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Corporate social responsibility pays off in improved employee engagement and business performance

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An organisation's participation in corporate responsibility and environmentally-friendly business practices has a significant influence on employee engagement and business outcomes, new research reveals.

The research from the Kenexa Research Insititute, timed to coincide with Earth Day 2010 based on a survey of 1,000 employees, found 40% of employees claim to work in an organisation that demonstrates a genuine commitment to CSR and contributes to the community in which it operates.

The survey shows working for an organisation whose employees positively view corporate responsibility efforts has a significant, favourable impact on how they rate their pride in the organisation, their overall satisfaction and their willingness to recommend it as a place to work. And employees with favourable opinions of their organisation's corporate responsibility activities are more likely to state an intention to stay.

Anne Herman, research consultant at the Kenexa Research Institute, said: "Our research clearly indicates that organisations operating with a strong corporate responsibility climate have more engaged, confident and customer-oriented employees. It will be of great interest to senior leaders, however, that our results also indicate that those organisations that implement corporate responsibility efforts outperform those that do not on important financial metrics such as diluted earnings per share.

"Corporate responsibility activities increase the overall job satisfaction of

employees, particularly those in upper and middle-management roles. Having a strong corporate responsibility climate can play a key part in helping organisations achieve their retention targets."