Between one-third and two-thirds of employees agree that a good giving record is a main reason for remaining with an employer. This is where a focus on corporate philanthropy can play a role.
Value of Corporate Philanthropy
Giving to charities is good for a corporation's bottom line, according to a national study. It found that when employees, customers and shareholders have favorable impressions of a corporation's philanthropy they more often:
- Recommend the company and its products or services
- Believe its reputation is excellent
- Continue to do business with, work for or invest in the company
- Say they are committed and would recommend it as a good place to work or do business with.
Between one-third and two-thirds of employees agree that a good giving record is a main reason for remaining with an employer. And one-third of shareholders say they consider a corporation's generosity when deciding where to invest.
The study was conducted by Walker Information Inc. of Indianapolis, for the
Council on Foundations in Washington, D.C.
(http:/www.measuringphilanthropy.com/us_studies/)
"Corporate America's struggle to earn the loyalty of customers, employees and shareholders needs more than just high quality products and services," the report says. "The drive for loyalty requires companies to be better than their competitors by finding ways to differentiate themselves and gain a competitive edge. This is where a focus on corporate philanthropy can play a role."
The report made several recommendations:
- Set out a strategic plan for corporate philanthropy that is consistent with overall corporate goals.
- Take stock of and quantify what the company does in the area of corporate philanthropy. Consider in-kind products and services.
- Realize that, of all the company's stakeholder groups, the employees are likely to best know the company and what it does in philanthropy. Take advantage of this. Use employees to get the word out.
- Ensure that the CEO and other senior leaders are aware of the important role they play in how stakeholders form perceptions of the company's philanthropic program.
- Ensure that an effective and realistic external communication program is a key element of your philanthropic program.
- Develop and conduct a process that reassesses the way the company "delivers" the philanthropic function.
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