Corporate social responsibility is widely defined as ‘contributing to the broader public good and treating employees, at a minimum, with dignity and respect’.
Expanding on this view is that CSR refers to the responsibilities that a business faces in relation to the social and environmental impact of their operations.
Organisations are increasingly introducing social responsibility programs into their workplaces.
However, we’re asking the questions; Is it to make them look better to the community, or because these companies feel a sense of responsibility?
Is it because companies want to contribute to the environment, or the social impact of society? We’ve found that more often than not, it’s a combination of all the above.
One common denominator with ALL organisations is they use CSR to gain a competitive advantage in their marketplace.
How do organisations currently address CSR?
Research shows most companies interpret CSR as primarily focusing on environmental policies, sustainability and aid relief.
Greenhouse gases and emissions are important issues and creating carbon emission offsets to counteract the pollution that companies create due to their work is a positive initiative.
Currently the question is being asked — should companies just be focusing on these issues?
Surely there are more options for these companies, what can they do to gain an advantage over their competitors.
Here it is argued that many corporations are missing a vital opportunity from this current interpretation of CSR.
Research is highlighting that a more encompassing view of CSR drives improved productivity for the organisation and the economy.
Social implications impact on the productivity of the economy, and the health of the nation’s workers is a key part of ensuring that the economy thrives.
There are several pieces of evidence that reiterate the important link of employee health to overall productivity.
Porter and Kramer state that ‘successful corporations need a healthy society. Education, health care and equal opportunity are essential to a productive workforce’.
Medibank Private released a study in November 2005, showing that healthy employees are three times more productive than unhealthy employees.
If all employees in an organisation are healthy, then it follows that the economy would thrive, improving the quality of life for all Australians.
With predictions that Australia could shortly be facing a recession, it is becoming increasingly important for organisations to be aware of the impact of employees’ health on the economy.
Surely that is being socially responsible.
A new alternative for CSR
The concept of ‘corporate social integration’ as opposed to corporate social responsibility is a new idea that has also been raised.
The importance of integration of social responsibility is to create sustained changes, as opposed to single token efforts for a company.
One-off contributions such as aid relief, or attempting to reduce energy expenditure do not greatly benefit society in the long term.
Michael Porter states that ‘Typically the more closely tied a social issue is to a company’s business, the greater the opportunity to leverage the firm’s resources — and benefit society’.
Employees, productivity and the economy are social issues that are imperative to the success and sustainability of any organisation.
Backing up this research is a study out of Spain which suggests that healthy populations are essential to the reduction of poverty, as well as economic growth and sustainable development.
Human Resource is every organisations greatest asset — and surely creating a sustained change in their health, follows the idea of corporate social integration as well as social responsibility.
So what is holding back companies from proactively implementing strategies to assist the health of their employees?
It appears that since Workplace Health is only in its early stages of the product life cycle, many organisations are not aware of the significant benefits that they reap, as well as contributing to society through the improving health of their employees.
Workplace health also refers to the safety of employees, and it has been recorded that ‘safe working conditions not only attract customers but lower the internal costs of accidents’.
For companies, preventative safety initiatives are a cost effective and easy way to ensure that injuries are minimised, and subsequently costs are minimised.
Research has shown that preventative workplace safety programs have a return on investment ranging from 4:1 to 20:1. Other research also supports this argument.
Berger states that: ‘One important outcome of a CSR program is a safer and healthier environment, and ultimately a better quality of life — at work, in the home and in the community.
With ever-increasing regulatory pressure forcing industry to protect the environment and improve workplace health and safety, it’s difficult for maintenance and other areas to build a profit-motivated business case’.
He suggests that initiatives such as identifying ways to reduce direct costs, such as lower lost-time injuries, and overall improved health and well being of employees is an imperative part of contributing to society and the company’s bottom line.
Real Examples
Cleanaway Wodonga is a prime example of a company that has proactively addressed the new approach to CSR and reaped significant rewards from improving the health of their employees.
Not only have there been a significant number of injury reductions, employee health has improved as health risks decrease.
Cleanaway’s workplace health program has also extended to employees’ families and the surrounding community — a true example of social responsibility.
Ongoing results from Cleanaway’s program include a 77 per cent reduction of employees who had a high cholesterol risk, 100 per cent reduction of employees who were at an increased risk due to high blood pressure, a 48 per cent reduction in employees with a high waist to hip ratio — which is a good indicator of the risk of heart disease, as well as a total loss of 96kg across one Cleanaway department.
Additionally, Cleanaway also saw an 80 per cent reduction in sprains and strains in their depot, improved awareness and participation in other company OH&S initiatives such as audits, the safety committee and risk assessments.
It also has been able to break through the culture barrier of avoiding discussing men’s health issues, resulting in a measurable behaviour change by many of the Cleanaway team, which will have significant long term benefits for them as individuals and their families.
Moving Forward
Corporate Health companies, such as Health by Design, specialise in the delivery and implementation of health and safety programs.
With industry high levels of engagement, and focusing on behaviour change for all employees, Health by Design programs identify the risks and needs of the company and work with the company and employees to create behavioural change and sustainable results.
This results in improved productivity, cost savings and ultimately a better bottom line figure for the company, all while addressing the hot topic of corporate social responsibility.
For further information on corporate health and initiatives to assist your company in contributing to CSR by reducing injuries and increasing productivity, please contact Health by Design on 1300 30 40 68 or email info@healthbydesign.com.au
References Accessed July 2008
http://www.the-chiefexecutive.com/glossary/corporate-social-responsibility.html www.ChemicalProcessing.com http://www.personneltoday.com/articles/2007/08/02/41767/corporate-social-responsibility-is-more-important-than-salary-when-choosing-a-job.html
http://www.medibank.com.au/About-Us/Media-Centre.aspx
Porter, M., E & Kramer, M., R. Strategy and Society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, December 2006.
Mainstreaming Corporate Social Responsibility: DEVELOPING MARKETS FOR VIRTUE. By: Berger, Ida E.; Cunningham, Peggy; Drumwright, Minette E.. California Management Review, Summer2007, Vol. 49 Issue 4, p132-157, 26p.
BIOGRAPHY Greg McLoughlin
Managing Director Health by Design since its inception over 15 years ago, Greg McLoughlin has pioneered a new approach to the provision of workplace health and safety programs in Australia, making him one of this country's key players in corporate health and wellbeing.
With his highly-talented team, Greg has orchestrated the development of workplace health and safety programs focused on long-term behavioural change.
For Greg, 'past corporate health initiatives have always been just a focus on the quick fix, whereas we have always wanted to produce positive sustainable results for our clients'.
Examples of the implementation of global “best practice” programs include:
- GlaxoSmithKline — assisting GSK in developing and implementing a workplace health program that was noted as ‘the only one of its kind’ amongst GSK’s 80 major global sites, by a GSK Global Director. The program received a commendation in GSK’s “Global CEO Excellence Awards”.
- BHP Billiton — assisted BHP in developing an innovative program which has contributed to a 90% reduction in Manual Handling Injuries, a 62% reduction in recordable injuries and a 50% reduction in Lost Time Injuries at their Appin coal mine in NSW. As a result BHP have entered the program into the NSW Mining Industry “Innovations Awards”
- CEMEX — worked collaboratively with CEMEX to construct a program addressing health and injury risks. The program is the only one of it’s type in the world to deliver effective outcomes on a national scale to the concrete and quarry industry
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