CSR is the key to employee engagement and retention: A Q&A with Sona Khosla
The good created from corporate purpose programs reaches far and wide, allowing for business, personal and societal growth.
With a recession looming, inflation, and companies struggling to attract and retain talent, Sona Khosla, Chief Impact Officer at Benevity, suggests adding a corporate social responsibility (CSR) model to your business structure.
Can you share a bit about your background and experience working in mission-driven companies?
I’ve only ever worked in mission-driven companies throughout my career. What I’ve learned is that there is a distinction between a mission-driven company – which is purely focused on its own mission – versus a purpose-driven company that cares about what its people (and the world) need it to care about. Benevity, where I’ve been for the past 7 years, has been an eye-opener (and heart-opener!) in seeing the connected, driven and highly performant culture, and the positive impact you can create when you are centered on purpose first and foremost.
Define corporate social responsibility in your own words. Why is it crucial for organizations to have CSR programs in place?
At its core, corporate social responsibility (CSR) is a model that businesses use to ensure they are making an impact in their communities. Over time, however, the definition has grown to encompass a business’s social accountability to its employees, customers, stakeholders and members of the public – it’s an evolution to a more encompassing concept of a company’s corporate purpose. Because of this, no two corporate purpose programs are exactly the same. Different companies base their programs on their values, the issues they are looking to solve and what their employees are passionate about. Corporate purpose programs typically comprise community investment or granting (the best ones allow employees to get involved in philanthropic decisions!), employee giving, matching and volunteering, positive actions and now, diversity, equity and inclusion.
Corporate purpose also recognizes that it’s not about driving social impact, but other forms of impact too: business impact, individual impact and non-profit impact. A strong corporate purpose program is often cited as a main driver in a company’s ability to attract and retain top talent. Almost every worker – from Gen Z to boomers – prefers to work for companies that treat them well, but also enable them to live their values and make a positive impact on the world. Benevity data shows that companies that engage their people in doing good see an average of 57% lower turnover. Purpose within a workplace builds a culture of connectedness that results in positive returns for business and the world.
How are the uncertain economic conditions the world is facing affecting CSR programs? Why should organizations continue to focus on these programs?
The current recession is causing many businesses and individuals to tighten their wallets. However, we are seeing continued investment in corporate purpose programs as they are recognized as one of the best morale boosters and tools organizations have to motivate and activate employee engagement at a time when employees are prone to withdrawal.
Businesses that have a thriving corporate purpose program even during tough times will be the ones that build engagement and trust with all stakeholders. During the Great Recession, companies who continued to invest in their programs strengthened their brand awareness and consumer loyalty, too. To create a successful corporate purpose program now, businesses can partner with ESG, community investment teams and employee resource groups (ERGs) to create more impact and efficiencies as well as encourage employees to get involved outside of just writing a check by recognizing and rewarding volunteer efforts and other acts of goodness.
Who are the different stakeholders companies must address in their CSR efforts and why do they play an important part in the philanthropy equation when it comes to CSR programs?
While more traditional CSR programs focus primarily on employees and the communities they serve and operate in, there are many stakeholders that are impacted by an organization’s corporate purpose initiatives. But what’s surprising is that there is a whole new set of stakeholders who wish to get engaged. In fact, according to recent Benevity research, 73% of consumers are likely to shop at or support a brand that seeks their input into where the company gives and 78% of employees are likely to work for a company that provides transparency into how it allocates its charitable donations. Allowing these stakeholders to provide input while providing transparency into charitable efforts will boost the retention of both customers and employees.
Key social moments in recent years like the pandemic, the racial justice movement, climate advocacy and the Great Resignation are all pointing to the continued rise of the stakeholder – both in power and expectation. These different groups increasingly want businesses to support the values and causes that matter to them and want a say in how the businesses they support or work at are making decisions, including how they direct their philanthropic dollars.
What role do employee resource groups (ERGs) play in CSR initiatives and overall employee engagement in these programs?
Employee resource groups (ERGs), or affinity groups, are fast becoming an important aspect of CSR programs because they help establish a sense of belonging and inclusion amongst employees, while also being a powerful source for insight into the challenges of various communities that the company wishes to support externally with their philanthropic efforts.
Affinity groups create a space where employees can connect with coworkers who are walking similar paths in life and establish ties with allies. Groups can be created to support any number of people in a company including working parents, LQBTQIA+ employees, veterans or people of color.
With 50% of employees saying they would stay at a company because it offered ERGs, it’s obvious that the ability to connect with coworkers on a deeper level in a shared space is extremely important to many employees. It also shows that affinity groups are an important part of retention and engagement strategies for organizations while also benefiting corporate purpose activity. ERGs are already tapped into employee communities who are eager to take action on social and environmental issues, so working with them to promote giving back to the causes that matter to them will go a long way to boost employee and company-wide engagement in corporate purpose programs.
What impact does CSR have on a business’s overall growth and trajectory?
In recent years, corporate purpose has made its way to the forefront of many business priorities, especially as ESG and stakeholder capitalism have driven a focus on DEI, social impact and environmental sustainability. When businesses focus on implementing and maintaining corporate purpose programs, it’s a win-win situation for all parties involved. From an investor perspective, companies are now being held accountable for these items and need to show concrete investment and impact. From an internal perspective, companies that offer corporate purpose programs to their employees see increased engagement and retention numbers. But the benefits of a strong corporate purpose program also trickle down to impact customers’ decision-making. Consumers want to buy from brands that are making a positive impact in the world. The good created from corporate purpose programs reaches far and wide, allowing for business, personal and societal growth.
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