Companies are starting to care more about corporate social responsibility (CSR). Among the largest 250 companies in the world, 92% produced a CSR report in 2015, informing shareholders and the public about the firm’s activities. That’s up from 64% having such a report in 2005. Today, Fortune Global 500 firms spend around $20 billion a year on CSR activities.
Stop Talking About How CSR Helps Your Bottom Line
Research shows that employees care about a firm’s intentions.
January 31, 2018
Taira Kurihara/Getty Images
Summary.
More firms are investing in CSR. It’s no surprise since CSR efforts — such as sustainability initiatives, corporate foundations, employee volunteer programs, and donations to charity — can be important tools for attracting and motivating employees. But research shows that firms should not pursue CSR simply for benefits like greater productivity. An experiment found that if employees think their company is using CSR initiatives instrumentally — trying to engage in prosocial activities only to benefit from it — then they’ll react negatively and put in less effort. In other words, while these initiatives will benefit society, they will backfire for companies if people think they’re being used for the wrong reasons.