Although most businesses are concerned with making a profit to fuel growth and innovation, the days are gone when that should be the only driver behind an organization's decisions. Today the public, governmental authorities, stockholders and employees themselves expect an organization to take into account how their actions impact the community that supports them commercially. In many ways, this recognition of social impact has become a business driver itself.
Recently, David Cameron, the Prime Minister of the United Kingdom, publicized the formation of a Social Stock Exchange. This organization helps people find companies to invest in that focus equally on social issues as well as generating income. A move such as this by one of the great economies of the world stands as a testament to the importance that social responsibility now plays in the corporate world.
So how can a company make a positive social impact while thriving financially? The answer comes down to creatively building and implementing a broad corporate social responsibility program that focuses on the doing of good, but does so in a strategic and efficient way.
You can certainly begin with some creative giving, and there are many different options. The best CSR programs will incorporate at least two, if not more, of the following creative giving options:
Sustainable Business Practices - A commitment to environmentally responsible materials, recycling, energy efficiency, or pollution mitigation.
Corporate Donations - Donating company products or services to worthy causes, including planned monetary donations through a corporate foundation.
Employee Volunteering - Create opportunities that allow employees to participate in volunteer activities, such as paid time off for their work or even organizing a charitable activity during work hours.
Employee Donations - Making it easy for employees to donate financially to various causes, either on a one-time basis, or on an ongoing basis via automatic payroll deductions.
A Gift Matching Option - When employees donate, the company can match those donations up to a set amount. This can be a great incentive.
In addition to these creative giving suggestions, you need to think about strategic giving. We all want to do some good, but your program of corporate responsibility won't help anyone if runs counter to the goals and culture already established in your business model. You need to ensure that your giving program aligns with the mission and goals of your business in order for it to succeed.
When thinking about strategic giving, it is important to consider the following questions:
Is a successful program addressing a particular cause viable financially?
Will the company's involvement have enough of a positive impact to justify the cost of the project and the investment of time and resources?
How do these charitable efforts benefit our business? (While supporting a charity is the top priority, there is no reason not to utilize your CSR plan as a platform for social media and public relations)
Is the company set up to support this charity fully?
Is there already a culture of philanthropy present at our company or does this need to be established?
Are the top-level managers visibly supporting these efforts?
Another priority needs to be the efficiency of your program. Without efficiency, the social impact will be lessened or will not be able to continue for a long term. Just like any part of your business, the personnel, organizational, financial and managerial aspects of a successful corporate social plan are highly complex. It is often highly advantageous to partner with an organization that offers professional management for many components of your CSR program. As the CSR executive of your company, this will allow you to focus more energy on getting employees excited about your program and also allows you more freedom to get personally involved.
Recently, David Cameron, the Prime Minister of the United Kingdom, publicized the formation of a Social Stock Exchange. This organization helps people find companies to invest in that focus equally on social issues as well as generating income. A move such as this by one of the great economies of the world stands as a testament to the importance that social responsibility now plays in the corporate world.
So how can a company make a positive social impact while thriving financially? The answer comes down to creatively building and implementing a broad corporate social responsibility program that focuses on the doing of good, but does so in a strategic and efficient way.
You can certainly begin with some creative giving, and there are many different options. The best CSR programs will incorporate at least two, if not more, of the following creative giving options:
Sustainable Business Practices - A commitment to environmentally responsible materials, recycling, energy efficiency, or pollution mitigation.
Corporate Donations - Donating company products or services to worthy causes, including planned monetary donations through a corporate foundation.
Employee Volunteering - Create opportunities that allow employees to participate in volunteer activities, such as paid time off for their work or even organizing a charitable activity during work hours.
Employee Donations - Making it easy for employees to donate financially to various causes, either on a one-time basis, or on an ongoing basis via automatic payroll deductions.
A Gift Matching Option - When employees donate, the company can match those donations up to a set amount. This can be a great incentive.
In addition to these creative giving suggestions, you need to think about strategic giving. We all want to do some good, but your program of corporate responsibility won't help anyone if runs counter to the goals and culture already established in your business model. You need to ensure that your giving program aligns with the mission and goals of your business in order for it to succeed.
When thinking about strategic giving, it is important to consider the following questions:
Is a successful program addressing a particular cause viable financially?
Will the company's involvement have enough of a positive impact to justify the cost of the project and the investment of time and resources?
How do these charitable efforts benefit our business? (While supporting a charity is the top priority, there is no reason not to utilize your CSR plan as a platform for social media and public relations)
Is the company set up to support this charity fully?
Is there already a culture of philanthropy present at our company or does this need to be established?
Are the top-level managers visibly supporting these efforts?
Another priority needs to be the efficiency of your program. Without efficiency, the social impact will be lessened or will not be able to continue for a long term. Just like any part of your business, the personnel, organizational, financial and managerial aspects of a successful corporate social plan are highly complex. It is often highly advantageous to partner with an organization that offers professional management for many components of your CSR program. As the CSR executive of your company, this will allow you to focus more energy on getting employees excited about your program and also allows you more freedom to get personally involved.
About the Author:
Sebastian Troup enjoys blogging about philanthropic solutions for businesses and non profit organizations. For additional info about the importance of business philanthropy, or to find some corporate giving programs, please check out the Truist website today.
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