Why companies engage employees in corporate responsibility and sustainability


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Why companies engage employees in corporate responsibility and sustainability. A presentation taken from the online training course "Getting to Grips with CR" which will soon be available for registration and begins on March 24 2014. Contact courseinfo@stakeholderintel.com for details.

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Why companies engage employees in corporate responsibility and sustainability

  1. 1. Why do companies engage employees today in Corporate Responsibility and Sustainability?
  2. 2. But first, why do they engage employees? • Brand trust and reputation • Increasing evidence CR major factor in recruitment, motivation and retention • Numerous studies ‘prove’ this • Viewed as major potential source of innovation
  3. 3. Typical engagement issues: Internal • Corporate environmental performance • Community and volunteering work • Anti-corruption and bribery • Codes of behaviour/conduct • Diversity, empowerment
  4. 4. Typical engagement issues: External • • • • • • Climate change Global development Waste and recycling Biodiversity/environment Social exclusion/innovation Human rights issues
  5. 5. Most companies focus on internal issues… • “Low hanging fruit”: Office recycling/greening/cycle to work etc are common issues • Volunteering and community engagement • Fundraising for charity
  6. 6. Because they can get quick wins… • Office recycling saves money fast: e.g. centralised waste areas • Increasing drivers for mandatory ethics/bribery training • Fundraising looks/feels good
  7. 7. And volunteering/community work is expected…. • 2011 - Committee Encouraging Corporate Philanthropy studied 184 companies with regard to community/volunteering • These included 63 of the top 100 companies in Fortune 500
  8. 8. And volunteering/community work is expected…. 2010: 94% of companies offered a matching-gift program (programs that match employee contributions of cash or volunteer time with a financial contribution to the employee’s charity of choice)
  9. 9. Donations seem to be going up… 2009 to 2010: 57% of companies increased their cash contributions to matching gift programs 2010: 89% of companies had a formal domestic employeevolunteer program 52%: International volunteering
  10. 10. Doughty Centre for Corporate Responsibility study 2009: • Employee engagement is both a driver, as well as an outcome, of corporate social performance and sustainable value creation • Corporate [social performance] has both a direct and indirect impact (via employee engagement) on the creation of sustainable business value • Social intrapreneurs – who are engaged [within companies] in both [social] and commercial innovation – can improve corporate social performance and enhance sustainable business value
  11. 11. Conclusions • We see very few, if any arguments AGAINST engagement with employees • Lots of “macro” studies • New movement to consider how CR drives innovation: Alliance Boots one example • “Intrapreneurs” concept growing • Traditional business case strong and growing • Cheap and easy to do compared with say, management of CR in the supply chain