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Is Your Company’s Severance Agreement in Order?

West Chester employment lawyers provide counsel for severance agreements.A severance agreement is a legal document that defines the terms of separation between an employer and an employee. A typical severance agreement outlines the terms of compensation, benefits, and stipulations for the distribution of funds and for legal protections against future lawsuits. When done correctly, a severance agreement benefits both the employer and employee, but when done incorrectly, costly and time-consuming legal battles can ensue.

Key Areas of Consideration for Employers Offering Severance Packages

Employers need to be very careful when drafting severance agreements. The language of the contract and the stipulations outlined in the agreement can have a significant effect on the successful separation between an employer and employee. Employers that ensure their employees fully understand the conditions of the severance agreement can avoid future legal problems. A successful severance agreement will consider the following:

  • Ensure the employee has enough time to properly evaluate an agreement before signing, and to seek legal counsel, if they wish. In a situation where a former employee brings a lawsuit against an employer after termination, they need only convince the court that they were not fully informed of the contractual terms, or that they felt coerced into signing the agreement. Ensuring that the employer has given the employee the chance to carefully consider the terms of the agreement and seek legal counsel before signing the agreement can avoid future legal battles.
  • Do not prohibit the employee from filing future claims with governmental agencies, such as the Equal Employment Opportunity Commission (EEOC). Severance agreements should also allow the employee’s participation in future investigations conducted by a governmental agency. The employer has the right to include stipulations in the agreement that prohibits the employee from collecting additional compensation from the employer as a result of these investigations.
  • Ensure that the employee feels satisfied that the terms of the severance agreement are fair in exchange for the benefits they receive. Disgruntled employees and those that feel they have been treated unfairly are more apt to file a future claim against an employer that imposes strict stipulations for little reward. When an employer rewards an employee’s loyalty to the corporation with monetary benefits, the former employee is more likely to refrain from filing a future lawsuit.

Attorney Review of Severance Contracts can Avoid Future Legal Problems

Employers are wise to consult with an experienced employment lawyer when drafting or revising a current severance agreement. A qualified employment lawyer can review the terms of your agreement and advise you of what future impact your severance agreement can have on your company. The legal jargon used in the severance agreement needs to be strong to hold up in court if it is challenged.

A sound severance agreement will clearly outline the terms of the agreement, the distribution of compensation and benefits offered in the agreement, and protect your company from costly and time-consuming lawsuits. Employers that continuously review and update their severance agreements have the best success with employee terminations. Legal counsel can ensure that your legal rights are protected now and in the future.

West Chester Employment Lawyers at MacMain Leinhauser Provide Counsel and Representation for Severance Agreements

The West Chester employment lawyers at MacMain Leinhauser can help your business establish severance agreements that provide legal protection from lawsuits filed from terminated employees. Call us at 484-318-7106 or contact us online to schedule a consultation today. Our West Chester, Pennsylvania offices serve clients in Philadelphia, Chester County, and throughout the state of Pennsylvania.

Starting a Non-Profit Organization in Pennsylvania

Chester County business attorneys offer counsel for starting a non-profit organization in PA.Starting a non-profit organization in Pennsylvania requires a few simple steps. Incorporation is initiated by filing with the Pennsylvania Department of State Bureau of Corporations and Charitable Organizations (“Department of State”) and payment of fees.

A non-profit organization is an organization that is formed for either a charitable, educational, religious, scientific or literary purpose. Most non-profits are formed for tax purposes and are commonly referred to as 501(c)(3) organizations because they seek to have tax-exempt status with the Internal Revenue Service (IRS).

By pursuing certain steps and maintaining some formalities, a non-profit organization can begin operations and enjoy tax-exempt status. To form a non-profit organization, prepare for the following:

Choose a name for your organization. The non-profit should identify itself by a name that is distinguishable from all other names of corporations, business entities and non-profit associations already registered. The Department of State can be contacted to determine if the proposed name of the organization already exists.

