Published on Wednesday, May 09, 2007
KEEN ON attracting and retaining the top talent for your business? Then subtly shift tactics from flaunting huge pay packages and promotions to highlighting your sincere commitment to social responsibility.
With the changing paradigms of environmental and ethical awareness, the general public today is sensitive to commercial self-interest, environmental accidents, faulty production values and improper treatment of employees. As such, an organisation's reputation for corporate social responsibility, or lack thereof has a resounding impact on branding, productivity, publicity and profits. The recent pesticide brouhaha that swiftly debilitated various soft drink giants is a definite case in point.
Moreover, `doing the right thing' and investing back into the community can turn into a major recruiting tool too. Employees now hold their companies to high standards and want to be proud of the company they work for. They expect employers to rise above the obsession with the bottom line by operating in the interests of everyone. Hence, an altruistic image sans dirty scandals can drive job choices and become a competitive determining factor when it comes to a toss-up between two or more companies. As Dave Pace, executive vice-president at Starbucks says, "Social responsibility is a terrific recruiting and retention tool. These days, people want to work for an organisation that stands for something beyond profitability. Not just one that's successful."
Even a recent survey of MBA students from 11 leading American and European business schools reveals that 94 per cent candidates are willing to accept a lower salary (an average of 14 per cent lower) to work for a socially responsible firm. In fact, a reputation for ethics and caring about employees ranked third in importance (at 77 per cent) when choosing a job.
Serving the common good
Companies have to wake up to their obligatory role in society by shunning the reprehensible image of a ruthless eye on profitability alone. Their corporate decisions should defer to the social and environmental consequences instead of springing solely from financial considerations. This calls for gravitating towards a value-based business model that operates on the principle of greater good of the society they operate in.
Corporate activism entails an active involvement in a wide variety of worthy causes like human rights, global warming, community development, healthcare, education, and poverty and women empowerment. The initiatives can range from donations, charities, fundraisers or scholarships to even instituting environment-friendly policies. Socially responsible investment is epitomised by working in conjunction with local communities, financially supporting NGOs, encouraging underprivileged sections or protecting the abused. Companies can even inculcate employee involvement by encouraging them to teach in government schools, volunteer in orphanages, raise funds or perform pro bono work.
Leading companies like Infosys, Wipro, Tata and TVS are instituting charitable trusts and foundations that clean parks, plant trees, build hospitals, schools, libraries and orphanages, organise rehabilitation programmes for tribals, destitutes, mentally retarded or homeless children and spreading AIDS awareness. Other small, socially responsible firms are following suit. Organisations should incorporate such positive gestures in their recruiting and advertising material as well as articulate them on websites or newsletters to show that they care.
Doing the right thing
Philanthropic campaigns and championing social causes alone is not the touchstone of a strong sense of corporate social responsibility. It necessitates a holistic approach to business that upholds high moral standards of behaviour. In fact, the World Business Council for Sustainable Development defines corporate social responsibility as, `The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large'.
Ethics and company mission constantly come under the scanner, as employers are obliged to be socially responsible in their business activities too. They should proactively engage in best practices when it comes to corporate governance and workplace issues. Maintaining ethical performance and responsible business practices in line with the company mission is essential.
Honouring ethical values, forbidding age/sex discrimination, respecting employees, developing family-friendly policies, offering social benefits and including employee/customer views in business strategy go a long way in building a genuine perception of socially responsible corporations.
Many companies also organise ethics training for managers to educate regarding treating employees well. This encourages staff to voice concerns, and respond appropriately to ethical dilemmas thereby fostering relationships with customers. Some are also instituting specific `Corporate Social Responsibility' departments or executives to ensure morally acceptable standards of conduct. The resultant goodwill will set-off a cascading effect as employees, customers and shareholders alike will relish spreading the good word!
As Marc Gunther, a senior writer at Fortune magazine states, "The primary driver of corporate social responsibility is the desire of companies to attract better employees and engage the people they already have".
With the changing paradigms of environmental and ethical awareness, the general public today is sensitive to commercial self-interest, environmental accidents, faulty production values and improper treatment of employees. As such, an organisation's reputation for corporate social responsibility, or lack thereof has a resounding impact on branding, productivity, publicity and profits. The recent pesticide brouhaha that swiftly debilitated various soft drink giants is a definite case in point.
Moreover, `doing the right thing' and investing back into the community can turn into a major recruiting tool too. Employees now hold their companies to high standards and want to be proud of the company they work for. They expect employers to rise above the obsession with the bottom line by operating in the interests of everyone. Hence, an altruistic image sans dirty scandals can drive job choices and become a competitive determining factor when it comes to a toss-up between two or more companies. As Dave Pace, executive vice-president at Starbucks says, "Social responsibility is a terrific recruiting and retention tool. These days, people want to work for an organisation that stands for something beyond profitability. Not just one that's successful."
Even a recent survey of MBA students from 11 leading American and European business schools reveals that 94 per cent candidates are willing to accept a lower salary (an average of 14 per cent lower) to work for a socially responsible firm. In fact, a reputation for ethics and caring about employees ranked third in importance (at 77 per cent) when choosing a job.
Serving the common good
Companies have to wake up to their obligatory role in society by shunning the reprehensible image of a ruthless eye on profitability alone. Their corporate decisions should defer to the social and environmental consequences instead of springing solely from financial considerations. This calls for gravitating towards a value-based business model that operates on the principle of greater good of the society they operate in.
Corporate activism entails an active involvement in a wide variety of worthy causes like human rights, global warming, community development, healthcare, education, and poverty and women empowerment. The initiatives can range from donations, charities, fundraisers or scholarships to even instituting environment-friendly policies. Socially responsible investment is epitomised by working in conjunction with local communities, financially supporting NGOs, encouraging underprivileged sections or protecting the abused. Companies can even inculcate employee involvement by encouraging them to teach in government schools, volunteer in orphanages, raise funds or perform pro bono work.
Leading companies like Infosys, Wipro, Tata and TVS are instituting charitable trusts and foundations that clean parks, plant trees, build hospitals, schools, libraries and orphanages, organise rehabilitation programmes for tribals, destitutes, mentally retarded or homeless children and spreading AIDS awareness. Other small, socially responsible firms are following suit. Organisations should incorporate such positive gestures in their recruiting and advertising material as well as articulate them on websites or newsletters to show that they care.
Doing the right thing
Philanthropic campaigns and championing social causes alone is not the touchstone of a strong sense of corporate social responsibility. It necessitates a holistic approach to business that upholds high moral standards of behaviour. In fact, the World Business Council for Sustainable Development defines corporate social responsibility as, `The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large'.
Ethics and company mission constantly come under the scanner, as employers are obliged to be socially responsible in their business activities too. They should proactively engage in best practices when it comes to corporate governance and workplace issues. Maintaining ethical performance and responsible business practices in line with the company mission is essential.
Honouring ethical values, forbidding age/sex discrimination, respecting employees, developing family-friendly policies, offering social benefits and including employee/customer views in business strategy go a long way in building a genuine perception of socially responsible corporations.
Many companies also organise ethics training for managers to educate regarding treating employees well. This encourages staff to voice concerns, and respond appropriately to ethical dilemmas thereby fostering relationships with customers. Some are also instituting specific `Corporate Social Responsibility' departments or executives to ensure morally acceptable standards of conduct. The resultant goodwill will set-off a cascading effect as employees, customers and shareholders alike will relish spreading the good word!
As Marc Gunther, a senior writer at Fortune magazine states, "The primary driver of corporate social responsibility is the desire of companies to attract better employees and engage the people they already have".
PAYAL CHANANIA
No comments:
Post a Comment