Skip to main content
Log in

Is Strategic Human Resource Management Socially Responsible? The Case of Wegmans Food Markets, Inc.

  • Published:
Employee Responsibilities and Rights Journal Aims and scope Submit manuscript

Abstract

In 2005, Wegmans Food Markets Inc., the family-owned supermarket chain, was awarded the number one spot on the Fortune “100 Best Companies To Work For.” Wegmans’ recognition illustrates an exemplary case of strategic human resource management embedded in an overall culture of social responsibility, amidst a highly competitive and low margin industry. We detail Wegmans’ human resource practices and its overall stakeholder orientation, arguing that the treatment of employees as strategic assets constitutes an effective approach to social responsibility. In other words, strategic human resource management can help organizations reconcile the often cited conflict between profits and principles. We therefore begin with an overview of the contemporary supermarket industry, provide a brief history of Wegmans, and showcase the supermarket chain’s human resource practices. In closing, we discuss Wegmans’ stakeholder orientation and comment on the divide between strategic human resource management and social responsibility research.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • AFL-CIO (2005). Living & minimum wage: What’s the difference between a living wage and the minimum wage? In American Federation of Labor/Congress of Industrial Organizations. http://www.aflcio.org/ (Accessed online: August).

  • Anonymous (1996). Education efforts. Progressive Grocer, 75, 32D.

  • Anonymous (2003). Wegmans Food Markets: IAFP 2003 Black Pearl Award Winner. Food Protection Trends (November), 902–903.

  • Appelbaum, S. H., Delage, C., Labib, N., & Gault, G. (1997). The survivor syndrome: Aftermath of downsizing. Career Development International, 2(6), 278–288.

    Article  Google Scholar 

  • Associates, P. (2001). Supermarket strategic alert special report: Supermarkets & their employees. New York: Pollack Associates.

  • Backhaus, K. B., Stone, B. A., & Heiner, K. (2002). Exploring the relationship between corporate social performance and employer attractiveness. Business and Society, 41(3), 292–318.

    Article  Google Scholar 

  • Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.

    Article  Google Scholar 

  • Barney, J. B., & Wright, P. M. (1998). On Becoming a Strategic Partner: The Role of Human Resources in Gaining Competitive Advantage. Human Resource Management, 37(1), 31–46.

    Article  Google Scholar 

  • Barney, J., Wright, M., & Ketchen D. J., Jr. (2001). The resource-based view of the firm: Ten years after 1991. Journal of Management, 27(6), 625–641.

    Article  Google Scholar 

  • Becker, B. E., & Huselid, M. A. (1999). Overview: Strategic human resource management in five leading firms. Human Resource Management, 38(4), 287–301.

    Article  Google Scholar 

  • Becker, B. E., Huselid, M. A., Pickus, P. S., & Spratt, M. F. (1997). HR as a source of shareholder value: Research and recommendations. Human Resource Management, 36(1), 39–47.

    Article  Google Scholar 

  • Bhatnagar, P. (2005). The Darwinian world or retailing: Merger frenzy gains steam as retailers battle Wal-Mart, other discounters, but is that good for you? In CNN Money. http://www.money.cnn.com (Accessed online: July).

  • Black, L. D., & Härtel, C. E. J. (2004). The five capabilities of socially responsible companies. Journal of Public Affairs, 4(2), 125–144.

    Article  Google Scholar 

  • BLS (2004). National Industry-Specific Occupational Employment and Wage Estimates: Grocery Stores. In U.S. Department of Labor – Bureau of Labor Statistics. http://www.bls.gov/ (Accessed online: August).

  • Boyle, M. (2005). The Wegmans way. Fortune (January 24), 62.

  • Bruton, G. D., Keels, J. K., & Shook, C. L. (1996). Downsizing the firm: Answering the strategic questions. Academy of Management Executive, 10(2), 38–45.

    Google Scholar 

  • Buckley, W. (1967). Sociology and modern systems theory. Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Budd, J. W., & McCall, B. P. (2001). The grocery stores wage distribution: A semi-parametric analysis of the role of retailing and labor market institutions. Industrial & Labor Relations Review, 54(2A), 484–501.

    Article  Google Scholar 

  • Buss, D. D. (1999). Know-how in the bank – How to be ready when key employees walk out the door. Wall Street Journal (June 14), p. B9.

  • Cardy, B. (2004). Ethics: Beyond rhetoric and bureaucracy. Academy of Management Newsletter, 28(2), 11–15.

    Google Scholar 

  • Cascio, W. F. (1993). Downsizing: What do we know? What have we learned? Academy of Management Executive, 7(1), 95–104.

