Philanthropy or Corporate Social Responsibility?

For many years the decision to support a charity lay with the CEO, often being swayed by a personal connection and quite often a stand-alone donation with no expectations or restrictions.

In 2019 things have certainly changed. Trends suggest that decision makers in business have moved away from philanthropy and instead employ a strategic approach to their giving. It is no longer transactional and instead sits under a framework of Corporate Social Responsibility (CSR).

CSR is generally self-regulating, however there are various reporting structures out there and they cover areas such as environmental, economic and social impact.

Social Impact

I’m going to focus today on the social impact segment of CSR. This area provides a meaningful way for businesses to engage with the community sector and the best way to do so is by having a partnership that demonstrates alignment of values, motivations and expectations. This alignment extends also to the brand fit and your internal and external stakeholder engagement. What’s important to your staff? Your customers? Have you thought about the type of outcomes you want to achieve through your support? How involved do you want to be with the organisations you support? Look at ways that you can leverage your resources, inhouse skills and networks to add value to the partnership.

Types of Support (it’s not all about the money!)

Financial – an obvious one here. Community organisations need money to deliver their mission. Simple. But to achieve a significant social impact in your identified priority area, as a business you can bring so much more to this partnership.

 In-Kind – this can be an effective way to provide additional support. Do you have products or services that would benefit the community organisation? Talk to them about what resources they need to deliver their programs and you may find you, or someone in your supply chain, can assist.

Pro Bono – do you have skills and expertise that your community partner could benefit from? They may need assistance with marketing, legal, IT, accounting, web design, HR, or more. Often a businessperson can provide an alternative or creative solution to an issue facing a not for profit and assist with building organisational capacity.

Volunteering – is there an opportunity for your team to get involved with an event? Often organisations can benefit from having regular volunteers, particularly for labour intensive tasks. This also gives your staff a chance to give back and get involved, potentially boosting employee engagement and wellness.

Cause Related Marketing – generally one for the larger charities (think pink ribbon) but this can be beneficial for both organisations if managed well. It can promote your brand and demonstrate the alignment you have with the cause as well as increase awareness of a social issue and drive additional financial support (potentially even increasing your sales).

A corporate/community partnership that incorporates a number of these pillars of support can be rewarding, beneficial and sustainable for both organisations. A word of warning though. Check your language (often businesses and community organisations have different assumptions or ideas initially on what a successful outcome is) and ensure you are on the same page, particularly in terms of expectations. This is NOT a sponsorship nor is it a donation. Done well, a strong community partnership that fits your business can increase customer retention, win new business, enhance your relationships with suppliers and stakeholders, assist you in becoming an employer of choice and differentiate you from your competitors. And of course, most importantly, help change lives.

So, if you don’t already have a connection to a cause that aligns with your business, can I challenge you to explore that opportunity and potentially build an impactful relationship that is meaningful for all involved.

By Kathie Elliott

Kathie Elliott is the Director of Square Pegs Consulting and helps not-for-profit organisations reach their potential through building awareness, developing income generating streams and forming corporate partnerships.

Kathie has held senior marketing and business development roles in both corporate and community organisations and as a result understands the motivators and drivers underpinning long-term growth strategies in both sectors.

A retired professional dancer and a keen supporter of the arts, Kathie also loves to travel and is an avid rugby league and cricket follower. You can connect with Kathie on LinkedIn at http://au.linkedin.com/in/kathieelliott  or follow her on Twitter @1KiwiKath.

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