Ethical HRM and Corporate Social Responsibility (CSR) in Sri Lanka

Introduction

Ethical Human Resource Management (HRM) and Corporate Social Responsibility (CSR) are increasingly central to Sri Lanka’s corporate identity. As public expectations rise and stakeholders demand accountability, organizations from banks and hotels to apparel factories and ICT firms are realigning HR practices with ethical principles and CSR goals. This shift reflects a broader belief that doing business responsibly strengthens reputation, employee morale, and long-term performance (Arulrajah, 2016).

Ethical HRM in Sri Lanka means embedding fairness, transparency, and respect into recruitment, reward, grievance handling, and leadership development. Studies show that when HR shapes an ethical climate through codes of conduct, clear disciplinary procedures, and ethics training employee trust and discretionary effort rise (Mithulan, 2023). For example, firms that openly communicate career pathways and apply consistent promotion criteria reduce perceptions of favoritism and build organizational commitment (Arulrajah, 2016).

CSR in the Sri Lankan context often blends community development, environmental stewardship and employee welfare. Large groups such as John Keells, commercial banks and agribusiness firms run programmes that support education, health and sustainable livelihoods; these efforts both respond to community needs and provide meaningful engagement opportunities for staff (Tilakasiri, 2013). Recent examples from the banking sector show employee-led environmental initiatives and targeted CSR projects that strengthen internal culture while improving external stakeholder relations (EconomyNext, 2024).

Connecting ethical HRM with CSR produces tangible benefits. Ethical HR practices help recruit and retain staff for CSR activities, while CSR successes reinforce the employer brand and employee pride. Yet challenges remain: inconsistent CSR reporting, limited integration of CSR into core strategy, and gaps in ethics education for line managers (Tilakasiri, 2013). Small and medium enterprises in rural areas often lack resources to implement robust CSR or formal ethics programmes, making partnerships with NGOs and local government vital.


To advance, Sri Lankan organizations should formalize ethics training within HR development, standardize CSR impact measurement, and create employee participation channels that align workplace values with community initiatives. Governance mechanisms, clear oversight by boards, and transparency in reporting are necessary to ensure CSR is not a public relations exercise but a strategic, ethical commitment (Mithulan, 2023).

Conclusion
Ethical HRM and CSR together can transform Sri Lankan organizations into responsible, resilient employers. When ethics shape everyday HR decisions and CSR is integrated into business strategy, companies benefit from stronger employee engagement, better stakeholder trust, and sustainable value creation. The future belongs to firms that treat responsibility as core business, not optional charity.

References 

Arulrajah, A.A. (2016) ‘Contribution of Human Resource Management in Creating and Sustaining Ethical Climate in the Organisations’, Sri Lankan Journal of Human Resource Management. Available at: https://sljhrm.sljol.info/articles/5626/files/submission/proof/5626-1-20049-1-10-20161111.pdf

Tilakasiri, K.K. (2013) ‘Corporate Social Responsibility and Social, Economic and Environmental Development in Sri Lanka’, Kelaniya Journal of Human Resource Management. Available at: https://kjhrm.sljol.info/articles/10.4038/kjhrm.v8i2.5

EconomyNext (2024) ‘Beyond Business: NDB’s CSR strategies and employee-led environmental initiatives’, EconomyNext. Available at: https://economynext.com/video/beyond-business-ndbs-csr-strategies-and-employee-led-environmental-initiatives/

Comments

  1. CHARUNDYA WICKRAMASINGHENovember 19, 2025 at 8:48 AM

    Great blog post. Ethical HRM and CSR are powerful drivers for creating responsible and resilient organizations. By integrating ethics into HR decisions and making CSR part of the business strategy, companies can build stronger trust, higher engagement, and long-term sustainability.

    ReplyDelete
  2. Harshani WeerakoonNovember 20, 2025 at 2:50 AM

    I totally agree with your post, and my opinion also supports ethical corporate social responsibility (CSR) means that businesses are dedicated to running their operations in a way that is ethical, sustainable, and helpful to society and the environment.

    ReplyDelete
  3. Nilanka HerathNovember 21, 2025 at 5:47 AM

    Great blog! It effectively highlights how ethical HRM and CSR are intertwined in Sri Lanka, emphasizing their role in building trust, engagement, and sustainable value. The practical examples and recommendations make it highly relevant for organizations aiming to integrate ethics and social responsibility into core business practices.

    ReplyDelete
  4. Dilmini WanigasekaraNovember 21, 2025 at 11:14 PM

    This is a very timely discussion. Ethical HRM is no longer just a best practice. it’s a necessity in the Sri Lankan context where transparency and fairness are becoming key expectations from employees and the public.

    ReplyDelete
  5. DayanNovember 26, 2025 at 8:16 AM


    This article effectively makes the case that ethical HRM and CSR are not separate initiatives but are fundamentally intertwined. It correctly positions them as a strategic imperative for building trust, enhancing employer branding, and ensuring sustainable success. The focus on moving beyond charity to integrate ethics and responsibility into core business strategy and daily people management practices is precisely the mindset needed for long-term resilience and positive impact in Sri Lanka.

    ReplyDelete
  6. Hanaa LatheefDecember 12, 2025 at 7:25 PM

    This blog provides a comprehensive and insightful discussion on the integration of Ethical HRM and CSR in Sri Lanka. It effectively highlights how embedding ethics into HR practices and linking them with CSR initiatives can enhance employee engagement, organizational reputation, and long-term sustainability. The inclusion of practical examples from banking, apparel, and agribusiness sectors strengthens its relevance, while addressing challenges such as inconsistent reporting and SME limitations adds depth. Overall, it presents a strong case for making ethics and CSR strategic priorities, not mere compliance or PR activities.

    ReplyDelete

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