Corporate environmental awareness improves employee recruiting

November 14th, 2013 by Dakota Software Staff Industry News

A large majority of Americans consider joining a company based on their corporate reputation, according to Corporate Responsibility Magazine. In a recent survey conducted by the magazine, 69 percent of U.S. workers said they would refuse a job offer with a company if it had a bad reputation in 2013. This survey highlights that companies that showcase their commitment to social responsibility and sustainability can improve their employee retention rate and talent attraction.

"The results of this year's survey demonstrate the importance of a positive corporate reputation in recruiting and retaining talent," said Elliot Clark, CEO of Corporate Responsibility Magazine. "Our year-over-year analysis shows that this sentiment remains strong among employees and potential new hires in 2013."

When corporations maintain responsible business practices, their actions could attract top talent without having to negotiate large salary increases. The reason for this is that the majority of employees are more likely to work for companies that match their own values, according to Bruce Morton, head of innovation at Allegis Group Service. For example, more U.S. consumers are becoming more aware of their impact on the environment, prompting companies to tailor to their demands for sustainable products. A company's good reputation is built on upholding business ethics in all aspects of its operations, from its handling of workplace safety to raising environmental awareness and protections.

The survey reveals 84 percent of respondents said they would consider quitting their current jobs if it meant working for a firm with an outstanding corporate reputation. To make this move, these respondents said they only needed a 1 to 10 percent salary raise from a competing firm. 

This is a significant contrast with the salary increase needed for employees to take up another job with a company with a poor reputation. For this move, the majority of employees in 2013 said they would need a raise ranging between 50 to 100 percent more than their current salary.

Target ramping up sustainability efforts
Recently, one major company has boosted its sustainability initiatives to catch up with other leading corporations that have been making headway in their corporate responsibility efforts, Brand Channel reported. Target is working to improve the sustainability of its suppliers and compete with other retailers like Walmart and Amazon in addressing environmental concerns. Target and other corporations are likely to face increasing demand for what consumers consider green products. Walmart had previously established a sustainability index for its own suppliers and was recently ranked as a top solar energy adopter.  With its recent announcement, Target is pressuring its suppliers to enhance not only production innovation but also compliance.