Why Profits Over People Is Destined to FailHow company leaders treat employees is starting to drive success. Is your company culture up to par?

BySherry Gray

Opinions expressed by Entrepreneur contributors are their own.

Getty Images

We talk about it a lot. Corporate social responsibility (CSR), company culture, giving back. It feels almost like a fad based on buzzwords. Some companies have built their reputations on doing the right thing -- and others appear to be bandwagon jumpers, only recently realizing that the transparency fostered by social media means their business might depend on how they behave towards their employees, the community and the world.

With so many U.S. corporations racing to the bottom -- moving manufacturing to foreign countries for cheap labor and no environmental responsibility,taking advantage of the H1-B Visa programto bring cheap workers in, lowering benefits and eliminating pension plans -- it's refreshing to learn that some companies are taking the exact opposite approach.

Related:Why Should Your Business Care About Social Responsibility?

Let's take a look at a company with stellar CSR baked right into the culture.

1. All about employees

It may not be a household name in the U.S., but South American basedLeonisais one of the biggest swimwear and lingerie manufacturers in the world. But as impressive as their garments are, the real beauty lies in their corporate culture.

Along with expected benefits like health and life insurance, employees enjoy three free meals every day during their shift and no-interest student loans for employees, their spouses and children -- which the company forgives if the student does well in school.

Sound great? That's not all. Leonisa supports their employees with financial assistance and time off for maternity, illness, marriage and housing loans with low interest that most employees can pay off within seven years. Due to the loan program, most employees own their own homes.

The company hands out various bonuses throughout the year, and even matches the amount employees save for vacation. Every five years, their bonuses get bigger and better. Employees are encouraged to save for the future through an employee investment mutual fund the company also contributes to.

Related:How to Find and Offer Volunteer Opportunities to Your Employees

To round out the definition of incredible company culture, Leonisa supports breast cancer victims and offers free education for their catalog sales representatives throughThe Urrea Arbelaez Corporation project, Embarking with Happiness. Their product line includes post-surgery and back support bras, scientifically designed solutions for women who need it most.

Leonisa is far more than just a company. Its mission is built around empowering employees through finance, education and encouragement. If you were impressed by their commitment to employees and to social issues, join the club.

2. Why offer so much?

If you're looking to attract and retain top talent, CSR is the way to go. Millennials have a much different worldview than baby boomers, and oldschool ways simply don't work. They want flexibility, autonomy and opportunity. It's important to today's young people to work for a company they can be proud of -- one that shares their values and concerns.

It's not just employees, either. The2015 Nielson Global Sustainability Reportfound that retail brands with a commitment to sustainability, environmental concerns and social responsibility experienced 4-percent growth, while companies that did not grew only 1 percent. The report also stated that socially responsible companies "outperform others when it comes to attracting top talent, investors, community partners, and, most importantly, consumers."

3. "Spend more to make more."

When I was young, that was common wisdom. In the last few decades, the saying changed to "Spend as little as you can get away with and funnel maximum profits to investors." The result of this greedy philosophy is evident. Shared prosperity became a thing of the past.收入差距令人震惊, and 28 percent of all Americans over 55 haveno money set aside for retirement.

The most interesting effect of growing public awareness may be the success of companies heralded on social media for their CSR efforts. Employee-friendly companies likeGoogle/Alphabet,Publix,WegmansandCostcoenjoy a lot of volunteer goodwill from people eager to reward "doing the right thing." On the other side of the coin, companies with poor track records, includingWalmartandPapa John's遭受社会misf的厄运ortune.

The best news is that the biggest brands in the U.S. have taken notice -- and taken action. In 2015, a coalition of leading companies formed100,000 Opportunities, a joint initiative to hire and train 100,000 young people between the ages of 16 and 24 who face systemic barriers to jobs and education. It's a start.

Related:3 Environmental Problems Entrepreneurs Can Help Solve

Change is inevitable in the age of social media, as manycompanies who cheat employeeshave discovered. As more company's shady dealings become public, they face the option of closing stores or raising wages. Or, in the case of major retailers,both.

Head's up, business owners: Neglect corporate social responsibility at your own peril. The public has already spoken.

Wavy Line
Sherry Gray

Freelance Content Writer

Sherry Gray is a freelance content writer from Key West, Fla., currently suffering the suburbs of Orlando. She's a science geek, a social media junkie and an unapologetic fan of all things bacon.

Editor's Pick

Related Topics

Business Culture

The Newest Workplace Trend Has HR Sounding The Alarm

HR departments are still figuring out how to handle "quiet quitting," but a new trend is taking over.

Business News

An 81-Year-Old Florida CEO Just Indicted for a $250 Million Ponzi Scheme Ran a Sprawling Senior Citizen Crime Ring

Carl Ruderman is the fifth senior citizen in the Miami-Fort-Lauderdale-Palm Beach metropolitan area to face charges in connection with the scam.

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

Too many entrepreneurs are counting too heavily on a company exit for their eventual 'win.' Do this instead.

Business News

Taco Bell Slammed With Lawsuit Over 'Especially Concerning' Advertisements, Allegedly Deceiving Customers

The class action lawsuit claims the chain is advertising more than they deliver.

Business News

Body of Missing 27-Year-Old Goldman Sachs Banker Found in Nearby Body of Water

John Castic, a 27-year-old Goldman Sachs employee, went missing around 2:30 a.m. on Saturday after attending a concert at the Brooklyn Mirage in East Williamsburg.