Corporate social responsibility (CSR) has become a buzzword in the 2020s but it isn’t a new concept. It reaches back to the 18th century when faith-based organizations refused to invest in businesses that didn’t align with their values. The concept evolved over time, shifting towards corporate philanthropy in the 19th century. Today, CSR encompasses environmental sustainability, ethical labor practices, DEI initiatives, and community development.
While the concept of CSR has existed for a few centuries, its importance has skyrocketed in the 2020s. CSR initiatives are becoming critical to success as companies pivot and adapt to the global socioeconomic turmoil that has persisted since the COVID-19 pandemic. The reach of those initiatives can be considerable, impacting a company’s brand, reputation, relationships with customers and stakeholders, and recruitment and retention efforts.
As companies in the tech sector evaluate their recruitment and retention strategies in response to the talent shortage, it’s important to factor in CSR. Today’s candidates prioritize CSR and look for employers who align with their values. To attract and retain top talent, it’s increasingly important for employers to develop strategies to best leverage their CSR initiatives with candidates and employees.
What Is Corporate Social Responsibility (CSR)?
Although companies have been choosing to make decisions based on social and ethical responsibilities for hundreds of years, the concept of corporate social responsibility as we know it was developed in the 1950s. At that time, the American economist Howard Bowen wrote a book entitled Social Responsibilities of the Businessman that advocated for social responsibility and ethical decisions by business.
Companies that embrace CSR recognize that their actions impact the economy, the environment, the communities they function in – and the wider world. Recognizing that impact, they implement policies to effect positive change. Kanagasabai Nirojan explains in a scholarly article that:
“corporate social responsibility” (CSR) places an emphasis on an organization’s social and ethical responsibilities in addition to maximizing profits. It entails incorporating social responsibility, moral decision-making, and sustainable practices into the foundation of corporate operations. CSR essentially seeks to strike a balance between financial performance and a favorable influence on the environment and society, demonstrating a dedication to ethical business practices and stakeholder well-being.
Generally speaking, CSR may include philanthropy, sustainable business practices that benefit the environment, DEI initiatives, ethical labor policies, and/or programs that benefit society. It is a voluntary, self-regulating business model – a big-picture framework – that businesses use to effect positive change.
The Escalating Importance Of CSR In The 2020s
The implementation of CSR practices gradually gained momentum from the 1970s to the 2020s, when the importance of CSR skyrocketed. This build-up was driven by several factors, including:
- Rising awareness of environmental and sustainability issues;
- Increasing public scrutiny due to the ease of locating information online and the rise of social media; and
- Shifting workforce expectations as millennials and Gen Z workers prioritize ethics and social responsibility in their job searches.
The movement towards sustainable, ethical, and positive social initiatives has been driven by customers, stakeholders, and candidates and employees. That movement escalated significantly during the COVID-19 pandemic, which was accompanied by widespread social and economic upheaval. During this time, candidates and employees began placing higher value on CSR initiatives because:
- People began to recognize the importance of coming together to foster positive change and collective well-being in their communities and the world at large;
- Young Gen Z professionals, who are highly socially aware and committed to effecting social and environmental change, began entering the workforce just prior to the pandemic (and will continue filtering into the workplace throughout the 2020s and early 2030s); and,
- There was a widespread shift towards an improved work/life balance, which prompted many workers to seek employers with similar values.
As employers in the tech sector struggled to fill open roles, many realized that their CSR initiatives directly impacted recruitment and retention. To leverage CSR to attract top talent and improve retention, companies must, first, define and develop their CSR policies and, second, communicate those policies to existing employees and job candidates.
How To Effectively Establish CSR
If you don’t already have a formalized CSR policy, it’s important to start by choosing initiatives that resonate with your company and stakeholders and that reflect your values. Initiate consultations with your employees, customers, and community to understand their key issues and priorities. Involving all stakeholders at this stage allows you to build trust and credibility, and ensure that the initiatives you choose will be the most impactful.
At the same time, your CSR initiatives must reflect your company’s core values and mission. Once you’ve chosen your initiatives, create a clear statement explaining how they align with the goals of your company and the expected outcomes. Ultimately, these statements should become part of your brand identity.
Once your goals are clearly defined, develop a plan to embed them into your everyday operations and, hence, your core business strategy. Your company needs to live and breathe your CSR goals – not only so that they are achievable, but so that they become an authentic component of your brand.
It’s also important to create a communications strategy around your CSR initiatives. Regular communications and updates on the progress towards your CSR goals can motivate employees to participate and attract candidates who are eager to contribute to positive outcomes. Make it easy for candidates to learn about your initiatives by highlighting them on your website, social channels, and press releases. Promote your CSR activities throughout the hiring process by including them in your job postings and recruitment materials and discussing them during interviews.
How To Attract Top Top Talent With CSR
Low unemployment in the tech sector and the skills gap caused by emerging technologies mean that tech professionals are in high demand. For this reason, they can shop around for exceptional job opportunities that check all their boxes. For many, CSR is a desirable job “perk” that allows them to achieve a better work/life balance and make a difference in the world.
By showcasing your CSR initiatives, you can make your company stand out and attract talent who align with your company values, further ensuring a good fit and contributing to improved retention.
Highlight CSR In Job Postings And Recruitment Marketing
Make it easy for candidates to locate details about your commitment to CSR by featuring it in your job postings and recruitment marketing materials. Tell compelling stories, using specific examples and visuals, to highlight the impact of your initiatives. List awards and recognition that your company has earned for its CSR commitment. By prominently featuring information about your CSR work, you will be able to attract candidates who are a good fit for your company and who are just as committed to positive social and environmental change as you.
Showcase Employee Involvement In CSR Activities
Employee participation in CSR initiatives is vital in building a culture that values and drives positive change. Encourage involvement by creating diverse ways to contribute; providing resources, support, and recognition; and sharing the CSR success stories of your employees.
Employees who engage enthusiastically with your CSR efforts are terrific advocates for your company. Encourage them to share their activities on their social channels and with their professional networks. You should also feature their stories in your marketing materials. When told authentically, these types of stories build trust in your brand and attract candidates and customers.
Share Success Stories About CSR Activities
Demonstrate your commitment to CSR by sharing the outcome of your initiatives. When your CSR activities create effective change, it’s clear that your actions are authentic. Whether you share your success stories or encourage your employees to do so, those records of success demonstrate your commitment to CSR and help to attract and retain tech professionals who are equally committed to positive change.