Choose at least one director. The non-profit should choose at least one director to be on the board of the organization. Directors are responsible for the governance of the corporation. Though only one director is required to register the non-profit with the Department of State, in order to obtain tax exempt status, the non-profit will need at least three directors. Directors should also be at least 18 years old.

Registered Agent. The director must find and name an individual who will be appointed as the registered agent for the organization. This individual is responsible for receiving legal notices on behalf of the organization. This person must be a resident of Pennsylvania and should maintain an office during normal business hours.

Articles of Incorporation. The non-profit organization will need to draft articles of incorporation and file with the Department of State. It also provides an online form that can be used to create the articles. The articles should provide the following:

  • Name of the organization
  • Address of the registered agent
  • Stated purpose of the organization
  • When it was formed
  • Statement regarding members of the organization, if any
  • Address and name of the incorporators of the organization
  • Statement that the organization will not seek profits
  • Statement that the organization is based on the Non-profit Corporation Law of 1988
  • Name and address of the each of the incorporators of the organization
  • The stated term of the organization

Filing and payment of fees. Once the articles are drafted, they must be filed with the Department of State along with a filing fee.

Docketing Statement. Along with the articles and payment of a filing fee, a Docketing Statement must be filed. This statement is a form provided by the Department of State requiring certain information about the organization.

Publication of the Articles of Incorporation. Incorporators of the organization must publish the Articles of Incorporation in at least two newspapers. The organization must keep a copy of these publications in its records.

Bylaws. The non-profit organization must also prepare bylaws by which the organization plans to operate. The bylaws must also comply with Pennsylvania laws. These bylaws must be kept with the organization and utilized in conducting meetings, electing officers and define duties and responsibilities of directors and officers of the organization.

Employer Identification Number. The organization needs to apply for an Employer Identification Number with the IRS. This number can be used to open bank accounts, and file tax returns and obtain tax exempt status with IRS.

Chester County Business Attorneys at MacMain Leinhauser Offer Counsel for Non-Profit Organizations

The Chester County business lawyers at MacMain Leinhauser have facilitated the formation of several non-profit organizations for our clients throughout Pennsylvania. Schedule a consultation by contacting us online or call our office at 484-318-7106. Our office is located in West Chester, Pennsylvania. We serve clients in Philadelphia, Chester County and throughout the state.

The Importance of Compliance in the Workforce

West Chester employment lawyers help businesses establish corporate compliance programs.All businesses, whether they are a small privately-owned business or a large conglomerate, are responsible to comply with federal and state laws. Unlawful discrimination, corrupt personnel practices, workplace harassment, employee safety, and wage, payroll, and benefit issues can wreak legal havoc on a business, costing owners hundreds of thousands of dollars in penalties and legal fees. Strong and clearly established corporate policies and procedures can help business owners avoid the hassles and legal problems that can come with noncompliance.

Benefits of a Strong Workplace Compliance Program

Federal, state, and international laws vary greatly, and keeping compliant in the fluctuating climate of our global business environment can be overwhelming. Keeping track of international, federal, and state laws governing the ethical and legal practices for an organization is an ever-changing process. Corporate policies and procedures need to be continuously evaluated and updated.

The main benefits of a strong workplace compliance program include:

  • Prevents illegal or unethical actions committed by uniformed employees
  • Encourages reporting of illegal and unethical actions of administrators, managers, and colleagues
  • Reduces the likelihood for waste, fraud, abuse, discrimination, and corruption
  • Sets employee expectations
  • Supports the goals of the organization
  • Increases productivity
  • Promotes corporate growth and sustainability
  • Prevents corporate crisis and failure
  • Helps in the defense of the corporation should a lawsuit occur

When employees are properly trained and educated on corporate compliance and its importance to corporate success, businesses can operate effectively and efficiently.

