Authentic CSR creates higher employee engagement

The most effective employee engagement occurs when employees understand how their company's approach to CSR makes a difference in their day-to-day jobs and in their communities.

Today's employees expect to care about what they do. Their work must be intellectually challenging, emotionally compelling, and spiritually fulfilling. If they love their work, they're more willing to give additional discretionary effort to see meaningful projects succeed.

Employees who are satisfied with their company’s commitment to social responsibility have positive views about their employer in several other key areas – including its sense of direction, competitiveness, integrity, interest in their well-being, and employee engagement, according to a May 2007 survey conducted by Sirota Survey Intelligence.  [4]

The survey of 1.6 million employees from more than 70 organizations found that employees who have a favorable view of an organization's corporate social responsibility commitment are also positive about other factors important to its success, including:
• Senior management's integrity,
• Senior management's inspirational sense of direction,
• Organization’s competitiveness in the marketplace,
• Company's interest in employees' well-being,
• Employees' engagement or pride in their organization.

The survey found that 86% of employees who are satisfied with their organization's CSR commitment have high levels of engagement. When employees are negative about their employer's CSR approach, only 37% are highly engaged. "To employees, CSR and business success go together. Companies that enhance their reputations through CSR perform better, and generate greater employee loyalty from workers," said Douglas Klein, President of Sirota Survey Intelligence.

That’s why you'll find productive employees in companies that practice authentic corporate responsibility. "The High-Purpose Company," a term coined by Christine Arena in her book of the same name, describes a company that takes an integrated and authentic approach to corporate social responsibility - one that goes beyond greenwashing and even well-meaning philanthropic efforts.

High-purpose companies target their business strategies, products, and services to meet unmet environmental or societal needs. The rate of return of higher-purpose companies, compared to those without a corporate social responsibility plan, is staggering. In Patricia Auberdene's book, Megatrends 2010 - The Rise of Conscious Capitalism, she writes, "The 100 Best Corporate Citizens (CRO magazine and Business Ethics Magazine) beat the S&P earnings per share by 14.16%. Companies that are committed to working closely with, and innovating with the help of their stakeholders, beat the S&P by 126%! Watson-Wyatt found that the companies with the most employee-friendly practices delivered shareholder returns between 53-103% over their competitors."

When a corporation is committed to improving the human or environmental condition, it creates meaning and value for employees, customers, and shareholders alike. High-purpose companies understand that employees are an important voice for the innovation of new products and services. Employees are invested constituents in the communities where they live and work.

The most effective employee engagement occurs when employees understand how their company's approach to CSR makes a difference in their day-to-day jobs and in their communities. When CSR activities are not just added-on, but spring from a higher purpose, that link is easy to make. Thus, companies must understand that CSR is important to their employees, learn how employees want to engage in CSR, and discover a higher purpose for better triple-bottom-line success.