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.
This caring about corporate social impact is a trend that gaining momentum. In the United Kingdom, for example, a Social Stock Exchange has been created. This allows investors to find companies with strong financial forecasts but also companies that focus heavily on their social impact. These days, social responsibility is one of the key building blocks for creating a positive reputation and legacy in our 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.
You can certainly begin with some creative giving, and there are many different options. The best CSR programs will incorporate at least two, if not more, of the following creative giving options:
Consider The Environment - Make an effort and commitment to becoming a sustainable, eco-friendly business. This means using sustainable materials, creating a recycling plan, improving energy efficiency and limiting the amount of pollution produced at your place of business.
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.
Match Employee Gifts - When the company matches the monetary donations from employees, even to a set amount, this doubles the impact and inspires employees to give.
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 we have enough of an impact to justify the effort and investment?
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 company set up to support this charity fully?
Is there already a culture of philanthropy present at our company or does this need to be established?
Are the top-level managers visibly supporting these efforts?
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.
This caring about corporate social impact is a trend that gaining momentum. In the United Kingdom, for example, a Social Stock Exchange has been created. This allows investors to find companies with strong financial forecasts but also companies that focus heavily on their social impact. These days, social responsibility is one of the key building blocks for creating a positive reputation and legacy in our 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.
You can certainly begin with some creative giving, and there are many different options. The best CSR programs will incorporate at least two, if not more, of the following creative giving options:
Consider The Environment - Make an effort and commitment to becoming a sustainable, eco-friendly business. This means using sustainable materials, creating a recycling plan, improving energy efficiency and limiting the amount of pollution produced at your place of business.
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.
Match Employee Gifts - When the company matches the monetary donations from employees, even to a set amount, this doubles the impact and inspires employees to give.
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 we have enough of an impact to justify the effort and investment?
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 company set up to support this charity fully?
Is there already a culture of philanthropy present at our company or does this need to be established?
Are the top-level managers visibly supporting these efforts?
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 additional information about the importance of business philanthropy, or to find some corporate giving programs, please go to the Truist site today.
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