Giving to charities is on a decline. Corporate contributions, especially, have declined from a high of 2.1 percent at its peak in 1986 to just around 0.8 percent in 2012.
It’s understandable. With every transaction scrutinized, traditional corporate philanthropy is considered inappropriate use of funds. And yet, the demand for socially responsible companies grows. In fact:
- 90% of U.S. consumers say they would switch brands to one associated with a cause, given comparable price and quality, reports the2015 Cone Communications/Ebiquity Global CSR Study
- 55% of online consumers are willing pay more for product or service offerings when a company is associated with social impact, according to a Nielsen study
- 67% of employees would rather work for an organization that was socially responsible, according to the same Nielsen study
It’s not an issue of people being uninterested in companies that are socially charitable. It’s an issue of donating time and money more effectively. Businesses quantify everything, and for good reason. You want to make sure what you are doing is paying off. Because of this, corporate social responsibility has evolved into something that is beneficial for the business, their employees, consumers, and non profit organizations.
SO THE QUESTION IS: HOW CAN YOU MAKE YOUR COMPANY MORE SOCIALLY RESPONSIBLE AND MORE EFFECTIVE?
BUILD SOCIAL RESPONSIBILITY INTO YOUR COMPANY MISSION STATEMENT
Effective giving starts at your company’s core. It should be part of your drive, written into your mission statement, and reflected in every action your business makes. Outdoor retailer, Patagonia, is a great example of this. Instead of calling it “corporate responsibility,” they view their corporate giving as “caring for the planet that has sustained us.” For every purchase made, 1% goes toward causes the leaders at Patagonia are passionate about, like preserving land, protecting salmon, creating healthier soil, and producing more sustainable food. Corporate philanthropy is not just something they do–it’s something they live and breathe.
Yvon Chouinard, the owner and founder of Patagonia, said:
“If you could get businesses, any business, to understand that they have more responsibility than to maximize the profits for their shareholders, or for themselves, that they have a responsibility to the planet. We all do. The best way to do it is to dig into your pockets and give the money away to the people who are willing to do the good work.”
Making giving part of your mission statement sets you apart from your competitors. It says, “we’re passionate about what we do, and we’re passionate about doing it responsibly.” The leaders at Patagonia stand by their mission statement to care for the earth while making good products, and from that, they actually make more money and have loyal fans.
Look at your products and services. How can you expand your societal engagement? How can you build social responsibility into the core of your business?
PARTNER WITH THE RIGHT CAUSE
All businesses start as being an answer to a problem. We see a market need, and work hard to fill it. Charities are the same way–they just provide their services in a different way. Partnering your business’s passion with the right charity can be a powerful and dynamic way to increase loyalty and goodwill for your company and awareness and funds for the cause.
THE BEST PARTNERSHIPS MAKE SENSE
In 2010 when KFC partnered with cancer awareness charity, Susan G. Komen for the Cure, people were confused. Barbara Brenner, Executive Director of Breast Cancer Action, argued:
“They are raising money for women’s health by selling a product that’s bad for your health… it’s hypocrisy.”
Involving your company with a social cause is more than just feeling good about making the world a better place. It’s an alliance saying that the charity’s work aligns with your own ideals.
Warby Parker creates eyewear. But they also give back eyewear to people who need it. Their business model is “buy a pair, give a pair.” After they tally up how much they have made, they donate a portion to their nonprofit partners who train men and women in developing countries how to perform basic eye exams. It is good for Warby Parker, because it is good marketing, morale building, and fan building, and it is good for the world. It’s a partnership that makes sense and fits easily into their business strategy.
Some connections are easier to draw than others, but it shouldn’t be difficult. If you are a grocery chain, consider partnering with a food bank. If you are a technology firm, consider investing in underserved children’s educational programs, like science museums or kids’ camps that provide training in skills you’d like to see. There are thousands of different charities doing amazing work. Find the one that connects with the reason for why you started your own business and see how you can harness your collective power in transformational ways.