Corporate social responsibility (CSR) and motivation
Case: Corporate social responsibility (CSR) and motivation
Today, there are few self-respecting companies that do not have a corporate responsibility program (CSR) or mission statement, but many have struggled to establish a tangible business case for the investment in these programmes. However, in recent years, it has become clear that staff motivation is a powerful bottom-line benefit of corporate responsibility, and Robert Davies, chief executive of the International Business Leaders Forum, which works with corporations to promote responsible business practices, argues that the employee audience has become a major driver of CSR. For instance, according to a report published by the research company Ipsos MORI, evidence is emerging that staff is concerned about the ethical behavior of the companies for whom they work, and 86 percent of British workers believe it is important that their employer should be responsible to society and the environment.
In the UK, the push by retailers to meet the demands of a growing number of ethical shoppers has raised the profile of the ethical practices of businesses. Marks and Spencer, for example, is inviting shoppers to ‘look behind the label’ at the sustainability of its products, as well as its labor, fair trade, and animal welfare practices. Moreover, companies have implemented carbon reduction programs as global warming has taken center stage. Tesco, for example, has embarked on an ambitious labeling initiative that will let shoppers compare all its products on their carbon emissions levels. People want to see similar practices in action, not only in the supermarket aisle but also in the workplace.
People are searching for meaning at work, says Linda Holbeche, director of leadership and consultancy at the Work Foundation. They are conscious of how organizations’ walk the talk’ on things such as CSR. In addition, the activities of leading business figures such as Bill Gates – whose foundation is tackling global health problems such as the spread of HIV/Aids – have also increased the desire on the part of workers to see their employers take action on some of the world’s social and health problems.
Indeed, the opportunity for staff to participate in community initiatives has become important. To this end, KPMG, winner in this year’s ‘best workplace’ corporate responsibility category, offers staff the chance to volunteer. In 2006, for instance, 31 percent of its workforce volunteered, contributing 32,000 hours to community projects. The company has recognized that such commitments help it attract and retain top talent, both executives and graduates. Thus if you want to be a great place to work, it is not just about base salary and benefits, says Mike Kelly, UK head of corporate social responsibility at KPMG. While people expect leading companies to provide leading remuneration packages and expect the best in training and development, they also expect to work in an environment where they can contribute to the community.
Source: Murray, S. (2007) Financial Times, 2 May
1. To what extent do you feel that employees’ motivations are likely to be affected by the CSR activities (or lack of) of the firms they work for?
2. Using an appropriate motivation theory, state how you would classify CSR (or lack thereof) as a motivator?
3. Assume that you have just finished the final year of your degree and are about to be interviewed for your first full-time job. List your priorities for what you would be looking for in a job that would make you feel good about the job.
4. Now rank these things in importance, starting from 1 for the most important.
5. List the things you would most want to avoid in any job you take.
6. Now rank this starting from minus one downwards.
7. Are positive CSR policies on the part of a potential employer anywhere on your list?
