Thursday, September 4, 2008

Corporate & Social Return on Investment

In early August (August 5 post) I outlined the need and importance of social and corporate responsibility. As the cultural landscape continues to change, we have found that there are big returns when companies and their employees give back to the community. This is coupled with employees continued interest in giving back to the community and the environment where their company is resident or the city/town/hamlet where they live.

I discussed the compelling rationale on this benefit and what companies can do. In a recent study, there is evidence that employees who give back tend to remain longer with their company than those who do not. Think about your retention rate. As well, 27% of customers define corporate and social responsibility as a company's commitment to the community or environment & 76% of consumers who purchase goods & services produced by companies with strong social, corporate, or environmental output make their decision to buy based on that commitment.

So, if you are a smart company with smart employees you will benefit from providing the opportunity for employees to give back to their communities as well as the company you have to opportunity to gain additional market share. For that your shareholders will see a greater return on their investment (look at General Electric's 2007 Annual Report). These are powerful dynamics at work in our ever changing world. In addition, there is overwhelming evidence that companies with these type incentive and social conscience programs will significantly outperform those companies that do not.

Your comments and concerns are of interest and I would like to hear your feedback. Please email me.

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