CSR Roadmap

Does your business have a sustainable CSR program?

Today, the world of business is competitive, and corporate social responsibility (CSR) programs need to go beyond just “donating money.” In order to be effective and admirable, your CSR roadmap needs to be strategically aligned with your business model. But don’t worry—we’re here to help.

Below, we discuss the basics of CSR, including:

  • What is CSR?
  • Why is it important?
  • Some fun CSR examples
  • How to create a CSR roadmap in your business

Let’s get started.

What is CSR?

CSR stands for Corporate Social Responsibility, which is the impact an organization makes on:

  • Society
  • The environment
  • The economy

According to Investopedia, CSR is a “self-regulating business model that helps a company be socially accountable.” Not only to itself but also to its stakeholders and the public.

Prioritizing corporate social responsibility means positively impacting society, the environment, and the economy in its ordinary course of business.

Sometimes, CSR is referred to as ‘corporate citizenship.’

Why is CSR Important?

CSR has gained traction over the past few years especially. Today, more than ever, consumers and clients look to see where companies sit in terms of their CSR efforts.

Katie Schmidt, founder and lead designer of Passion Lilie, puts it best. In an interview with Business News Daily, she said, “What the public thinks of your company is critical to its success… By building a positive image that you believe in, you can make a name for your company as being socially conscious.”

Business News Daily continues. “It is becoming increasingly important to have a socially conscious image. Consumers, employees and stakeholders prioritize CSR when choosing a brand or company, and they are holding corporations accountable for effecting social change with their business beliefs, practices and profits.”

Still don’t understand the impact? Here are some statistics that demonstrate just how important CSR initiatives are to the people you serve.

  • More than half of Americans believe it’s important for companies to take a stand on key social, environmental, and political issues.
  • 70% of Americans believe it’s “somewhat” or “very important” for companies to make the world a better place.
  • “Many Americans claim ‘zero tolerance’ when it comes to infractions of ethical corporate codes,” including 25% of consumers and 22% of investors.
  • According to the ECDC, 93% of CEOs insist that sustainability is the key to success.

Fun CSR Examples!

Did you know that Starbucks and Ben and Jerry’s are considered leaders in the CSR space? Here, you can find a list of socially responsible causes that Ben and Jerry’s has advocated for since 1988. And here, a 23-page report from Starbucks detailing the global environmental and social impact they had in 2020.

Of course, we also have TOMS, whose company mission is to donate a pair of shoes for every pair they sell, Johnson & Johnson has focused on reducing its impact on the planet for three decades, and even Google! Did you know that Google’s data center now uses 50% less energy than others in the world and has committed over $1 billion to renewable energy projects? Wow!

There are so many inspiring examples of CSR programs in corporate America that we at Culture Works believe exemplify purpose alignment. 

How to Create a CSR Roadmap

So, now we know what corporate social responsibility is, why it’s important, and have even pinpointed some of our favorite CSR leaders, let’s now talk high-level about some tangible action steps in creating a CSR roadmap for your business.

Let’s get into it.

Assess Current Efforts

It’s time to get honest. Where do your current CSR efforts stand? Do you have any at all? If the answer is ‘no,’ don’t be ashamed. You’ll be a CSR pro before you know it.

The steps to assessing your current efforts require you to:

  • Collaborate with key internal stakeholders
  • Seek potential emerging issues
  • Conduct oversight to ensure compliance with existing goals and practices

Really THINK About Your Strategy

While donating to XYZ charity down the road might sound great (and easy enough) in theory, it’s best to strategically select the causes your business wants to support. This includes identifying what your business already does well to maximize the effectiveness of your CSR strategy.

What Issues Are Important to Your Clients and Prospects?

Let’s not just throw money at the wall and see what sticks. When creating your CSR strategy, it is absolutely essential to ask yourself: ‘What issues are important to my clients and prospects?’

And why’s that? Well, 87% of consumers would purchase a product based on a company supporting a social or environmental issue the consumer cares about, according to a Cone Communications CSR Study.

Use this to your advantage.

What Issues Are Important to Your Employees?

Additionally, when it comes to CSR, you want to support causes that make your employees (and future employees) proud, too.

