| Corporations in the Unites States annually give | | | | company, be genuine in its intentions, and be |
| away over $11 billion to non-profits and other | | | | communicated with full endorsement by the |
| charitable organizations – an average of 1.3% | | | | CEO. To generate optimal returns, the program |
| of pre-tax income. Yet, many do so without | | | | should resonate internally and externally with |
| realizing the strategic value it provides. | | | | company values, products, practices, and goals. |
| Philanthropic donations provide a useful, though | | | | CEOs should lead by example by getting |
| seldom fully-leveraged, channel for improving | | | | personally involved. This level of leadership |
| outcomes for both the corporation and the | | | | creates an authentic spirit that employees can |
| community. | | | | support and extend as ambassadors of the |
| | | | | company. Just as employees are inseparable |
| Fully utilized, effective giving programs can | | | | from the success of any corporate initiative, so |
| · Enhance company image | | | | to are they essential when crafting a giving |
| · Strengthen employee morale | | | | strategy. Including employee ideas through |
| · Attract top talent | | | | surveys or philanthropy councils guarantees buy-in |
| · Improve retention | | | | and strengthens the program from design to |
| · Develop corporate allies | | | | execution. |
| | | | | |
| According to the Committee Encouraging | | | | Volunteering is another channel for corporate |
| Corporate Philanthropy (CECP), companies that | | | | philanthropy, with companies allowing staff to take |
| view business’s contract with society not as | | | | time off work to use their core competencies to |
| an obligation, but as a source for competitive | | | | invest in their communities. Volunteering can |
| advantage, unlock a powerful opportunity to | | | | take many forms, from mentoring in local schools |
| attract and retain talent and ensure the health of | | | | one day a week, to sending employees to work |
| their markets over the long term. The CECP is | | | | full time for several months in other national or |
| an international forum of business CEOs and | | | | global locations. For example, Wells Fargo |
| Chairpersons pursuing a mission focused | | | | employees regain their full salary and benefits |
| exclusively on corporate philanthropy. Its Board | | | | after up to four months away from their jobs |
| of Directors is comprised of 23 international CEOs | | | | working with non-profits. An additional benefit to |
| and Chairpersons, including Marilyn Carlson Nelson | | | | this type of social responsibility is the insights |
| of Carlson Companies. | | | | companies gain into new markets and unfamiliar |
| | | | | economic environments. At the same time, |
| Giving back to the community, when conceived | | | | these intensive sabbaticals double as powerful |
| and executed thoughtfully, creates a win-win | | | | leadership development programs benefitting both |
| scenario for businesses and the public. From | | | | the employees and the sponsoring organization. |
| eradicating disease and improving childhood literacy | | | | |
| rates to boosting employee job skills, opening new | | | | In order to build sustainability into a philanthropic |
| markets, and heightening brand recognition, | | | | initiative, companies must stay on top of the |
| business and society both stand to benefit greatly | | | | same shifting dynamics that affect all of their |
| if companies can demonstrate programmatic | | | | business lines, such as globalization, diversity, and |
| effectiveness, fiscal accountability, and good | | | | other market forces. In addition, philanthropy |
| stewardship in their philanthropic contributions. | | | | programs should be actively monitored, measured, |
| | | | | and communicated. Customers expect |
| While large corporations typically have a staff | | | | transparency and shareholders expect specificity |
| dedicated to philanthropy with structure and | | | | in understanding the business value of corporate |
| parameters built in, giving at small companies | | | | giving. Attendees at the 2008 CECP conference |
| tends to be more grassroots. Small and | | | | suggest producing an annual report on citizenship, |
| non-publicly traded companies can often utilize | | | | possibly including integrity, alignment, environmental |
| unique ways to give, such as putting their | | | | concerns, workplace values and corporate giving. |
| companies in a charitable trust or donating | | | | Managing corporate giving similar to other key |
| company stock. In fact, 80% of Minnesota | | | | business disciplines, with clear objectives, |
| businesses with fewer than 500 employees | | | | established metrics and reporting structures to |
| contribute annually through some type of giving | | | | senior management, reflects best practices and |
| program, according to the Minnesota Chamber of | | | | ensures shareholder support and stabilization of |
| Commerce. Businesses of any size reap the | | | | these programs, especially in periods of company |
| benefits of social investment with successful | | | | change and volatility. |
| communities in turn supporting successful | | | | |
| businesses. | | | | When businesses think of corporate philanthropy |
| | | | | as social investing, not charity, they become more |
| For example, charitable giving has always been a | | | | alert to possible inefficiencies. Due diligence with |
| core tenet of Minnesota-based Cargill’s | | | | potential nonprofit partnerships ensures that |
| operations. Each year, Cargill donates 2% of its | | | | every dollar is spent wisely. Collaborating with |
| global pretax earnings - $37 million last year. This | | | | other companies, both for and non-profit, provides |
| philanthropy helps the company meet its mission | | | | for even greater impact, as companies converge |
| of nourishing people and ideas, and strengthens | | | | around solving significant issues. Collectively, |
| ties with its employees. Cargill has found that | | | | businesses can move the needle on important |
| giving back to the community matters to | | | | social issues far more than any individual |
| employees and, therefore, helps to attract and | | | | company. |
| retain good people. Other top CEOs also recognize | | | | |
| that prospective employees are highly influenced | | | | When companies adopt the approach of social |
| by corporate culture, and philanthropy is an | | | | investment to improve their competitive context |
| integral component of a desirable work | | | | – using their charitable efforts to improve the |
| environment. In recent years, college graduates | | | | quality of the business environments in the |
| frequently have long records of community | | | | locations they operate – they align social and |
| service and therefore seek employers that | | | | economic goals. They improve their long term |
| support their interest in community engagement. | | | | business prospects and direct their philanthropic |
| | | | | activities to areas where they can be far more |
| Similarly, Fargo, North Dakota-based State Bank | | | | effective by leveraging their unique assets and |
| & Trust recently earned national attention | | | | expertise. |
| for its ‘Pay It Forward’ challenge in which | | | | |
| the company gave its 510 employees more than | | | | Further information on the profitability and |
| $500,000 to pass onto a worthy cause or | | | | successful execution of strategic corporate |
| person. Each year, State Bank & Trust | | | | philanthropy is available at the Center Encouraging |
| gives away about 5% of it’s earnings to | | | | Corporate Philanthropy website. |
| various local causes. This strategy has become | | | | |
| a major recipe for success, with record growth | | | | If you or your company is looking for a |
| over the past 10 years, consistent employee | | | | suggestion about where to invest your donations, |
| fealty, and a recent flood of new customers. | | | | Roselle Leadership Strategies has experienced |
| | | | | incredible returns and satisfaction from our time |
| To duplicate this kind of success, a philanthropy | | | | and money invested in Feed My Starving Children. |
| program should mirror the culture of the | | | | |