What is CSR?
CSR stands for Corporate Social Responsibility and is a form of social responsibility that a Company is obliged to undertake. CSR, or Corporate Responsibility, plays a role in creating a positive impact in various fields such as economic, social, and environmental for the community in the Company's operational and business areas. CSR is not just about making donations but also how its implementation can represent ethical and sustainable business management.
In the modern business world, companies have experienced a shift in objectives. Now Companies not only focus on financial or profit-seeking, but also must provide a balanced reciprocal to the community, such as paying attention to the welfare of their employees, the welfare of the community around the Company, and also efforts to improve environmental quality.
Why is CSR Important for Companies to Implement?
For a Company, CSR itself has an important mission in creating a balance between sustainable economic growth and reaching social and environmental aspects. This can be done by supporting and voicing aspirations about social issues or phenomena that occur, assisting in developing the potential of local communities, and participating in efforts to preserve nature. Some examples of CSR programs that companies can implement are in the environmental field, such as tree planting activities, proper waste management, and energy efficiency efforts. Then, in the economic field, community empowerment programs can be carried out, such as providing training for MSMEs and women's communities. Furthermore, in the social field, companies can provide educational assistance, health assistance, and assistance for victims of natural disasters. Of course, the type of assistance provided is based on recommendations from social mapping research conducted by the Company.
Not only that, but this CSR program also becomes important because it contributes to building and improving the company's image, strengthening company relations with the community and stakeholders. In addition, CSR also plays a role in increasing employee loyalty, which is a fairly effective and crucial way to attract, motivate, and retain employees.
Here, let's discuss why CSR programs are an important factor in increasing employee retention and satisfaction in a Company.
Reducing Turnover Rate and Increasing Retention with CSR Programs
In the business world, there is a term called turnover. As quoted from Forbes Advisor, Turnover is the percentage of employees who leave an organization over a certain period of time. This includes workers who voluntarily leave their workplace and those who are terminated. Turnover is also usually done by employees to get new job opportunities in a new place. The main causes of turnover include a lack of work-life balance, problems with superiors, unclear career paths, an environment that is not open to employee aspirations, and an environment that also does not support employee potential. As a result, turnover has a significant impact on the Company, such as disrupting Company productivity, incurring high costs for recruitment and retraining new employees, reducing Company profits, and increasing workload due to a shortage of employees.
One effective way to reduce the turnover rate and increase retention is through CSR programs. This is one of the Modern HR strategies. With CSR programs, employees can participate in various activities. This will have various positive impacts on employees such as;
- Job satisfaction and a sense of attachment to work.
Employees who are frequently involved in CSR programs will automatically become more productive at work, more creative, and more committed to achieving Company goals. They will feel that their presence is recognized because they are involved in many activities. Employees will also think that the organization or Company where they work is an organization that has high care, is ethical, and brings benefits because it regularly implements CSR programs as a form of the Company's responsibility to the surrounding community. This creates a sense of satisfaction and pride for these employees. This sense of satisfaction is a key factor; with the satisfaction felt by employees, they will feel comfortable and have no desire to resign or quit their jobs, which automatically reduces the employee turnover rate.
- Building great branding through a strong Company culture.
Company branding or reputation is also very important to build. How a Company can be an attraction for job seekers. A reputation as a bona fide and integrated Company is a key in itself. In this regard, the Company can build its reputation by strengthening its culture, and one way to form a reliable and dedicated culture is through CSR programs; this program is a valuable asset. Companies that are often involved in CSR social activities will certainly look more attractive to quality job seekers because they have a positive image among the community for the various assistance and contributions provided by the Company. By implanting CSR in the company culture, HR can also create a more inclusive, competitive, and empowering work environment that can be a major attraction for talented prospective employees. This will also be a differentiator from other Companies or business organizations that may not have the initiative to carry out the same CSR programs.
HR's Role in Efforts to Increase Employee Satisfaction through CSR Programs
Some roles that HR can play to increase employee satisfaction through CSR programs include;
- Striving to instill a CSR-caring culture
HR management should always instill CSR values and understanding into the company's vision and mission. This aims to enable employees to understand the meaning of these values well.
- Creating training programs or socialization for employees
Regular events such as workshops, training, or the like need to be created to provide understanding of environmental, economic, social, and cultural issues.
- Monitoring the continuity of CSR programs
HR management should ideally continuously monitor the implementation of CSR programs within the company, from planning, realization, to program evaluation, so that they can know the various progress and obstacles faced by employees when implementing these CSR programs.
- Providing special time for employees to be involved in CSR programs
Special time for employees is important in the implementation of CSR programs, whether voluntary or paid. So that employees will not feel burdened doing work outside their job description.
- Giving awards to employees
Provide recognition and awards to employees who are actively involved in CSR programs. These awards can be in the form of certificates, bonuses, or public recognition at events organized by the company. These awards will certainly increase employee motivation and involvement.
Conclusion
Corporate Social Responsibility or CSR is not merely a philanthropic effort, but an important strategy for modern businesses, which encourages a balance between economic growth and social welfare. By actively engaging in CSR initiatives, companies can increase employee satisfaction, reduce employee turnover rates, and build a strong and positive brand image that will attract top talent and strengthen community ties.
References
https://www.shrm.org/topics-tools/news/accelerating-hrs-role-csr-sustainability