The Impact of Corporate Social Responsibility (CSR) on Your Business – Part 2
Part 2 – How does it affect current or potential employees?
Consumers aren’t the only people who have an opinion about a company’s Corporate Social Responsibility (CSR) or sustainability practices. Current employees and job seekers alike are weighing in on the subject.
A recent survey of Fortune 1000 companies found that 82 percent of employees wanted their CEO to use their position to publicly support renewable energy and other sustainable practices both within the company and in the community. (Source) In companies that have CSR programs in place, a UCLA-led study found that the employees are 16 percent more productive than the average. (Source) The consensus is that employees that are engaged and happy are more productive. Sustainability practices are appealing to employees and encourage personal growth and progress. Harvard Business School recently performed a study on Caesars Entertainment’s sustainability programs. The results found that customer loyalty and satisfaction – their overall experience and willingness to return to one of its hotels or casinos– was directly linked to the employees’ level of participation in sustainable activities at work. Caesars Entertainment’s program is called CodeGreen. It includes volunteering, workplace sustainability actions, as well as at home components. They encourage connection, competition and action among employees at different properties. (Source)
Job seekers are looking into the social practices of the companies they are interested in working for. 76 percent consider a company’s social and environmental commitments when deciding where to work and 64 percent won’t take a job if a potential employer doesn’t have strong CSR practices. 75 percent of millennial workers say they would take a pay cut to work for a responsible company. “Millennials will soon make up 50 percent of the workforce and companies will have to radically evolve their value proposition to attract and retain this socially conscious group,” says Alison DaSilva, EVP of CSR Research & Insights at Cone Communications. “Integrating a deeper sense of purpose and responsibility into the work experience will have a clear bottom line return for companies.” (Source)
Corporate Social Responsibility is an increasingly essential part of any successful company. Both the employees within a company and the potential customers outside a company expect social minded practices and are paying close attention. Those companies that adopt strong CSR practices will be the healthiest all around. UCLA Professor Magali Delmas, an environmental economist, calls it the opposite of a vicious cycle, “It’s a virtuous circle. You attract the best people, and because you’re open-minded, then you adopt green standards, and then you attract even better people, and this continues to feed itself. Companies that adopt these policies tend to be better. It could be they were better to start with, but there are mechanisms built into these policies that mean they continue to get better.” (Source)
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