Not everything is about the “bloody ROI," Apple chief executive Tim Cook famously sputtered in his scolding of a conservative shareholder rights group at its 2013 annual meeting. “Leaving the world a better place” is also important.
Cook was defending corporate activities that the group had criticised as distracting and perhaps even subtracting from the bottom line, such as Apple’s renewable energy efforts or its programs to help the blind use its devices.
Touchy-feely it was not. But Cook’s line in the sand is an oft-heard defense of today’s corporate social responsibility programs, or CSR for short.
Now a growing body of research suggests that CSR's positive impacts include employees who are more committed and productive. Whether from a rise in corporate malfeasance or concern about the worsening environment, recent studies show that workers are running to companies that allow them to give a fig about something beyond return on investment — and staying at them longer.
“Young people today want it all: an interesting job, perks, good work/life balance, and a chance to make an impact on the causes they care about,” said Liz Maw, CEO of Net Impact, a nonprofit group advocating for change in the workplace. Companies committed to CSR attract these workers because they "can offer unparalleled opportunities to make a major difference on important social and environmental issues."
What is it that companies gain from satisfying this urge to make a difference? According to new research published in the May issue of the American Marketing Association’s Journal of Marketing, employees involved in charitable work and ethical business practices worked harder and were more likely to get up close and personal with clients.
Researchers Daniel Korschun of Drexel University, CB Bhattacharya of the ESMT European School of Management and Technology, and Scott D Swain of Clemson University surveyed more than 200 employees at a Global 500 financial services company. They found that those who pull weeds or build a house for the less fortunate as part of a CSR program will have something to talk about with their customers — other than, say, the bloody ROI —that creates a positive connection.
‘‘Employees told us that CSR can be an ice breaker in conversations with customers,” said Korschun in a statement, “and once they find out that a customer shares a passion for social or environmental causes, it creates a bond that is highly motivating.”
Gaining a competitive edge
Some 70% of companies now include sustainability as part of their management agendas, according to another study — by MIT Sloan Management Review and the Boston Consulting Group — of nearly 3,000 executives in companies the around the world.
Two-thirds of those executives maintained sustainability “was necessary to being competitive,” up from 55% in 2010.
More companies now include CSR in their annual performance review (pdf), increasing (or lessening, depending on your point of view) the horror of that exercise.
“While you don't necessarily have to build a school if you want to rise up the corporate ladder at KPMG, you have to be involved in your community,” Craig and Marc Kielburger, co-founders of the international charity Free The Children, wrote recently in the Huffington Post.
“When performance evaluation time rolls around, or promotion opportunities beckon, you are assessed not only on job achievements, but on your record of volunteerism," wrote the Kielburgers. "Community engagement is considered a core competency alongside team leadership and building client relationships.”
Would you take a pay cut to do good?
What do employees involved with CSR really feel about their jobs and their companies?
Of those doing some social good on the job, 49% reported "high satisfaction levels" with their lot, compared to 24% of those who apparently just show up and do their jobs, according to a 2012 study for Net Impact conducted by Rutgers University (pdf).
The university surveyed 1,726 people, including graduating university students, along with college graduates across the Millennial, Generation X and Baby Boomer generations.
Some 45% of aspiring job seekers said they would take a pay cut in order to do work that makes a difference.
“If you can connect the dots of your day job to impact, the research shows you’ll be more satisfied on the job,” the study concluded. “And that’s something that all of us, at every level and every function, can use more of.”
Russ Blinch is chief scribbler at CopyCarbon.com and a blogger for the Huffington Post.
The science behind sustainability solutions blog is funded by the Arizona State University Walton Sustainability Solutions Initiatives. All content is editorially independent except for pieces labelled advertisement feature. Find out more here.
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