THE GOLDEN AGE - DonationXchange

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118 N. Clinton, Suite 301 Chicago, IL 60661 (866) 513-7627 www.donationx.org Corporate Social Responsibility (CSR) has quickly become a top corporate priority, serving as an avenue to create impact across local and global communities, and as a means to increase competitive advantage and growth. Weʼre now at the cusp of a new era—a Golden Age of Giving. We've identified 12 prominent signs of this new age including growing corporate trends and enabling market conditions that are shaping how companies interact with the world. This is not merely a period of transformation, but one full of excitement and significance for CSR professionals and corporate legacies. 1. CSR Is Adding Corporate Vitality During challenging economic times, corporate executives are more eager to apply efficient business practices and eliminate unnecessary expenditures. Every department, product, and program is examined with the question in mind, "how does X contribute to our success?" For Fortune 500 companies, CSR initiatives are playing an integral role in building a more valuable brand. Customer loyalty is increasingly based on a corporation's identity and not solely on product reliability. As a result, resources spent on humanistic endeavors are changing the way consumers relate to a company. A quality CSR program can enrich a company's global image and competitive advantage. 2. Taking The Lead According to the Committee Encouraging Corporate Philanthropy (CECP), 81 percent of large corporations now have foundations that handle philanthropic tasks which grew beyond the capacity of a single internal department. As these companies recognize the diverse benefits of expanding CSR initiatives, they increasingly allocate resources to the creation of independent 501(c)(3) entities. Through their foundations, corporations take charitable efforts into their own hands and become champions of their own causes. 3. Consumers Demand Brands That Give In addition to expecting quality products and services, 94 percent of consumers want companies to engage in best business practices and make a bigger impact on society, according to the 2011 Cone/Echo Global CR Opportunity Study . From environmental sustainability to reducing poverty, consumers want corporations to address critical issues and reinvest resources for a better world. 4. Everyone Is Getting Involved A corporation's identity is not only defined by its business practices, but also by the conduct of its employees. Good people are at the heart of every good corporation, and smart executives recognize that each dedicated member of their workforce is a brand ambassador. CSR is expanding to include creative programs designed to engage employees throughout an entire company. Corporate gift matching, community service days, and student mentoring programs strengthen an internal sense of community and build employee loyalty, all while contributing to the greater good at the core of CSR initiatives. 5. Creative Ways To Give Forty six percent of corporate giving is done with cash gifts according to the recent CECP survey. However, with more companies participating in philanthropy, CSR leaders must develop eye-catching and original programs in order to stand out from the crowd. Timberland partnered with Ringo Starr on the “Canvas that Cares” eco-footwear contest, while Groupon employed its daily deal platform for the “Feeding America—The Loop” campaign. Rock stars and witty copy writers give these joint ventures dynamic partnerships that allow both the corporation and the charity to reach an expanded consumer base. The benefits of innovative philanthropic collaborations are too cool to ignore. THE GOLDEN AGE GIVING of

Transcript of THE GOLDEN AGE - DonationXchange

118 N. Clinton, Suite 301 • Chicago, IL 60661 • (866) 513-7627 • www.donationx.org

Corporate Social Responsibility (CSR) has quickly become a top corporate priority, serving as an avenue to create impact across local and global communities, and as a means to increase competitive advantage and growth. Weʼre now at the cusp of a new era—a Golden Age of Giving. We've identified 12 prominent signs of this new age including growing corporate trends and enabling market conditions that are shaping how companies interact with the world. This is not merely a period of transformation, but one full of excitement and significance for CSR professionals and corporate legacies.

1. CSR Is Adding Corporate VitalityDuring challenging economic times, corporate

executives are more eager to apply efficient

business practices and eliminate unnecessary

expenditures. Every department, product, and

program is examined with the question in mind,

"how does X contribute to our success?" For

Fortune 500 companies, CSR initiatives are

playing an integral role in building a more

valuable brand. Customer loyalty is increasingly

based on a corporation's identity and not solely

on product reliability. As a result, resources

spent on humanistic endeavors are changing

the way consumers relate to a company. A

quality CSR program can enrich a company's

global image and competitive advantage.

2. Taking The LeadAccording to the Committee Encouraging

Corporate Philanthropy (CECP), 81 percent of

large corporations now have foundations that

handle philanthropic tasks which grew beyond

the capacity of a single internal department. As

these companies recognize the diverse benefits

of expanding CSR initiatives, they increasingly

allocate resources to the creation of

independent 501(c)(3) entities. Through their

foundations, corporations take charitable

efforts into their own hands and become

champions of their own causes.

3. Consumers Demand Brands That GiveIn addition to expecting quality products

and services, 94 percent of consumers

want companies to engage in best business

practices and make a bigger impact on society,

according to the 2011 Cone/Echo Global CR

Opportunity Study. From environmental

sustainability to reducing poverty, consumers

want corporations to address critical issues

and reinvest resources for a better world.

4. Everyone Is Getting InvolvedA corporation's identity is not only defined by

its business practices, but also by the conduct

of its employees. Good people are at the heart

of every good corporation, and smart

executives recognize that each dedicated

member of their workforce is a brand

ambassador. CSR is expanding to include

creative programs designed to engage

employees throughout an entire company.

Corporate gift matching, community service

days, and student mentoring programs

strengthen an internal sense of community and

build employee loyalty, all while contributing to

the greater good at the core of CSR initiatives.