    Google Scholar 

  • Case, J. (1995). Open-book management: The coming business revolution. New York: Harper Business.

    Google Scholar 

  • Chandler, G. N., & McEvoy, G. M. (2000). Human resource management, TQM, and firm performance in small and medium-sized enterprises. Entrepreneurship Theory and Practice, 25(1), 43–57.

    Google Scholar 

  • Cheney, S., & Jarrett, L. L. (1998). Up-front excellence for sustainable competitive advantage. Training & Development, 52(6), 45–47.

    Google Scholar 

  • CNN (2005). Winn-Dixie cutting 22,000 jobs: Supermarket retailer closing more than 300 stores as it seeks to bolster results. In CNN Money. http://www.money.cnn.com/ (Accessed online: July).

  • Conley, R. (2004). Discount superstores leave some supermarket chains struggling to survive. Knight Ridder Tribune Business News (May 17), p. 1.

  • Crane, K. (2004). Wegmans celebrates 20 years of helping employees achieve their goals. http://www.wegmans.com/ (Accessed online: January).

  • Cyert, R., & March, J. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  • Daviss, B. (1999). Profits from principle: Five forces redefining business. The Futurist, 33(3), 28–33.

    Google Scholar 

  • Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of Management Journal, 39(4), 802–835.

    Article  Google Scholar 

  • Demby, E. R. (2004). Two stores to refuse to join the race to the bottom. In Workforce Management. http://www.workforce.com (Accessed online: 2004).

  • Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65–91.

    Article  Google Scholar 

  • Economist (2002). Lots of it about: History shows the Anglo-Saxon corporation to be far from heartless. The Economist (December 14), 62–63.

  • Economist (2004). Business: Two-faced capitalism, corporate social responsibility. The Economist (January 24), 59.

  • Economist (2005). The good company. The Economist (January 22), 4.

  • Epstein, E. M. (1999). The continuing quest for accountable, ethical, and humane corporate capitalism: An enduring challenge for social issues in management in the new millennium. Business and Society, 38(3), 253–267.

    Google Scholar 

  • ERS (2005). Food market structures. In Economic Research Service/United States Department of Agriculture Briefing Room. http://www.ers.usda.gov (Accessed online: July 11).

  • Ferris, G. R., Arthur, M. M., Berkson, H. M., Kaplan, D. M., Harrell-Cook, G., & Frink, D. D. (1998). Towards a social context theory of the human resource management-organizational effectiveness relationship. Human Resource Management Review, 8(3), 235–264.

    Article  Google Scholar 

  • FMI (2004). Sales and expense growth during the last decade. In Food Marketing Institute. http://www.fmi.org (Accessed online: July).

  • FMI (2005). Supermarket sales. In Food Marketing Institute. http://www.fmi.org/ (Accessed online: July).

  • Fonda, D. (2003). If this is a boom why does it feel like a squeeze? Time (November 10), 62.

  • Forward, R. (2003a). Supermarket industry under pressure – The challenge has never been tougher (February 25). http://www.retailforward.com/ (Accessed online: July).

  • Forward, R. (2003b). Top 100 retailers worldwide realize slow growth in 2002. In Retail Forward. http://www.retailforward.com (Accessed online: July).

  • Forward, R. (2005). Supermarket companies must make fundamental changes to remain competitive, new retail forward report reveals (June 29). In Retail Forward. http://www.retailforward.com/ (Accessed online: July).

  • Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston, MA: Pitman.

    Google Scholar 

  • Freeman, R. E., & McVea, J. (2001). A stakeholder approach to strategic management. In M. A. Hitt, R. E. Freeman, & J. S. Harrison (Eds.), The blackwell handbook of strategic management (189–208). Malden, MA: Blackwell.

    Google Scholar 

  • Friedman, M. (1970). The social responsibility of business is to increase its profits. New York Times Magazine (September 13), 32–33, 122, 126.

  • Friedman, M. (1998). A windfall for the PSU program. Progressive Grocer, 77, 76.

    Google Scholar 

  • Glinow, M. A. V., Drost, E. A., & Teagarden, M. B. (2002). Converging on IHRM best practices: Lessons learned from a globally distributed consortium on theory and practice. Human Resource Management, 41(1), 123–140.

    Article  Google Scholar 

  • Glynn, M. (2005). Wegmans is no. 1 on Fortune’s list of 100 best companies to work for. Buffalo News (January 11), p. A1.

