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Corporate SocialInitiatives:

What are the Challenges ofDoing Good?

Reporter: Angelica A. Magdaraog

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Corporate Social Initiative

• Making a positive explicit social ipact.

• Corporations are not sipl! providing cash donationnonpro"t organi#ations $%t are directl! involved in& provide signi"cant reso%rces to& their co%nit! pr

• (he nat%re of these initiatives re)ects the gro*ing oaong stakeholders that +people need help solving tpro$les& not '%st one!,. -ess et al. /00/: 1123

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Wh! Do Good ?

• Increased sales and arket share

• Strengthened $rand positioning

• 4nhanced corporate iage and clo%t

•

Increased a$ilit! to attract& otivate& and retaineplo!ees

• Decreased operating costs

• Increased appeal to investors and "nancial anal!sts

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Corporate Social Initiatives

Six Options for Doing Good

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5rovides f%nds& in6kind contri$%tions& oother organi#ation reso%rces to increaawareness and concern a$o%t a soci

ca%se 7R to s%pport f%ndraising&participation& or vol%nteer recr%itent

 

Cause Promotions

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S%pports the developent andoripleentation of a be!avior c!ange

capaign e.g. anti soking capaign A corporation a! develop and ipleea $ehavior change capaign on its o*n

Social Mareting

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Makes a direct contribution to charit! or ca%se& ost often in thfor of cash grant& donations&andor in6kind service

 

Corporate

P!ilant!rop"

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• (he ost traditional of all corporate sociinitiatives and for an! decades *asapproached in a responsive& even ad hocanner.

• More corporations are no* experiencingpress%res& $oth internall! and externall!&ove to a ore strategic approach&choosing a foc%s and t!ing philanthropic

activities to the copan!;s $%siness goaland o$ ectives.

Corporate

P!ilant!rop"

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S%pports and enco%rages eplo!ees& retailpartners& andor franchise e$ers to volunteertheir tie to s%pport local co%nit! organi#atioand ca%ses

 

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 Adopts and cond%cts discretionar"business practices andinvestments that s%pport social

ca%ses to iprove co%nit!*ell$eing and protect theenvironent e.g. co%nit! trade&environental friendl! process

iall" Responsible $usiness P

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Safeco: Changing Generations to Coe• Safeco has $een protecting individ%als and failies *ith perso

ins%rance coverage since 1@/2.

• Safeco is a i$ert! M%t%al Ins%rance copan!. i$ert! M%t%aIns%rance ranks on the Bort%ne 100 list of the largest .S.corporations.

• In the afterath of a 1@@ *ild"re that destro!ed 1@ hoes a1E&000 acres near Fend& 7regon& vice president of p%$lic relafor Safeco Ins%rance& called Fends "re arshal& Gar! Marshao=ering to contri$%te H0&000 to*ard the p%rchase of ne*"re"ghting e%ipent $%t R4J4C(4D (4 7BB4R.

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+A ne* piece of e%ipent ight save one ore hoeto reall! save hoes& individ%als have to take personaresponsi$ilit! for their propert! $efore a "re., K Gar!Marshall

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• Instead of $%!ing ne* e%ipent& Marshall *anted to pa! for a coprehensive p%$lic ed%cation progra"re safet!.

• When the! sa* the vario%s capaign odels K desig

$! a local Fend arketing "r and ranging in price L0&000 to 1L0&000 K the! opted for the ost expenone.

Safeco: Changing Generations to Coe

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(he BireBree progra recoe

10 tips to protect !o%r propert1. De"ne !o%r defensi$le space./. Red%ce )aa$le vegetation& trees and $r%sh.2. Reove or pr%ne trees.H. C%t grass and *eeds reg%larl!.L. Relocate *ood piles and leftover $%ilding aterials.

. eep !o%r roof and !ard clean.E. 5ost directional signs and addresses.N. Rate !o%r roof.@. Rec!cle !ard de$ris and $ranches.10.Fe prepared if *ild"re strikes.

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Safeco f%nd

BireBreeprogra in helphoeo*neragainst*ild"res. (

preise:

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BireBree 5rogra (oda!

• (he Central 7regon BireBree progra is a s%ccessf%ed%cational oveent that has changed attit%des an$ehaviors a$o%t *ild"res over the last decade. 4achtho%sands of residents participate in the spring and

rec!cling events& $%t ore iportantl!& the! areprotecting theselves and their neigh$orhoods frodevastating *ildland "res.

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 %&'( 'R) (&) M'*OR C+RR)C&'--),G)S (O DOI,G GOO

• Choosing a Social Iss%e

• Selecting an Initiative to Address the Iss%e

• Developing and Ipleenting 5rogra 5lans

•4val%ation

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Choosing a Social Iss%e

• o* does this s%pport o%r $%siness goals?

• o* $ig of a social pro$le is this?

• Isnt the governent or soeone else handling this?

• What *ill o%r stockholders think of o%r involveent in this iss%e?

• Is this soething o%r eplo!ees can get excited a$o%t?

• Wont this enco%rage others involved in this ca%se to approach %s -$%f%nds?

• o* do *e kno* this isnt the cause du jour ?

• Will this ca%se $ack"re on %s and create a scandal?

• Is this soething o%r copetitors are involved in and own alread!?

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Selecting an Initiative to

 Address the Iss%e• o* can *e do this *itho%t distracting %s fro o%r core $%sin

• o* *ill this initiative give visi$ilit! for this copan!?

• Do these progras reall! *ork? Who pa!s attention to these?

• What if cons%ers perceive the ao%nt of the sale that act%alto the ca%se is too sall?

• ave !o% calc%lated the prod%ctivit! cost for giving o%r eplotie o= for vol%nteering?

• Giving visi$ilit!& especiall! shelf space in o%r stores for this cadoesnt pencil out. Sho%ldnt *e '%st *rite a check or give a g

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Developing and Ipleenting5rogra 5lans

• o* can *e do this *hen one! is needed for increased perforanc

• What do *e sa! to stockholders *ho see this as one! that $elongs

• Wh! is o%r departent $eing asked to f%nd this?

• Will having partners $og do*n the decision6aking process and thertake ore of o%r sta= tie?

•Will *e $e doing as %ch good for the ca%se as *e spend?

• Isnt this '%st $rand advertising in disg%ise?

• What is o%r exit strateg!?

• o* do *e keep fro looking h!pocritical?

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4val%ation

• F! contrast& the track record for eas%ring ret%rn oinvestents in Corporate Social Initiatives is ver! !o*ith little historic data and expertise.

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