While most companies certainly strive to continuously expand, grow and increase their profits, a cutthroat approach to making money is simply no longer advisable. These days, your clients, employees, stockholders and even governmental authorities expect that companies will consider the impact that they make on the community at large.
In June 2013, the UK Prime Minister, David Cameron, announced the creation of the Social Stock Exchange: a vehicle for investing in companies based primarily on their social impact in addition to their financial forecasts. This is a great example of a trend in modern society where more emphasis than ever before is placed on the legacy an organization leaves behind and the reputation it creates while going about the business of business.
How do you balance social responsibility with profitability? It can be a tricky endeavor, but in order to achieve success in both areas, you need a strategy for corporate responsibility that is as complete as a strategy would be for any other area of business.
Creative giving is certainly one solid option. Although any one of the following methods can produce excellent results on its own, a great CSR program will incorporate two, three, or more of these options in complementary ways:
Sustainable/Eco-Friendly Practices - Part of your mission statement should include your company's commitment to using materials that are environmentally responsible, as well as doing your part to ensure maximum energy efficiency and the mitigation of pollution. A company-wide recycling effort also should be included in this plan which gives back to our environment.
Donate To The Cause -Corporate donations can include monetary contributions as well as the donations of products and services. You can set up a corporate foundation for this purpose.
Workplace Volunteering - Offering pre-approved volunteer opportunities to employees, including offering paid time off for volunteer activities on company time.
Staff Donations - If donations are complicated and many forms must be filled out, this is a huge deterrent so make the process easy. Automatic payroll deductions each month are one option or you can provide an easy one-time donation option.
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.
You need to have a balanced and well-planned approach to a strategic charitable giving program, so ask yourself these types of questions:
Is a successful program addressing a particular cause viable financially?
Will our efforts make a large enough impact to substantiate the investment and effort?
How can we effectively mine business benefits out of charitable efforts? (Do not be ashamed to use your CSR program as a source of positive media, talent recruitment or savvy accounting.)
Is our business set up to fully help and support the charitable cause?
Is the culture of charity or philanthropy already in existence at the company or does this need to be improved?
Is the upper level of the management team clearly on board with these charitable goals?
Efficiency, however, must be a priority as well. Again, a CSR program - even with excellent intentions - will not make a significant social impact if it is run inefficiently and cannot be sustained over the long term. The financial, personnel, management and organizational considerations that play into a successful CSR program are many and complex. In many cases, the best way to ensure the entire process is being handled as efficiently as possible is to work with a trusted partner organization that can professionally manage many - if not all - of the administrative aspects of your CSR program. This allows you - as a CSR manager or executive - to concentrate more fully on participating personally in the CSR program and encouraging others to do so.
In June 2013, the UK Prime Minister, David Cameron, announced the creation of the Social Stock Exchange: a vehicle for investing in companies based primarily on their social impact in addition to their financial forecasts. This is a great example of a trend in modern society where more emphasis than ever before is placed on the legacy an organization leaves behind and the reputation it creates while going about the business of business.
How do you balance social responsibility with profitability? It can be a tricky endeavor, but in order to achieve success in both areas, you need a strategy for corporate responsibility that is as complete as a strategy would be for any other area of business.
Creative giving is certainly one solid option. Although any one of the following methods can produce excellent results on its own, a great CSR program will incorporate two, three, or more of these options in complementary ways:
Sustainable/Eco-Friendly Practices - Part of your mission statement should include your company's commitment to using materials that are environmentally responsible, as well as doing your part to ensure maximum energy efficiency and the mitigation of pollution. A company-wide recycling effort also should be included in this plan which gives back to our environment.
Donate To The Cause -Corporate donations can include monetary contributions as well as the donations of products and services. You can set up a corporate foundation for this purpose.
Workplace Volunteering - Offering pre-approved volunteer opportunities to employees, including offering paid time off for volunteer activities on company time.
Staff Donations - If donations are complicated and many forms must be filled out, this is a huge deterrent so make the process easy. Automatic payroll deductions each month are one option or you can provide an easy one-time donation option.
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.
You need to have a balanced and well-planned approach to a strategic charitable giving program, so ask yourself these types of questions:
Is a successful program addressing a particular cause viable financially?
Will our efforts make a large enough impact to substantiate the investment and effort?
How can we effectively mine business benefits out of charitable efforts? (Do not be ashamed to use your CSR program as a source of positive media, talent recruitment or savvy accounting.)
Is our business set up to fully help and support the charitable cause?
Is the culture of charity or philanthropy already in existence at the company or does this need to be improved?
Is the upper level of the management team clearly on board with these charitable goals?
Efficiency, however, must be a priority as well. Again, a CSR program - even with excellent intentions - will not make a significant social impact if it is run inefficiently and cannot be sustained over the long term. The financial, personnel, management and organizational considerations that play into a successful CSR program are many and complex. In many cases, the best way to ensure the entire process is being handled as efficiently as possible is to work with a trusted partner organization that can professionally manage many - if not all - of the administrative aspects of your CSR program. This allows you - as a CSR manager or executive - to concentrate more fully on participating personally in the CSR program and encouraging others to do so.
About the Author:
Sebastian Troup enjoys blogging about philanthropic solutions for businesses and non profit organizations. For further info about the importance of business philanthropy, or to find some corporate giving programs, please check out the Truist site today.
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