Sept 2011 CSRinsights: The Fact Sheet: CSR Impacts the Bottom Line


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Sept 2011 CSRinsights: The Fact Sheet: CSR Impacts the Bottom Line

  1. 1. September 2011CSRinsights presented by 2 Consumers: Expect and Prefer CSR CompaniesThe 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 causesIt’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 inflashlight 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 enoughthat 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 programsWe 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 a1) 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. 19932) 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 Trends1 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 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." Cone Inc, 2010. replacing a mid-level employee is estimated to be charitable causes “2011 Deloitte Volunteer IMPACT Survey." 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 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 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." 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." J. Walter Thompson Company, Sept. 2011. are not involved company. "Workplace Giving Works! Make It Work for You." LBG Research Institute and LBG Associates, 2010. Contact: Amy Chait | Market Development |