Social responsibility initiatives like DEI and ESG investing are a high priority for many executives—but does that extend to helping employees save for retirement?
A new survey by PNC Institutional Asset Management considers viewpoints on social responsibility and ESG investing among 240 C-suite and financial executives in for-profit and nonprofit organizations, with part of the survey investigating attitudes about retirement. It finds that helping employees save for retirement is very much considered an important component of social responsibility. Nearly all of these executives say that their organization is committed to helping employees save for retirement (99%) and most back it up by making contributions to their retirement plans (86%).
The inaugural edition of the PNC SR survey also finds that most executives (92%) rank corporate social responsibility as a priority for their organization, with two-thirds (65%) saying it is a “very high priority.”
What’s more, the survey reveals that both nonprofit and corporate leaders expect to see more SR-related policies in the workplace, with 94% of respondents predicting that social responsibility programs are here to stay. “SR initiatives have proliferated in recent years and studies have shown that investors and consumers increasingly are seeking out socially responsible companies that align with their values,” said Alistair Jessiman, head of PNC Institutional Asset Management. “Organizations recognize that not only is this good business and critical for continued growth, but it is also the right thing to do.”
What’s driving their organization’s commitment to social responsibility overall? Executives cited several internal and external forces, including direction from senior leadership (92%) and their board of directors (89%), alignment with their organization’s mission (90%), interest from their clients (91%) and the community (90%), and marketplace competition (86%).
Top SR Initiatives
Diversity, Equity and Inclusion. PNC found that DEI initiatives rank among the top priorities for many executives. Roughly two-thirds of organizations (68%) currently have a program or initiative related to DEI in place. An additional 26% do not currently have one but say they are in the planning process.
For-profit organizations are more likely to have a DEI initiative (76%) than are nonprofits (59%). Regardless, DEI initiatives are most likely geared toward the organization’s workforce in general (75%) and their leadership and management (68%), though half also are targeting their vendor and supplier base (52%), and 40% are prioritizing the diversity of their board, PNC notes.
Financial Education Benefits. Also ranking among the top responses was an emphasis on employee benefits, specifically financial education programs. Just over half of nonprofits (52%) and 6 in 10 for-profit companies (62%) offer financial education to their employees.
Half provide some financial education themselves (50%), but nearly as many also rely on their plan administrator (47%) or investment consultant (42%). Moreover, the majority offer online financial tools (77%) as well as one-on-one meetings with employees (58%), while about half also offer webinars (49%). Yet, despite the many formats offered, slightly over half of respondents (55%) say that fewer than 50% of their employees take advantage of their financial education programs.
ESG Investing. Executives are also taking an increasing interest in ESG investing. While 40% of respondents say that their company or organization currently does at least some investing through an ESG lens, nearly as many (39%) are not currently engaging in ESG investing but are in the planning process.
Those who do currently implement an ESG investing strategy say that the most important factors in choosing an investment advisor are having dedicated ESG strategies (70%), dedicated impact investing strategies (68%), and access to ESG analytics and reporting (68%).
Furthermore, most executives are optimistic that the growth in ESG investing can have a positive influence on corporate behavior (91%). When it comes to implementing ESG investment strategy, these executives say it is just as important to avoid investments that do not align with your values (86%) as it is to proactively invest in companies that do align with your values (90%).
“Our survey makes it clear that both for-profit and nonprofit organizations are seeing ESG investing as increasingly important, but they also recognize that it is critical that these investment opportunities are fully vetted and indeed aligned with their own values,” notes Jessiman.
The survey was conducted in December 2021 by Willow Research among 240 C-suite and financial executives divided evenly between for-profit and nonprofit organizations with annual revenues of $25 million or more, representing a broad range of industries. Most of these organizations (95%) have annual revenues of $50 million or more.
