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.
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.
One part of your strategy should focus on creative giving, and while you can select any one of the following ideas, it is always best to implement two or more strategies that complement each other. Creative giving options include:
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.
Corporate Donations - Donating company products or services to worthy causes, including planned monetary donations through a corporate foundation.
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.
Strategic giving involves taking a well-planned and balanced approach to the following considerations:
Is this CSR program financially feasible for our company?
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 will these efforts be used to improve our business in general? (There is no reason not to publicize your charitable efforts and use these endeavors as a source of public relations or for the recruitment of new talent.)
Is the organization set up to fully support this cause?
Is the culture of charity or philanthropy already in existence at the company or does this need to be improved?
Is upper management visibly on board?
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.
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.
One part of your strategy should focus on creative giving, and while you can select any one of the following ideas, it is always best to implement two or more strategies that complement each other. Creative giving options include:
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.
Corporate Donations - Donating company products or services to worthy causes, including planned monetary donations through a corporate foundation.
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.
Strategic giving involves taking a well-planned and balanced approach to the following considerations:
Is this CSR program financially feasible for our company?
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 will these efforts be used to improve our business in general? (There is no reason not to publicize your charitable efforts and use these endeavors as a source of public relations or for the recruitment of new talent.)
Is the organization set up to fully support this cause?
Is the culture of charity or philanthropy already in existence at the company or does this need to be improved?
Is upper management visibly on board?
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 likes writing 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 go to the Truist.com website now.