Recommended Insights
Recommended Insights

Your Employees Care About Social Responsibility — You Should Too

Your Employees Care About Social Responsibility — You Should Too

Sometimes corporate social responsibility (CSR) initiatives — for example, providing scholarships to students who are the first in their families to go to college or investing in STEM education for girls — feel like a “nice to have,” not a “need to have.” And in times when the economy isn’t strong or an organization isn’t performing at its best, going above and beyond can seem financially irresponsible.

Yet organizations are being called upon to take responsibility for the ways their operations impact societies and the natural environment. It’s no longer acceptable for a corporation to experience economic prosperity in isolation from those impacted by its actions. Firms must now focus on both profitability and being a good corporate citizen.

The truth is, organizations have enormous potential to effect change in their communities and the environment when they invest in CSR initiatives — and in doing so, they can also boost the bottom line.

Field-based and laboratory studies have found that CSR is linked to increased purchase behavior, higher customer satisfaction, and higher market value of a firm, all of which translate into increased profitability.

“And not only do customers have higher perceptions of a company, but employees are also prouder of, and more committed to, their organizations when their organizations are focused on CSR initiatives,” says Sarah Stawiski, director of our Insights and Impact group.

Corporate Social Responsibility Initiatives Strengthen Employee Engagement & Commitment

Why might employees be more committed to organizations that focus on corporate social responsibility?

Our Retiring the Generation Gap research found that most working adults, regardless of their generation, want the same things at work — and are committed to their organizations for substantially the same reasons. CSR initiatives can, of course, increase engagement for employees of all ages.

This makes sense; our personal identities are partly tied up in the companies we work for: If my organization is helping to save the world, I am too. I feel good about the work I do.

While CSR initiatives can strengthen commitment for members of all generations, corporate social responsibility may be especially important for younger workers and female employees.

Millennial workers in particular want to do good and do well. In fact, this is among the keys to attracting and retaining Millennial employees. Almost 85% of Millennials believe making a positive difference in the world is more important than professional recognition.

And while both men and women tend to think that their organizations are doing well as corporate citizens, our data found that women feel a stronger commitment to their organizations than men as a result of their organization’s CSR initiatives. This aligns with our other research which has found that viewing work as a calling is among the key things that women want from work and which can help retain more women in the workplace.

The takeaway: a focus on social responsibility is particularly important to attract, retain, and increase the commitment and engagement of Millennial employees and talented women.

Get Your Employees Excited About Your Investments in Corporate Social Responsibility

But to reap the benefits of corporate social responsibility initiatives, companies have to be strategic in communicating their good deeds. After all, employees can’t be proud of something that they aren’t aware of.

Often, leaders at the highest levels of an organization have the most positive view of their company’s corporate social responsibility work. “These top-level managers are likely to have a strong sense of ownership of CSR initiatives because they are responsible for making the decisions about CSR initiatives,” says Stawiski. “And it follows that they would likely have a positive view of the policies they helped create.”

Employees at lower levels of the organization may report lower levels of commitment, partially because they aren’t aware of all the social responsibility initiatives that the C-suite knows about.

To maximize any internal CSR benefits, senior executives should remember that not everyone knows what they know. As they publicize their efforts, there are 2 points to keep in mind:

  1. Share tangible positive outcomes and real impact. For example, communicate exactly how much money and paper have been saved through a sustainability initiative to reduce paper waste.
  2. Don’t make “much ado about nothing.” In other words, be sure your CSR programs and policies are actually making a difference, and that you really have something great to share.

According to our research, there’s good news about sharing the good news: Once employees — from line leaders to senior executives — know about their company’s social responsibility initiatives, they are just as committed as those C-suite executives.

In addition to communicating your organization’s CSR efforts, make an effort to get employees at all levels of your organization involved. Companies that do a great job at leveraging their social responsibility initiatives embed them into their employees’ jobs. Multiple advantages of this approach include:

  • Employees come up with innovative ideas for how to make a positive impact in the community and meet a business need at the same time.
  • Employees believe in the importance of their organization’s CSR initiatives, and as a result, they’re even more committed to their organization.
  • Employees prefer contributing to work they find meaningful.

Remember the Big Picture About CSR & Employee Commitment

While our data show that CSR does make a unique contribution to organizational commitment, the data also indicates that it’s less important than basic job satisfaction. In other words, if employees are not generally happy and trusting of the organization, a strong corporate responsibility program is less likely to result in an improved retention rate than initiatives that directly improve job satisfaction, such as job enrichment and autonomy.

Still, the social responsibility tide is swelling. Again, younger workers largely believe that creating social value is the primary purpose of business — not to make a profit.

Just as employees express their desire to work for a socially responsible corporation through increased engagement, customers speak with their dollars. Increasingly, they care about the social and environmental effects of corporations and prefer products tied to a social cause. As this happens, CSR becomes all the more important. There’s even a push among businesses to become certified for their social responsibility initiatives.

That’s why leaders who understand how to leverage their corporate social responsibility initiatives put down roots that support strong growth, both for their organizations and their communities.

Ready to Take the Next Step?

Make sure that in combination with your corporate social responsibility initiatives, you’re also increasing employee motivation and commitment by providing them with ample opportunities for development. Help them build critical leadership skills and needed organizational competencies. We can work with you to design a talent development solution tailored to your unique needs to help grow your organization into the future.

SUBSCRIBE

Subscribe to our eNewsletters to get the latest on cutting-edge, leadership insights & research.
November 24, 2020
Leading Effectively Staff
About the Author(s)
Leading Effectively Staff
This article was written by our Leading Effectively staff to help you and your organization's leaders at every level. Want more content like this? Subscribe to our emails to get the latest research-backed articles, webinars, insights, and news about leadership development solutions sent straight to your inbox.

Related Content

How to Attract and Retain Millennial Employees
Leading Effectively Articles

How to Attract and Retain Millennial Employees

How are you ensuring your organization’s Millennials keep working hard for you and not someone else? Learn how to tailor your work environment and managerial training to attract and retain Millennial employees.

More
5 Truths About Millennials in the Workplace
Leading Effectively Articles

5 Truths About Millennials in the Workplace

Managers often grumble about the trouble with Millennials. Don’t fall for myths or stereotypes. Learn what our research found that Millennials in the workplace really want.

More

Please update your browser.

CCL.org requires a modern browser for an enhanced and secure user experience. Internet Explorer is no longer supported or recommended by Microsoft. The Center for Creative Leadership recommeds that you upgrade to Microsoft Edge or similar.

Brave

Chrome

Edge

Firefox