Room & Board and Ashley Stores of Central Nebraska discuss the strategic
significance of CSR for home furnishings retailers.
Corporate social responsibility (CSR) has become a critical aspect of modern
commerce in an era where businesses are no longer judged solely by their
bottom line. For home furnishings businesses, having a CSR program is an
ethical imperative and a strategic choice that can engage employees, attract
customers and benefit communities. The Home Furnishings Association talked
to Room & Board Home Furnishings and Hometrends LLC, dba Ashley Stores of
Central Nebraska, about the importance of developing a CSR program and how
it can positively impact these key stakeholders.
Room & Board
Emily McGarvey, director of sustainability, and Nancy Greatrix, chief people
officer, explained that “Room & Board’s corporate social responsibility
framework is based on the three foundational ideas of “Better Products,
Better for People, and Better for the Planet.”
Within the Better for People category are four pillars: sustainability,
related to reforestation and education; community, helping to tackle
homelessness and housing insecurity; belonging, which focuses on Room &
Board’s work in the LGBTQ community; and Art & Design, its commitment to
provide access to art, especially contemporary art. Every year, Room & Board
puts together a Sustainability Impact Report to help communicate their
sustainability programs’ strategies, goals, and yearly actions and how they
impact people and the planet.
Hometrends LLC
Carson Rowh, owner, and Sarah Luther, director of talent and employee
experience, shared how the CSR philosophy at Hometrends has become a mission
for its business. Rowh explained, “Our core purpose is to have an
exceptional impact on our team members, customers, partners, and
communities. In 2019, we created a mission to ‘Serve 500,000 Families by
2030.’ This mission was inspired by a book called ‘Setting the Table: The
Transforming Power of Hospitality in Business,’ by Danny Meyer. We believe
that each stakeholder group serves and is served by other stakeholder groups
in a virtuous circle. When company shareholders serve their employees well,
company employees understand their responsibility to serve customers well.
This circle extends to suppliers, vendors, communities served, and then
benefits come back to shareholders. If we do this well, the business will
grow, and remain healthy and sustainable over the long term.
“We allow each store to choose to serve nonprofit organizations that align
with our values of sustainability, reducing homelessness, the LGBTQ
community, etc.” - Nancy Greatrix, Room & Board
“We measure our impact by counting customers served, employees/team members
served, and communities served in terms of dollars, goods, volunteer hours
and services donated. From that larger goal, we develop quarterly, one-year,
and three-year goals for business outcomes we need to hit to achieve the
target of 500,000 families.”
Enhanced Employee Morale and Engagement
Implementing a CSR program can significantly boost employee morale and
engagement. When employees know that their company is actively contributing
to social and environmental causes, they are more likely to feel proud of
where they work. It leads to increased job satisfaction, a sense of purpose
and productivity.
Rowh noted, “Research on employee satisfaction and retention at Hometrends
LLC shows that having a purpose bigger than just earning a paycheck is
important to our employees. The engagement score of 84% on our last employee
survey and our employee turnover rate at a 5-year low tell me that they feel
their roles are contributing to something bigger and more meaningful than
just corporate profits or even their own pockets. As we’ve increased our
giving and the frequency and seriousness of how we talk about ‘Exceptional
Impact,’ we’ve seen that our people take pride in our mission to give back
to the communities and people around us. They’ve come to believe that
Hometrends is an organization with a heart.”
“Our core purpose is to have an exceptional impact on our team members,
customers, partners, and communities. In 2019, we created a mission to
‘Serve 500,000 Families by 2030.’” - Carson Rowh, Hometrends
Room & Board was included in Inc.’s Best Workplaces Survey. More than 90% of
staff members say they are proud to work at Room & Board and believe the
organization will succeed in the future. Greatrix shared, “About 20 years
ago, we started our Community Partnership Program, which includes staff
member volunteerism. We allow each store to choose to serve nonprofit
organizations that align with our values of sustainability, reducing
homelessness, the LGBTQ community, etc. As a corporate entity, Room & Board
helps initiate these relationships with donations for the first couple of
years. After that, we leave it up to our staff members to volunteer in their
local communities. When they think about others and give of themselves, I
believe it makes them better people. Nurturing our staff members’ ability to
give back to the communities where they live and work is at the heart of our
philanthropy.
McGarvey and Greatrix just completed their work on a staff survey that
gathered information on diversity, equity, and inclusion. “We learned from
the 71% of our employees who took the survey,” Greatrix said, “that 90% were
pleased with the organization, and 86% shared their belief that Room & Board
was giving back to the community in a meaningful way.”
