1. September 2011
CSRinsights
presented by
2 Consumers: Expect and Prefer CSR Companies
The Fact Sheet: CSR Impacts the Bottom Line of consumers want companies to
Consumers today, with the assistance of social
tell them the ways they are
media, the internet, mobile devices, etc., are more supporting causes
It’s in the facts. Research proves a measurable payoff exists of corporate social responsibility
vocal about their expectations around a company’s
(CSR) initiatives to companies as well as their stakeholders. So, we turned on our proverbial
commitment to CSR and how they engage them in
flashlight to aggregate quantifiable data that so easily gets lost in reports, stacks of research and agree brands and companies
the process. Promoting cause awareness and don’t disclose enough
that endless labyrinth we call - the mind.
educating consumers of the company’s related CSR information about their
programs pays off, primarily with an increase in charity/social cause programs
We wrote this edition for two very simple reasons:
brand reputation, purchasing behaviors and sales
through word-of-mouth. In fact, trends start to look of Americans say they bought a
1) To provide you with a high-level business case, within one page, that clearly lays out the proven product because it was
pretty grim when their perceptions don’t meet their
benefits of a well executed CSR program associated with a cause or issue
expectations – feeling they are not engaged enough
in the last year – doubling since
and not clearly communicated to. 1993
2) To equip our readers with a source they can pass to others who may find such information
meaningful and influential within their own decision making process
3 Society: The Influence of Expectations and Trends
1
Employees: Are Willing to Work Longer and
Harder for a Company They Believe In
of executives say they plan to
The "Millennials," also known as the "Y Generation," maintain or increase investments
Companies with high employee engagement had
grew up recycling, eating organic foods, learning new in social networking, blogs, wikis
CSR can be a key driver in employee engagement
increase in operating income technology on a whim, and constantly being attached and other technologies that
within a company. Volunteer hours and giving and almost a 28% growth in encourage peer collaboration
amounts may feel like a fuzzy, do-good metric but the to their social networks. They understand that
earnings per share
community service was a prerequisite to getting into a of Millennials who frequently
reality is these programs can deliver quantifiable
good school, and landing their first job. Now that they participate in their company’s
benefits valued for business returns (if well- Companies with low levels of engagement saw
volunteer activities rate their
managed). Effective employee engagement operating income drop more than entered the workplace, they place high importance on company culture as very positive
programs have shown to reflect improvements in giving back to the community. This tech-savvy
and earnings per share decline of companies say donations
employee retention, business performance and generation is civic minded and 78 million strong,
over 11% increased with more choices for
attracting talent. Making sure employees are well- leading the trends for the future. workplace giving programs
aware and engaged with the company’s program(s)
brings a competitive advantage if they are treated of employed Americans trying to
decide between two jobs
with more than a nice-to-have attitude. offering the same location, job
Helpful Resources and References
description, pay, and benefits
Northup, Jan. "Employee Retention Is the Key to Minimizing Turnover Costs." Web log post. HR.com. HR.COM Limited, 30 Sept. 2010.
What sort of impact can retention play on the would choose to work for the
bottom line? Consider the fact that the cost of company that also supports "2010 Cone Cause Evolution Study." ConeInc.com. Cone Inc, 2010.
replacing a mid-level employee is estimated to be charitable causes
“2011 Deloitte Volunteer IMPACT Survey." Deloitte.com. Deloitte Development LLC, 2011.
roughly 150% the value of their entire compensation Employees who are very involved in their
package, when factoring in time, recruitment, training, company’s cause program are "Closing the Engagement Gap: A Road Map for Driving Superior Business Performance.“
etc. For high-level employees, the cost can reach TowersWatson.com. Towers Watson, 2008.
upwards of 750%. No matter the level of the more likely to be proud of their "Listen Up! The Talent Dialogue Approach to Employee Engagement." Deloitte.com. Deloitte Development LLC, 2009.
employee, and despite the actual cost impact to the company’s values and
company, the indisputable facts remain constant: a "Shaping the Future: Solving Social Problems Through Business Strategy." CorporatePhilanthropy.org.
are more likely to feel a strong Committee Encouraging Corporate Philanthropy, 2010.
well executed CSR program can improve retention,
sense of loyalty than those who
therefore, positively impact the bottom line of the "Social Good." JWTintelligence.com. J. Walter Thompson Company, Sept. 2011.
are not involved
company.
"Workplace Giving Works! Make It Work for You." LBGresearch.org. LBG Research Institute and LBG Associates, 2010.
Contact: Amy Chait | Market Development | achait@yourcause.com