While economic conditions rise and fall, the trend toward sound environmental, social and ethical corporate practices is steadily increasing. After all, corporate social responsibility (CSR) efforts can provide today’s beleaguered companies both short- and long-term competitive advantage by motivating and strengthening a fatigued workforce that is asked to do more with less every day. At the same time, a well-defined CSR strategy offers companies a unique opportunity to build their brand and reputation.

For that reason, CSR remains a critical component of an effective business portfolio. By continuing to help develop and implement the most appropriate CSR initiatives for their company and workforce, HR can maintain a leadership role in ensuring the success of their enterprise now and in the future.


Good for Business

A recent study by HIP Investor, a San Francisco-based company that advises investors and corporations on how to be more sustainable and profitable, found that 92 percent of new college graduates in 2008 wanted to work for a company that doesn’t just make a profit but also contributes to the greater good. A 2007 ConeCause survey reported similar findings, noting that three in four employees wanted to “do good” and looked to employers for a purpose.

But employees are not the only ones committed to making a difference. According to HIP Investor, 65 percent of customers want their purchasing dollars to have an impact beyond simply padding companies’ pockets. Forty-nine percent will not buy if their purchases can be perceived as doing harm. And 66 percent of investors see citizenship efforts as a positive indicator, while 19 percent refuse to invest if firms are not “doing good.” What’s more, a July 2006 McKinsey survey revealed that 84 percent of executives see the need to deliver both high investor returns and public good; only 3 percent, however, feel their companies are doing a good job at realizing that goal.

Clearly, “doing good” makes business sense today. Furthermore, present economic challenges will likely drive demand for increased governance, transparency and ethical practices of companies in the future. Consequently, to help ensure ongoing success and profitability, companies should reevaluate their CSR efforts and consider ways to improve corporate citizenship now in order to reap long-term rewards.


CSR Pioneers

CSR activities are as varied as the public and private organizations that carry them out. Just ask Krista Henley and Rossella Derickson, co-founders of Corporate Wisdom, a company that specializes in CEO and executive coaching. Henley and Derickson are also co-authors of the book “Awakening Social Responsibility – A Call to Action” and directors of the South Bay Organizational Development Network (www.SBODN.com), a leading edge forum focused on making a difference in how organizations are run in the Silicon Valley.

According to Henley and Derickson, companies with mature CSR programs are actively involved in a variety of responsibility programs that have a significant impact on their HR efforts. And many of the most successful CSR efforts align the company’s business focus with its corporate citizenship practices.

For example, a Web innovator known for its commitment to diversity and inclusion focuses on hiring the best talent with a wide range of perspectives, ideas, and cultures so the company can create better products and services in a global online marketplace. An outdoor clothing and gear company, widely recognized for its positive efforts in Third World countries and its guileless approach to environmentalism and CSR, is peopled by a collaborative and innovative workforce made up of diverse, globally minded, highly committed individuals who deliver purpose-driven products and solutions. One of the world’s largest specialty retailers in the competitive apparel market employs a team of 90 employees, many with HR backgrounds, to ensure that the company is sourcing ethically from garment factories that maintain good working conditions.

And a global giant in the high-tech industry singles out innovation as the key to their business success and education as the key to their innovation. Indeed, with computer technology constantly and rapidly changing, having a creative and highly educated workforce is not an expense but an investment. Consequently, this company takes a proactive approach to education through a variety of CSR initiatives, including improving teaching worldwide, advancing education and research in the areas of math, science and engineering, and advocating for educational excellence. Through these programs, the company invests not only in the global community but also in its own workforce.

For these CSR heavyweights that have set and maintain a high standard for good citizenship, corporate responsibility is integrated throughout the entire organization and helps fuel a dynamic, results-driven workforce.


A Firm Foundation

Where CSR is concerned, one size does not fit all. Just as every company has its own unique set of challenges and opportunities, CSR implementations can vary widely. At the same time, however, every CSR strategy should be built on a foundation of ethics and good governance. After all, if these principles are not in place, then “doing good” is virtually impossible.

To that end, companies must safeguard their own reputations and, consequently, demand this same high level of trustworthiness from each and every employee—from the Board of Directors to the individual contributor. To clarify expected standards, a code of conduct should be created that guides employees in making ethical decisions. This document might cover topics such as maintaining respect in the work environment and in the community through fair labor, diversity and inclusion, conduct, health and safety, human rights, global citizenship, the environment, and other activities. It might also address how to conduct business in compliance with applicable laws and regulatory compliance requirements while also protecting the company’s assets and avoiding conflicts of interest.

For companies that operate globally, the most stringent of either local laws and regulations or the principles laid out in the code of conduct should be applied. Most importantly, all employees should receive annual training on these guidelines and certify their agreement to comply.


CSR and the Future

As the global business landscape continues to evolve, economic conditions rise and fall, and new challenges and opportunities emerge, the demand for good corporate citizenship increases. Investors and customers require it, executives value it, and today’s workforce insists on it.

With HR spearheading the development and implementation of a CSR strategy based on ethics and integrity, sound corporate citizenship becomes an effective tool for attracting and retaining exceptional employees who are not only aware of the impact they and their employer make in the world, but are also eager to improve it. The resulting workforce then becomes more engaged and satisfied as employees face new pressures and uncertainties in the wake of a changing environment.

Ultimately, an enhanced workforce provides businesses the skilled human capital required to protect the company’s brand and reputation. Through the implementation of CSR initiatives that are aligned with their corporate mission, organizations can compete successfully in a global marketplace today and tomorrow.