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Benefits to employees in companies that highlight CSR?

What is the typical set of benefits realized to the employee in a company that emphasizes CSR?

And to the company?

What are the typical measures used?

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3 Answers

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    Former Member
    Dec 28, 2008 at 02:57 PM

    A recap

    There are three interested parties covered in this question, namely

    - the society,

    - the company and

    - the employees.

    When a company takes up CSR activities, the first beneficiary is the society, the second is the company and the third is their employees.

    Any company is situated in a location geographically and physically identifiable. The people around it may be considered as the society. If the owner of the company resides elsewhere, the society around him/her also may be treated as the society as for as this company is concerned.

    Of course, it is up to the company to decide what it would treat as the society;

    - it could be a set of people too, like children, elderly people and so on, any where;

    - it could be a topic too like archeologically important places, schools and so on.

    Opportunity to take up CSR activities exist at the time of establishing a company, while running the company and while closing down the company.

    u201CDevelopment Without Conflictu201D a publication by World Resources Institute is an interesting reading on community involvement, while commencing a project.

    http://www.wri.org/publication/development-without-conflict

    Hence it appears that CSR activities themselves could be very innovative, and they are.

    Some thoughts on the first question about benefit to the employees:

    1

    Outside the work place, employees interact with various agencies in the society for various day-to-day needs.

    The needs include banking, travel, accommodation, shopping, getting statutory licenses, admission in educational institutions, security, medical service, vocational holidays, property acquisitions, tax payment, sports events and so on.

    In a society where these services are streamlined, it may be easy to avail them.

    But, where it is not streamlined, and where an employeeu2019s personal presence and interaction with the agencies is required, then for employees of a company with good track record on CSR, it would become very easy and hassle free. All that an employee has to say is u201CI am from XYZ company!u201D

    Very importantly, the receptive treatment would be meted out to the children, spouse and parents of the employees. The employees can stay on their job less worried, calm and confident that they would be taken care and with no need to accompany them wherever they have to go.

    It may not be considered an ordinary benefit, under such situation, keeping in view the number of transactions involved!

    2

    If the employees of a company is directly involved in CSR activities, the employees would get opportunity to interact with the people in the community. In a society where things are becoming impersonal, personal interaction with community members for a constructive purpose may be seen as worth while by the employees inclined for such activities. I remember some one saying that an important thing that parents may give to their children is u2018experienceu2019, through small and big events, by spending time with them. Similarly, community work would become an experience to cherish life long for some of the employees. It may even pave the way for post-retirement engagement for some of them, for u2018gaining momentum in the next lap of lifeu2019 as Nicholas D. Kristof terms it.

    May like to think about the other two questions subsequently, in the New Year!

    Sam Anbazhagan

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    Former Member
    Jan 09, 2009 at 03:17 PM

    Benefits from CSR activities to company

    Benefits to the company is said to be:

    - general reputation

    - ability to attract and retain male and female employees,

    - customers, consumers

    - maintain employee morale and productivity

    - view of investors and financial community

    - relationship with government, media, suppliers, peers and community

    (Ref: Working Draft Guide on Social Responsibility by ISO )

    Organizations are dynamic. Their need keeps changing as the time flows.

    Some may have achieved all the above and some may have achieved some of them; some may not find need for a few of them.

    Organizations are in different phases too u2013 establishing, established, struggling and exiting. Their need would also depend upon the phase in which they are.

    There are also small, big and medium sized enterprises!

    The small enterprises would acknowledge CSR as a heavy subject, though they could tailor it to their level.

    The big would be very willing to involve in the endeavor.

    Among the medium sized enterprises we may find several types of response.

    The important benefit is uninterrupted functioning of the company, during establishment of the company, during initial phase of settling in the business and during running of the company. In some cases when the company in certain trouble, the community does some lobbying to retain the business in their midst too.

    These may be considered some of the benefits.

    Sam Anbazhagan

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    Former Member
    Jan 09, 2009 at 03:26 PM

    Measures of the results of CSR activities by a company

    In continuation with the earlier postings I tried to understand how NGOs measure the results of their activities and it appeared that a company's CSR activities may be fairly compared to the NGOs' way and hence the following response.

    1.

