The philosophy of corporate social responsibility, or CSR, in the business world has gained momentum within the past 10 years or so. Companies are assuming responsibility for the effects they produce at a social, economic and environmental level, and are committing themselves to increasing positive impact and reducing any negative impacts.
Organisations that have CSR initiatives will often be favourably positioned against competitors. However, the effect CSR has on the company itself is often overlooked, especially in talent management. In light of this, here are four reasons why CSR contributes to the selection and retention of talent:
Recognition of employee welfare
One of the main areas that CSR addresses is the welfare of employees and the employee experience. The workforce is made up of stakeholders who act as company ambassadors and are fundamental in influencing the outside world’s perception of the company. Therefore, if employees see that an organisation values their contribution and broader external causes, rewards their efforts and cares about providing a good work experience, they are often more inclined to stay with the company.
Aligning company and employee values
Jobseekers are looking for opportunities that provide more than just a competitive salary. According to Deloitte, the millennial generation seek culture, diversity and flexibility in their workplace when looking for roles, as well as clear alignment of business leaders’ priorities – and one way to tick these boxes is through CSR efforts that align with candidates’ values It also positions the organisation well against competitors that may not be committed to the same principles.
The competitive edge
In addition to the positive effects CSR has within the company, we cannot forget about its external effects. A study by Unilever, found that a third of consumers are choosing to buy brands based on their social or environmental impact, suggesting that organisations that have CSR campaigns, and work to fulfil their social and environmental duties, gain an advantage over the competition, since their customers will be more willing to consume their products or services.
CSR also requires employee assistance
Companies often exercise their CSR efforts through initiatives such as employee volunteering, which help to support causes that matter to the company and the corporate culture. Volunteering can make employees feel useful and satisfied, contributing to their sense of self-fulfillment, as well as fostering their happiness in their work.
In the past, companies would only focus on the economic benefit of CSR. Today, if they want to become important figures in the global corporate landscape, companies must take responsibility for their internal and external environment, and make efforts to have a positive influence on both. The modern workforce recognises and demands much more from employers than ever before, and CSR should be taken seriously within a talent management strategy.
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