Elements of a Corporate Compliance Program

To reap the full benefits of corporate compliance, a company must establish a strong plan. The essential elements of a corporate compliance program include:

  • Training: Comprehensive training on business laws and ethical practices that relate to a business, and on the importance of corporate compliance needs to start with a company’s top administrators and trickle down to the general workforce. An employee that does not understand what the laws and regulations are cannot be expected to behave appropriately.
  • Hire a Corporate Compliance Officer: A corporate compliance officer is one that consistently reviews corporate policies, establishes a corporate plan, and enforces the policies and procedures that support the compliance program.
  • Establish Modes of Communication for Administration and Employees: Communication is essential to corporate compliance. Employees need to have an established mode of reporting non-compliant actions as well as one that counsels employees that violate rules.
  • Consistent Review and Evaluation of Corporate Policies: The federal, state, and international laws governing business are in a constant state of change and development. Consistent review of the laws and regulations as well as corporate compliance policies and procedures will ensure that business practices remain ethical and compliant.
  • Annual Risk Assessment: It is imperative that corporations identify the biggest risk areas for their corporation and annually evaluate their audit results, recent litigation, compliance complaints, employee claims, and policies affecting each risk area.

West Chester Employment Lawyers at MacMain Leinhauser Help Businesses Establish Corporate Compliance Programs

The West Chester employment lawyers at MacMain Leinhauser help businesses establish corporate compliance programs that protect them from lawsuits and penalties for non-compliance. Call us at 484-318-7106 or contact us online to schedule a consultation today. Our West Chester, Pennsylvania offices serve clients throughout Philadelphia, Chester County, and across the state.

Should Your Workplace have a Marijuana Use Policy?

Attorneys help Pennsylvania employers and workers understand cannabis law.As states across the country take up the issue of legalizing medical and recreational marijuana, a gray area remains where state and federal laws overlap and seem to contradict each other. Many Pennsylvania employers are questioning how to navigate the unique human resources concerns when the state approves medical marijuana use, but the federal government bans it.

Recently, MacMain Leinhauser partner, Matthew J. Connell, offered his insight into the conundrum many state employers currently face regarding medical marijuana. Speaking before the Berks County chapter of the Society of Human Resource Management, Connell acknowledged the gaps and discrepancies in current marijuana laws.

Calling cannabis law in Pennsylvania, “new and untested by the courts,” Connell feels employers are left to figure it out as they go. He believes creating and enforcing a solid marijuana policy is essential for employers to protect their interests and prevent costly, time-consuming legal claims.

The following are some of the key issues surrounding medical marijuana in the workplace:

Job Discrimination

Like race, religion, and sex, medical marijuana use is protected by workplace discrimination laws. Workers who disclose their use of cannabis for any of the 21 state-approved conditions cannot be adversely affected in terms of hiring, promotions, or termination. Where marijuana use was once grounds for termination, legal use for medical purposes is now protected under the law – provided it is not smoked.

Worker Safety

While medical marijuana use is permitted under Pennsylvania law, there are obvious pressing safety concerns regarding impaired workers performing certain jobs. The part of the law addressing when employers can prohibit workers from doing more risky jobs like mining or working with high-voltage equipment is not clear enough to be easily enforced, leaving these guidelines open to employer interpretation.

Marijuana Testing Flaws

The law allows employers to prohibit workers with a blood content of more than 10 nanograms of active THC per milliliters of blood in serum from doing these high-risk jobs. This is a primary area of confusion in the law. Employers are not equipped to gauge what that amount is, let alone accurately test workers to make that determination. Testing is essentially useless because while THC can be detected in the blood, there is no way to determine if it is from legal or illegal use.

Beyond these key pressing issues, there is one larger overall problem with the nebulous cannabis law in Pennsylvania. What does it mean to be under the influence? Until THC testing is perfected, Attorney Connell recommends companies clarify and define observable, physical behaviors and incorporate that definition into their corporate policy. Workers who are obviously stumbling, slurring their speech, or behaving out of character may be under the influence and too impaired to do their job safely.

