BCA

From the Center for Creative Leadership

Businesses with effective corporate social responsibility programs often reap significant benefits from “doing good.” They can build a winning brand and encourage a positive outlook by both customers and shareholders. But can the same social responsibility programs have an impact on employee retention?

The Center for Creative Leadership (CCL®) explored that question during its 2008-2009 World Leadership Study, which sampled the opinions of 2,215 workers around the globe. There were three key findings related to how employees respond to social responsibility initiatives:

1.Corporate social responsibility programs are linked to how committed an employee is to an employer. This finding holds true across all ages and job levels and is particularly strong among women workers. The higher an employee rates an organization on its commitment to good corporate citizenship, the more committed the employee is likely to be to the organization.

2.Employee perceptions about corporate social responsibility remained constant during the depth of the economic decline. Despite budget reductions and layoffs becoming commonplace, employees were bullish about at least one thing. They believed their employers were committed to acting responsibly in the community.

3.Corporate social responsibility programs are not a panacea for retention issues. CSR is related to organizational commitment, but not to turnover, so companies can’t consider corporate social responsibility programs a cure-all for retention issues.
“If an employee isn’t happy, a strong corporate social responsibility program isn’t likely to tip the balance,” says Sarah Stawiski, Ph.D., a CCL post-doctoral research fellow and co-author of a report on the research. “Though a good social responsibility program won’t reduce turnover, it can impact how employees view your organization and the kind of ambassadors they will be when they come in contact with your customers, shareholders and community members. There are definitely positive benefits to be had.”

Stawiski’s recommendations to employers: Look for ways to leverage social responsibility initiatives internally. Communicate the contributions you’re making in the community and get employees involved.

Further details on CCL’s study are available in the report Employee Perceptions of Corporate Social Responsibility and the Implications for Your Organization. It was authored by Stawiski and her fellow CCL researchers, Jennifer Deal and William A. (Bill) Gentry.