Knowledge Resource Centre

How CR Can Change Your Business

Melissa Davis

One of the greatest challenges for any business is managing the workplace. Recruitment is only the first step; developing, incentivising, managing productively and retaining employees is part of the day-to-day challenge of running a business. As we move into more difficult economic times, a focus on keeping up employee morale often comes as a low priority. Yet, an inspired and united workforce will lead to greater productivity, less turnover of employees and, importantly, help to retain and recruit staff. Here, corporate responsibility (CR) within a company can play a key role.

Society's expectations on business have changed dramatically in the past decade and this has been reflected through the mindset of employees (and potential employees). Many employees openly question the 'values' of the company that they work for (or wish to work for) - that is, what it stands for and what role the company, as a key societal actor in an interconnected world, plays in contributing to environmental sustainability, human rights and easing social burdens.

This change in attitude has been partly triggered by an increasing awareness of global issues such as climate change and poverty, as well as a questioning of the role of business in society. In the UK, a 2008 survey by researchers, Ipsos MORI, showed that the British public continues to see environmental issues as one of the top priorities that they want companies to pay attention to, despite rising concerns about the economy. At the same time, people are often sceptical of company motives, and most do not actually trust CEOs to tell the truth. Such attitudes can, in turn, have a direct impact on a company's brand and reputation - both within the company (among employees) and outside of the company. If a company then faces a scandal on the environment or social front - such as revelations of child labour or poor working conditions - it will have problems rebuilding its reputation and recruiting 'top talent'.

This societal shift (particularly in the western Europe), greater competition and concerns about a managing a company's brand (1) has, in turn, encouraged many large businesses to 'engage' in social issues such as human rights, disaster relief and community giving, often under the term 'corporate responsibility' or 'sustainability'. Many companies now have basic standards of environmental and social criteria in place as part of the way they do business. Many are also now taking the CR 'message' beyond their employees and to their customer base.