Many business owners and managers see corporate social responsibility (CSR) as something that’s ‘nice to do,’ but not really connected to growing the business and profits. Just the other day I had an experience that shows how wrong this is….

I took part in a training exercise where half the class pretended to be ‘employers’. The other half of the class pretended to be ‘potential employees.’ We (the ‘employers’) had to find a way to attract the ‘employees’ to come and work for us.

Sounds simple? Well I thought so. I was an employer offering flexible working hours, a great salary and career development. Yet my new recruits were undecided. But then I spoke about our corporate social responsibility program and they were suddenly a whole lot more enthusiastic. I signed them up.

Okay, so it was only a game. But it is a great example of how corporate social responsibility (CSR) can make all the difference to your competitive position. Initiatives such as pro bono work, philanthropy, support for community-building initiatives and environmental awareness can add significant value to your company, and if the program is well-designed, the benefits far outweigh the costs.

An easy way for your company to build its brand, reputation and public profile

Being socially responsible creates goodwill and a positive image for your brand. Trust and a good reputation are some of your company’s most valuable assets. In fact, without these, you wouldn’t even have a business. You can nurture these important assets by being socially responsible.

It is crucial, however, that you devise the right socially responsible program for your business. When used properly, it will open up a myriad of new relationships and opportunities. Not only will your success grow, but so will your company’s culture. It will become a culture which you, your staff and the wider community genuinely believe in.

Corporate Social Responsibility attracts and retains staff

Did you know that socially responsible companies report increased employee commitment, performance and job satisfaction?

Yes, it is in us all to want to do ‘good’ (and perhaps be recognised for it). Our lives become meaningful when we realise our work has made a positive difference in some way. It makes all our striving worth it. In fact, a 2003 Stanford University study found MBA graduates would sacrifice an average $13700 cut in their salary to work for a socially responsible company.

By attracting, retaining and engaging staff, ‘doing good’ for others reduces your recruitment costs and improves work productivity. It’s just plain good all ‘round!

Customers are attracted to socially responsible companies

Branding your business as ‘socially responsible’ differentiates you from your competitors. The Body Shop and Westpac are companies who have used this to their advantage. Developing innovative products that are environmentally or socially responsible adds value and gives people a good reason to buy from you.

Corporate Social Responsibility attracts investors

Investors and financiers are attracted to companies who are socially responsible. These decision-makers know this reflects good management and a positive reputation. Don’t underestimate this influence; it can be just as important as your company’s financial performance. In fact, it may be the deciding factor in choosing to support your company.

Corporate Social Responsibility encourages professional (and personal) growth

Your staff can develop their leadership and project management skills through a well-designed corporate social responsibility program. This may be as simple as team-building exercises or encouraging your employees to form relationships with people they would not normally meet (like disadvantaged groups).

Corporate Social Responsibility helps to cut your business costs

Environmental initiatives such as recycling and conserving energy increase in-house efficiency and cut costs. Introducing a corporate social responsibility program gives you a good reason to examine and improve on your spending!

Two important tips for you

Before you rush into your own corporate social responsibility program, remember:

* You must implement your program strategically. Just giving a donation is not enough. The best corporate social responsibility programs are based on a two-way relationship with you and each of the organisations you are involved with. This allows both parties to be challenged and grow together.

* Your corporate social responsibility commitments should be in line with the values of your company, customers and staff. Most importantly, they must be based on a genuine concern for people and the community. You do not want the program to backfire, making you seem hypocritical. A poor strategy will cause people to become cynical and distrustful of your company.

But all in all, corporate social responsibility makes financial sense, adds meaning to your work and makes everyone feel good!

So what should you do next?

It is a highly competitive world out there. If you want people to buy from you, work for you and invest in you, look seriously at corporate social responsibility.

Dianne Taylor – About the Author:

To find out how your company can grow from a corporate social responsibility program, contact Dianne Taylor at Sirius Business on dtaylor@siriusbusiness.com.au. Dianne is currently offering free advice on how to implement an effective corporate social responsibility program. This advice includes a list of 10 Simple Corporate Social Responsibility Actions for your business.

With over 25 years as the co-owner of a successful engineering business employing 30 staff, combined with a background in leadership development and education, Dianne has a wealth of experience to draw upon. Dianne’s practical experience is supported by qualifications in coaching, training, human resource management and business. As a business management and leadership coach, consultant, speaker and trainer, Dianne is passionate about helping people and organisations discover and realise their potential. Have a look at Anderson Gray Worldwide – http://www.anderson-gray.com

From www.helpothers.org, used with permission.

