Research Briefs

Diversity and inclusion programs are receiving increasing focus by corporate citizenship professionals. Those that are developing their programs must remember that the success of diversity and inclusion programs rests not only on the acquisition of a diverse workforce, but also on the cultivation of an inclusive environment. Research finds that employee workgroups perform better when they operate in an inclusive environment that welcomes and appreciates the contributions of all employees. Managers should take care to ensure that discrimination does not develop within workgroups, as the perception of discrimination results in decreased productivity, especially in larger groups.

Fostering an ethical workplace is a corporate citizenship imperative. The importance of ethical behavior in the workplace is widely accepted, but how best to foster an ethical environment is more divided. A recent study found that simply raising awareness of ethics can have a positive impact on behavior.

When an organization is comprised of a wide range of employee age groups (age diversity), higher levels of perceived age discrimination may occur, causing the operational and organizational performance of the company to suffer. Those responsible for diversity and inclusion programs should be conscious of addressing the higher levels of perceived age discrimination that may result from age diversity, and work to ensure social integration within the company.

Corporate citizenship professionals working to encourage transparency in their businesses should know that positive corporate citizenship actions can benefit a firm’s financial performance during a voluntary product recall, as companies that actively engage with their primary stakeholders and regularly communicate about their business operations have an advantage compared to companies who are not as transparent, and that advantage extends to the bottom line.

Corporate citizenship professionals aiming to increase employee engagement and retention should not underestimate the power of an inclusive environment. With managerial support, positive inclusion climates can encourage employee retention, resulting in lower turnover.

Companies seeking to maximize performance should consider transparent reporting as a possible source of value and insurance-like protection against downturns that can occur during crises. During these times, firms that are more transparent AND operate in a country with high levels of investor protection experience better stock price performance.

Firms with larger and more gender diverse boards are more likely to integrate corporate citizenship information with corporate strategy and accounting material to create a more complete picture of company performance.

Corporate citizenship professionals should encourage transparency to garner analyst recommendations. By taking into account the effect of corporate citizenship information on analysts, managers can acquire a more complete picture of the eventual financial impact of their investment in corporate citizenship.

Corporate citizenship professionals working to enhance their employee volunteer programs should look to their external stakeholders, as pressure from stakeholders regarding corporate citizenship initiatives results in increased company support for employee volunteering, as well as top level involvement.

Secondary stakeholder groups can impact firm behavior through their requests for action. Firms have historically been more responsive to stakeholder groups with greater financial assets and for requests based on issues that the public appears to deem legitimate. In addition, when multiple companies are targeted by a stakeholder group, firms are more likely to respond positively to a stakeholder request.

When working to expand LBGT-friendly policies, corporate citizenship practitioners should look to the makeup of their boards, as well as the environment in which their company is headquartered. Research has found that the operating environment of a firm’s headquarters and board demographics affect firm adoption.

Employee treatment—as well as overall corporate citizenship performance—can be indicative of a firm’s approach to business practices. Firms with high employee well-being scores have better access to capital through lower debt rations and better credit ratings.