Report: CSR Is on the Rise, but the Motivation for It Has Changed

Corporate social responsibility (CSR) can take a variety of forms: charitable donations, disaster relief, employee volunteer programs, sponsorships and partnerships to name a few. A majority of working professionals say CSR has become more important at their organizations since 2022, even as they say their employer's motivation around CSR has changed.

A recent report from Skillsoft found investment in CSR from company leadership has increased to 63 percent, employee participation is at 61 percent and organizations have increased CSR budgets.

However, respondents were cynical about what drives CSR at their companies - only 13 percent said it was driven by the desire to "do the right thing," a drop from 40 percent in 2022. Instead, they think efforts are motivated more by customer feedback (19 percent), government mandates (16 percent) and public perception (15 percent).

Skillsoft's Corporate Social Responsibility at Work report findings are from an online survey conducted July to September 2023 with 868 respondents at public and private employers. Slightly more than half (53 percent) of respondents were managers.

"CSR has the potential to drive positive change for the world, but it must stem from genuine, meaningful action," said Michelle Boockoff-Bajdek, Skillsoft's chief marketing and sustainability officer, in a statement about the findings.

"When executed correctly, CSR programs effectively balance purpose, product, and profit to create shared value for all stakeholders - customers, investors, and society at large," she said.

Multiple CSR Goals

Companies have no shortage of CSR goals and aspirations to choose from, Skillsoft wrote in the report.

"Is it reducing carbon footprints or improving labor policies? Conducting fair trade or charitable giving? Creating a better environment or increasing diversity, equity, and inclusion? … Knowing how to best incorporate issues like social justice, equality, and climate awareness into corporate structure is still difficult and often confusing," the report noted.

With so many competing priorities, companies need to establish measures to mark their progress.

"Arguably the most important step in creating an effective CSR program is defining measures of success, such as goals and key performance indicators [KPIs], that will showcase how initiatives are positively impacting their communities and the business," said Sona Khosla, chief impact officer at Benevity, a Calgary-based provider of a platform that tracks and manages charitable giving and volunteering among employees.

"In the early stages, these goals can be anything from winning executive buy-in to having 100 percent of employees understand what CSR is and getting them engaged in their first giving campaign or volunteer activity."

At first, measures of success might be donation totals, volunteer hours and number of grants obtained.

"Once the program has launched and matures over time," Khosla said, "these goals can evolve to be more KPI-oriented like employee retention, promotion, productivity, pride and social outcomes."

Making a Difference

More than one-third (35 percent) of organizations offer paid time off for volunteer work, 32 percent offer training and 30 percent celebrate CSR achievements, according to Skillsoft's report. Slightly more than half of workers (56 percent) participate in their employers' CSR efforts, which can help colleagues feel connected to one another.

Among other findings:

• 68 percent of all respondents reported their company has a CSR program.
• 66 percent said CSR has become more important since 2022, and inclusion, equity and diversity is the top CSR priority, cited by 20 percent of respondents. Lesser priorities included, but were not limited to, improving labor policies, participating in fair trade, giving to charity and reducing carbon footprint.
• 70 percent said their organizations publish an annual CSR report; a slight majority that do so are public companies. Skillsoft suggests in its report that's likely because public companies more than private firms may be more influenced by government mandates "and increasing accountability from investors and other stakeholders."
• 72.6 percent said CSR is part of their corporate governance program, a 2 percent dip from 2022.
• 55 percent said their CSR budget has increased; 30 percent said the budget increase was between 11 percent and 20 percent.

The money budgeted primarily was invested in training and education, followed by philanthropy and improving infrastructure such as helping build schools and hospitals, and providing access to clean water and energy.

Training and education are elements of CSR, according to Kevin Kelly, Skillsoft's senior vice president and general manager of global compliance solutions.

"Training provides employees with the skills and knowledge necessary to build a more competent and future-fit workforce" by bridging skills gaps and improving employability, economic growth, and overall community well-being "when offered in communities where organizations operate." Education and skill development, he added, foster a more inclusive and diverse workforce.

CSR can also equip employees with skills such as cultural sensitivity, project management and communication they need to be involved in their organization's CSR efforts.

"Authenticity and education are key and must be interwoven into all aspects of the business," Boockoff-Bajdek added.

Skillsoft suggested that environmental, social and governance (ESG) efforts may eventually eclipse CSR.

While 62 percent of respondents said their employer's focus is on CSR "because it covers a broader range of issues than ESG," 50 percent said ESG is replacing CSR efforts. In fact, there were more respondents who said their organization has an ESG program than a CSR program - 86 percent versus 71 percent.

A focus on ESG, which includes inclusion, equity and diversity programs, is likely to grow in 2023 and the years to come, SHRM Online reported in May.

Other SHRM Resources:

Employee Crisis Funds: Focusing CSR Inward, SHRM Online, October 2023

Corporate Social Responsibility, SHRM resources and tools

What Board Members Need to Know About ESG, SHRM Executive Network, April 2022