CSR Research: Engaging Employees

Research suggests that older workers are—on the whole—more engaged than their younger colleagues; however, certain factors can increase employee engagement in workers of all ages—and the level of engagement varies based on the age of the employee.

Leaders at all levels who seek to get employees on board with environmental sustainability practices within their organizations should lead with an emphasis on exhibiting support of environmentally friendly behaviors and demonstrate through their actions passion for and support of environmentally sustainable practices and behaviors.

Corporate practitioners working to develop their diversity and inclusion programs must ensure that their efforts include management professionals, as a diverse leadership may lead to better firm performance. Racially diverse firms perform better than homogenous firms because they can launch new competitive actions more frequently. Compared to firms led by homogenous management, firms with racially diverse management can create more competitive advantages and increase market share and profits.

Diversity and inclusion programs are receiving increasing focus by corporate citizenship professionals. Those that are developing their programs must remember that the success of diversity and inclusion programs rests not only on the acquisition of a diverse workforce, but also on the cultivation of an inclusive environment. Research finds that employee workgroups perform better when they operate in an inclusive environment that welcomes and appreciates the contributions of all employees. Managers should take care to ensure that discrimination does not develop within workgroups, as the perception of discrimination results in decreased productivity, especially in larger groups.

Fostering an ethical workplace is a corporate citizenship imperative. The importance of ethical behavior in the workplace is widely accepted, but how best to foster an ethical environment is more divided. A recent study found that simply raising awareness of ethics can have a positive impact on behavior.

When an organization is comprised of a wide range of employee age groups (age diversity), higher levels of perceived age discrimination may occur, causing the operational and organizational performance of the company to suffer. Those responsible for diversity and inclusion programs should be conscious of addressing the higher levels of perceived age discrimination that may result from age diversity, and work to ensure social integration within the company.

Corporate citizenship professionals aiming to increase employee engagement and retention should not underestimate the power of an inclusive environment. With managerial support, positive inclusion climates can encourage employee retention, resulting in lower turnover.

When working to expand LBGT-friendly policies, corporate citizenship practitioners should look to the makeup of their boards, as well as the environment in which their company is headquartered. Research has found that the operating environment of a firm’s headquarters and board demographics affect firm adoption.

Employee treatment—as well as overall corporate citizenship performance—can be indicative of a firm’s approach to business practices. Firms with high employee well-being scores have better access to capital through lower debt rations and better credit ratings.

Companies with gender diverse boards are more likely to receive corporate recognition. Research finds that boards with a higher percentage of females are more likely to appear on corporate “best of” lists.

Many corporate citizenship practitioners are aware that employee telecommuting offers environmental benefits. According to a 2014 study, the practice can also improve job performance, interpersonal work relationships, and dedication of employees.

Building on the findings of more than 100 studies, researchers confirm that female board representation increases firm financial performance, and find that firms located in countries with greater gender equality and shareholder protections especially benefit.