Attorneys at MacMain Leinhauser Help Pennsylvania Employers and Workers Understand Cannabis Law

Pennsylvania employment law attorneys at MacMain Leinhauser help human resources professionals consider every aspect of the law when creating their cannabis policy. To discuss your employment law matter with a skilled and knowledgeable attorney, call 484-318-7106 or complete an online inquiry today. Located in West Chester, we represent clients throughout Chester County and all of Pennsylvania.

Use of Nondisclosure Agreements to Protect Your Company

Pennsylvania business attorneys are well-versed in drafting enforceable contracts.Nondisclosure agreements, also referred to as NDAs, are a common legal instrument used by companies to protect sensitive company information. NDAs can be used to protect customer lists, patents, trade secrets and other information that gives a company a competitive advantage.

An NDA protects a company from unauthorized disclosure of its confidential information. Through an NDA, a business can ensure that, whatever information that it shares with others that gives it a competitive advantage, is not shared with competitors. In case the agreement is violated, the business will then have recourse and can seek damages.

When to Use an NDA

Employees – Employees need to have access to a company’s sensitive information to perform their jobs. However, in order to protect the employee from sharing this information with the company’s competitors, businesses should use nondisclosure agreements. An NDA can prevent the employee from taking the information accessed through the job to competitors or use it for its own gain.

Proprietary Information – When a company has proprietary information such as a trade secret, financial information or other sensitive information it should be protected from unauthorized use. An NDA will inform the other party of the confidential nature of the agreement so that the information is not shared with others.

Product Details – When a company is seeking investment from investors or considering licensing with another company to expand its business, it is important to have the other party sign an NDA. An NDA will ensure that the other party knows that the information being shared is proprietary and that it cannot take this information and use it to develop its own product.

Drafting an NDA

A nondisclosure agreement should be drafted such that it protects the company’s assets. An NDA should be clear and provide disincentives for violating it. Therefore, when drafting an NDA, it is important to clearly define the information that is sought to be protected. The terms of the agreement should clearly define the information. If the terms are too broad, the agreement may not be enforceable. It is advisable to clearly define the confidential information.

The agreement should also clearly specify the parties to the agreement as well as the duration of the agreement. Finally, the NDA should create a disincentive for its violation. Usually, a term regarding prevailing party is entitled to attorneys’ fees creates the necessary disincentive. If the party violates the agreement and loses its case, it will not only be liable for damages but also attorneys’ fees.

Every business should utilize a reliable NDA that it can use with employees, investors and potential partners. Drafting an NDA requires diligence, strategy and clarity.

The Pennsylvania business attorneys at MacMain Leinhauser are well-versed in drafting enforceable contracts and can assist your business in developing a strategy and ensuring that your business protects its proprietary information through a strong nondisclosure agreement. For assistance in drafting an NDA, contact us online or at 484-318-7106. Our office is located in West Chester, Pennsylvania. We serve clients throughout Chester County, Philadelphia and Pennsylvania.

Should Your Small Business Offer a 401k Plan?

West Chester business lawyers offer sound advice for small businesses offering a 401(k).Every small business should consider setting up a plan for retirement. Retirement planning can help a business owner save for the future, earn money on investments and help with taxes. Moreover, offering retirement benefits attracts good employment candidates. Once employed, the chances of employees remaining with the business increase when the business offers retirement plans as a benefit. Currently, many small businesses offer retirement plans known as the 401(k) Plan.

401(k) Plan

401(k) Plans are a form of retirement savings plan offered by employers that allows workers to save pretax earnings in a retirement account. 401(k) is named after the Internal Revenue Code section that governs these accounts. 401(k) Plans were offered as a supplemental retirement plan in the 1980s when employees realized that pension plans do not offer adequate income during retirement.

The money in the retirement account is invested in a selection of mutual funds. Employees can choose the type of fund they want to invest in depending on their risk profile. Mutual funds are composed of a variety of stocks, bonds, and money market investments. The income is taxed when the employee withdraws from the plan upon retirement.

Employers may choose to contribute up to a certain amount of money to the employee’s 401(k) plan when the employee elects to take the benefit. Employees are often restricted from withdrawing the money contributed by the employer until a vesting period is completed. Also, there are certain restrictions and penalties for withdrawing the money invested in a 401(k) before retirement.