• Take flowers to work and share them with coworkers.
• Write a note to the boss of someone who has helped you, praising the employee.
• Leave enough money in the vending machine for the next person to get a free treat. (Tape the change
   and a Smile card* tag to the machine)
• Have a food drive, ask employees to bring nonperishable food items to donate to food bank.
• Get to work before others and leave a piece of candy, brownie, fruit, flower, etc. at every desk attached
   with a Smile card.
• Leave a cake or other food item in a central area anonymously with a Thank-You note.
• Appreciate a co-worker by giving them a gift of service. For example, instead of a tie for birthday or
   Christmas, make a contribution to sponsor a cataract surgery in a developing country. Attach a note
   explaining how their gift affects someone else’s life.
• Gather a group of your colleagues and take them to a fundraiser.
• Email an article about an act of kindness to your group every week.
• Give your manager or co-worker a thought-provoking book.
• Print an inspiring story and put it on your work bulletin board.
• Buy a cup of coffee or snack for someone who’s having a long day.

*Smile Cards are markers of a newfangled game of tag, where “you’re it” because someone has done something nice for you. Then it’s your turn to do something nice for someone else and, in the process, pass the card along. 

Helpothers.org is a portal dedicated to small acts of kindness. There you will find inspirational stories & articles documenting acts of kindness, downloadable Smile card designs and much more!  www.helpothers.org

During uncertain economic times when workforce reductions and other cutbacks may be necessary, employers that proactively reach out to their multiple constituencies – including their employees, communities in which they do business, suppliers, and opinion leaders – emerge better from such situations than organizations that do not, according to Sirota Survey Intelligence, specialists in attitude research.

Organizations that adopt a true partnership culture – where relationships between the employer and its multiple constituencies are based on mutual trust and benefit – endure over time, according to Douglas Klein, president of Sirota Survey Intelligence (www.sirota.com).

Organizations are never separate from the communities in which they are based; aside from the labor pool from which organizations draw employees, each company has an impact on the community in many ways, according to Klein. “That impact – beneficial or negative – is quickly understood and communicated to other places these days, via the internet and media. Wise organizations understand this ‘partnership’ and the reciprocal nature of the relationship,” Klein added.

Employers should not forget that employees’ job security, and the degree to which workers perceive that their employers have a genuine interest in the welfare of the communities in which they do business, have a direct impact on employees’ overall satisfaction with their employer, according to Sirota’s research:

– 83% of employees who feel secure about their jobs are also satisfied overall with their employer

– Only 50% of employees who feel insecure about their jobs are satisfied overall with their employer

– 82% of employees who feel that their employers have a genuine interest in their communities are satisfied overall with their employer

– Only 49% of employees who do not perceive their employers to be good “corporate citizens” are satisfied overall with their employer

“The true manifestation of corporate social responsibility (CSR) in practice is attending to the needs of each constituency so there is alignment and consistency between the way the organization behaves, and all of those affected by its actions,” said Klein. “During uncertain times, decisions about the workforce, and how these actions affect communities, should mutually reinforce one another, rather than be adversarial,” Klein added.

“An employer that treats its employees as true partners makes every effort to avoid layoffs. When it becomes necessary to reduce costs, many steps can probably be taken as an alternative to involuntary layoffs. These are known as ‘rings of defense,’ or defense against involuntary terminations,” Klein said.

Alternatives to layoffs include:
– Normal workforce attrition
– Hiring freezes
– Reduction in temporary employees and overtime
– Cutbacks in expenses
– Improved process efficiencies
– Bringing subcontracted work back in-house
– Across-the-board pay cuts
– Shortened work weeks
– Voluntary unpaid leaves of absence

If these steps are not enough to avoid involuntary layoffs, the input of employees, surrounding communities, and other constituencies needs to be measured before, during, and after taking action, according to Klein.

“Surveying employees to assess their views provides important information to assist in managing through the process, and their involvement is an excellent example of partnership in action. Employees themselves can be a source of many useful suggestions about how to best handle the situation, and they are one of the best monitors of the effectiveness of steps taken,” Klein said.

According to Sirota’s research, an organization’s relationship with its communities is as important in uncertain times as is the relationship with its employees. “Involving key community members to seek their views about proposed changes, such as cutbacks in charitable contributions, can alert companies to any unintended consequences. Input can come from opinion leaders, community organizations, and the general public. The key is to make needed changes in alignment with the needs of the community, rather than trying to decide what’s best for them. Then, measuring again after the changes have been made provides feedback as to whether these changes are actually having the desired impact,” Klein said.

Changes and plans that affect one constituency must be communicated to all other stakeholders as well. “It is vital that the organization is viewed as engaging in even-handed, participative efforts that minimize any negative impact,” Klein said.

Copyright 2007. Reprinted with permission from www.hr.com,  your community for knowledge, expertise and resources.

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