The corporate benefits of employee involvement

Employee involvement programs can lead to:

• increased employee morale

• improved reputation and license to operate

• reduced operating costs, especially in relation toHR recruitment and crisis management

A recent Center study shows that for 97 percent ofthe companies surveyed, an enhanced reputation is aprimary goal of their community involvementprograms. Fifty-three percent of those companiesfound that such programs help preserve their licensesto operate (Community Involvement Index 2003).

Benefits to employees

Employee involvement increases job satisfaction andworkforce retention rates. Thirty-seven percent ofcompanies view the recruitment and retention ofemployees as a primary goal of their employeeinvolvement programs (Community Involvement Index

2003). Other research shows that volunteer programsdevelop employee competencies in such areas as:

• teamwork

• planning and implementation

• listening skills

• communication

• project management

• customer focus

What are the methods of involvement?

The Center’s Community Involvement Index 2003shows that 85 percent of companies participating inCenter programs have a formal employeeinvolvement program. Programs vary widely, andinvolvement initiatives should be tailored toaccommodate specific corporate strengths, needs, andgoals. Examples of corporate-sponsored employeeinvolvement include:

• company-wide service days

• paid time off for personal volunteering hours

Employee volunteerism is an important component of corporate citizenship that gives employees an opportunity to

be personally involved in a company’s commitment to corporate citizenship. Including employee involvement as an

explicit dimension of the company’s corporate citizenship strategy increases employee satisfaction and

performance. Involving employees in community outreach contributes to the company’s overall performance as a

good corporate citizen.

The Center for

Corporate Citizenship

at Boston College

focuses on

the business of

corporate citizenship

TimberlandIn 1992, Timberland established its Path of Service Program. This program houses several aspects of thecompany’s employee involvement efforts, including a 40-hour paid benefit per year for employee volunteer-ism. The program also includes the Service Sabbatical, during which employees can apply to spend one tosix months lending their talents in a capacity-building role to nonprofits committed to supporting civicissues. According to Carolyn Ca s e y, Director of Social Enterprise at Timberland, the company’s communityimpact strategy aims to “foster internal community and strengthen relationships with stakeholders.”

Timberland believes that employee involvement also has clear returns on investment, especially, as Ca s e ystates, the “extraordinary level of talent that [Timberland] attracts because of out values and commitment tothe community.” The company’s reputation as a caring and community-centered company increases notonly the caliber of candidates seeking positions, but also employee morale and retention.

Casey attributes the company’s strong commitment to employee involvement to a corporate culture thatreflects “an ethos of shared purpose and idealism aligned with stated community impact and business goals.”Since its inception, the Path of Service program has yielded close to 300,000 hours of community service in25 countries and has a participation rate of over 80 percent.

F A C T S H E E T : E M P L O Y E E I N V O L V E M E N T

Employee involvementa key element of corporate citizenship

Carolyn Ca s e yDirector of Social Enterprise

• Dollars for Doers programs (donating toorganizations at which employees volunteer)

• loaned executive programs

Some companies use employee involvement as atraining tool for staff development or to ensure theirlicense to operate by addressing pressing social needs.

Some facts about employee involvement trends

• The dollar value of volunteer time in 2002 was$16.54 per hour, reflecting a $0.50 increase fromthe previous year. (www.independentsector.org)

• 52 percent of polled businesses incorporate acommitment to community service into theirmission statements (Points of Light Foundation,June 2003, www.pointsoflight.org).

Good practice company examples

UPSHoping to educate its management in diversity andemployee understanding, UPS devised the CommunityInternship Program (CIP). CIP places senior managersin four-week community service assignments and hashelped train more than 1,200 managers since itsinception. The experience helps managers develop anunderstanding of their staff and the situations theyface daily. CIP is founded on the idea that socialprinciples are fundamental to effective business.

PrudentialPrudential CARES is an employee volunteer programthat sponsors employee involvement initiatives

F A C T S H E E T : E M P L O Y E E I N V O L V E M E N T

Contact The Center for

Corporate Citizenship at

Boston College

at www.bc.edu/

corporatecitizenship

or call 1.617.552.4545

offering employees flexible volunteering options.Prudential CARES supports group programs thatpromote team building. On the individual level,Prudential supports a Personal Volunteer Dayprogram that allows full-time employees to take timeoff one day a year to volunteer in the community. Theprogram also places senior executives on nonprofitboards.

SafecoSafeco’s “Building Skills Through Volunteerism”program exemplifies an initiative that embraces thestrategic benefits of employee involvement. Theprogram matches employees with volunteeropportunities to help them develop professionalskills. Employees use an intranet site to identify thekinds of volunteer activities that can help buildcompetency in a desired area. The experiences areintegrated into their personal development plans andare considered in reviews and potential careeradvancements.

Understanding Corporate Citizenship

Corporations with vision have a clear understanding

of the rights and responsibilities they have in our

s o c i e t y. They understand that citizenship is an

important driver for building trust with customers,

attracting and retaining employees, and establishing

support with communities where they operate.

They also know that corporate citizenship is much

more than charitable donations or volunteer leave

time for employees—it’s the way the company

integrates basic social values with everyday business

practices, operations and policies.

And most importantly, they know that becoming a

leading corporate citizen provides real, measurable

bottom line benefits to their companies.

What are the benefits of corporate citizenship?• Employees are looking to work for companies

that reflect and embody their values, who are asconcerned about principles as they are with profi t s .

• Investors are increasingly looking for companiesthey can trust.

• Customers are looking to purchase products andservices from companies they respect, and fromcompanies that reflect their own values.

• Communities are more willing to support anorganization’s license to operate when there is ahistory of trust, support and mutual benefit.

• In a crowded marketplace, corporate citizenship is a key differentiator.

• Organizations that do well by doing the right thingearn reputations as leading corporate citizens withmedia, government, investors and customers.

How do you get started?

For a more detailed explanation of how you can designand implement an employee involvement or volunteerprogram, contact The Center for Corporate Citizenship a tBoston College (www. b c . e d u / c o r p o r a t e c i t i z e n s h i p ) o rcall 617.552.4545. The Center offers training, access tocutting-edge research in the field, opportunities to shareand learn with leaders in the field, and a community ofmore than 350 members dedicated to defining, measuringand communicating the business benefits of corporatec i t i z e n s h i p .