CSR and Employee Engagement: Make the Connection

Employee engagement data we've seen reported by Towers Perrin and by z+ partners demonstrate the huge benefits of socially responsible behavior on the part of corporations.

This Industry Week article [4], "Just How Socially Responsible are Corporations Today?" reveals a critical disconnect - and opportunity - for US corporations.

According to a recent study conducted by The Marketing Executives Networking Group (MENG), 62.5% of companies are not engaged in corporate social responsibility programs. The reason cited: a lack of interest or priority.

These results are at odds with the fact that 60% of respondents believe that corporate social responsibility programs have or will have a positive impact on profitability and overall performance of the company. Additionally, the key opportunities associated with these programs included employee motivation (71%), influencing customer behaviors (54%), growth and innovation (54%) and increased profits (25%).

Employee engagement data we've seen reported by Towers Perrin and by z+ partners [5] demonstrate the huge benefits of socially responsible behavior on the part of corporations. According to the Towers Perrin Global Workforce Study [6](October 2007), the organization (its reputation, its brand, and how it is perceived by employees) is the single most important influencer of employee engagement. And, according to recent research by Andrew Zolli's z+ partners, social stewardship, environmental stewardship, and ethical leadership are the three fastest-growing contributors to brand value.

According to the same Towers Perrin study referenced above, firms with the highest percentage of engaged employees collectively increased operating income 19% and earnings per share 28% year to year. On the other hand, companies with the lowest percentage of engaged employees showed year-to-year declines of 33% in operating income and 11% in earnings per share. 

In short, research shows that employees are more engaged - and their companies perform better - when they feel their organizations exhibit social responsibility. In a slowing economy, that's a no-brainer.

As Samantha Taylor, who led the MENG survey, says: "If companies don't act now and adopt social responsibility strategies, they will be left behind."