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.
In June 2013, the UK Prime Minister, David Cameron, announced the creation of the Social Stock Exchange: a vehicle for investing in companies based primarily on their social impact in addition to their financial forecasts. This is a great example of a trend in modern society where more emphasis than ever before is placed on the legacy an organization leaves behind and the reputation it creates while going about the business of business.
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.
One part of your strategy should focus on creative giving, and while you can select any one of the following ideas, it is always best to implement two or more strategies that complement each other. Creative giving options include:
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.
Donations - This can be a very easy and effective strategy. Your company can commit an amount of monetary donations, services or products to help a cause.
Workplace Volunteering - Offering pre-approved volunteer opportunities to employees, including offering paid time off for volunteer activities on company time.
Employee Donations - Making it easy for employees to donate financially to various causes, either on a one-time basis, or on an ongoing basis via automatic payroll deductions.
A Gift Matching Option - When employees donate, the company can match those donations up to a set amount. This can be a great incentive.
Strategic giving is another component to consider. While few can argue with the doing of good, a CSR program will not be sustainable if it makes no business sense or runs contrary with a company's established culture and goals. And if it is not sustainable, it's not going to have the social impact the organization desires. Instead, setting up the CSR program strategically in line with business goals and the dominant business culture ensures the program will have the support it needs to thrive.
When thinking about strategic giving, it is important to consider the following 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 do these charitable efforts benefit our business? (While supporting a charity is the top priority, there is no reason not to utilize your CSR plan as a platform for social media and public relations)
Is our business set up to fully help and support the charitable cause?
Is a philanthropic culture already in place or does that need to be further 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.
In June 2013, the UK Prime Minister, David Cameron, announced the creation of the Social Stock Exchange: a vehicle for investing in companies based primarily on their social impact in addition to their financial forecasts. This is a great example of a trend in modern society where more emphasis than ever before is placed on the legacy an organization leaves behind and the reputation it creates while going about the business of business.
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.
One part of your strategy should focus on creative giving, and while you can select any one of the following ideas, it is always best to implement two or more strategies that complement each other. Creative giving options include:
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.
Donations - This can be a very easy and effective strategy. Your company can commit an amount of monetary donations, services or products to help a cause.
Workplace Volunteering - Offering pre-approved volunteer opportunities to employees, including offering paid time off for volunteer activities on company time.
Employee Donations - Making it easy for employees to donate financially to various causes, either on a one-time basis, or on an ongoing basis via automatic payroll deductions.
A Gift Matching Option - When employees donate, the company can match those donations up to a set amount. This can be a great incentive.
Strategic giving is another component to consider. While few can argue with the doing of good, a CSR program will not be sustainable if it makes no business sense or runs contrary with a company's established culture and goals. And if it is not sustainable, it's not going to have the social impact the organization desires. Instead, setting up the CSR program strategically in line with business goals and the dominant business culture ensures the program will have the support it needs to thrive.
When thinking about strategic giving, it is important to consider the following 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 do these charitable efforts benefit our business? (While supporting a charity is the top priority, there is no reason not to utilize your CSR plan as a platform for social media and public relations)
Is our business set up to fully help and support the charitable cause?
Is a philanthropic culture already in place or does that need to be further 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 likes blogging about philanthropic solutions for businesses and non profit organizations. For further info about the importance of business philanthropy, or to find some corporate giving programs, please go to the Truist.com website today.
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