BlueSky Thinking Summary

The article seeks to explain why some companies have much more invested in such things as wellness programs and flextime using data on this workplace generosity—the types and number of perks a corporation offers—attributing that difference to corporate social responsibility.

Using this research, Brayden King and his co-authors show that companies just outside the prestigious Fortune 500 list tend to place greater weight on employment-related CSR than companies just inside the list.

This strategy thereby enables lower-status firms to compete with the top talent from high-status peers who enjoy greater prestige.

While financial success made it possible for some firms to volunteer costly perks, CSR initiatives represented a strategic substitute for status in skilled workers.

This research, therefore, emphasizes the understanding of the dynamics of labor market status and further suggests that the emphasis on employee well-being is a powerful justification in the competitive business world for the firms to attract and retain high-achieving workers.

Engage in CSR strategically as a way of enhancing your company's attractiveness within the talent-driven marketplace.