Corporate Social Responsibility

The landscape in the job seekers market is very turbulent, and companies are finding it challenging to attract and retain top talent. The “great resignation” and “quiet quitting” movements saw employees move from job to job in search of more purposeful and socially conscious ways to make a living. Even in this remote work economy, job seekers are being very selective about their employment decisions.

The desire to find more meaning has created a labor shortage of sorts, and companies are now implementing new hiring and business strategies that help attract and retain top talent. One of those strategies is the creation and adoption of a corporate social responsibility (CSR) policy.

What is corporate social responsibility and why is it an imperative business strategy?

Percy Grunwald, co-founder of Hosting Data, says, “Corporate social responsibility refers to the ethical and responsible behavior of businesses in relation to their impact on society and the environment.” Translation: CSR encompasses a wide range of activities, including charitable giving, environmental sustainability initiatives and efforts to promote diversity and inclusion within the workplace.

CSR can also support a company’s triple bottom line, which refers to the three pillars of sustainability: social, environmental and financial. By focusing on all three pillars, companies can create long-term value for their stakeholders and contribute to a more sustainable future.

Sangeeta Waldron is a multi-award-winning PR expert and author of Corporate Social Responsibility Is Not Public Relations. She asserts that the global pandemic is responsible for bringing attention to CSR because, “while we were at home, we had time to observe brands and companies—how they were behaving, what they were doing, and globally, citizens wanted better from companies.” Now, post-pandemic CSR has emerged as a strategic business management concept, which is not a trend. Data shows that CSR is driving investment, supporting a business’s triple bottom line and retaining and attracting talent.

Indeed, there’s data that supports these assertions.

According to a millennial employee study conducted by Cone Communications, 76% of millennials consider a company’s social and environmental commitments when deciding where to work, while 75% say they would take a pay cut to work for a responsible company. Likewise, 83% of millennials said they would be more loyal to a company that helps them contribute to social and environmental issues.

This value extends beyond the younger workforce.

According to a study by Porter Novelli, 90% of employees who work at companies with a strong sense of purpose say they’re more inspired, motivated and loyal. Additionally, 92%

Corporate social responsibility can also support a company’s triple bottom line, which refers to the three pillars of sustainability: social, environmental and financial.

By the Numbers

76% of millennials say they would take a pay cut to work for a responsible company.

75%

83%

90%

92% of millennials consider a company’s social and environmental commitments when seeking a job. of millennials say they would be more loyal to a company that helps them contribute to social and environmental issues. of employees who work at companies with a strong sense of purpose say they’re more inspired, motivated and loyal. of employees who work at a company with a strong sense of purpose say they are likely to recommend their employer to other job seekers. of employees who work at a company with a strong sense of purpose say they are likely to recommend their employer to other job seekers.

These data points make it clear that employers must consider CSR to attract and retain skilled workers. “Now, more than ever, it is vital for all types of businesses to have authentic CSR initiatives that are not a publicity spin,” Waldron says. “There is no room for greenwashing anymore.”

The surge of resignations related to COVID and the fierce competition for top talent have prompted human resource departments to fundamentally shift how they recruit and manage personnel, and companies are also pivoting in order to stand out.

Melissa Terry, an HR executive for Vem Tooling, emphasizes this point. “Candidates now have a much wider range of options to consider when evaluating potential employers,” she said. “So they look beyond the usual set of benefits. Particularly the younger generations want to be a part of something ‘bigger.’” They seek motivation, fulfillment in their employment decision and affiliation with a group that shares their values. This frequently entails looking for potential employers who support causes close to their hearts or, more broadly, who concur with their viewpoints regarding the value of giving back.”

Human resources executive and Culture Canopy founder Jay Barrett says consumers will demand more transparency on where their goods come from, and employees will gravitate to organizations that have clear and measurable corporate and social responsibilities. ”CSR has to be more than a trend,” he says, “and organizations who are getting away with greenwashing will likely be called out where their actions do not line up with their brand messaging.”

Employees and consumers want to feel good about where they spend their time and money, and part of the experience and emotional connection they want to have when buying into a brand or organization is that it is ultimately bringing about good in the world.

It is also vital for organizations to connect their CSR strategies to their workforce—to help employees understand how they and their work can contribute to positive outcomes for their communities, to lift up marginalized groups, to embed sustainable practices for the health of the planet and to contribute to a more compassionate and sustainable future.

Revé Fisher represents True Impact, a platform that measures a company’s social impact. She offers this advice to companies creating their CSR policy: “Well-designed CSR initiatives can spark deep engagement among employees, improving productivity and retention while also significantly improving society.”

Fisher suggests that when designing a broader CSR portfolio, employee engagement—and, specifically, skills-based volunteerism—should be part of that mix.