  • GPTW (2004). Innovations awards. In Great Place to Work Institute. http://www.greatplacetowork.com (Accessed online: 2004).

  • Greene, J., & France, M. (2005). Culture wars hit corporate America. Business Week (May 23), 90–93.

  • Handy, C. (2002). What’s a business for? Harvard Business Review, 80(12), 49–55.

    Google Scholar 

  • Harrison, J. S., & Freeman, R. E. (1999). Stakeholders, social responsibility, and performance: Empirical evidence and theoretical perspectives. Academy of Management Journal, 42(5), 479–485.

    Article  Google Scholar 

  • Hemingway, C. A., & Maclagan, P. W. (2004). Managers’ personal values as drivers of corporate social responsibility. Journal of Business Ethics, 50(1), 33–44.

    Article  Google Scholar 

  • Hiser, J. (1998). Understanding the value of your employees’ knowledge. The CPA Journal, 68(7), 56–57.

    Google Scholar 

  • Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal, 38(3), 635–672.

    Article  Google Scholar 

  • Huselid, M. A., Jackson, S. E., & Schuler, R. S. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal, 40(1), 171–188.

    Article  Google Scholar 

  • Ireland, C. (2005). Activists take on Wegmans. In Rochester Democrat and Chronicle. http://www.democratandchronicle.com (Accessed online: July).

  • Jackson, S. E., & Schuler, R. S. (1995). Understanding human resource management in the context of organizations and their environments. Annual Review of Psychology, 46, 237–264.

    Article  Google Scholar 

  • Kaihla, P. (2004). Acing the exit interview: How to mine the data in your workers’ heads before the best ideas walk out the door. Business 2.0, 5(4), 77.

    Google Scholar 

  • Katz, D., & Kahn, R. L. (1978). The social psychology of organizations (2nd edn.). New York: Wiley.

    Google Scholar 

  • Katzenbach, J. R., & Santamaria, J. A. (1999). Firing up the front line. Harvard Business Review, 77(3), 107–119.

    Google Scholar 

  • Kerr, S. (2004). Executives ask: Is ethical behavior good for the bottom line? Academy of Management Executive, 18(2), 112–113.

    Google Scholar 

  • King, J. E. (2000). White-collar reactions to job insecurity and the role of the psychological contract: Implications for human resource management. Human Resource Management, 39(1), 79–92.

    Article  Google Scholar 

  • Kotler, P., & Lee, N. (2005). Corporate social responsibility: Doing the most good for your company and your cause. Hoboken, NJ: Wiley.

    Google Scholar 

  • Kydd, C. T., & Oppenheim, L. (1990). Using human resource management to enhance competitiveness: Lessons from four excellent companies. Human Resource Management, 29(2), 145–166.

    Google Scholar 

  • Lazich, R. S. (Ed.), (2004). Market share reporter 2005 (vol. 2). Farmington Hills, MI: Gale Group.

  • Levering, R., & Moskowitz, M. (2005). The 100 best companies to work for. Fortune (January 24), 72–90.

  • MacDuffie, J. P. (1995). Human resource bundles and manufacturing performance: Organizational logic and flexible production systems in the world auto industry. Industrial and Labor Relations Review, 48(2), 197–221.

    Article  Google Scholar 

  • Martin, R. L. (2002). The virtue matrix: Calculating the return on corporate responsibility. Harvard Business Review, 80(3), 69–75.

    Google Scholar 

  • Mccarthy, M. A. (2005). Winn-Dixie files for chapter 11; Losses, executive tumult spur grocer to reorganize; Losing share to Wal-Mart. Wall Street Journal (February 23), p. A6.

  • McKendall, M. A., & Margulis, S. T. (1995). People and their organizations: Rethinking the assumptions. Business Horizons, 38(6), 21.

    Article  Google Scholar 

  • Nace, T. (2003). Gangs of America: The rise of corporate power and the disabling of democracy. San Francisco: Berret-Koehler.

    Google Scholar 

  • Nadler, D. A., & Tushman, M. L. (1999). The organization of the future: Strategic imperatives and core competencies for the 21st century. Organizational Dynamics, 28(1), 45–60.

    Article  Google Scholar 

  • Niedt, B. (2005). Wegmans reaches no. 1 on list of workplaces: Fortune magazine smile on grocery store chain for its employment policies. The Post Standard (January 11), p. 1.

  • O’Neill, H. M., & Lenn, D. J. (1995). Voices of survivors: Words that downsizing CEOs should hear. Academy of Management Executive, 9(4), 23–34.

