What do Intel, Proctor &Gamble, IBM, Wells Fargo and Microsoft have in common? They are all sited on both Fortunes’ Most Profitable Companies and Top U.S. Corporate Citizens lists.
Corporate citizenship, also referred to as corporate social responsibility, suggests that businesses have a responsibility to the communities in which they operate and to society in general.
Beyond being good for the community, it can be a sound growth strategy. You don’t have to be a Fortune 500 Company to benefit from having a company philanthropy program.
Potential gains include market visibility, competitive advantage and customer and employee loyalty.
These all translate to a positive impact on your bottom line.
Dianne Taylor, a respected business management and leadership coach wrote, “Being socially responsible creates goodwill and a positive image for your brand. Trust and a good reputation are some of your company’s most valuable assets.
A 2013 survey conducted by Cones Communications revealed that, 91 percent of consumers are very or somewhat likely to switch brands to one associated with a good cause, when price and quality are equal.
As with all growth endeavors, those that are well planned deliver a better return on investment. Here are the three key components of developing an effective company philanthropy program:
Mission Alignment: Tying your philanthropy program to your corporate mission and market position will generate greater consumer recall and results. There should be a strong connection between the cause you support and your customers’ values.
McDonald’s, whether you’re “Loving It” or not, has had an outstanding philanthropy program since 1974 through their Ronald McDonald House Charities. One of the primary markets McDonald’s targets is families with children.
Their charitable foundation’s mission is to support families in healing their children…and they involve their customers. They raised more than $28 million last year just through their store donation boxes.
Program Focus: Develop a plan that defines your philanthropy focus, e.g. education, health and human services, arts, etc.; then determine a budget and giving cycles.
Define the structure of your program in terms of the time, treasure and talent you will contribute. In addition, focusing on one cause at a time will create a bigger impact. During the planning process, evaluate the public relations potential of each strategy you consider. Some programs have a greater potential for generating a buzz than others by virtue of their “news appeal.”
Cause Selection: The most common question I hear is, “How do we choose from the countless requests we receive?”
The answer — develop a Request for Proposal (RFP) that communicates your giving guidelines.
Your request for proposal should include a program overview, applicant requirements, submission and award dates, as well as the basis of award and contact information.
This approach absolves you of the “eeny meeny miny moe” method of choosing. It also makes it less painful to say “no” to applicants when you have pre-established and objective selection criteria.
Another success factor is management and employee participation. Corporate giving isn’t just about money or product. Rally the troops around the corporate cause through communications, events, volunteer activities and board representation. Feet on the street will add punch to your program.
The size of your company doesn’t matter; however, planning your alignment, focus and selection process up front will produce better results.
Everybody wins with corporate citizenship — owners, employees, stakeholders, customers…and of course the community.
Andrew Ballard is the president of Marketing Solutions, a local agency specializing in growth strategies. For more information, call 425-337-1100 or go to www.mktg-solutions.com.
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