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In our world of constant change, organizations are confronted with various challenges in terms of sustainability. However, most of these challenges are not new - in fact, they are now becoming increasingly apparent, even in times of COVID. This includes the question of the social and ecological, but also long-term economic internal and external effects of their own actions, in short: how to do business sustainably. But is sustainability just something altruistic? No, and it can even be actively shaped - through workplace culture.
Corporate social responsibility - or the contribution organizations make to sustainability
Organizations are embedded in a social and ecological context and are surrounded by environmental factors that influence their activities. This is why issues relating to sustainability - such as corporate social responsibility (CSR) - are becoming increasingly important and are playing an ever greater role in corporate management. But what exactly does CSR mean? Although there is no generally recognized definition of CSR, corporate social responsibility is generally understood to mean a company's voluntary contribution to sustainable development that goes beyond legal requirements.
For example, by organizations assuming their social responsibility in material procurement and production both at home and abroad. Or by making their business strategies and products sustainable. CSR therefore concerns both socially and environmentally responsible action.
The Swiss Confederation wants to set a good example here. An analysis of the Confederation's CSR activities identified 5 roles and a total of 12 dimensions that are based on the UN Principles for Sustainable Development.
One of these roles concerns the Confederation as an employer, with the dimensions of employment and working conditions, diversity / equal opportunities, health and safety in the workplace and employee development. There are therefore already initial indications of a workplace culture. All of these dimensions contribute to more responsible action as an organization.
The value of sustainable action in companies
Today, companies and their success are no longer measured solely by economic performance indicators, but also by their relationships with customers, employees and interest groups, as well as their impact on nature and society. Deloitte conducted a study of over 11,000 managers, which revealed a fundamental shift from "business enterprises" to "social enterprises". While the focus of "business enterprises" is mainly on profitability, "social enterprises" are organizations with a mission to take on social responsibility and help shape the environment in a supportive and cooperative manner.
The exciting thing is that measures for greater sustainability have a positive impact on a company's success. In an article on corporate governance published by Harvard Law School in 2011, Matteo Tonello showed that CSR is definitely a competitive advantage. One example is lower churn costs and less absenteeism with equal treatment policies and practices, as morale would be increased. It would also significantly improve employee recruitment and retention. Customers would also reward those organizations that treat their employees fairly with their loyalty. Brand loyalty would therefore be increased. A meta-study by Claremont College also showed a direct correlation between the Dow Jones Social Responsibilty Index and profitability. And a long-term study by the Financial Times Press concluded that organizations with a focus on purpose outperformed their competitors in terms of share value by a factor of 8.
How workplace culture can influence CSR
Although the links between CSR and corporate success have been proven, only 18% of respondents in the Deloitte study stated that CSR was a top priority and part of the corporate strategy. Fragmented programs that have little impact on their own are particularly problematic. A uniform, comprehensible and authentic strategy is needed that shows who the organization is and what it does. But this is not possible without a functioning workplace culture. And for a workplace culture to work, it needs trust. The evidence-based methodology of Great Place To Work shows that trust requires the dimensions of respect, fairness, pride, team spirit and credibility.
This is the only way for organizations to take the step towards an integrated and, above all, credible strategy that promotes CSR measures. Once a trust-based workplace culture has been established, this has a positive side effect that helps to counteract the fragmentation described above: it reflects the meaningfulness of the organization, its purpose. This purpose not only helps employees to identify with the values and mission of the organization, but also strengthens loyalty to them. For example, employees are 5.3 times more likely to stay with the company if their values match those of the organization. In other words, employees know why they are doing something and want to commit to the company. And this commitment comes from the certainty that they are trusted in the company.
Trust and shared values therefore appear to be the key to inspired and motivated employees who are actively engaged. In turn, organizations benefit from this commitment to generate both economic and social added value.
