Caroline Flammer, Lecturer, Global Economics and Management
We generally think of corporate social responsibility (CSR) as a sort of feel-good policy, as something that is good for public policy or public relations but not a company’s bottom line. But my research finds that good corporate citizenship can actually lead to superior financial performance. A company’s social engagement is actually a resource that can create positive value and improve competitiveness. Read More »
It’s no secret that the labor market is tough these days. But the issue isn’t just the number of people who are unemployed. It’s also income inequality and the low pay of retail employees that’s concerning. Retail employees represent close to 20% of the U.S. workforce.
In retail, conventional wisdom holds that if you want to offer the best prices then you can’t afford to invest in your employees. Typical retail workers receive minimal training, irregular hours, and no benefits for part-timers. Turnover is high with understaffing common.
Wages are so low that retail workers tend to rely more on public assistance than workers in other industries. If companies actually invested in their employees by offering better jobs, many of these people could move into the middle class, which is critical in our economy.
The business pages are filled with examples of companies that have taken big hits to their brands because they’ve made marketing decisions that ran afoul of customer expectations. Take Netflix, and its aborted scheme to divide its streaming and DVD video offerings. Netflix could have avoided its embarrassing reversal if it had experimented on this decision before publically announcing the change.