the golden age - donationxchange
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Corporate Social Responsibility (CSR) has quickly become a top corporate priority, serving as an avenue to create impact across local and global communities, and as a means to increase competitive advantage and growth. Weʼre now at the cusp of a new era—a Golden Age of Giving. We've identified 12 prominent signs of this new age including growing corporate trends and enabling market conditions that are shaping how companies interact with the world. This is not merely a period of transformation, but one full of excitement and significance for CSR professionals and corporate legacies.
1. CSR Is Adding Corporate VitalityDuring challenging economic times, corporate
executives are more eager to apply efficient
business practices and eliminate unnecessary
expenditures. Every department, product, and
program is examined with the question in mind,
"how does X contribute to our success?" For
Fortune 500 companies, CSR initiatives are
playing an integral role in building a more
valuable brand. Customer loyalty is increasingly
based on a corporation's identity and not solely
on product reliability. As a result, resources
spent on humanistic endeavors are changing
the way consumers relate to a company. A
quality CSR program can enrich a company's
global image and competitive advantage.
2. Taking The LeadAccording to the Committee Encouraging
Corporate Philanthropy (CECP), 81 percent of
large corporations now have foundations that
handle philanthropic tasks which grew beyond
the capacity of a single internal department. As
these companies recognize the diverse benefits
of expanding CSR initiatives, they increasingly
allocate resources to the creation of
independent 501(c)(3) entities. Through their
foundations, corporations take charitable
efforts into their own hands and become
champions of their own causes.
3. Consumers Demand Brands That GiveIn addition to expecting quality products
and services, 94 percent of consumers
want companies to engage in best business
practices and make a bigger impact on society,
according to the 2011 Cone/Echo Global CR
Opportunity Study. From environmental
sustainability to reducing poverty, consumers
want corporations to address critical issues
and reinvest resources for a better world.
4. Everyone Is Getting InvolvedA corporation's identity is not only defined by
its business practices, but also by the conduct
of its employees. Good people are at the heart
of every good corporation, and smart
executives recognize that each dedicated
member of their workforce is a brand
ambassador. CSR is expanding to include
creative programs designed to engage
employees throughout an entire company.
Corporate gift matching, community service
days, and student mentoring programs
strengthen an internal sense of community and
build employee loyalty, all while contributing to
the greater good at the core of CSR initiatives.
5. Creative Ways To GiveForty six percent of corporate giving is done
with cash gifts according to the recent CECP
survey. However, with more companies
participating in philanthropy, CSR leaders must
develop eye-catching and original programs in
order to stand out from the crowd. Timberland
partnered with Ringo Starr on the “Canvas that
Cares” eco-footwear contest, while Groupon
employed its daily deal platform for the
“Feeding America—The Loop” campaign. Rock
stars and witty copy writers give these joint
ventures dynamic partnerships that allow both
the corporation and the charity to reach an
expanded consumer base. The benefits of
innovative philanthropic collaborations are too
cool to ignore.
THE GOLDEN AGE
GIVINGof
118 N. Clinton, Suite 301 • Chicago, IL 60661 • (866) 513-7627 • www.donationx.org
6. Business In The CloudCommunity Relations departments are
gradually following the lead of Marketing and
PR by adopting social media tools to promote
CSR initiatives. Pew Research’s Social Side of
the Internet reveals that “82% of social network
users” participate in some sort of volunteer
group or organization - talk about an untapped
resource! Consumer brand companies such as
Pepsi and Chase have led the charge into
social media cloud-based outreach,
encouraging participation in the form of voting
for worthy donation recipients, team fundraising
sites for races, and volunteer recruitment. Other
corporations are beginning to follow suit as
they realize the intrinsic value of utilizing
applications built around sharing.
7. It’s a Small WorldAs companies expand to a global marketplace,
they are faced with the challenge of how to
personally relate to many diverse communities.
In a recent Forbes article, contributor Ryan
Scott says, “businesses who meaningfully
connect with people on a personal, one-to-one
basis are experiencing unprecedented
success.” CSR initiatives now offer a unique
way to forge and solidify these connections.
The highly successful Walmart “Fighting
Hunger Together” campaign, for example,
has committed $2 billion to hunger relief
efforts. Walmart utilizes its vast influence to
affect individual lives across the country, and
to play a valued role in thousands of lives.
8. Benchmarking: Measured GivingUnsatisfied with presenting a general sentiment
of goodwill, companies now benchmark
to contextualize CSR efforts. Corporate
management teams seek out tools and metrics
to validate and assess the need for and impact
of cash and in-kind donations. As technology
becomes more sophisticated, company leaders
gain access to more quantifiable effects. And
as industry standards emerge, the CSR
competition continues to heat up!
9. Letting Pilots NavigateAccording to CECP, 15 percent of companies
increased funding for new pilot programs to
improve charitable initiatives. Corporations
are testing existing models, encouraging
innovation, and trying new solutions in order
to implement the most effective programs.
Leaders want to ensure their financial resources
are used wisely and funding programs with
longevity and the ability to achieve success
in communities for years to come.
10. Investing For Future GrowthExecutives are finding ways to strategically
partner with organizations and causes that best
match their corporate missions and resources.
With long-term growth and viability in mind,
the energy sector is partnering with green
initiatives, and food suppliers are partnering
with school nutrition programs. By focusing
CSR efforts on programs in line with a
corporation's area of expertise, companies
are finding ways to do more with resources
and knowledge already in their possession,
all while improving relations with current
and future consumers.
11. Leading By ExampleIn addition to supporting public causes,
corporations are taking steps to improve their
own internal operations to be better global
citizens. Implemented programs range from
healthy lifestyle and nutrition education to
instruction on proper recycling and energy
saving measures. For example, Deloitte LLP
directs a great deal of effort to LEED
certification and anticipates “30% of [its]
8,000,000 square feet of space to be LEED
certified by the end of calendar 2012,” says its
CSR Officer, Tom Dekar. Corporations such as
Deloitte have discovered how to contribute to
a healthy planet and workforce and
simultaneously increase brand integrity.
12. Becoming Crystal ClearConsumers, civic leaders, and government
officials are calling for more transparency
across all facets of companies, including CSR.
In fact, the 2011 Cone/Echo Global CR
Opportunity Study found that "93% of
consumers want to know what companies
are doing." Juxtapose that with the fact that
only "61% of consumers believe a company
is telling the truth about its social and
environmental efforts and impacts," and it
becomes clear that corporations still have
their work cut out for them. This need for
transparency is motivating companies to not
only do the right thing, but to find ways to
prove they have done so. Annual CSR reports
are becoming the norm rather than the
exception, with graphics and facts revealing
totals of donations made and lives touched.
Contact DonationXchange for more information on CSR Initiatives and Services.
Sources: 2011 Cone / Echo Global CR Opportunity Study: http://www.coneinc.com/stuff/contentmgr/files/0/2fcb9351e2bea95addb6c4413bcf39a4/files/2011_cone_echo_cr_opportunity_study.pdf
Pew Research - Social Side of the Internet: http://www.pewinternet.org/Press-Releases/2011/Social-Side-of-the-Internet.aspx
Committee Encouraging Corporate Philanthropy (CECP) 2011 Giving in Numbers: http://admin.csrwire.com/system/report_pdfs/1230/original/GivinginNumbers2011.pdf
Forbes - “The Time To Act Locally Is Now”:http://www.forbes.com/sites/causeintegration/2011/09/12/the-time-to-act-locally-is-now/
Deloitte LLP 2010 Corporate Responsibility Report:http://public.deloitte.com/media/0146/2010_cr_annual_report/cr_interview_cro.html
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