Corporate social responsibility (CSR) is not new to the business world, but it has been steadily growing in popularity in recent years. Where only 20% of S&P 500 companies published sustainability reports in 2011, that number jumped to 90% in 2019. The leap in reporting across industries is a clear sign that companies benefit from social responsibility. Not only do companies reap financial benefits, as research shows that 77% of consumers are motivated to purchase from socially responsible companies, but they also see a positive impact on employee retention.
With such high potential for companies to see financial benefits as well as maintaining a stable workforce during a labor shortage, CSR is more important than ever. Unfortunately, the idea is not so easily implemented. The pressure is on HR professionals to successfully transform their company’s culture into one that is socially responsible while staying true to the company’s core mission and keeping all employees engaged. For those wading through the complexity that is adapting corporate culture, here are a few common obstacles to look out for followed by strategies to help guide you through them.
As HR professionals lead their colleagues into a culture of social responsibility, some may find that they are not equipped with all the proper resources, namely finances. It’s common for CSR programs to be allotted few financial resources or experience budget cuts. In these cases, CSR initiatives must be cost-effective. The best way to ensure efficacy is to choose one cause for the company to focus on. By zeroing in on one goal, every CSR objective will have more impact than if corporate resources were spread across multiple causes. HR professionals can also find alternatives to donations, as not all companies can sustain providing consistent financial aid. Instead of contributing money, leaders can encourage employees to volunteer. Allow employees to either take days off work to volunteer for organizations relevant to the company’s cause or organize days where the team volunteers together. HR professionals can also reward employees for volunteering in multiple ways, such as public recognition, more PTO, flexible hours, or other perks.
Even though the company may be focused on one socially responsible goal, that doesn’t mean all employees will be on board. As employees come from a variety of cultural backgrounds with different norms and values, HR professionals must work to ensure that the company is conscious and respectful of those differences. Sometimes, these cultural differences can end up clashing with the company’s CSR goals, which will affect employee engagement in their social responsibility projects. The best way to move through this obstacle is to actively listen to employee concerns and find common ground. Ensure each team has a leader who will promote the cause to their employees while also learning why some carry different views on the matter. After learning how employees from different backgrounds perceive the cause through their cultural lens, leaders can then craft a respectful strategy that everyone will respond to positively. To discover these differences, leaders can conduct focus groups to determine how those from various cultural backgrounds perceive the way the company promotes the cause. Encourage criticism and reassure employees that these are safe tools for them to express their concerns. The information gathered from actively listening and seeking constructive feedback will be valuable as the company moves forward in adopting a socially responsible cause.
Measuring the company’s social justice impact is another obstacle HR professionals will run into, especially if their CSR program does not have the budget to make substantial financial donations. Some companies can use environmental metrics and track their carbon footprint, plastic consumption, water consumption, etc. However, impacts on social justice initiatives are not always quantifiable, at least not on the surface. Companies that promote volunteering can track how many employees are engaged in those activities as well as the number of hours volunteered. HR professionals should also keep track of employee engagement rates, job satisfaction, and employee retention since CSR initiatives were implemented and compare them to those same metrics from before the company adopted a CSR initiative. By compiling a variety of metrics, HR professionals will not only be able to properly measure their social impact, but they will also have evidence of their program’s success to show company executives.
It’s no easy feat to implement a CSR initiative that unites the entire company while seeing measurable success. However, if HR teams make a plan to address obstacles before they arrive, they will experience a much smoother and more productive journey toward developing a socially responsible company culture.
