Want More Employee Engagement Now? Try Corporate Social Responsibility

Want More Employee Engagement Now? Try Corporate Social Responsibility

Employee Engagement in Challenging Times: As I wrote in a recent Monday Memo, there are at least eight factors that contribute to employee engagement in challenging times. One of those is the vital issue of creating meaning and community for your associates.

Corporate Social Responsibility: Economists have found that one of the most effective ways to create meaning and community is to engage in Corporate Social Responsibility or CSR. In fact, more than 90% of the G250 (the world’s 250 largest companies) publish social responsibility reports. They do so, of course, for many reasons including improving their reputation with the public, tax advantages, and so on. Yet economists tell us that CSR also helps you attract better and more productive employees. For a good overview of this topic go to Freakonomics Radio podcast: Does Doing Good Give You License to Be Bad?

Yes, There’s Also a Downside: As Freakonomics Radio put it:

“Corporate Social Responsibility programs can attract better job applicants who’ll work for less money. But they also encourage employees to misbehave. Don’t laugh – you too probably engage in “moral licensing,” even if you don’t know it.”

Surprisingly, behavioral economists tell us, that those who feel they are engaged in an enterprise that’s doing good may feel a license to do something (usually a small thing) bad! This so-called “moral licensing”, is part of the reason that employees steal billions of dollars from their employers every year, pilfering more money than bank robbers.

What Should You Do?

Do Good Anyway: The bottom line is that the increase in better employees and productivity is worth the risk. In one study profiled by Freakonomics, the employer attracted 33% more applicants by emphasizing their CSR and the increase in productivity was approximately the same as an increase in wages from $11/hour to $15/hour. In addition, of course, it is always important to do good whenever you can for many reasons.

Monitor Employee Theft: Make sure you have effective controls to monitor employee theft, shrinkage and other malfeasance. When I conduct investigations into these issues, I am always surprised by how easily the alleged wrongdoer was able to conduct their scheme. Trust, but verify.

Involve Employees: Providing opportunities for employees to contribute to the cause with their own time, talent and treasure has been shown to create dividends. If you can also allow them to help with devising the CSR, you will create even more involvement, community, and meaning for your people. All of this leads to increased loyalty and engagement.

What Do You Think?

What CSR measures have you seen pay off in terms of employee engagement? Call or write us at: 303-216-1020 or Lynne@workplacesthatwork.com