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Corporate Social Responsibility: Do Better by Doing Good

American consumers, and increasingly, American workers, have many choices these days in terms of the companies they choose to buy from or work for. And many are making their buying and/or employment decisions based on a company’s social responsibility. How does it give back to the community? How does it support sustainability? How does it treat its employees, customers, suppliers, and partners? How does it rate in integrity, valuing diversity, and gender equality? What are the company values and are they adhered to?

These are all questions that ten years ago or so we may not have factored into our buying decisions. Or thought about when we were searching for our next job opportunity. But these are very important questions today. In fact, 55% of consumers say they are willing to pay more for products from socially responsible companies. And, according to a 2015 Cone Communications study, 62% of Millennials would be willing to take a pay cut to work for a socially responsible company.

Companies that are socially responsible have a better public image – with consumers and in the media; have more engaged employees, and are able to attract higher quality talent; and are better able to attract and retain investors.

Here are a few examples.

Starbucks. Starbuck’s social responsibility is based on: community, ethical sourcing and environment. They develop community stores that partner with local nonprofits. They’ve pledged to hire at least 10,000 veterans and military by 2018, and they focus on diversity and inclusion in the workplace. They are committed to ensuring that their coffee, tea, cocoa and manufactured goods are responsibly and ethically produced and purchased. They build LEED certified stores, recycle, conserve water and energy, and strive to be environmentally friendly in every aspect of their operations.

TOMS Shoes. TOMS’ social responsibility model started with them giving a pair of shoes to someone in need for every pair of shoes sold. TOMS’ giveback model has since expanded to include coffee (providing water where needed), bags, eyewear and apparel. “With every product you purchase, TOMS will help a person in need. One for One®.”

Glassybaby. Glassbaby provides glassblower artisans the opportunity to continue their craft, and donates 10% of every glassbaby to the Glassbaby White Light Fund to help people, animals, and the planet. Glassbaby gives back almost $2 million annually. Glassbaby employs more than 80 glassblowers at their locations in Seattle and Berkeley.

Companies that do good do better. According to the CECP 2016 report, Giving in Numbers, companies that increased total giving by at least 10% between 2013 and 2015 saw increases in revenue and pre-tax profit, as opposed to all other companies, which saw decreases in both metrics.

“Creating a strong business and building a better world are not conflicting goals – they are both essential ingredients for long-term success.” – William Clay Ford Jr.

Teaming Up for Those in Need

In the wake of the devastation caused by Hurricane Harvey and its aftermath, it has been so encouraging to see how people have put aside their differences – political, racial, ethnic, economic, etc. – to work together to help those who have lost so much – their homes, their belongings, and, in some cases, their loved ones. Times like these make us review our priorities, and, I hope, think about how we can help those in need.

Companies often do team fundraising or volunteer events as part of their year-end giving. I’d like to suggest that you consider moving that up this year, or even adding an additional event to help the victims of Hurricane Harvey. Here are some ideas:

Set a company fundraising goal and ask employees to help you reach it
Match employee individual donations
Have a team competition to see who can raise the most money
Do something fun as a group and ask each employee to contribute a certain amount for the fund

There are many organizations that have established funds to support the region affected by Hurricane Harvey. Here are a few of them:

Also, Silicon Valley Community Foundation (SVCF) and the City of San Jose have launched the Californians Helping Texans – Hurricane Harvey Relief Fund to accept tax-deductible donations to help Harvey victims. SVCF has also vetted a number of national and local organizations accepting funds, which are listed on their site.

“No act of kindness, however small, is ever wasted.” – Aesop

Nurturing Respect and Civility in the Workplace

As I discussed in my last blog, I’ve noticed an increase in complaints of bullying and harassment in the workplace, which I believe is reflective of the polarizing political atmosphere in this country. This bad behavior presents a challenge to leadership, and to HR professionals who have to deal with the complaints. It’s essential that everyone who is in charge of establishing and maintaining policies and Codes of Conduct ensure that those policies and Codes:

Clearly articulate expected behaviors and consequences for behaviors outside of those expectations
Extend the requirements to oral, written and physical behaviors including social media, emails, etc.
Are incorporated into new hire, supervisor/manager and leadership training
Are communicated and reinforced across the organization on a regular basis through a variety of media, e.g., all-hands meetings, company newsletters, company intranet and social media, etc.
Are considered in the performance management process

Here are some additional tips for nurturing and maintaining respect and civility in the workplace:

Walk the talk. Leaders at every level need to set an example of good behavior. When someone in authority bullies or harasses a subordinate or a peer it gives others the license to do so.

