|
 Corporate responsibility is proving to be a more effective recruitment tool than a golden hello. But what actually is it? In today’s business environment, increasing levels of cynicism are laid at organisations who promote their activities around society and the environment. The scepticism is based on a belief that some organisations merely use corporate social responsibility as a publicity exercise. And that is why there has been – and needs to be a shift towards the more specific area of ‘Corporate Responsibility’.
Jo Causon, director, marketing and corporate affairs, Chartered Management Institute
It may sound like semantics, but there is a clear difference. Effective corporate responsibility policies should take organisations beyond their statutory obligations by making sure that they are also acting responsibly in terms of their workforce, customers and key stakeholders.
In other words, rather than becoming involved in activities for publicity purposes, they have a responsibility to deliver results that go beyond ‘good news stories’ and have a positive effect on staff, shareholders and the communities they interact with. Failure to do this is likely to impact on the organisation’s reputation, and how well it can recruit and retain the best talent.
Research by the Chartered Management Institute shows that 81% of organisations across the UK are experiencing record recruitment and retention problems. This is despite their efforts to attract the best candidates with incentives like ‘golden hellos’ and referral payments for existing staff. However, a similar proportion of individuals also think that ‘organisational culture and values’ is a strong motivational driver behind why individuals join and remain with an employer.
With this in mind, organisations that can demonstrate a responsible attitude towards all elements of their business are likely to be more successful at attracting and keeping their staff.
What is Corporate Responsibility?
New guidelines published by the Institute outline the key components of Corporate Responsibility for organisations. When putting a policy in place it's important to consider five key areas:
These categories encompass the organisation’s business-critical stakeholders and need to be taken into account when considering areas of responsibility.
Increasingly, individuals are looking at how organisations are tackling Corporate Responsibility when job hunting. Studies and anecdotal evidence suggest that this is especially true among the newly-graduated, who are keener to ensure that potential employers fit with their own ethics and values for living.
This might include areas such as how involved individuals are allowed to be with the decision-making process, or how values like mutual respect are communicated and perpetuated in daily working environment. These types of activities can play a crucial role in how well organisations recruit and retain in a competitive labour market.
Putting a Corporate Responsibility policy in place
Taking a structured approach to Corporate Responsibility will make the policy more effective and have the most benefit to the organisation in overcoming recruitment and retention difficulties. After analysing the impact of business activities on specific areas such as the environment or the workplace, organisations can identify which risks and opportunities that are most material to the business. When these have been decided there are a number of critical success factors to consider:
• Engage stakeholders: to achieve buy-in and ensure the success of any Corporate Responsibility policy, it's crucial to get ongoing support and buy-in.
• Measure performance: have clear performance indicators for your policy and make sure they are regularly revisited. These should certainly measure the impact of the policy on recruitment and retention.
• Report clearly: ensure that the policy is well-communicated. This creates a shared understanding of the responsibilities of the business.
• Look to the future: revisiting the aims and objectives of the policy and maintaining open communication will enable organisations to identify future risks and opportunities.
Taking a proactive and consultative approach to Corporate Responsibility will play a role in the success of any policy. In today’s environment, most organisations accept that there are benefits to responsible business practice, but too few have policies in place. Corporate Responsibility can have a significant impact on recruitment, retention and engagement with employees but only if it is implemented and measured through a formal process.
About the Chartered Management Institute
The Chartered Management Institute is the only chartered professional body that is dedicated to management and leadership. It is committed to raising the performance of business, supporting and advising individuals and organisations, and to help tackle the management challenges you face on a daily basis.
|