Spring 2007
In This Issue
Thoughts on Corporate Philanthropy:
“The Nobel Prize-winning economist Milton Friedman, who died [in 2006], famously argued that businesses ought to stick to making money and leave it to shareholders to decide, individually, whether and how company profits should be distributed to charitable causes. Let us give thanks…that the world did not follow Friedman's advice. It is not just that having corporations involved in philanthropy increases the amount of money given to worthy causes. It is also that companies can bring unique resources and expertise to these challenges and tap into the enthusiasm and creativity of their employees.” --Washington Post columnist Steven Pearlstein
Mark Your Calendars for the Next SDG Corporate Program
Join us for a Corporate Roundtable breakfast on:
June 1, 2007
8:30-10:30am
Save the Date! More information will follow shortly.
Resources from Recent SDG Corporate Programs
For those of you unable to make the AMA Cause Marketing Conference on April 4, we have posted several resources on the SDG website. Click here to access the presentations of Jocelyne Daw and keynoters Laura Dietrick of USD, Nancy Jamison of SDG, and Douglas Sawyer of United Way.
We have also posted the materials from the Current Trends in Corporate Citizenship program on March 14. Click here to access Celina Pagani-Tousignant's presentation and handouts.
A New Approach to Corporate Social Responsibility
The co-founders of FSG Social Impact Advisors, Professor Michael E. Porter and Mark R. Kramer, have developed a new approach to corporate social responsibility based on the interrelatedness of business and society and its implications for competitive strategy. To learn more, download their article (also includes podcast link), which won the McKinsey Award for the Best Harvard Business Review Article in 2006 as “most likely to have a lasting, worldwide influence on business.”
Ways to Promote Corporate Philanthropy at Your Company
- Send a company-wide letter from your CEO that communicates your philanthropic achievements
- Create an internal recognition program and announce the winners on National Corporate Philanthropy Day
- Plan a coordinated volunteer event or establish an employee paid day off to volunteer
- Establish a matching program for employee giving
- Announce a new program or grant with a nonprofit partner
- Take senior management on a site visit to a nonprofit partner’s headquarters
- Release a report on corporate responsibility and community relations
See Quick Tips for Giving Officers for other ideas to promote or communicate your corporate philanthropy.
The Impact of Corporate Giving
Charitable Contributions Enhance Profits
An academic study attempting to quantify the economic benefit of corporate giving found that for every new dollar a retail company, bank, or popular-goods manufacturer allocates to its charitable-giving budget, it can expect sales to grow on average by $6. But the study also found that when a company's sales increase, donations do not always grow in turn. Click here for more information, and click here to download the study.
But Is This Only True in Certain Industries?
Another study found that "corporate philanthropy and profits are positively related only in industries with high advertising intensity and high competition." However, the authors argues that charitable giving may be good for all corporate bottom lines because it helps to convince consumers that a company and its products are trustworthy. Click here to read more or play audio.
How Sempra Energy Views Community Investments
Molly Cartmill of Sempra Energy notes that “Every company is different in its approach to corporate giving and community involvement, as well as the ways it values the results. Some companies are motivated by the involvement of their employees. For some, it’s positive public relations. For others, it’s cause marketing, or helping to sell more products. But the one thing most companies share is the desire to respond to a need and make a difference.” Click here for more on the diverse ways of evaluating community investments.
Rising Expectations for Good Corporate Citizenship
A survey by PR firm GolinHarris, Corporate Citizenship Gets Down to Business: Doing Well by Doing Good 2006, reveals that the public supports companies it views as “authentic” and socially responsible. But consumers aren’t happy with merely hearing about charitable donations—they also want to track them. The blog Generous or Not lists the charitable contributions of several leading businesses. Corporate America seems eager to address the public demand for corporate social responsibility:
- Business for Social Responsibility provides resources regarding corporate social responsibility including overviews and expert guidance about over 50 CSR issues.
- According to an article in OnPhilanthropy, efforts are being made to develop better ways to measure the effects of corporate giving on society.
- The Committee Encouraging Corporate Philanthropy is developing a survey to collect and report the measurement of corporate philanthropy.
- More and more, corporate social responsibility is becoming part of the core curriculum at top business schools. Click here for information on MBA programs with notable CSR courses.
