Corporate Social Responsibility - Culture Value for Brands

Corporate Social Responsibility was termed officially in 1953 by Howard Bowen an American economist. CSR really began to take shape in 1971 and is currently recognized as a ‘social contract between businesses and society’, introduced by the Committee for Economic Development. Fast forward today with all of the upheavals occurring in governments, communities, economy, and health - perhaps the next evolution may very well be a social contract between; brands, workers and society.

CSR programs mostly range anywhere from improving the environment, reducing carbon footprint, giving back and volunteering to charitable causes and community, essentially anything environmental, health and socially related. Today CSR exemplifies and represents a brand’s corporate culture and how that culture promise is delivered to the world. There is no substitute for authenticity in this endeavor and no disputing the responsibility placed on brands to practice CSR in an open and honest manner.

The world needs more responsible leadership and brands have a unique opportunity to step up to the plate by bettering societies, both internally and externally. As workers are consumers and consumers are workers, CSR can improve internal corporate culture just as much as making our communities and the world around us more sustainable and healthier.

Having a strong CSR program does not have to mean sacrificing corporate goals – in fact one might argue that fostering an altruistic culture and increasing the bottom line, are finally in sync. 

Well-Being in Focus

If there was ever a time to emphasis the importance of psychological safety and well-being of people, it is today. As we find ourselves in chaotic times, taking into account isolationism and uncertainty brought on by COVID-19, the pressures can be overwhelming for anyone. Segments of the population in particular generation Z and millennials which make up the largest group of our workforce , have reported increased cases of anxiety and see it as a major challenge in their professional careers. 

With all of this disruption, employee health and psychological safety has been more of a priority as of late for both workers and brands alike. The conversation has begun to shift finally from mental health being a side note, towards brands tackling this issue head on and creating a more supportive and empathetic work environment.

CSR programs can boost the health and wellness of employees by increasing their level of engagement, friendships, collaboration, personal interest and communication. By giving one’s time in an altruistic way we further enhance our over-all morale and elevate feelings of happiness and enjoyment. A study conducted on a test sample of 49 different countries demonstrated a direct correlation between helping a fellow colleague at work and increased feelings of happiness.

Driven by Purpose

We seem to hear a great deal about having more ‘purpose’ in our lives, echoed especially from the early in career category. Not only do gen Z and millennials value different things when it comes to how they choose careers and employers, it appears to be rubbing off on all generations. Perhaps a sign of these uncertain times in which we have become more self-introspective, monetary reward does not hold the same sway as times past. Values including ethics and purpose show as more intrinsic drivers for individual career choices.

It should come as no surprise that CSR programs are very enticing to those filled with purpose and humanitarian considerations, longing to lend their time and work for causes of personal interest. Whatever the cause, people feel more empowered and have a sense of pride in giving to an issue which improves their life and those of others.

Brands can help by creating the right environments for action around CSR related activities including; team contests, developing skills, learning's and offering rewards known as 'reward substitution’ coined by Behavioral Economists. This method involves providing motivational benefits which are more immediate and recognizable versus longer term goals, as it is paramount that employees see the benefits and results of their actions consistently in the short term.

Demand for Ethical Business

Consumers have placed far more expectations and responsibility on brands than ever before. Indicative again of our society becoming more immersed in technology, heavily informed and socially conscious than ever before. In this current state, we have become acutely sensitive to challenges and consistently rely on leadership and brands to find solutions.

Never underestimate the ‘power of the wallet’ when it comes to making industry change in very big ways. Case in point, investors have been favoring companies showing more ethical business practices and voicing their approval in the stock market giving high valuations go to those with low carbon footprints. Tech giants with lower carbon-footprints have been making news, seeing their valuations skyrocket past traditional commercial players both in public and private sectors. Although tech is not perfect when it comes to the environment it is still a welcome pivot in the right direction, with even Google boasting that their carbon footprint is now zero.

In addition to technology brands, large players have not sat idly by the sidelines and have comparably thrown their hat in the ring to support the environment, health and social issues including; Coca-Cola, Johnson and Johnson, Pfizer, Starbucks, GE, Walt Disney Company and Lego… to name a few. As in anything, changing human behavior requires inspiration, time and leadership on many fronts. We as consumers have more power to affect change in the right direction and CSR has been used as a powerful influencer on businesses to curb behaviors in more ethical directions.

Culture as a Metric

Return on investment for CSR can be tricky to measure, in regard to understanding the impact on an organization and not just results from all the good work being accomplished in public. One way to track progress is to examine benefits of CSR’s contribution towards culture and how that impacts an organization’s productivity and growth.

As CSR is a major part of a brand’s culture, employees volunteering their time and contributing towards these programs will experience improved well-being, engagement and communication. It is vital that leadership maintain open lines of communication with their people and allow for open and transparent exchange of ideas. Such improvements in culture have direct links to the success of brands in terms of  innovation, productivity and growth.

An interesting study examining the top 50 companies found those brands practicing open lines of transparent communication were given the highest ratings by employees. High marks were doled out to brands that focused on employee well-being and showing agility throughout the current pandemic. These studies give further evidence in linking good cultural practices, such as CSR programs for maintaining and elevating culture, and the success of brands managing through COVID-19.

People First, Delivers Success

Trust is a crucial component for any organization and is even more acute in WFH and Remote work environments. Brands which are people focused and demonstrate higher degrees of trust, have their employees experience; “74% less negative stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives and 40% less burnout." according to a Harvard Business Review.

The creativity, drive, energy, honesty and loyalty given by well-adjusted workers, who feel psychologically safe, are exactly what a brand requires to be successful. More to the point, brands exhibiting higher improved levels of trust within their organizations have been able to weather the COVID-19 storm better. CSR programs are a powerful mechanism for entrusting people with making a difference and having them further contribute to the growth of a brand.

In Closing; CSR Culture Elevates Business & Society

Corporate Social Responsibility only works if it is championed by leadership and enacted as a company-wide platform permeating throughout every corner of the organization. It must be a builder of cultural identity, a safe space for employee participation and a catalyst of change for important environmental and social issues of our time. CSR can become a beacon for positive impact, further nurturing the moral compass of a brand and touching the lives of thousands if not millions with beneficial social action.

The CSR work at TalentWorldGroup Plc. has yielded very encouraging results to culture including; increased engagement, elevated levels of communication, more transparent processes, not to mention impactful community building and outreach. All volunteers become spontaneously ignited and rally together to form ideas and participate in activities, as any action must always come from the heart and be truthful to the core mission of a brand.

CSR can unify employee values with brand promise and further harmonize brands, workers and society – making for the social contract we need today.

Written by:

Zoltan Lorantffy, Chief Marketing Officer

TalentWorldGroup Plc.