Administration of a 401(k) Plan

Small business owners are busy managing their business and therefore are left with little time to take on administration of retirement plans. Thankfully, today there are many tools and services offered that make it easier for small business owners to administer 401(k) plans.

Technology. There are many technology tools are offered in todays market to help small business owners manage 401(k) plans. These are specific tools catered for small business owners. There are apps and technology tools today that allow companies to streamline the process of cost comparisons and automate the administration and assist employees with built-in investment advising.

Financial Services Company. Many financial companies also offer services to small business to help them manage their employee’s 401(k) plans and provide investment advice. Professional employer organizations, along with human resource and payroll assist in administration of 401(k) plans. When choosing an organization, it is important to choose one that has industry accreditation and minimum requirements.

Why a Small Business Should Offer a 401(k)

Today’s recent graduates are strapped with student loan debts. Increasingly they are searching for employers who will look out for their interests and help them save. Furthermore, higher costs of living associated with rising housing costs has also put pressure on individuals’ finances and their ability to save for retirement.

Offering a 401(k) with employer contributions is an important benefit that will attract good employees. Once these employees know their employer is helping them save and creating ways for their money to grow, they are likely to remain and contribute to the small business. Happy employees will translate into higher productivity and lead to a profitable business.

For information or advice on small business matters, the small business law group attorneys at MacMain Leinhauser offer a wide range of services. Do not hesitate to contact our West Chester office with any small business concerns. Contact us online or by phone at 484-318-7106. We serve clients throughout Pennsylvania.

Employment Contracts

Philadelphia business lawyers can help your small business draft effective employment contracts.Many small businesses are discovering the advantages of using employment contracts when hiring key employees. These agreements between employers and employees set the conditions of employment and often include details relating to compensation, benefits, work hours, and job responsibilities. Employers can benefit from entering into employment agreements with executive employees and professional and administrative staff. Employment contracts can be particularly helpful in providing protection for sensitive matters, limiting competition with other companies, and retaining important employees.

Providing Protection

Employees may have access to proprietary information, including trade secrets, which employers may want to protect from widespread distribution. Employment contracts can specify the confidentiality of certain information and limit the disclosure of this material. With an employment agreement, employers also can specifically control what information an employee can use if they leave the company.

Intellectual property created by an employee on behalf of a company can be protected by ensuring through an employment contract that the business, and not the employee, owns the copyrighted or trademarked material. The use of an invention assignment clause is another important way to protect a company’s intellectual property assets. This type of contract provision specifies a company will own any invention created by an employee using the company’s equipment, facilities, trade secrets, supplies, or other resources.

Limiting Competition

In many industries, it remains a good business practice for employers to limit competition by restricting where former employees may work in the future. Employment agreements can contain non-compete clauses, in which an employee agrees not to work for a competitor over a certain period or within a certain geographical area. Another common clause used in these contracts is a non-solicitation agreement, which requires the employee to agree not to solicit future business from the employer’s customers or other company employees.

Retaining Employees

By having uniquely qualified employees sign employment contracts detailing incentives for ongoing employment, employers often retain these individuals. Employment contracts sometimes list details regarding how termination of employment will be handled. Some employers include at-will clauses, allowing either party to end the relationship at any time.

Drafting Enforceable Employment Contracts

Term and conditions typically found in employment agreements include the identification of the parties, effective date of the contract, description of the type and term of employment, responsibilities and duties of both parties, details related to how notices of action will be made, ongoing job requirements related to professional licensure issues, work hours, and the method for handling future disputes. To ensure an employment agreement adequately protects the rights of all parties and complies with federal and state laws, employers should consult with an experienced business lawyer for assistance in drafting these documents.

Under certain circumstances, employee handbooks or an exchange of letters between an employee and employer during the hiring process can be found to be an informal contract.

