Engaging in CSR
Jock Encombe, senior consultant at YSC, says that businesses developing a CSR agenda create a sense of purpose, uniting their people and creating competitive advantage
Stakeholder engagement, creating new processes and systems to protect the environment and building links in the local community – these all come under the corporate social responsibility (CSR) banner. But should employers get involved in such activities? The answer is simple: yes. If organisations want to succeed in today’s increasingly competitive environment then CSR is something they cannot ignore.
According to a new report from the Economist Intelligence Unit, there is every reason for companies to embrace CSR. Global companies that have delivered strong share price growth over the past three years have taken more of a lead on corporate sustainability issues than those that have seen their share price stagnate or decline. The report also clearly indicates that such activities are integral to successful companies’ competitive advantage.
Organisations who fail to invest in CSR may find themselves struggling to engage with their existing employees and may have difficulty attracting new talent. Such activities create meaning and, as employees work harder, they are increasingly seeking a sense of meaning and purpose in their work.
Outstanding businesses such as Google, Goldman Sachs, Diageo, Virgin and Sainsbury’s have not succeeded simply by aggressively pursuing their markets, but because they have an authentic sense of purpose that unites their people.
The fact is that organisations failing to create meaning for their people will find themselves struggling to engage with their existing employees and have difficulty attracting new talent. CSR activties can create meaning and this meaning at work is becoming more important as people work longer and spend more of their time at work.
The 2008 graduate survey from the Chartered Institute of Personnel and Development (CIPD) shows the culture of an organisation and its ethical and environmental stance are of critical importance to graduates. Equally, older workers and future leaders want to commit their heart and soul to a business that takes its broader obligations to society seriously.
Meaning Inc, a 2007 book by YSC’s CEO Gurnek Bains and YSC consultants, now on its fourth reprint, provides further evidence of this shift in employee expectations. Emphasis is placed on the fact that CSR is good business. There are opportunities for forward thinking businesses to use purpose and meaning as levers to build high performing organisations where culture becomes a key plank of their competitive advantage.
Oxford University’s SAID business school and YSC are collaborating to help leaders from business, government and civil society acquire the capabilities needed to build purpose and meaning in organisations. The 21st Century
Leaders Programme focuses on the clear need for leaders to achieve a robust understanding not only of their own personal drivers and but also
of how these connect to their company’s purpose and strategy.
Leaders require an understanding of the key 21st century trends affecting their industry, such as demographics, new technologies, global politics and the environment. The CSR agenda is too complex and contradictory for leaders alone to know all the answers; 21st century leaders need to genuinely engage their teams and employees in strategy formulation, decision making and implementing new initiatives around these issues.
Leaders who are honestly in touch with their own deepest aspirations will be the ones who have the ability to build meaningful places of work that attract and retain the best talent. Such leaders will be seen as iconic in their industry and will build deep, lasting relationships with their customers and external stakeholders.