Attraction and Talent Retention
Attracting and retaining top talent in a competitive job market can be
challenging. Strong corporate social responsibility can be a valuable
selling point for recruitment, allowing companies to choose from a larger
pool of qualified candidates. Furthermore, employees who align with a
company’s values are more likely to stay, reducing turnover and the
associated costs.
“Our sustainability work and giving back to communities are important parts
of Room & Board’s recruitment process,” noted Greatrix. “We find that
potential hires are very concerned about the environment and want to work
for a well-run organization that gives back in meaningful ways. I chat with
our new employees to get feedback about their choice to work here. Many of
them say it’s because of the sustainability and philanthropy programs. We
believe that individuals seek purpose in their work and expect their
employers to actively engage in making the world a better place.”
Hometrends also found that their CSR program improved hiring. “When I engage
with potential employees on the phone or at job fairs, our Impacting
Families initiative is the first topic I mention,” Luther said. “People
always want to know what our company is all about. The reaction I usually
get is, ‘Wow, that’s pretty cool that a furniture organization has a mission
like that.’”
Professional Development
CSR programs offer unique opportunities for employees to develop new skills
and gain valuable experience. Whether organizing community events,
participating in sustainability initiatives or managing charitable
partnerships, these experiences contribute to their personal and
professional growth. Hometrends tracks how many families their employees
have impacted by calculating volunteer hours and blood donations. “We give
employees one hour of company time off each month for volunteering if
needed,” Luther explained. “And we let them know that we appreciate their
contributions, which are a big part of Hometrends’ impact!”
“Our sustainability work and giving back to the communities are important
parts of Room & Board’s recruitment process.”
- Nancy Greatrix, Room & Board
Customer Loyalty
Consumers are increasingly mindful of the social and environmental impact of
their purchases. A well-executed CSR program resonates with customers and
creates strong emotional connections. When customers see a commitment to
causes that matter to them, they are likelier to remain loyal, resulting in
higher customer retention rates and increased customer lifetime value. This
information can be transmitted in many ways, including in-store signage and
retailers’ websites.
Ensuring that customers know what Hometrends is doing and how those efforts
impact the communities they serve is important, Luther told HFA. “We display
our mission of ‘Impacting 500,000 Families’ front and center in all our
stores and on our website with information about how far we’ve come toward
meeting that goal,” she explained.
Competitive Advantages/h3>
In a saturated market, a CSR program can set a home furnishings business
apart from the competition. Customers are increasingly looking to support
companies that share their values, and a CSR program can be a significant
differentiator.
McGarvey explained that “Room & Board’s sustainability efforts set us
apart from our competitors. Our Urban Wood Project takes reclaimed wood
out of cities and turns it into heirloom-quality furniture. On the
operational side, we’ve been doing a lot with waste diversion, sending
less to the landfill, reducing trash expenses and increasing revenue from
selling baled cardboard and plastic.”
Community Benefits
As a business engages with the community through CSR activities, stronger
relationships with residents and organizations build naturally.
Nancy Greatrix explained, “I used to sit down with our founder, John
Gabbert, for a year-end review. We would go over the financials and donate
to the communities where we lived and worked. That’s become a part of Room
& Board’s culture and business philosophy. Today, we donate approximately
2% of profits to more than 70 nonprofit partners across the country,
emphasizing sustainability, community, and the arts.”
Increased Customer Engagement
CSR programs help to engage customers on a deeper level. When they see
your business actively participating in social and environmental causes,
they will want to help. This engagement can lead to a sense of community
and shared purpose.
“An example is the food drive benefiting Hometrends’ local Salvation Army.
For every five pounds of food donated, one family is impacted,” Luther
explained. “Our delivery teams are having fun with this. They bring a
donation crate into customers’ homes when they deliver and set up
furniture, making it easy for customers to raid their pantries to donate
to the cause. It’s a win-win for everyone!”
Conclusion
There are many positive outcomes for businesses that incorporate CSR
programs. We have seen how CSR programs can improve employee morale,
customer trust and loyalty. They positively impact local communities. So,
what CSR program will you build for your business? Perhaps it’s time to
take meaningful action and adopt strategic measures to enhance your
corporate social responsibility initiatives.
“CSR needs to be more meaningful than just writing a check,” concluded
Room & Board’s Nancy Greatrix. “There is something intrinsic about giving
of yourself and your staff; it becomes a part of a wellness plan for the
soul!”
The Home Furnishings Association is proud to serve the industry with
the latest education and information that impacts your business. Learn
more about membership and resources at
www.myhfa.org or by calling
800.422.3778.