According to GlobalGiving, strategic companies use “CSR programs to protect and grow their biggest asset—their employees.”

In fact, 76% “of millennials consider a company’s social and environmental commitments when deciding where to work and 64% would not take a job if a potential employer didn’t have strong corporate social responsibility practices in place.”

Broadcast Positive Impact

Once all of the kinks have been ironed out, it’s time to go public. This means spreading the positive impact that your CSR efforts have made on:

  • Social media
  • Your website (i.e. blog content)
  • Calendars
  • Community publications
  • Monthly or quarterly newsletters
  • Handbooks
  • Brochures

Shout it from the rooftops!

Tying CSR to Your Purpose and Culture Accountability

At Culture Works, we’re all about purpose. When it comes to an effective CSR strategy, it’s a no-brainer that your company’s purpose should aligned with your CSR initiatives.

At Culture Works, when we’re working with a client to identify and create company values, we tie their values to their purpose (which is then later tied to culture operations through performance accountability, your hiring process, culture accountability, and L&D—more information on these awesome topics can be found on our blog).

We know that developing an effective CSR strategy is hard work, but the benefit pays off tenfold. Interested in a similar topic? Read on for more information on why your company culture is defined by your purpose.

How to ensure successful culture integration post-M&A

The M&A process is an exciting but lengthy one. It can last anywhere from months to years depending on the size of the company involved. During this period, the merging of two company cultures can create culture shock, damaging productivity, profitability, and morale. Let’s talk about how to avoid that!

Entering into a merger can be challenging for both companies. Whatever the reasoning behind the merger, one thing is for sure—change is coming. According to Harvard Business Review, between 70 and 90% of mergers and acquisitions fail. A culture clash is often to blame for this extremely high number. 

Due Diligence

Preparing for a merger or acquisition requires time and planning. A large portion of this time is dedicated to conducting due diligence. Not sure how to go about your due diligence? Check out our due diligence checklist to ensure a smooth transition during an M&A

Due diligence happens during the process of an M&A — But what about the potential culture shock post-M&A? 

Leadership can help bring together the best of both cultures.

Employee engagement doesn’t have to suffer when you merge two different cultures. The leaders of both companies hold the power to protect employees and help them successfully share their cultures. One strategy is a weekly leadership meeting in which everyone steps back from the chaos of the merger to highlight the advantages of both cultures and strategize on ways to bring the best of each culture together to create a new, optimized company culture that works for everyone.

Creating a successful company culture requires an investment from everyone on the team and is essential to retaining employees and keeping them engaged in their work. Here’s how to get started.

Redefine your company’s core values.

Your culture and your purpose are defined by your core values. Merging two different sets of core values can be challenging. In many cases, the acquiring company attempts to keep its core values and share them with the other team.  This frequently results in a sense of disenfranchisement by the acquired company’s employees and results in reduced morale, productivity, and in turn, profitability.  A more egalitarian approach incorporates a process in which the leadership, often facilitated by an outside coach or consulting team, finds the best elements of both sets of principles and works to merge them, creating a new set of core values that speak to the merged company.

Training and development.

As you work to merge two different cultures together, it’s important to engage in team-building activities and ongoing training for all levels of the organization. 

Another aspect of the development of your team is ensuring your team members are aligned in their roles. Role alignment is essential to the success of your new merged business. When employees are aligned in roles that match their strengths they will be more engaged and excited about work.

Through training and development programs, team members who are not role aligned can discover their optimal roles and, in the process of reconfiguring the companies in the merger, change roles to be more productive and set up for success.  

Check-in with employees regularly. 

During a merger, it is essential that leadership and HR communicate regularly with all employees to ensure their concerns are being addressed. This can be done through informal check-ins, and/or formal employee engagement surveys. Monthly performance reviews can focus on an employee’s individual contributions to the overall company goals and assure them that their role is secure in the transition

Communication

One of the top reasons mergers and acquisitions fail is a lack of communication. When communication is lacking between managers and employees, employees are left asking questions: Why is the company merging? How will I be affected? How will I be supported throughout this merger? Am I about to lose my job?

