Corporate
philanthropy
Nurturing philanthropy grows employee morale
An important component of business giving is providing avenues
for employees to be personally involved in a company’s
commitment to corporate citizenship. It is widely understood
that supporting local causes is a good way for a business to
develop a positive image and reinforce its relationships with
customers. In the process, it can also build morale and
cohesiveness among employees.
Indeed, employees who have a high Corporate Philanthropy Index
(CPI) — an index developed by Walker Information and the
Council on Foundations — are much more likely to be
engaged with and support their company.
According to the Walker Information 2002 National Benchmark
Study Measuring the Business Value of Corporate
Philanthropy:
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Seven in 10 employees with a high CPI will recommend their
organization as a good place to work compared to fewer than
four in 10 (37%) with a low CPI.
-
Employees working for organizations engaged in corporate
philanthropy are much more likely to be truly loyal (engaged
at work and planning on staying) and far less likely to be
classified as high risk (neither engaged at work nor planning
on staying long).
The report notes that this latter finding isn’t to
suggest business giving is the primary reason employees remain
loyal, but it concludes that giving is definitely a factor in
how employees evaluate their employers. In all, employees whose
companies participate in good corporate citizenship and
business giving reported feelings of pride in their workplace,
a sense of belonging as part of a family and admiration for the
good deeds their company accomplished.
Beyond those positive feelings that emerge among employees,
many companies find one of the greatest benefits of their
business-giving program can be seen on a daily basis in job
satisfaction and enthusiasm generated among employees. The more
employees perceive as positive the good things the company is
doing, the more likely are they to act in ways that positively
benefit the company’s bottom line. Business giving
programs have also shown that they:
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strengthen employees’ organizational, leadership,
communications, financial management and decision-making
skills.
-
reduce employee stress and increase morale, loyalty and
productivity.
-
encourage teamwork.
-
enhance/increase employee recruitment and retention.
-
create a better quality of life where employees live and
work.
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positively impact profitability.
-
improve communications and relations between management and
workforce.
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increase employee awareness and interest in community issues.
As companies seek to build employee support for their
philanthropic efforts — and ultimately realize the
positive benefit — the following are some ways businesses
can encourage employee participation in giving strategies:
-
Involve employees in
community involvement/outreach decisions. Many
companies create committees to make decisions about
contributions or company volunteer activities, which include
line employees.
-
Give priority to employee
requests. In determining giving criteria, it is common
for a company to direct contributions to organizations
employees recommend or that employees are affiliated with.
-
Offer matching
contributions. Some businesses match employee
contributions (financial or volunteer) to specific
organizations. Matching contribution programs generally
designate a ceiling amount for the aggregate match for each
employee.
-
Implement a workplace giving
campaign. Typically an annual event, a workplace
giving campaign can allow employees to recommend and direct
contributions to a range of recipients, engage in friendly
interdepartmental competition through a week of activities
focused on fundraising and can include an option of giving
through a payroll deduction, making it easy for employees to
participate.
-
Encourage
volunteerism. When employees volunteer, companies reap
the benefits: Employees gain a sense of satisfaction from
making a difference in their community — and the
community benefits as dedicated workers help meet critical
needs. Some businesses encourage employees to pursue
volunteerism by providing paid time off for them to devote
time to a nonprofit of their choice. Others structure an
annual company-sponsored employee volunteer day or series of
ongoing events.
Now, more than ever, businesses are realizing the value of a
commitment to responsible, community-centered business
practices. In addition to improving the quality of life in the
local community, having a business-giving program offers a
tangible way for companies to strengthen employee skills and
morale, and ultimately develop a more positive and productive
workplace.
— Greg Chaillé,
president,
Oregon Community
Foundation
www.ocfl.org
