Are we ready to give up on 36 million better citizens?

“An estimated 90 percent of companies on the S&P 500 index published a CSR report in 2019, compared to just 20 percent in 2011.״ 

(Governance & Accountability Institute, Inc.)

Corporate responsibility really began as philanthropy. Back in the day, the driving force behind doing good was monetary contributions by wealthy families. At the turn of the 20th century, the business sector began to see the value of being associated with philanthropy (and mingling with the wealthy individuals of the world over a glass of wine) and started to make monetary contributions to a variety of causes. Yet, philanthropic activity in its original form ran parallel to business activity with the two universes never crossing each other. Companies could pollute natural resources and engage in child labor during the daytime and in the evening raise millions to fight cancer. 

Corporate responsibility evolved in the 1970s in the United States when companies began to realize that they should include social and environmental considerations as part of their business plan.  At that point, businesses began to shift their operating mode from “One Bottom Line” (profit)  to “Triple Bottom Line,” a term which consists of three elements: profit, people, and planet, and asserts that a company should be managed in a way that not only makes money but which also improves people's lives and the well-being of the planet.

This was the birth of corporate social responsibility (CSR), which refers to initiatives companies take to assess their effect on the environment and impact on social welfare.

“Seventy-seven percent of consumers are motivated to purchase from companies committed to making the world a better place.״  

(2019 Aflac CSR survey)

Most people who were around in the early 1990s remember the student boycotts against one giant footwear company that was shamed in public for its poor labor practices and child sweatshops. The accusation spiked public outrage, protests, unrelenting criticism and eventually slowed down sales and led to layoffs. In 1998, the company CEO acknowledged, “our product has become synonymous with slave wages, forced overtime, and arbitrary abuse. I truly believe the American consumer doesn’t want to buy products made under abusive conditions.”

With the internet, social media, and access to information 24/7 consumers started voting with their dollars and choosing brands that align with their values. This increased consumer awareness has led to more businesses embracing, adhering to and implementing CSR practices. But, consumers were not the only ones taking a stand.

“55 percent of employees would choose to work for a socially responsible company, even if the salary is less.”  

(The Porter Novelli report)

At the turn of the century, employees also began to realize that business shouldn’t be just about making profits. In fact, today, nearly nine out of ten employees believe it is no longer acceptable for companies to just make money; companies must positively impact society as well. The understanding that employees seek to be involved and make a difference led to the development of CSR to include corporate volunteering.  Companies began to see the tremendous benefits in enabling employee volunteering in their communities. 

“People who volunteer feel better physically, mentally and emotionally.״

(The UnitedHealth Group) 

Employee volunteering turned out to be a real ‘win-win’. Those who are given the opportunity to volunteer are more loyal to their companies, as they have greater productivity and job satisfaction. Research from Cone Communications demonstrates the significance of corporate responsibility in people deciding which job to take.  Other available research shows “clear indicators of a link” between employee volunteering programs and improved recruiting and retention. And the list of benefits goes on and on: a Deloitte survey claims that volunteering improves employees’ leadership, communication, collaboration and teamwork and creative thinking skills.   

Realizing that volunteering policies can improve the quality of life for employees and people in the community, while adding value to the company, companies began to form a variety of volunteering programs; beach cleaning, food distribution, teaching youth, cleaning shelters, helping the elderly…you name it.  For a few good years, corporate social media channels and PR were plastered with pictures of smiling employees dressed in coveralls, holding brushes in their hands. In community centers the joke was that some of the rooms that were painted got smaller after so many layers of colors splashed on the walls by so many volunteering initiatives.

Climate action takes the front seat.

In recent years, the intensifying climate crisis has trumped all else. Companies’ CSR agenda shifted to environmental initiatives. Social agenda and employee volunteering were somewhat relegated to the sidelines.  

If ten years ago corporate responsibility was all about volunteering and painting community centers, it seems that nowadays, companies’ initiatives are all about recycling and lowering their carbon footprint.

This, in my opinion, is quite unfortunate. Lowering their carbon footprint is super important, but so is employee volunteering. Corporate employees have enormous power, and instead of pushing them aside, we need to mobilize them to achieve these huge environmental goals through day to day activities and initiatives.