Applying a company stakeholder responsibility approach to HR management: the external human resources model

This paper uses a Stakeholder Theory perspective to investigate the phenomenon of External Human Resource Management (EHRM) by amalgamating the concepts of Company Stakeholder Responsibility and Strategic and International HRM. We propose a theoretical model based on a literature review, interviews and focus groups to support the emergence of an HRM approach to external resources. Global and complex supply chains are used to develop our study, such as the coffee supply chain where we demonstrate that vulnerable and low-power stakeholders can turn into valuable and talented external human resources, through specific initiatives of Company Stakeholder Responsibility. Our model illustrates the benefits of adopting such an approach on stakeholder engagement among vulnerable and low-power stakeholders. We discuss that embracing a stakeholder relational approach based on engagement is key to favouring self-initiatives, cooperative strategic posture, fair relationships in the society, and attributing social legitimacy to the company. These factors are vital to make vulnerable stakeholders evolve into external human resources, effectively collaborating with the company.