Lack of communication with your employees may leave them confused and unmotivated to work hard for the newly merged company. Keep employees updated on the context of the merger, the timeline of what’s next, and other frequently asked questions related to the merger. Like restructuring the Org chart.  

Employee engagement before and after the merger.

Analyzing employee data before and after the merger can help you better understand how your organization has been impacted by the merger. In doing so, you can identify areas of your culture that may need work.

Employee retention

Employees will likely feel on edge during this major transition. They may be faced with fears of losing their jobs, being asked to re-apply for their job, or drastic company culture changes. Losing employees during the merger will negatively affect profitability. So focus on communication, incentives, clear goals, and strategies to keep your team engaged and in the know.

How to Create an Employee Handbook

(You need a lot more than in a traditional handbook!)

There are many terms thrown around the HR space: employee handbook, manual, pamphlet, and review. Same, same but different.

Although there are various terms used, they all have the same goal for your business—security and prevention.

At Culture Works, we receive a lot of questions about employee handbooks, manuals, whatever the heck you want to call them!

Some common questions we receive include:

  • What is an employee handbook?
  • Does my small business need a handbook?
  • What should be included in my employee handbook?
  • What should I avoid while creating an employee handbook?
  • How often should I restructure the handbook?

So, let’s take a closer look into why employee handbooks are essential for any business, and how they can transform your business’s workforce planning. 

What is an Employee Handbook? 

Simply put, an employee handbook is a book or online PDF containing employee and employer guidelines to reference for all job-related information.

No matter the size of the business, an employee handbook is a necessary tool. (We understand that as a small business, you wear a lot of hats for the company, but this doesn’t mean an employee handbook should take the backburner).

In general, an employee handbook is reviewed and signed when a new hire is onboarded. Although the handbook is primarily used for onboarding, it’s important to acknowledge that an employee handbook is not only a resource for employees but is also a resource for employers as well.

Additionally, having a thorough, up-to-date HR handbook can reduce your business’s insurance costs. Clearly, there are many pros to having an employee handbook, regardless of business size.

What Should be Included in an Employee Handbook? 

An employee handbook is normally a large document with guidelines covering the following topics:

  • Equal Opportunity Guidelines
  • Company Culture
  • Paid Time Off (PTO) and Holiday Time
  • Job Expectations
  • Company Mission Statement
  • Company Policies
  • Work Performance Expectations
  • Who to Contact if an Issue Arises

Surprisingly enough, employee handbooks are not required by law. They are, however, as we’ve noted, very helpful and highly recommended.

Most HR representatives consider the employer’s handbook as an active document, which means that throughout the year, notes can be added and reviewed when policies and employment laws change.

What Should I Avoid When Creating an Employee Handbook? 

Creating and maintaining employee manuals in California is more difficult than in other states. This is because policies and guidelines are constantly being adjusted. 

It’s almost impossible to keep up, which is why adding notes and using the employee handbook as an active document is a helpful practice to follow.

Ideally, an employee handbook should be written by an HR consultant or professional, or an employment attorney. Although there are tools that can help employers build a handbook, it’s better to practice to collaborate with a professional. 

Forbes lists common mistakes that are made when creating an employee handbook, and they are worth paying attention to. Key takeaways include:

  • Not having a process for reconstructing the handbook
  • Using the handbook as a form of control
  • Failing to notify employees if there are changes to the handbook
  • Using only a template 
  • Vague language

Again, your company mission and values should align with the handbook.

When Should You Review Your Employee Handbook? 

The simple answer? Always.

Again, most HR representatives see the handbook as an active document. This means that throughout the year when policies and general guidelines change, notes can be added and reviewed.

An employee handbook is most helpful when constantly added to and reviewed. This way, the handbook will stay perfectly up-to-date without annual revisions, which is important if an issue arises. A handbook is a great reference point.

A Final Word

As an employer, it can be helpful to see the employee handbook as a resource, not just another box to check off the list.

It should essentially be seen as a big information source. There is a lot of information to keep track of as an employer. If an employee gets called to jury duty, for example, do they receive paid time off? Check the employee handbook.If you’re a small business and haven’t officially created an employee handbook, it would be helpful to contact an HR professional to assist in the process. Read our blog, “Small Businesses: How to know when you need HR” for more information.