CSR. Ethics or Optics?

Corporate Social Responsibility (CSR). It’s all the rage. Organizations around the world are implementing CSR programmess, where management and staff are getting involved in the communities in which they operate. These initiatives generally entail donations by the company to charities or fundraisers. In addition, many businesses are providing employees with paid time off in order to take part in local volunteer opportunities. These types of programmes can have a positive social and organizational impact, if they are implemented correctly.

I recently read an article in the HR Professional magazine that addressed the benefits of CSR programmes for employee engagement and retention. This piece asserted that there is an increasing trend toward social consciousness in the workplace. As such, businesses should demonstrate a commitment to community, and provide opportunities for employees to do so as well. Companies should use this strategy in order to strengthen employee dedication towards the organization. This approach makes sense, as behavioural experts like Clayton Alderfer argue that a person’s needs are the basis of their motivation. For example, when a person satisfies their need to connect to a community, the result is happiness and productivity.

Allowing employees to participate in community events is a great tool for retention. But this can’t be the reason for an organization to engage in practices that are socially responsible. Organizational strategy should be based in morality, and on the understanding that corporations have the ability to affect major social change. When initiated superficially, CSR programmes can have the opposite effect on employee engagement.

There are certain beverage companies that are focusing their CSR campaigns on helping women in developing countries to become product distributors. Perhaps their priority should be creating healthy drinks, and environmentally friendly packaging? Similarly, some well known athletic companies advertise their commitment to the use of sustainable materials, while utilizing child labour. Employees see through sketchy CSR programmes. Given our reliance on non-renewable resources, organizations should make sustainability part of the business plan. Long-term savings on energy usage and raw materials can be huge. Just as important, top talent will flock towards ethics rather than optics.