the CIPD John Philpott urged HR professionals to takecontrol of corporate social responsibility to ensure companies are not drivenpurely by short-term shareholder return. “It [the WorldCom crisis] has an implication on corporategovernance,” said Philpott. “HR should be at the centre of theseissues. It must get involved with corporate social responsibility as somefrauds are linked to obtaining short-run shareholder return. “HR has to concentrate on making employers look to the long-term andtreat staff better as that is the way to maximise long-term shareholder valueand profits.” Philpott said WorldCom’s HR team must now work to change the organisation’swork culture to rebuild the trust of both employees and shareholders. “WorldCom must demonstrate it is now above board to employees,shareholders and customers and that it can be a trusted organisation,” hesaid. “The HR team’s role is to step in where others have failed.” Related posts:No related photos. Previous Article Next Article HR can prevent repeat of another WorldComOn 2 Jul 2002 in Personnel Todaylast_img

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