Title: Task 11: CSR in the Workplace
Course: Corporate Social Responsibility online > Section: Part 3: Strategic approch to CSR

/30 minutes/

If we think about how to shape CSR in the workplace, we need to admit that there are huge differences in shaping CSR strategies between the developed and developing markets (see Section 3: CSR in different regions of the globe ).  In the developed markets, where we most likely can find regulated inhouse workplaces, the aim of implementing CSR can be oriented toward winning the war for talents, whereas in the developing countries, where there are less regulated and often outsorced workplaces, CSR is aimed at assuring the basic employee rights (Crane, Matten & Spence, 2014).

Regulated workplaces

In general, it can be said that in regulated workplaces CSR initiatives reveal the values of a company and help to build the so-called ‘employee value proposition’. CSR is perceived as a factor that humanizes the company and creates an image of a contributor to society rather than a maximizer of profit. The core CSR issues might be related to employee development, benefits, diversity, work-life balance, or corporate volunteering (Crane, Matten & Spence, 2014).

Less regulated workplaces

In turn, less regulated workplaces are largely found in the developing countries, either because employee protection legislation is absent or it is poorly enforced. CSR focuses on concerns for working conditions, occupational health and safety (physical and psychological), fair pay and conditions, equal opportunities, fair process and free association (Crane, Matten & Spence, 2014).

If you still need revision to better grasp these differences, you can go back to (any) of the following sections:

- 3.1. CSR in the developed countries
- 3.2. CSR in the developing countries

and watch again the two examples of Capgemini Initiatives: in the developed countries, aimed at employee volunteering, and in India, aimed at increasing employability, education and environmental protection.

Employees' responses to CSR

In the previous section, we discussed consumers' response to CSR. CSR is also used to attract employees. This is mostly the case in the developed countries. In general, most researchers agree that employees’ responses to CSR are favourable but highly dependant on the perceptions and characteristics of the individual, the company, and to some extent, the broader industry and the macro-environmental context.

Please watch a few companys' statements regarding their CSR policies. You can use some of the examples below or look examples on your own, e.g. of your favorite company whose CSR statement is aimed at attracting potential employees:

- https://www.youtube.com/watch?v=C6R3jNxcUTE
- https://www.youtube.com/watch?v=Cue1-ZGmLMI
- https://www.youtube.com/watch?v=EZ_1BNZW8dM
- https://www.youtube.com/watch?v=qJH6yiuWtR4

Now, please imagine that you are looking for a job and these companies are your potential choices.
What is your reaction to such branding? Does it attract you? Or are your reactions different, depending on the company?
Think for a moment about what your reaction depends on.

In general, when company directors are asked, they are often content with their company's CSR declaration as regards more general issues (“We support recycling”). However, as Bhattacharya, Sen &  Korschun (2008) state in their article "Using Corporate Social Responsibility to Win the War for Talent", most managers are not aware that:

"the specificity with which a company supports or engages in a social initiative makes a big difference to how it is perceived by employees. For instance, a company that supports dental health can engage in corporate philanthropy — donating money to the American Dental Association, say — or in cause marketing (a percentage of toothpaste purchases goes to the American Dental Association) or to corporate social marketing programs that promote actual behavior change, such as clinics in inner cities to train children to have better dental health practices. Different groups of employees will view those approaches in very different ways — and value them quite differently." (Bhattacharya,  Sen &  Korschun, 2008).

How does it work?
Well, research shows that CSR programs attract employees through a psychological mechanisms. They are aimed at satysfying certain needs, therefore the most specific and important aspect is communication.

"Companies need to inform employees about their CSR programs in a concrete, coherent and consistent manner. Such communication has to include both the rationale behind the CSR involvement and the specifics of the programs, their operations, the company resources allocated and the challenges faced, and most importantly, the successes of the programs." (Bhattacharya,  Sen &  Korschun, 2008)

Please have a look at the process presented in the exhibit under the link: http://sloanreview.mit.edu/wp-content/uploads/2008/01/49215-112.jpg (Access 13.05.2020)

You see that satysfying certain needs through CSR activity leads to behavioral outcomes (both internal and external).

The whole article by C.B. Bhattacharya, Sankar Sen & Daniel Korschun (2008) "Using Corporate Social Responsibility to Win the War for Talent". MIT Sloan Management Review, is available on the Internet (search the following website: https://sloanreview.mit.edu, Accessed 13.05.2020)

Looking at another study by Magda B.L. Donia, Carol-Ann Tetrault Sirsly and Sigalit Ronen (2016), we can learn what happens when employees assess an organization's efforts related to CSR. According to researchers, a company's efforts can be classified as either substantive or symbolic. Substantive CSR efforts are aimed at supporting the common good, while symbolic ones are rather self-serving and performed by the company primarily for reputation improvement and to enhance profits. The research indicates that when employees attribute CSR as substantive, benefits accrue to the individual and to the organization as a whole; however, when viewed as engaged in greenwashing or self-serving engagement in CSR backfires, employees' reactions are negative, and they may do less for the organization and label it as a "taker" rather than a "giver".

Please imagine that you are looking for a job. Choose 3 different companies that use CSR as an element of their branding and imagine these are your potential employer choices (You can also use the examples from the links above in this section). Explain your reactions to the commercials and potential differences in your responses regarding each company. Please refer to following aspects:

- Describe all three CSR activities and your favorable or unfavorable response as a potential applicant.
- Identify the need fulfilled by the CSR activities. Please link you answer to the process shown in the figure:  http://sloanreview.mit.edu/wp-content/uploads/2008/01/49215-112.jpg
- Specify who might be most attracted to the CSR activity shown in the chosen commercials.  Describe both the characteristics of employees who might be interested in this activity and of those who rather won't be.
- Explain why you think some people could be attracted and others are not likely to be attracted by this kind of CSR message.

References:

- Bhattacharya C.B., Sankar Sen & Daniel Korschun (2008) Using Corporate Social Responsibility to Win the War for Talent. MIT Sloan Management Review, https://sloanreview.mit.edu/article/using-corporate-social-responsibility-to-win-the-war-for-talent/ (Accessed 13.05.2020)
- Crane A., Matten & Spence (2014) CSR in the workplace In: A. Crane, D. Matten, and L.J. Spence (eds.), Corporate Social Responsibility: Readings and Cases in a Global Context, 3/e. Abingdon: Routledge, pp. 254-260.
- Donia, M.B.L., C-A. Tetrault Sirsly, S. Ronen. Employee Attributions of Corporate Social Responsibility as Substantive or Symbolic: Validation of a Measure. Applied Psychology, 2016, DOI: 10.1111/apps.12081
- https://www.sciencedaily.com/releases/2016/09/160907095719.htm
- Pontefract, D (2016), Faking Corporate Social Responsibility Does Not Fool Employees, Forbes, https://www.forbes.com/sites/danpontefract/2016/09/24/faking-corporate-social-responsibility-does-not-fool-employees/#52df89497994 (Accessed 13.06.2020)