With offices conveniently located in West Chester, Pennsylvania, the experienced Philadelphia business lawyers at MacMain Leinhauser represent businesses and employers throughout Philadelphia and Chester County, Pennsylvania. To schedule a confidential consultation today, call us at 484-318-7106 or submit an online inquiry form.

Protecting Yourself from a Breach of Fiduciary Duty

West Chester business lawyers will help protect you from a breach of fiduciary duty.Fiduciary duty means that an individual has a legal obligation to act in the best interest of another party. In most cases, this involves the management of another person’s money, property, or other assets. A breach of fiduciary duty occurs when the executor, or the fiduciary, behaves in a way that contradicts their duty. Depending on the circumstances, this can have serious legal consequences. To avoid a breach of fiduciary duty, it is important to understand some of the potential conflicts and take immediate action to resolve any conflicts that may arise.

Examples of fiduciary relationships include a board member who has a fiduciary duty to a company’s shareholders, a trustee who has a fiduciary duty to beneficiaries of a trust, or an attorney who has a fiduciary duty to a client. Both parties involved in the fiduciary relationships must sign a contract for the duty to be legally binding. The fiduciary is expected to be dependable, trustworthy, and discrete on behalf of their client and may not benefit personally at the expense of the other party.

Under no circumstances may a fiduciary act in their own best interest, or use corporate assets or an individual’s inheritance for their own personal advantage. If a fiduciary behaves in a way that has a negative impact on the client’s finances, or their reputation, the wronged individual may sue for damages, as well as any profits the fiduciary made as a result of the breach.

How to Avoid a Breach in Fiduciary Duty

One way to avoid a breach in fiduciary duties is to have a thorough understanding of the transactions that are prohibited, so that you can avoid them. After the legally binding contract has been signed by both parties, make sure that the document is modified or updated any time a decision has been made that impacts the details of the contract. This will help prevent a breach of duty.

If an individual failed to uphold their fiduciary duty, either by withholding information, misappropriating funds, or abusing their position of power, the wronged person may pursue legal action against the fiduciary. They will need to provide proof that there was a fiduciary relationship, and the fiduciary did not act in their best interest. If the fiduciary benefited financially from the breach of duty, their financial records will help prove the breach. Depending on the circumstances, fraud may also be an issue, but the breach of fiduciary duty is much easier to prove than fraud.

If you have questions about a fiduciary relationship with another party, you are urged to contact our business lawyers at MacMain Leinhauser.  To schedule a confidential consultation, call us today at 484-318-7106 or contact us online. Our office is conveniently located in West Chester, Pennsylvania, where we serve clients throughout Philadelphia and Chester County.

Small Businesses and Debt Collection

West Chester small business lawyers offer a wide range of services for collecting debt.Small business owners wear many hats. Besides maintaining the primary business, owners must keep up with several tasks to keep the company running. One of the least pleasant tasks is to collect overdue debts owed by customers. While unpleasant, the task of debt collection is a necessary evil that is essential to the survival of the business. In fact, according to a recent poll conducted by American Express’s OPEN Small Business Network, the number one cash-flow concern of small business owners is the issue of accounts receivables.

As a vital element of a business’s success, it is important that the issue be handled with tact. After all, it is not just the payment at stake, but also repeat business and ultimately, the reputation of your business. Your attitude and patience with non-paying customers will have consequences on your image and on your chances of having the debt repaid.

New and Old Customers

It is important to keep this mindset when collecting a debt from a new customer. It is possible that the whole issue was just an oversight. Coming on too strong with a fight to claim a debt could damage a business relationship that could have great potential. If the debt owed is from an established customer, the best option is to evaluate their payment history. If they had trouble in the past with providing prompt payment, that is a fact worth considering.

Typically, non-paying customers fall into one of three categories:

  • Customers who normally pay, but are having unusual issues
  • Customers who are repeat late-payment offenders, but eventually pay
  • Customers who habitually avoid paying their debts

Getting Tough

If reaching out with a gentle reminder does not produce results, it is necessary to become more assertive. It is a good idea to build up your efforts gradually, but to also be frequent with your requests. Keep in mind that the longer a debt goes unpaid, the less likely payment becomes. Varying communication methods are one way to keep the reminders coming, while leaving the working relationship intact. Requests can be made through email, over the phone, or by certified letter.

