Give to Your Community, Strengthen Your Company

By Megan Martin

If your company is like most, then differentiating yourself from competitors is a chief objective. Demonstrating social responsibility by sponsoring a charity or starting an employee volunteer program is an effective means of distinguishing your brand while improving employee recruitment, retention and morale.

Many large corporations are already on the charitable bandwagon. Target gives five percent of its income back to communities and recently donated $500,000 to Haiti relief efforts. The General Mills Foundation has awarded over $420 million to nonprofit organizations since its inception.

Smaller businesses are making charitable efforts as well, often focusing on local charities and community groups. Elmer L. Anderson, former President of St. Paul’s HB Fuller glue company, has a great passion for community giving, and in 1957, he created the Elmer L. and Eleanor J. Andersen Foundation which funds libraries, arts organizations and community groups.

Kenneth R. Larson, who has turned Slumberland Furniture from a single storefront operation into a major retail chain in seven states, gives a double-digit percentage of Slumberland’s profits back to the community each year. Slumberland also donates to the “Home for the Holidays” program which distributes beds to the needy. Larson even delivers some of the beds himself.

Oberon also supports a number of local charities and educational initiatives. Fifty employees participated in a 5 mile walk last year to benefit March for Babies, raising nearly $4000 to improve infant health. They also donated over 600 items to children and young adults through Caring and Sharing Hands, including hats, mittens and scarves. In addition, Oberon works closely with BestPrep, whose focus is educating Minneapolis students about business careers.

In a January 2010 Journal of Financial Service Professionals article, Bryan K. Brenner says: “Employee Volunteer Programs can provide significant benefits to companies, their employees and their communities. By contributing to employee satisfaction, volunteer opportunities have been shown to increase morale, improve employee recruitment and retention rates, enhance productivity, and positively affect profits.”

If you’ve never thought about involving your company in charity or volunteer work, here are some reasons why you should consider it.

Brand Recognition

“Companies that donate a percentage of profits to charity and have highly visible employee volunteer programs benefit from positive images in an era of suspicion about corporations in general,” Brenner says. He also points out that working with local charities can offer free forms of marketing such as press releases and positive local news coverage.

Supporting charities in a public way will cast a flattering light on your organization. And being active in community efforts is an effective way to distinguish your brand.

Employee Recruitment

Community involvement also leads to improved employee recruitment. Studies show that both Millenials (under-30’s) and Baby Boomers are attracted to companies that demonstrate socially responsible practices.

“Volunteering appeals to the Millennial employees' sense of personal fulfillment and the Baby Boomer employees' belief in the value of social change,” says Brenner, who notes that 50 percent of respondents in a BBMG Research survey said it’s important that the company they work for be socially responsible, while only 15 percent of respondents said social responsibility is unimportant to them.

A second study carried out by the Stanford Graduate School of Business found that more than 97 percent of MBA graduates would be willing to sacrifice 14 percent of their salaries in order to work for a socially responsible business.

Employee Retention

In today’s fast-paced world, it’s difficult for employees to find time to volunteer on their own. Work-based initiatives can fill this gap, and in doing so, increase retention. While an employee who spends most of her time at the office may sense a lack of personal fulfillment, a volunteer opportunity at work will help her feel connected to the larger world. As part of a team that has a positive impact on the community, she’ll have an added incentive to stay with your organization.

Employee Morale

In addition to recruitment and retention, charity work also increases employee morale. Larson, quoted in a feature article on Minnesotagiving.org, says Slumberland employees are "absolutely ecstatic" about the company’s “Home for the Holidays” program."They’ve come up and told me how much it means to them. That’s one of the things that happens with giving: It becomes infectious."

Getting Started

Brenner recommends some of the following steps in considering a charity or volunteer program.

• Create a mission statement for your charity or volunteer program. What are its goals, objectives and policies? Clearly communicate this plan to your employees in your internal communications materials.

• Integrate your plan into recruitment. Make sure prospective employees are aware of your company’s commitment to the community and what their role in the plan is.

• Know how much the plan will cost and set an appropriate budget.

• Give employee volunteers recognition in media releases and marketing materials to increase pride and motivation among employees.

Here are websites to visit for tips on how to start a charity giving or volunteer program:

Minnesota Chamber of Commerce (Minnesota Business Gives) - http://www.mnchamber.com/foundation/businessgives.cfm

Minnesota Giving - http://www.minnesotagiving.org/

Minneapolis Chamber of Commerce - http://www.minneapolischamber.org/

<< Back to News Main