Management literature now abounds on the impact and need of social impact programmes by corporates. There are also compulsory statutory requirements for companies to adhere by certain minimum standards. A lot of sceptics argue that this goes against the basic principle of for-profit companies. Social impact programmes are also very useful for genuine business metrics such as improvements in talent management practices and retention levels. A study was conducted to verify the claims among management consultants, and a thirty-two percent hike in retention levels was observed among companies with such social good practices. Millions were thus saved in employee turnover costs. Some even accepted salary cuts in order to take a break from their hardcore corporate jobs to work on social engagement projects in rural areas of Asia or Africa. An advantage of participation for a number of middle or entry level managers was that, due to the lower budget, they were able to lead teams, in spite of relatively lesser work experience. The study found that social engagement practices work best when there is a match in skills acquired by the employee and doing good. A mere ‘warm glow’ impact is not sustainable. Companies that are able to scale such programmes into their business, must take care of long-term economic stability.

Source:https://knowledge.insead.edu/responsibility/what-employees-get-out-of-giving-back-7636

Uploaded Dare:19 January 2018