The newest report from IW Financial – "Engaging employees in CSR initiatives can be a game changer" – takes an in-depth look at how and why companies are increasingly focused on engaging their employees in sustainability initiatives and other corporate social responsibility (CSR) programs.
It's about the bottom line
One of the most immediate benefits of developing of a robust, engaging CSR program is that it allows a company to effectively differentiate itself from competing firms, which gives it an edge in attracting and retaining talented workers. Employees who believe in their company's mission and understand how their efforts contribute to the meeting of shared goals will put their best foot forward in all aspects of their work, driving performance improvement throughout the organization.
Over the long term, getting employees involved in these initiatives can have a substantial impact on an organization's bottom line. Gallup studied the subject and found that there is a significant correlation between employee engagement and and earnings per share (EPS). Towers Perrin and Watson Wyatt reached similar conclusions when they studied the effect of employee engagement on operating income and returns to shareholders.
Innovative CSR initiatives can also lead to new business opportunities if companies approach these efforts with the same strategic mindset that they apply to other investment decisions. IW Financial's new report discusses several examples of how companies have leveraged employee participation in their CSR programs to break into new markets or gain insight into emerging trends.
The difference between indulgence and engagement
There is a popular misperception that falsely equates "engaged" workers with "happy" employees. In recent years, many companies have expanded their on-site recreational facilities and started providing a raft of different perks aimed at making the workplace more comfortable, with the goal of encouraging employees to spend more time in the office. However, in its 2013 State of the American Workplace Report, Gallup explained why "indulging employees is no substitute for engaging them."
On the other hand, providing substantive opportunities for employees to become involved in CSR initiatives is an effective way for companies to build a talented workforce, generate commitment to organizational goals, and drive strong performance at the individual and corporate levels.
For additional information about how employee engagement with CSR initiatives affects a company's financial performance and how investors can evaluate the policies in place at different organizations, interested parties should review IW Financial's new report – "Engaging employees in CSR initiatives can be a game changer."
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