By
Businesses today are expected to look beyond self-interest and recognize that they belong
to a larger group, or society, that expects responsible participation. Thus, if any group, society, or
institution is to function, there must be a delicate interplay between rights (such as what people
should expect) and responsibilities (what people are expected to contribute) for the common
good. The adage no man is an island best applies to the relational and integrative nature of
society. Although businesses are not human beings, they plan develop goals, allocate resources,
and act and behave purposefully. Thus, society grants them both benefits and responsibilities.
fulfilling the economic, legal, ethical and philanthropic responsibilities expected of it by its
stakeholders. This definition encompasses a wide range of objectives and activities including
both historical views of business and perceptions that have emerged in the last decades.
Mullerat (2010) explains that CSR helps in building the reputation as a responsible
business and as a good corporate citizen. With regards to employees a corporation with a good
CSR standard can more easily recruit employees. Employees also generally stay longer, reducing
the cost and disruption of recruitment and retraining. They are also better motivated and more
productive. Employees are increasingly looking beyond paychecks and benefits and seeking out
employers whose philosophies and operating practices match their own values. Some analyses
have shown that three out of five employees report that they want to work for a company whose
values are consistent with their own. Studies and rankings on best companies to work with are
increasingly proliferating.
CORPORATE SOCIAL RESPONSBILITY 3
The role of recruitment is to attract and encourage possible pools of talents in the
organization without the need to spend so much and yet guarantee that only the best candidates
are hired for the company. According to Adetunji and Ogbunna (2014), recruitment determines
present and future requirements of the organization in line with its personnel planning and job
analysis needs. Furthermore, recruitment ensures the success rate of selection process by
Studies reveal that a companys CSR activities significantly affect the manner on which it
attracts and retains human resources. Research endeavors put emphasis on the effects of
corporate social responsibility on performance indices such as profit, sales, and share value,
among others (Turban and Greening, 2000). In an earlier study of Turban and Greening (1996)
using the Social Identity and Signalling theories corporate social performance (related to CSR), it
was found that CSR positively correlates to the reputation of the organization, thus, helping
boost its attractiveness to possible employees. The researchers note that CSR offers an edge
regarding competitive advantage in attracting applicants. Another study of Greening and Turban
in 2000 further explains that CSR leaders to organizational attractiveness relationship. In this
study, they underscored that would-be job applicants prefer to work in socially responsible
businesses than establishments with poor or do not undertake social responsibility at all (Turban
A study by Backhaus, Stoner and Heiner (2002) looked into the perceptions of job
seekers with regards to the importance of CSR and its impact of CSR dimensions on
organizational attractiveness. With signaling theory and social identity theory as the anchor, the
CORPORATE SOCIAL RESPONSBILITY 4
authors concluded that there are differences in the impact of CSR data on the ratings of employer
attractiveness. The authors also noted that environment, community relations, and diversity
Another study in 2003 supported the notion that socially responsible firms are at a better
position in attracting the competitive employees. Among the 800 MBA students across North
American and European schools who joined in the study 94 percent of them are willing to work
on a lower salary if the company is friendly and the employees care much about the welfare of
In a 2011 survey, Evans and Davis found that perceived corporate citizenship had a
greater impact on attracting those individuals especially if they already have prior knowledge or
education regarding CSR. Those who also know better other-regarding value orientation also
Jones, Willness, and Madeys 2014 study hypothesized that business firms with
outstanding CSR attracts more jobseekers. Their research posits the three factors: job seekers feel
proud job seekers anticipated pride from being affiliated with the organization, their perceived
value fit with the organization, and their expectations about how the organization treats its
employees.
The researchers anchored their study on signaling theory (Rynes, 1991). CSR sends
signals to job seekers that inform their perceptions and expectations about the organization, and
it is through these signal-based mechanisms that CSP can ultimately influence job seekers
In another study by Catano and Hines (2015), the influence of corporate social
responsibility in attracting millennial job applicants was also determined. The researchers found
that CSR information helps boost an organizations attractiveness for potential job applicants.