    It appears that need for measurement is an established fact and it would depend on the area of activity.

    2.

    Companies may choose any area for their CSR activities according their inclination.

    - Organizational Governance,

    - Human Rights

    - Labour Practices

    - The environment

    - Fair operating practices

    - Consumer issues

    - Community involvement and development

    The above list is as per the u2018Working Draft Guideline for Social Responsibilityu2019 by ISO.

    3.

    Location of a company itself would indicate which area to address!

    For instance, mining sector companies are generally in remote locations and hence community involvement and development would appropriate area;

    IT sector is a class apart, in utter contrast to their surroundings, in Tier I and Tier II cities. Being in knowledge management sector they would also involve in community development, especially education area;

    Manufacturing is every where and hence they may prefer Organization Governance, Human Rights, Labour Practices, Fair Operating Practices and the environment and consumer issues;

    Chemical industries are generally at the outskirts of cities and their area of concern may be the environment, Fair Operating Practices and Labour Practices, and

    Construction industry is everywhere and their area of main concern must be Human Rights Labour Practices ,Fair Operating Practices.

    4

    The area of CSRactivities could also be based on the Millennium Development Goals (MDGs)

    GOAL 1 Eradicate extreme poverty and hunger

    GOAL 2 Achieve universal primary education

    GOAL 3 Promote gender equality and empower women

    GOAL 4 Reduce child mortality

    GOAL 5 Improve maternal health

    GOAL 6 Combat HIV/AIDS, malaria and other diseases

    GOAL 7 Ensure environmental sustainability

    GOAL 8 Develop a global partnership for development

    5

    Having chosen and carried out related activities, it would yield expected or unexpected results.It is the results of CSR activities that would be meant to be measured.

    6.

    Under community involvement and development the following measures are considered very sound.

    As per 'Grassroots Development Framework', grassroots development produces results at three levels

    Direct benefits to individuals and families

    Strengthening of organizations namely Grassroots Groups, NGOs and Networks

    Broader impact on society at local, regional and national level.

    The results are tangible and intangible.

    Under tangible type, the results are

    Standard of living, organizational capability and policy environment.

    Under intangible type, the results are

    Personal capacity, organizational culture and community norms.

    Each of the result further involves the following:

    Standard of living: basic needs, Knowledge/skills, employment/income and assets.

    Organizational capability: planning, administration, resources, reach/linkages.

    Policy environment: Laws, policies and practices.

    Under Personal capacity: self-esteem, cultural identity, creativity, critical reflection.

    Under Organizational culture: Vision, democratic practice, autonomy, solidarity

    Under Community norms: Values, attitudes, relations.

    The above Framework is said to be the result of long years of work in the field by the Inter-American Foundation.

    Source: u2018Social Capital, Sustainability and Working Democracy: Yardsticks for Grassroots Developmentu2019 by Marion Ritcheyu2013Vance, in u2018The Earthscan Reader on NGO Managementu2019, by Michael Edwards and Alan Fowler (Ed), 2006

    7

    References:

    http://www.iaf.gov/grants/grassroots_dev_framework_text_en.asp

    http://www.iaf.gov/publications/publications_en.asp?journal_id=3&pageLevel=toc&pub_id=205&pub_year=2006&eval_id=1

    http://www.livelihoods.org/info/tools/Thecone.pdf

    ANALYSING THE CONE A review of literature and experiences relating to the Grassroots Development Framework.

    Katherine Pasteur, IDS

    Unpublished Draft. February 2002.

    http://nird.ap.nic.in/clic/rrdl111.html

    Another framework of interest is:

    Logical Framework Analysis

    http://www.gdrc.org/ngo/logical-fa.pdf

    Object Oriented Intervention Planning

    http://www.serd.ait.ac.th/ump/html/books%5Czopp_e.pdf

    8

    For other areas of work also similar measures may be identified by a company, especially with the help of NGOs functioning in such areas.

    9

    NGO Impact on Development, Empowerment and Action has developed u2018The Impact Tool Box for impact monitoring and evaluationu2019 of a specific programme namely u2018Savings and Credit Programmeu2019 at village level.

    This is an outcome of the work by Karl Kubel Institute and may be of interest too.

    Sam Anbazhagan

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