Corporate Volunteering
Corporate Voluntarism Training
Volunteer San Diego is hosting a training on corporate voluntarism on May 10, 2007 from 8-10am at AMN Healthcare. The workshop will review planning corporate volunteer projects and how to work effectively with nonprofits by setting expectations and building partnerships. For more information, contact Kelli Ochoa at (858) 636-4133.
Corporate Volunteer Progam Standards Developed
More than 90 percent of Fortune 500 companies have employee volunteer programs to leverage the power of service and volunteering in the corporate sector. By harnessing employee volunteering, large, small- and medium-sized businesses can effect a change in the way private enterprise contributes to public good. Until recently, however, there has been no set of standards for corporate volunteer reporting. The Corporate Community Involvement Summit, a coalition of nonprofit organizations, has developed a set of standards that will help to track trends, benchmark programs and encourage better practices in employee volunteer programs.
Click here (pdf) to download the standards, and click here for more information and resources for assessing your corporate volunteer program.
Corporate Support for the Arts
Corporate giving to the arts has significantly decreased, leaving arts organizations pressed to find new sources of funds, reports The New York Times. Over the last decade, the portion of corporate philanthropy dedicated to the arts has dropped by more than half, according to Giving USA.
Interestingly, The Wall Street Journal notes that some corporate donors are making larger donations to arts groups, but that these donations are in the form of "transactional" philanthropy. Here, companies expect more in return from their grantees, in the form of special performance or access.
Disaster Preparedness for Businesses
Business Roundtable, an association of chief executive officers of leading U.S. companies, has launched a website to provide comprehensive information to help businesses better prepare for disasters. The site includes corporate best practices in responding to disasters, tools on how companies and employees can contribute most effectively to relief efforts, guidance on volunteer opportunities for employees, and a directory of relief agencies. In addition, KPMG LLP has authored a Financial Planning Guide (pdf), a general discussion of various ways employers might respond to disasters, including converting vacation time to cash, donating time to coworkers or making loans to employees affected by disasters.
More Corporate News and Resources
New Magazine Focused on Responsible Business Launched
The Corporate Citizen is published by the Boston College Center for Corporate Citizenship to provide business leaders, policymakers, academics and others with the latest thinking — and doing — in the field of corporate responsibility. Click here for more information. Copies of the magazine are available at SDG.
Profile of the Profession
The Profile of the Profession is back. It has been five years since the Boston College Center for Corporate Citizenship last published a survey of salaries and benefits, job responsibilities, and corporate structures of particular interest to our membership. Click here for more information about the survey results.
The Association of Corporate Contributions Professionals
ACCP is an independent organization providing services and support for corporate contributions, community relations, and employee volunteer managers. The organization is now accepting enrollment for its 2008 conference in St. Petersburg, FL. Click here for more information.
Committee Encouraging Corporate Philanthropy
CECP is an international forum of business CEOs and Chairpersons pursuing a mission focused exclusively on corporate philanthropy. The organization's website features publications and information on CECP programs like National Corporate Philanthropy Day.
MeasuringPhilanthropy.com
Created by the Council on Foundations and Walker Information, measuringphilanthropy.com assists corporations with measuring and improving the impact and effectiveness of their philanthropy programs and initiatives. The measurement process featured on this site, designed for use by individual corporations, resulted from a study, "Measuring the Business Value of Corporate Philanthropy" (pdf). The site includes information about how to conduct your own measurement project, FAQs, case studies, and articles.
NCG Corporate Philanthropy Institute
Northern California Grantmakers’ Corporate Philanthropy Institute will be held May 17, 2007 in Oakland, CA (note: SDG members can attend at NCG member prices!). The event will highlight "integrated philanthropy," the weaving together of business and philanthropic strategy. Lead speakers include Jed Emerson and Mark Kramer.
For questions or comments about SDGrantmakers, visit www.SDGrantmakers.org or contact Nancy Jamison, 619/744.2180
Nancy@SDGrantmakers.org.
Feel free to comment, suggest article ideas, or submit news
items to nancy@SDGrantmakers.org -- We're always happy to hear from you. This online publication is a service to San Diego Grantmakers members. Copies
of past editions are archived here: News
You Can Use.
If you do not wish to receive these emails, send an
email to nancy@SDGrantmakers.org requesting to unsubscribe in the body of the email. |
