Corporate
giving: Doing good is good business
Many Oregon business leaders have discovered that participating
in philanthropic efforts helps improve their company’s
bottom line. They have found that a business can do well by
doing good.
For some of these companies “doing good” follows
the model of “checkbook charity” — simply
contributing money to good causes. Certainly, such giving has
an important place in helping sustain local nonprofits. But for
many businesses, corporate philanthropy has expanded to include
giving programs that tie donations of time, money and
gifts-in-kind to defined business goals and desired
benefits.
Taking a broader view of business giving options creates the
opportunity for companies to have a hand in contributing to the
health of the community. And in so doing, organizations can tap
into the strength of “cause marketing”
— engaging consumers’ hearts as well as their
minds and creating the potential to build strong and enduring
relationships.
In fact, Cone’s 2004 Corporate Citizenship Study and
1999 Cause Trends Report show that Americans are increasingly
making purchasing, employment and investment decisions that
reward companies that play an active role in supporting
community needs. Of note:
-
87% of employees at
companies with cause marketing programs feel a stronger sense
of loyalty to their employers.
-
83% of Americans have
a more positive image of companies that support a cause they
care about.
-
80% of Americans say
that corporate support of causes wins their trust in that
company.
-
81% of consumers
indicate they would switch brands or retailers to one
associated with a good cause, when price and quality are
equal.
-
76% of Americans say
that a company’s commitment to causes is important when
they decide where to work — and employees whose
companies have cause-related programs are significantly more
likely to say they are proud of their company’s values.
-
More than 75% of
consumers say that a company’s commitment to
causes is important when they decide what to buy or where to
shop.
-
More than 60% of Americans state that a
company’s commitment to causes is important when they
decide which stocks/mutual funds to invest in.
All the above statistics notwithstanding — from
bottom-line corporate health to consumer loyalty — there
are many reasons why a well thought out giving program makes
good sense for your business. Studies show the following
results can occur when a company undertakes a charitable giving
program:
-
Increased brand awareness
-
Enhanced corporate image and
-
reputation
-
Improved consumer loyalty and sales
-
Differentiation from competitors
-
Positive perceptions about products and services
-
Pride among employees — and a healthier and more
productive workforce
-
A healthier, more livable and
-
economically strong community
-
Community goodwill and recognition as a good corporate
neighbor
-
A competitive advantage in recruiting and retaining employees
To achieve the benefits associated with corporate philanthropy
your corporation might consider setting out a strategic plan
that defines your expected returns and establishes benchmarks
to gauge success. To that end, the tactics for your
business-giving program likely will fit into one of three
categories:
1. Transactional:
These programs inspire participation in supporting your
selected nonprofit cause with an offer to make a contribution
based on a consumer activity, such as buying a specific product
from you, redeeming a coupon, registering at a website or
shopping your retail site.
2. Sponsorship: Such
joint campaigns raise awareness of a cause’s message
(e.g., fight heart disease) or participation in its programs
(e.g., join us in a beach cleanup) while building a positive
association with the corporate sponsor or its brands.
3. Licensing:
Typically, a nonprofit licenses a company to develop, produce,
market or distribute a product that is promoted either with the
organization’s brand name or co-branded with names of
both the company and the nonprofit.
Oregon has a wealth of nonprofit resources that provide vital
programs and services. Their presence provides your business
with authentic opportunities to make a positive impact —
through cause marketing and corporate philanthropy — that
will return many-fold in benefits for your company, the
nonprofits you support and all Oregonians. (www.oregoninvolved.org is
an excellent resource.)
— Greg Chaillé,
president,
Oregon Community Foundation,
www.ocfl.org.
The Oregon Community
Foundation offers advice on the tax benefits of setting up a
business or family foundation and provides guidance for
charitable giving.