    Google Scholar 

  • Parks, J. M., & Schmedemann, D. A. (1994). When promises become contracts: Implied contracts and handbook provisions on job security. Human Resource Management, 33(3), 403–423.

    Google Scholar 

  • Peters, T. J., & Waterman, Jr., R. H. (1982). In search of excellence: Lessons from Americas best-run companies (1st edn.). New York: Harper & Row.

    Google Scholar 

  • Pfeffer, J. (1994). Competitive advantage through people: Unleashing the power of the workforce. Boston, MA: Harvard Business School.

    Google Scholar 

  • Pfeffer, J. (1996). When it comes to “best practices” – Why do smart organizations occasionally do dumb things? Organizational Dynamics, 25(1), 33–44.

    Article  Google Scholar 

  • Pfeffer, J. (1998). The human equation. Cambridge, MA: Harvard Business School.

    Google Scholar 

  • Pfeffer, J. (2005). Putting people first. Stanford Social Innovation Review, 3(1), 26–33.

    Google Scholar 

  • Pfeffer, J., & Veiga, J. F. (1999). Putting people first for organizational success. Academy of Management Executive, 13(2), 37–48.

    Google Scholar 

  • Pratt, K. H., & Kleiner, B. H. (1989). Towards managing by a richer set of organisational values. Leadership & Organization Development Journal, 10(6), 10–16.

    Article  Google Scholar 

  • Primeaux, P., & Stieber, J. (1994). Profit maximization: The ethical mandate of business. Journal of Business Ethics, 13(4), 287–294.

    Article  Google Scholar 

  • Prospero, M. A. (2004). Employee innovator: Wegmans. In Fast Company. http://www.fastcompany.com (Accessed online: June).

  • Roskies, E., Louis-Guerin, C., & Fournier, C. (1993). Coping with job insecurity: How does personality make a difference? Journal of Organizational Behavior, 14(7), 617–630.

    Google Scholar 

  • Rousseau, D. M. (1990). New hire perceptions of their own and their employer’s obligations: A study of psychological contracts. Journal of Organizational Behavior, 11(5), 389–400.

    Google Scholar 

  • Rousseau, D. M., & Tijoriwala, S. A. (1998). Assessing psychological contracts: Issues, alternatives and measures. Journal of Organizational Behavior, 19(Special Issue), 679–696.

    Article  Google Scholar 

  • Rynes, S. L., Bartunek, J. M., & Daft, R. L. (2001). Across the great divide: Knowledge creation and transfer between practitioners and academics. Academy of Management Review, 44(2), 340–355.

    Google Scholar 

  • Snider, J., Hill, R. P., & Martin, D. (2003). Corporate social responsibility in the 21st century: A view from the world’s most successful firms. Journal of Business Ethics, 48(2), 175–187.

    Article  Google Scholar 

  • Swibel, M. (2003). Nobody’s meals. In Forbes. http://www.forbes.com (Accessed online: 2003).

  • Swoboda, F., & Stoughton, S. (1999). Grocery chains shop for workers; labor shortages, influx of nonunion rivals offer few bargains for supermarkets. The Washington Post (April 19), p. F.12.

  • Taylor, S. (2005). Death, taxes, and supermarket changes. In Progressive Grocer. http://www.progressivegrocer.com/ (Accessed online: July 2005).

  • Walsh, J. P., Weber, K., & Margolis, J. D. (2003). Social issues in management: Our lost cause found. Journal of Management, 29(6), 859–881.

    Article  Google Scholar 

  • Way, S. A., & Johnson, D. E. (2005). Theorizing about the impact of strategic human resource management. Human Resource Management Review, 15, 1–19.

    Article  Google Scholar 

  • Wegmans (2005). Wegmans history. http://www.wegmans.com/ (Accessed online: 2005).

  • Weisser, C. (2005). 5 ways to cut your healthcare costs. Money, 34(1), 90.

    Google Scholar 

  • Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.

    Google Scholar 

  • Wright, P. M. (1998). Strategy-HR fit: Does it really matter? Human Resource Planning, 21(4), 56–57.

    Google Scholar 

Download references

Acknowledgement

The authors are grateful to Paul M. Swiercz for his feedback on an earlier version of the manuscript.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Souha R. Ezzedeen.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Ezzedeen, S.R., Hyde, C.M. & Laurin, K.R. Is Strategic Human Resource Management Socially Responsible? The Case of Wegmans Food Markets, Inc.. Employ Respons Rights J 18, 295–307 (2006). https://doi.org/10.1007/s10672-006-9026-7

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10672-006-9026-7

Key words

Navigation