Coach positive behaviors. Identify and address conflicts that get out of hand by role modeling and coaching more positive ways to interact and resolve issues.

Be consistent. Managers do not get a pass because they’re overwhelmed or don’t know how to manage. Train them. And make the expected behaviors apply to everyone.

Reinforce the message. In California, employers with 50 or more employees are required to provide supervisors and managers with anti-harassment/anti-bullying training every two years. Even if your company isn’t in California, I highly recommend that even employers with fewer employees provide the training, and that the training be provided to all employees.

Create an inclusive work environment. Establish a culture where everyone is recognized and respected for their qualities, differences, ideas and contributions.

Reward those who live the values. Consider an awards program to recognize individuals and teams who demonstrate your organization’s values.

While setting the tone for respect and civility starts at the top, each individual employee also has a responsibility to role model good behaviors for their peers. As individuals, we need to demonstrate respect for ourselves and respect for others on a daily basis.

“Be the change you want to see in the world.” – Mahatma Gandhi

A Strong Culture is a Recipe for Success: Johnson & Johnson

A clearly defined, communicated and continually reinforced company culture improves productivity, promotes ethical behavior, and contributes to business success. Employees are more likely to be engaged and loyal when they work in an environment of strong ethics, mutual respect, and trust.

I experienced this firsthand at Johnson & Johnson, with the Johnson & Johnson Credo. The Credo is a set of guiding principles that provides a framework for employee behavior. When employees understand the corporate values and expected behaviors, they are empowered to do the right thing. If someone deviates from expected behaviors, the Credo can be used as a coaching tool to help that individual learn what is expected and why.

The Credo states Johnson & Johnson’s responsibility to their customers, their employees, their communities and their stockholders. It was crafted by a member of the founding family nearly 75 years ago, which was, as stated on their website, “long before anyone ever heard the term ‘corporate social responsibility.’ Our Credo is more than just a moral compass. We believe it’s a recipe for business success. The fact that Johnson & Johnson is one of only a handful of companies that have flourished through more than a century of change is proof of that.”

The Johnson & Johnson Credo is infused in every aspect of J&J life. Every new hire is given the history of the Credo and its importance to the company. It’s in the company’s reward systems. When the company I was working for was bought by J&J, we went through a 2-day mandatory Johnson & Johnson training to understand the values. When tough decisions were made, the VP of HR would take out a copy of the Credo to serve as a compass to make the right decision for all the parties involved.

The Johnson & Johnson example shows that it’s not enough just to establish “a great culture.” You have to ensure that the culture becomes a part of the hearts and minds of all employees – from executives to new hires.

If you need help establishing, communicating or reinforcing your company culture, please contact me.

Creating a Culture That Promotes Good Behavior

In my past couple of blogs I’ve discussed harassment and bullying, how to recognize and prevent those behaviors, and the negative effects they can have on your business. But bullying and harassment are just two of many bad behaviors that can impact your business. Others include: unethical behavior, disrespect to customers or other employees, poor quality work, chronic lateness or absenteeism, and so on.

Establishing and communicating clear guidelines as to what is, and what is not, acceptable behavior is essential. It’s about creating a culture that promotes ethics, respect and integrity. Although we often think of company culture in terms of branding and perks, a strong company culture includes much more.

According to Harvard Business School Professor James L. Heskett, “effective culture can account for a 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors.”

So how do you create a great culture that promotes good behavior? Start with clearly defined vision and mission statements, and a set of core values. Ensure that each and every employee understands and can articulate the vision, mission and values. Be clear and consistent about expected behaviors. Integrate the vision, mission, values and expectations into your new hire orientation, employee handbook, and leadership training. Be sure that leaders at every level are aligned with the culture and are modeling expected behaviors. Recognize employees who consistently demonstrate the values in their interactions with customers, vendors, team members and other employees.

Employees who know what the standards and expectations are feel more empowered and have an easier time making decisions. This is especially important in small companies where everyone knows one another and employees feel more like family. If the standards aren’t clear and consistent and periodically reinforced, the lines can get blurred.

Communicate, and most importantly, demonstrate to employees that your focus is on doing the right thing, and not just on increasing profits. When companies lead with ethical behavior, respect and integrity, employees are more likely to follow.

If you would like more tips on creating a positive culture, please contact me.

Archive for company culture – Page 2

Teaming Up for Those in Need

Nurturing Respect and Civility in the Workplace

A Strong Culture is a Recipe for Success: Johnson & Johnson

Creating a Culture That Promotes Good Behavior

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