Historically, in some industries, corporate social responsibility initiatives \u2014 for example, providing scholarships to students who are the first in their families to go to college, or investing in STEM education for girls \u2014 might have felt like a \u201cnice to have,\u201d not a \u201cneed to have.\u201d At times when the economy wasn\u2019t strong, or a business wasn\u2019t performing at its best, going \u201cabove and beyond\u201d with CSR might have seemed financially irresponsible.<\/p>\n
Yet even before the global pandemic, the tide had started turning. Organizations are increasingly being called upon to take responsibility for the ways their operations impact society 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<\/em> being a good corporate citizen.<\/p>\n The disruptions caused by the global COVID pandemic have played a key role in turning the spotlight even more toward\u00a0corporate purpose and purposeful leadership<\/a>, renewing the focus on long-term financial, social, and talent sustainability at many organizations.<\/p>\n The truth is, organizations have enormous potential to effect change in their communities and the environment when they invest in corporate social responsibility initiatives and leadership \u2014 and in doing so, they can also boost their bottom lines.<\/strong><\/p>\n Field-based and laboratory studies have found that corporate social responsibility initiatives are linked to increased purchase behavior, higher customer satisfaction, and higher market value of a firm, all of which translate into increased profitability.<\/p>\n But not only do customers have higher perceptions of a company; our research has found that employees are also <\/em>prouder of, and more committed to, their organizations when their organizations are focused on corporate social responsibility.<\/p>\n Why are employees more committed to organizations that focus on corporate social responsibility?<\/p>\n Our Retiring the Generation Gap<\/em> research, which led to the publication of our book, What Millennials Want from Work<\/em><\/a>, found that most working adults, regardless of their generation, want the same things at work \u2014 and are committed to their organizations for substantially the same reasons.<\/p>\n Corporate social responsibility 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.”<\/em><\/p>\n While corporate social responsibility initiatives can strengthen commitment for members of all generations, corporate social responsibility may be especially <\/em>important for engagement and retention of younger workers and female employees.<\/p>\n Millennial workers in particular want to do good and<\/em> do well. In fact, this is among the keys to attracting and retaining Millennial employees<\/a>. Our research has found that almost 85% of Millennials believe that making a positive difference in the world is more important than professional recognition.<\/p>\n 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 do as a result of their organization\u2019s 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<\/a>.<\/p>\n The takeaway: a focus on corporate social responsibility is particularly important to attract, retain, and increase the commitment and engagement of Millennial employees and talented women leaders.<\/strong><\/p>\n But to reap the benefits of corporate social responsibility initiatives, companies have to be strategic in communicating about their good deeds. After all, employees can\u2019t be proud of something that they aren\u2019t aware of.<\/p>\n Often, leaders at the highest levels of an organization have the most positive view of their company’s corporate social responsibility work. \u201cThese 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,\u201d says Sarah Stawiski, director of our\u00a0leadership analytics<\/a> Insights & Impact group.<\/p>\n \u201cAnd it follows that they would likely have a positive view of the policies they helped create.\u201d<\/p>\n Employees at lower levels of the organization may report lower levels of commitment, partially because they aren\u2019t aware of all the organization’s corporate social responsibility initiatives that the C-suite knows about.<\/p>\n So to maximize organizational engagement and retention benefits from corporate social responsibility efforts, senior executives should remember that not everyone knows what they know.<\/p>\n According to\u00a0our research study<\/a>, there\u2019s good news about sharing the good news:\u00a0Once employees \u2014 from frontline leaders to senior executives \u2014 know about their company’s social responsibility initiatives, they are just as committed as those C-suite executives.<\/strong><\/p>\n As they publicize their efforts, there are 3 points that senior leaders need to keep in mind:<\/p>\n For example, communicate exactly how much money and paper have been saved through a sustainability initiative to reduce paper waste. Show serious commitment and back up your assertions with real impact data.<\/p>\n In other words, be sure your corporate social responsibility programs and policies are actually making a difference, and that you really have something great to share. Avoid “check-the-box” initiatives that aren’t substantial and authentic.<\/p>\n In addition to communicating your organization\u2019s CSR efforts, make an effort to get leaders at all levels of your organization involved in advancing corporate social responsibility. Companies that do a great job at leveraging their social responsibility initiatives embed them into their employees\u2019 jobs. Multiple advantages of this approach include:<\/p>\n While our data show that corporate social responsibility initiatives\u00a0do\u00a0<\/em>make a unique contribution to organizational commitment, the data also indicates that it\u2019s less <\/em>important than basic job satisfaction.<\/p>\n 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, development opportunities, and autonomy \u2014 as these are some of the key things that ultimately dictate whether employees want to leave or stay with their organizations<\/a>.<\/p>\n Still, the social responsibility tide is swelling, especially among younger workers, who believe that creating social value is the primary purpose of business \u2014 not to make a profit. Purpose-driven leadership<\/a> isn’t going anywhere anytime soon.<\/p>\n And just as employees express their desire to work for a socially responsible corporation through increased engagement and retention, 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\u2019s even a push among businesses to become certified for their corporate social responsibility initiatives.<\/p>\n That\u2019s why leaders who understand how to leverage their corporate social responsibility initiatives and <\/em>provide equitable access to opportunities<\/a>\u00a0will be at a strong advantage in the future. They’ll put down roots that support strong growth, both for their organizations and <\/em>their communities.<\/p>\nWhy Corporate Social Responsibility Initiatives Strengthen Employee Engagement & Commitment<\/h2>\n
CSR Matters Even More to Certain Employee Groups<\/h3>\n
Hot to Get Your Employees Excited About Your Investments in Corporate Social Responsibility<\/h2>\n
Recommendations for Senior Leaders on Communicating CSR Wins<\/h3>\n
1. Share tangible positive outcomes and real impact.<\/h4>\n
2. Don\u2019t make \u201cmuch ado about nothing.\u201d<\/h4>\n
3. Get everyone involved.<\/h4>\n
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Remember the Big Picture About Corporate Social Responsibility<\/h2>\n
CSR Is Important, But Providing Ample Support & Development Matter Even More to Employees<\/h3>\n
Ready to Take the Next Step?<\/h2>\n