CSR is key to workforce strategy as it helps organizations maintain their financial performance writes Deveshi Malhotra

In today’s world, social responsibility is a critical factor affecting employees decision of employment as well as business revenue and success. Corporate Social Responsibility is the framework organizations follows to pursue pro-social objectives in addition to maximizing profits and business growth, through its environmental, ethical, philanthropic, and economic responsibility. Sustainability is often embedded within the organizational social responsibility strategy.

Corporate Social Responsibility vision incorporates ‘People, Planet, and Profits’ and stems from the deep-seated desire to build strong stakeholder relationships with the clients and employees.

The latest trends in Corporate Social Responsibility include, firstly, utilizing cost-saving and highly efficient renewable energy which leads to low carbon footprint and drives quantifiable revenue growth while helping strengthen corporate branding. Dell implemented a circular economy approach for their products through the closed loop recycled plastic supply chain which benefits them by $1.3 Million annually.

Secondly, most firms are creating blended initiatives to generate an impact while addressing multiple sustainable development goals. Unilever’s ‘Regenerative agriculture’ project focusses not only on soil health, quality of air and water but also on farmer’s wellbeing. Similarly, Coca-Cola’s 5x20 program targets employment of women in developing countries, in bottling roles and plays a role in providing them with better access to health care and education.

Lastly, the use of ‘Green technologies’ by organizations, in energy trading and to secure a transparent supply chain helps remove green-house gas emissions.

According to EY’s Global Institutional Investor Survey, 74% investors are more likely to divest from companies with poor sustainability performance that are not purpose-led, and consumer behaviour depends on it as well, making it imperative for firms to prioritize Corporate Social Responsibility.

Therefore, such programs help firms creatively strengthen their business and contribute to society, while forging a competitive advantage to attract top talent and to ensure high employee engagement and retention, making it a ‘win-win’ situation for the organization.

While 41% of the workforce according to the Microsoft Work Trend Index survey was willing to resign due to the onset of the COVID-19 pandemic, companies focused on enhancing their organizational purpose to retain employees. Corporate Social Responsibility initiatives reveal the values and culture of the company, that can become a part of their ‘employee value proposition’, which also empowers employees to leverage their corporate resources to do societal good.

Therefore, Corporate Social Responsibility is key to workforce strategy as it helps organizations maintain their financial performance by retaining top talent, enhancing motivation, and increasing productivity, despite the new ways of working.

(Deveshi Malhotra is  studying B.Sc. Social Science at UCL, London)