Reference no: EM133033132

Case: Corporate social responsibility (CSR) and motivation

Note Before addressing this case you may find it helpful to examine the section in Chapter 2 of this book that discusses CSR.

Today, there are few self-respecting companies that do not have a corporate responsibility programme (CSR) or mission statement, but many have struggled to establish a tangible business case for the investment in these programmes. However, in recent years, it has become clear that staff motivation is a powerful bottom-line benefit of corporate responsibility, and Robert Davies, chief executive of the International Business Leaders Forum, which works with corporations to promote responsible business practices, argues that the employee audience has become a major driver of CSR. For instance, according to a report published by the research company Ipsos MORI, evidence is emerging that staff are concerned about the ethical behaviour of the companies for whom they work and 86 per cent of British workers believe it is important that their employer should be responsible to society and the environment.

In the UK, the push by retailers to meet the demands of a growing number of ethical shoppers has raised the profile of the ethical practices of businesses. Marks and Spencer, for example, is inviting shoppers to 'look behind the label' at the sustainability of its products, as well as its labour, fair trade and animal welfare practices. Moreover, as global warming has taken centre stage, companies have implemented carbon reduction programmes. Tesco, for example, has embarked on an ambitious labelling initiative that will eventually let shoppers compare all its products on their carbon emissions levels and people want to see similar practices in action, not only in the supermarket aisle but also in the workplace.

People are in search of meaning at work, says Linda Holbeche, director of leadership and consultancy at the Work Foundation, and they are conscious of the ways in which organisations 'walk the talk' on things such as CSR. In addition, the activities of leading business figures such as Bill Gates - whose foundation is tackling global health problems such as the spread of HIV/Aids - have also increased the desire on the part of workers to see their employers take action on some of the world's social and health problems.

Indeed, the opportunity for staff to participate in community initiatives has now become important. To this end KPMG, winner in this year's 'best workplace' corporate responsibility category, offers staff the chance to volunteer. In 2006, for instance, 31 per cent of its workforce volunteered, contributing 32,000 hours to community projects, and the company has recognised that such commitments are what help it attract and retain top talent, both from executives and graduates. Thus if you want to be a great place to work, it is not just about base salary and benefits, says Mike Kelly, UK head of corporate social responsibility at KPMG. While people expect leading companies to provide leading remuneration packages and expect the best in training and development, increasingly they also expect to work in an environment where they can contribute to the community.

Source: Murray, S. (2007) Financial Times, 2 May Questions

1. To what extent do you feel that the motivations of employees are likely to be affected by the CSR activities (or lack of) of the firms that they work for?

2. Using an appropriate motivation theory state how you would classify CSR (or lack of it) in terms of being a motivator?

3. Assume that you have just finished the final year of your degree and are about to be interviewed for your first full-time job. List your priorities for the things that you would be looking for in a job that would make you feel good about the job.

4. Now rank these things in terms of importance starting from 1 for the most important of them.

5. List the things that you would most want to avoid in any job that you take.

6. Now rank these starting from minus 1 downwards.

7. Are positive CSR policies on the part of a potential employer anywhere on your list?