Be sure to document all exchanges you have with your customer. These notes may come in handy if you need to refer to them in the future. For example, if a customer makes a promise and then reneges, detailed notes on the agreement would be helpful. Above all, avoid harassing or demeaning a customer over payment. Such an approach works against your efforts to come to an agreement and there are other avenues a business can take to achieve the goal of eventual payment.

Other Options

Once it has been determined that a customer is unlikely to pay their debt in full, small businesses can offer to settle the issue for less than the amount owed. This may be enough to appeal to the customer and make them pay. If not, the account can be turned over to a collection agency. As a last resort, a small business may decide its best course of action is to address the matter in small claims court.

Small Businesses who need representation in debt collection proceedings should reach out to the experienced small business lawyers at MacMain Leinhauser. Call us at 484-318-7106 or fill out an online contact form today. We represent clients throughout Philadelphia and Chester County from our office in West Chester, Pennsylvania.

Corporate Social Responsibility and Benefits to Employees

Philadelphia business lawyers advocate for social responsibilities benefiting employees.When a company engages in socially responsible activities, employees can benefit. Any effort made by a company to improve their local or global community constitutes corporate social responsibility. The most common acts of corporate social responsibility include donating money to charity, encouraging volunteerism among employees, and implementing environmentally friendly or ethical work practices.

Statistics indicate U.S. corporations give approximately $18 billion to non-profit organizations each year. Companies engaging in corporate social responsibility will often match any charitable contribution made by an employee to designated causes. Company led volunteer programs, including company-wide days of service, are visible acts of corporate social responsibility. Many employers offer both skill-based and non-skilled based volunteer opportunities.

Another type of corporate social responsibility exhibited by employers is the increased use of environmentally friendly practices. Efforts to reduce a company’s carbon footprint, including the creation of company recycling programs and paper-less initiatives, demonstrate a company’s commitment to improving society, as does a company’s commitment to ethical labor practices.

Benefits to Employees

When a company engages in corporate social responsibility, it can have many positive benefits for its employees. Employees often find companies that demonstrate corporate social responsibility are more positive workplaces. When employees see their company engaging in philanthropic behavior, they often become more invested and engaged in their work, which results in employees finding meaning in their work. Research shows 60 percent of employees who expressed pride at their employer’s corporate social responsibility programs were engaged employees. Corporate social responsibility can also help an employee feel fulfilled with their employment.

Employees who volunteer together can develop team building skills that can be used in the workplace. Companies engaging in corporate social responsibility may see an increase in cooperative behaviors among their employees. Employees who believe their employers are doing the right thing become motivated to treat their co-workers in a more respectful and helpful way. Higher productivity of team members and increased creativity are often side effects of corporate social responsibility.

Corporate social responsibility also motivates workers to volunteer and donate more, which often leads to professional and personal growth of employees. Many employees first engage in charitable causes after becoming aware of the charitable work of their employers. Taking advantage of a company’s matching gift program or serving the community as part of group volunteerism can be a direct result of corporate social responsibility.

Other employers report higher employee retention rates after establishing corporate social responsibility programs. Employees are more likely to identify with the company they work for and are less likely to leave the company when the company engages in philanthropic work. Many individuals identify more with their company when it acts socially responsible than when the company focuses only on financial successes. Corporate social responsibility increases an employee’s overall commitment to the company. This can also make a company attractive to prospective employees who are often more eager to join a company that has a history of helping the local and global community.

With offices conveniently located in West Chester, Pennsylvania, the experienced Philadelphia business lawyers at MacMain Leinhauser proudly represent employers throughout Philadelphia and Chester County in a wide range of business matters. Call us today at 484-318-7106 to schedule a confidential consultation or submit an online inquiry form.