CSR AS A TOOL FOR EMPLOYEE ENGAGEMENT 

With over 16 years of experience across Environment, Sustainability and CSR recruitment, Allen & York examine the affect of Corporate Social Responsibility (CSR) as a tool for employee engagement and how this can be implemented within your business.

There can be little doubt that CSR, i.e. managing your business’ environmental impacts, how you are working with suppliers and local communities, and how your employees contribute to and share in the rewards of your commercial success, all contribute to the engagement and retention of your company’s work force.

Our own industry experience shows us that employer brand is crucial when ‘selling’ a company to potential employees and that a strong CSR commitment is of huge benefit when attracting quality talent to the work place.

As companies across all market sectors become more competitive, potential employees have a greater variety of choice. Those companies with the strongest, most positive imagine and with a real commitment to their employees will generally be more attractive to candidates.

A Mori survey conducted in 2006, found that 58% of employees in the UK thought the social and environmental responsibilities of their organisation was important.  With the rise of environmental awareness over the last 3 years; fair trade, climate change initiatives and general public concern for the sustainability of our natural environment, CSR responsibilities are being taken seriously by businesses throughout the globe.

High profile retailers such as the John Lewis Partnership and M&S have placed CSR high on their agenda and to a certain extent; they stake their reputation on their commitment to their employees, the community, their support of ethical trade and locally sourced products.

M&S launched their Plan A ‘eco plan’ in January 2007, setting out 100 commitments across the challenges of climate change, waste, sustainable raw materials, fair partner and health.  The John Lewis Partnership invites all their employees to become shareholders/partners in their business in a process which they call ‘Engaging Partnership’.

“Partners [employees] have worthwhile, secure and fulfilling employment, which generates loyalty, pride, job satisfaction, knowledge and empowerment.”  Waitrose’s CSR Report 2008  - Section 1 ‘Engaging Partnership’
Both these approaches lead to the development of a strong CSR employer brand not only aimed at the customer/client, but also to engage new and current employees.  It is, in our view, this employer brand that should be used in the recruitment process and company communications to attract and retain employees.

Selling the Company  - CSR initiatives should be transparently communicated at all stages of the recruitment process to maximise on its potential and show candidates the company’s commitment to their employees, the environment and social initiatives.  Include reference to CSR activity within; job descriptions, advertising, benefits packages, interviews, at offer stage and throughout the employee induction.

Retaining Employees – regular CSR communication and initiatives are important to preserve the level of engagement and secure employee buy-in.  Our experience indicates that employees feel proud of and remain more loyal to companies which directly involve their workforce in CSR initiatives such as; community projects, payroll giving, charity events, support for the local environment and carbon offsetting.  These activities are not only good for the local community and the environment, but they also form great opportunities to team build, boost morale and enable people to make a real difference. 

 “Most importantly, we’ve started to engage and involve our customers, employees and suppliers in change – helping to create a virtuous circle as their ideas and commitment spur us on to make further progress and find new solutions." Stuart Rose, CEO M&S comments in Your M&S - How we do business report 2008

Commercial Edge – Once you have attracted the best talent in the business and created a loyal workforce, your CSR commitment may also put you ahead of your competitors, causing consumers to choose the ethnical business model over other alternatives.

“In 2003, it [Co-operative Financial Services] found that 17% of profitability can be attributed to those customers whose primary motivation for using its services was ethics. 30% (around £40 million) of profitability can be attributed to customers who believe that ethics is an important factor.” Article 13 and CBI – CSR Case Study Series, May 2005

Managing the CSR Process – As market leaders in CSR Recruitment we have seen an ‘industry social awareness’ being forged and the growth of CSR into a professional career path.  CSR professionals are now available to help deliver; a CSR planning process, create well managed and strong Governance procedures, be responsive to the needs and views of stakeholders and guide your company towards taking responsibility for its actions, attitudes and values, establishing a trusted and ethical business which becomes very attractive to future employees.

Why CSR Matters - 88% of employees that took part in the OnePoll survey in May 2008 felt that it was "important" or "very important" for companies to take social and environmental governance issues seriously.  75% of staff from the Sunday Times Best Companies 2009 - top 200 believes that their company is committed to environmental issues.
Research undertaken in 2006 by Steve Brammer, Centre for Business Organisations & Society at the University of Bath School of Management, found that perceptions of a firm's responsibility in the community positively influenced commitment to that organisation.

“Our research found perceptions of a firm's responsibility in the community positively influenced commitment to that organisation. This is crucial, since many of the forms of CSR that take place outside the workplace are discretionary and often provide few direct benefits to the employees themselves. However, in addition to their role in influencing external perceptions, such as those of consumers and local communities, the research suggests community aspects of CSR do appear to offer benefits to employees, which, in turn, translate into improved organisational commitment.” The Guardian – article ‘Feel Good Factories’ (Jan 2006)

We understand that a company’s workforce is its best asset, the combination of talent, knowledge, experience and skills are crucial to success. Increasingly social and environmental credentials are of importance to consumers and employees alike and will influence individuals when making career choices.  This is of particular importance for the professionals which Allen & York serve within the Environment, Sustainability and Energy markets.  Individuals are happier to work for a company that reflects their own ethics and personal values and will be more likely to remain within the company and reflect a positive image of it to the outside world. 

The assumption is that working for an environmentally friendly and socially responsible company is attractive to future employees and helps to retain those you already have.  Is this true? 
We believe the answer is “Yes”.

If you are interested to find out more about CSR please contact us: csr@allen-york.com  T: 0870 870 8986 

Article published in Sustainable Business Magazine - June 2009 (page 22-23)