• Corporate environmental responsibility (CSR) influences employee behaviour, with very few proactive companies like Patagonia and Innocent Drinks leading the way.
• Mannheim Business School research shows strong ECSR practices correlate with higher employee engagement in charitable activities.
• Consumer preference for socially responsible companies impacts both trust and loyalty.

With climate change accelerating, businesses are scrambling to embrace environmental responsibility. As they navigate the complexities of sustainability, one company stands out as a beacon of inspiration: Patagonia. 

Did you know that they use 87% recycled materials in their products? Imagine the environmental impact if every company made this kind of commitment!   

In a radical move, Patagonia’s founder Yvon Chouinard, is prioritising the planet over profit. Since 2022, the company has been owned by a trust that safeguards Patagonia’s environmental values and a non-profit that will receive most of the revenue to fight climate change.

According to Yvon, central to the brand’s philosophy is “What we take, how and when we make, what we waste, is in fact a question of ethics.”

In fact, Patagonia’s proactive initiatives foster a culture of environmental stewardship among its employees, encouraging them to donate their time to environmental conservation projects. By paying the salary of employees who volunteer for up to two months each year, the company demonstrates a tangible commitment to sustainability. This encouragement of Environmental Corporate Social Responsibility (ECSR) not only aligns with the company’s core values but also inspires employees to engage in charitable endeavours beyond the confines of the workplace.   

Another example of a company with a multi-faceted approach to empowering its employees is Innocent Drinks. They don’t just preach sustainability; they’ve integrated it into their DNA, fostering a culture where employees feel a personal connection to environmental goals.

One key aspect of their approach is the creation of sustainability roles within the organisation, such as “agitator,” “activator,” “ambassador,” or “protector.” These designations are not just whimsical — these roles actually provide employees with a sense of ownership and responsibility for driving sustainability efforts and contribute to a larger cause.       

So, do companies that go green inspire their employees to give back? Recent research from Mannheim Business School aimed to shed light on the impact of corporate environmental responsibility on employee engagement in charitable endeavours.

How does company CSR affect employees?

The study, led by Mannheim Business School’s Dr. Irmela Koch-Bayram and Prof. Dr. Torsten Biemann, delved into the impact of corporate environmental responsibility on employee behaviour.  

Through a series of three experiments, the researchers examined how an organisation’s Environmental Corporate Social Responsibility (ECSR) and Environmental Corporate Social Irresponsibility (ECSIR) practices influenced employee attitudes towards charitable activities.

In the first study, participants were provided with information about their employer’s environmental activities before measuring their willingness to volunteer.

The second explored the relationship between perceived company engagement in ECSR or ECSIR activities and students’ likelihood to donate to charity.

Finally, the third study measured employees’ perceptions of their organisations ECSR and ECSIR practices and observed their willingness to volunteer.  

The research revealed that employees were more inclined to volunteerand donate when their organisation demonstrated strong ECSR practices.        

This phenomenon may be explained by an interesting case study by Non-Profit Pro reveals that when employees have access to workplace giving programs, they tend to perceive a stronger alignment between their personal values and those of their company. This alignment often serves as a motivating factor for employees to engage in charitable donations.  

Emotional impact on employees

When employees feel guilty about their company’s irresponsible actions, they may experience ECSIR guilt, the Mannheim research reveals.

In the final part of the study, participants recalled ECSR, ECSIR, or neutral employer activities and had their ESI and guilt measured. They found that recalling good actions by the company made employees feel good, while remembering bad actions made them feel guilty.

A similar article by Corentin Hericher and Flore Bridoux on ECSIR Guilt explores how employees react emotionally and behaviourally to instances of Corporate Social Irresponsibility (CSiR) within their organisations. It revealed that employees’ perceptions of their organisation’s involvement in CSiR triggered emotional responses, particularly feelings of guilt and shame.

Understanding these emotions is crucial for companies to address issues of responsibility and improve their workplace culture.

Why is volunteering important?

The latest scoop from NCVO’s Time Well Spent program on volunteering trends in the UK is quite alarming.

The Community Life Survey found that monthly volunteering decreased from 23% in 2019-20 to 16% in 2021-22, with a significant drop in fundraising activities.    

Harvard Business School reports that almost 70% of employees prefer to work for companies that have a strong sense of purpose. And unfortunately, only 46 percent of executives acknowledge that their organisations are currently operating with a clear CSR mission.    

All of this points to the crucial role that businesses need to play in cultivating a sense of environmental responsibility in their employees.  

Considering the Mannheim research, if individuals favour working for companies that support CSR initiatives and believe it strengthen their own identity, they may be more inclined to volunteer.

Dr. Koch-Bayram states, “The positive effects of environmental CSR are partly explained by the strengthening of employees’ environmental self-identity.”   

Moreover, such initiatives have been shown to positively impact employee retention, particularly among younger demographics, while also fostering a greater sense of purpose and camaraderie among coworkers.    

Considering the consumer

Companies that prioritise social responsibility are attracting and retaining both consumers and employees.  

Ever wondered why some companies seem to have a special place in consumers’ hearts? It is not just about the products. Their commitment to CSR might be the secret sauce.

An Economic Research paper delved into the impact of company CSR initiatives on consumer behavior and found some fascinating results. Customers are more likely to support and remain loyal to companies that align with their values and contribute positively to society.  

The joint study from McKinsey and NielsenIQ delves into consumer behavior regarding environmentally and socially responsible products in the Consumer-Packaged Goods (CPG) sector.

They found that more consumers care about buying things that are good for the environment and society. The products that claim to be environmentally friendly or socially responsible actually sell better than those that don’t. Clearly, consumers are putting their money where their mouth is when it comes to sustainability.  

Therefore CSR isn’t just the right thing to do; it’s also a smart business decision.

Think about it – if you had a choice between supporting a company that’s making a difference in the world versus one that’s just in it for the profits, which would you choose?     

By Gowri Ramesh

Interested in this topic? You might also like this…