When executives participating in the 2010 Best Employers in Canada study were asked what they viewed as the primary obstacles to implementing socially and environmentally responsible practices, most answered that the return on investment (ROI) was insufficient or unclear.
To establish that ROI, Hewitt Associates gathered feedback on seven dimensions of corporate social responsibility (CSR): community and society; corporate governance; customer relationships; employee relations; environment; human rights; and supplier relations. In addition to answering questions about their employer’s CSR initiatives, employees provided input on their own commitments to responsible behaviours. This CSR research framework was created through a partnership with Canadian Business for Social Responsibility.
Linking CSR and engagement
With responses from more than 100,000 employees and leaders in 230-plus Canadian workplaces, the study results found a solid relationship between engagement and employees’ positive views on CSR-related activities and behaviours.
Eighty-six percent of employees at high-engagement organizations agreed or strongly agreed that they work for a socially and environmentally responsible employer. That figure was 71% for organizations with moderate engagement and only 60% for those with low engagement. And those organizations with high engagement have a higher return on their investment in employees compared with low-engagement organizations, in the form of lower absenteeism and turnover as well as higher talent attraction, productivity and readiness for change.
There is also a strong ROI for CSR as a strategy to reap the rewards of a highly engaged workforce. The study showed that declining positive perceptions of CSR in an organization can be a significant threat to engagement for about one-third of moderate- and high-engagement organizations, and 62% of low-engagement organizations.
The CSR initiatives that employers most frequently implement are community investment, waste reduction, business travel reduction and responsible purchasing. Initiatives least supported by employers are offsetting the environmental impact of business travel and subsidizing low-carbon travel.
Committing at a personal level
The study also examined individuals’ commitments to socially responsible behaviours, such as recycling and buying green. Highly engaged employees were more likely to practise these behaviours than less-engaged employees.
Other research suggests that younger employees may be more likely to demonstrate high levels of this behaviour, but the Best Employers study found the contrary. While 35% of the youngest employees were highly committed to personally behaving in a socially responsible manner, 55% of baby boomers were also highly committed. This result may be partly attributable to differences in financial resources, since baby boomers are more likely to have the means to make higher-cost, lower-footprint choices.
Taking coordinated action
With evidence to support the importance of CSR in sustaining an engaged workforce, organizations can begin to focus on how to coordinate CSR and engagement-related initiatives. Having executive support is critical, as is an understanding of how these two areas can reinforce each other to sustain and improve organizational success. From there, it’s important to identify the best opportunities to move forward on CSR and increasing employee engagement, and see where they mesh.
Whatever actions an employer takes, it’s essential to communicate with employees so that everyone can appreciate the organization’s commitment to being a responsible corporate citizen.
Strategic, longer-term opportunities will have the most significant impact on the business, community, environment and employees. A sustained focus on CSR initiatives has the greatest potential to transform an organization into one characterized by high employee engagement and a deep commitment to sustainability. BC
Neil Crawford is the leader of Hewitt Associates’ annual Best Employers in Canada study.
neil.crawford@hewitt.com
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© Copyright 2010 Rogers Publishing Ltd. This article first appeared in the May 2010 edition of BENEFITS CANADA magazine.