Slaughter and Greguras (2009) believe that the personal values and beliefs of applicants
weigh heavily on their choice of employers. A CSR policy per se may not be enough to attract
employees. Thus, sufficient recruitment information plus the CSR policy will greatly help job
applicants based decide whether or not the company values fit theirs or not (Jones, Willness and
Maley, 2009; Gully, et al., 2013). Individual values have an important role to play in attracting
labor skills.
Attracting applications and getting their commitment to work and stay in a company
stems from the belief that their future is tied to that of the organization. Thus they are willing to
make personal sacrifices for the organization. Hershey Foods is an example of a business that
historically drew substantial benefits from its long-lasting commitment to social responsibility.
Every year, Hershey employees receive a booklet entitled Key Corporate Policies, which
describes the valuesfairness, integrity, honesty, respectat the heart of the companys way of
doing business. Employees are asked to sign the booklet and are made aware of procedures for
reporting concerning proper conduct or policies in the workplace. These efforts help employees
understand the importance of developing and maintaining respectful relationships with both
colleagues and customers. Because they support the idea that customers should receive full value
for their money, employees are also committed to delivering the highest quality standards
possible.
CORPORATE SOCIAL RESPONSBILITY 6
When employees fail to the provide value for their employees, loyalty and commitment
suffer. A survey by Walker Information Global Network discovered that employee loyalty is at
its all-time low. Only one of every three employees is loyal to their organization. Since an
employee will spend more time at work than on anything else, it is the obligation of the
organization to provide commitment to goodwill and respect to their employees. This results to
increased employee loyalty and support towards the achievements of the companys goals.
One of the reasons why more and more younger generation employees are interested to
join companies with excellent CSR is because most organizations are keen to establishing long-
term relationships with stakeholders, especially employees. Job hunters are easily attracted to
employers that provide fair treatment, excellent compensation and benefits and assistance in
balancing work and family obligations. Raytheon developed a computer program called
SilentRunner that can detect patterns of data activity that may reflect employee fraud, insider
trading, espionage or other unauthorized activities. Critics however questioned whether the use
of such software contributes to an environment of trust and commitment. Research has shown
that committed and satisfied employees are more productive, serve customers better, and are less
likely to leave their employers. These benefits are important to successful business performance,
but organizations must be proactive in their human resource programs if they are to receive them.
According to a 2014 survey by Nielsen, 67% of respondents prefer to work for a socially
responsible company, and, according to a recent survey by Deloitte, 50% of millennials want to
Companies that champion social initiatives also improve their employer brand, and ultimately
The Bottom Line: Recruiting and Retaining the Best Employees Results to Profits
and sales growth (Maignan, Ferrell and Hult, 1999). There is no way for a business to claim it is
socially responsible and develop an ethical organization culture unless it has achieved financial
performance in terms of profits (Ferrell, Thorn, Ferrell, 2012). Any organization that has the
financial and human resource no matter how limited the personnel may be has the capacity to
promote its own set of social responsibility along with serving their customers, valuing their
Various studies directly correlate social responsibility and financial performance. Indeed,
a company with strong efforts and results in social responsibility is generally not penalized by
market forces, including the intention of consumers to purchase the firms products.
Conclusion
It could never be denied that CSR increases the attractiveness of any organization. With a
reputable organization follows the right quality of job seekers who are looking for employment.
There is, therefore a need for firms to strategize and implement CSR initiatives that would be
consistent on hiring and retaining efficient and effective human resources with the right
qualifications and beliefs that would ensure the growth of the business. A business CSR
activities should also highlight environment, community relations, employee relations, diversity,
2002). Researchers found that employers are more responsive to these compared to other CSR
dimensions. Lastly, companies should realize that CSR should be considered a business strategy
that would attract more clients and investors and not just as a mere obligation to be fulfilled. This
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