5. Creative Ways To GiveForty six percent of corporate giving is done

with cash gifts according to the recent CECP

survey. However, with more companies

participating in philanthropy, CSR leaders must

develop eye-catching and original programs in

order to stand out from the crowd. Timberland

partnered with Ringo Starr on the “Canvas that

Cares” eco-footwear contest, while Groupon

employed its daily deal platform for the

“Feeding America—The Loop” campaign. Rock

stars and witty copy writers give these joint

ventures dynamic partnerships that allow both

the corporation and the charity to reach an

expanded consumer base. The benefits of

innovative philanthropic collaborations are too

cool to ignore.

THE  GOLDEN  AGE

GIVINGof

118 N. Clinton, Suite 301 • Chicago, IL 60661 • (866) 513-7627 • www.donationx.org

6. Business In The CloudCommunity Relations departments are

gradually following the lead of Marketing and

PR by adopting social media tools to promote

CSR initiatives. Pew Research’s Social Side of

the Internet reveals that “82% of social network

users” participate in some sort of volunteer

group or organization - talk about an untapped

resource! Consumer brand companies such as

Pepsi and Chase have led the charge into

social media cloud-based outreach,

encouraging participation in the form of voting

for worthy donation recipients, team fundraising

sites for races, and volunteer recruitment. Other

corporations are beginning to follow suit as

they realize the intrinsic value of utilizing

applications built around sharing.

7. It’s a Small WorldAs companies expand to a global marketplace,

they are faced with the challenge of how to

personally relate to many diverse communities.

In a recent Forbes article, contributor Ryan

Scott says, “businesses who meaningfully

connect with people on a personal, one-to-one

basis are experiencing unprecedented

success.” CSR initiatives now offer a unique

way to forge and solidify these connections.

The highly successful Walmart “Fighting

Hunger Together” campaign, for example,

has committed $2 billion to hunger relief

efforts. Walmart utilizes its vast influence to

affect individual lives across the country, and

to play a valued role in thousands of lives.

8. Benchmarking: Measured GivingUnsatisfied with presenting a general sentiment

of goodwill, companies now benchmark

to contextualize CSR efforts. Corporate

management teams seek out tools and metrics

to validate and assess the need for and impact

of cash and in-kind donations. As technology

becomes more sophisticated, company leaders

gain access to more quantifiable effects. And

as industry standards emerge, the CSR

competition continues to heat up!

9. Letting Pilots NavigateAccording to CECP, 15 percent of companies

increased funding for new pilot programs to

improve charitable initiatives. Corporations

are testing existing models, encouraging

innovation, and trying new solutions in order

to implement the most effective programs.

Leaders want to ensure their financial resources

are used wisely and funding programs with

longevity and the ability to achieve success

in communities for years to come.

10. Investing For Future GrowthExecutives are finding ways to strategically

partner with organizations and causes that best

match their corporate missions and resources.

With long-term growth and viability in mind,

the energy sector is partnering with green

initiatives, and food suppliers are partnering

with school nutrition programs. By focusing

CSR efforts on programs in line with a

corporation's area of expertise, companies

are finding ways to do more with resources

and knowledge already in their possession,

all while improving relations with current

and future consumers.

11. Leading By ExampleIn addition to supporting public causes,

corporations are taking steps to improve their

own internal operations to be better global

citizens. Implemented programs range from

healthy lifestyle and nutrition education to

instruction on proper recycling and energy

saving measures. For example, Deloitte LLP

directs a great deal of effort to LEED

certification and anticipates “30% of [its]

8,000,000 square feet of space to be LEED

certified by the end of calendar 2012,” says its

CSR Officer, Tom Dekar. Corporations such as

Deloitte have discovered how to contribute to

a healthy planet and workforce and

simultaneously increase brand integrity.

12. Becoming Crystal ClearConsumers, civic leaders, and government

officials are calling for more transparency

across all facets of companies, including CSR.

In fact, the 2011 Cone/Echo Global CR

Opportunity Study found that "93% of

consumers want to know what companies

are doing." Juxtapose that with the fact that

only "61% of consumers believe a company

is telling the truth about its social and

environmental efforts and impacts," and it

becomes clear that corporations still have

their work cut out for them. This need for

transparency is motivating companies to not

only do the right thing, but to find ways to

prove they have done so. Annual CSR reports

are becoming the norm rather than the

exception, with graphics and facts revealing

totals of donations made and lives touched.

Contact DonationXchange for more information on CSR Initiatives and Services.

Sources: 2011 Cone / Echo Global CR Opportunity Study: http://www.coneinc.com/stuff/contentmgr/files/0/2fcb9351e2bea95addb6c4413bcf39a4/files/2011_cone_echo_cr_opportunity_study.pdf

Pew Research - Social Side of the Internet: http://www.pewinternet.org/Press-Releases/2011/Social-Side-of-the-Internet.aspx

Committee Encouraging Corporate Philanthropy (CECP) 2011 Giving in Numbers: http://admin.csrwire.com/system/report_pdfs/1230/original/GivinginNumbers2011.pdf

Forbes - “The Time To Act Locally Is Now”:http://www.forbes.com/sites/causeintegration/2011/09/12/the-time-to-act-locally-is-now/

Deloitte LLP 2010 Corporate Responsibility Report:http://public.deloitte.com/media/0146/2010_cr_annual_report/cr_interview_cro.html

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