Wednesday 29 November, 2006
It is good business to give to worthy causes.
In the last decade, smart companies have realised this and corporate
donations have grown by about 5%. Philanthropic organisations get a good
reputation, generate community feelings and have employees who feel
like their company is contributing to society.
Of course, the biggest winners are the charities and their recipients.
Companies that back causes tend to have loyal employees - up to 90% report that they feel a strong sense of loyalty to their organisation. Companies also enjoy enhanced employee relations, which positively impacts on recruitment, retention, motivation and productivity.
Of course, the biggest winners are the charities and their recipients.
Why back a cause?
Besides altruistic reasons, it is a logical business decision for a company to support a worthy cause. Numerous research studies have indicated that around two-thirds of consumers are likely to switch brands, (given price and quality are equal) if the company backs a good cause.Companies that back causes tend to have loyal employees - up to 90% report that they feel a strong sense of loyalty to their organisation. Companies also enjoy enhanced employee relations, which positively impacts on recruitment, retention, motivation and productivity.
Choosing a cause that's right for your business
Selecting a cause is not as simple as it might seem. You want to think about it as much more than a tax deduction. Your company should be giving with its head, as well as its heart. Here are some things you will need to do when searching for a charity or cause to support.- Clarify and identify your company's values. Choose which type of
charity is most relevant to your company: look at sectors such as health
care, the arts, education, poverty, animal welfare, political freedom;
and
- Identify which geographical area you want to support: local, community, regional, national or global.
Do your research
Find out everything you can about the cause you are intending to back. Make sure that it has:- Legitimacy. Ensure it is a real charity or cause which is listed with the relevant authorities;
- A mission statement which has clearly defined objectives;
- Goals and programs that are measurable;
- Concrete criteria for measuring its progress;
- A willingness to disclose its operating information, and is fully accountable; and
- A good reputation in the community, and doesn't use high-pressure tactics to get funding.
How a good cause is good for your team
Corporate Social Responsibility programs have been well documented as benefiting the company and its employees. Some 76% of employees believe that a company's commitment to causes is an important factor in deciding where to seek work. The advantages to employees of their company committing to Corporate Social Responsibility programs are many, including:- Fosters positive feelings about the employee's role in society;
- Allows for leadership and development opportunities;
- Gives exposure to employees to new ideas and perspectives;
- Opens up and educates people about social responsibility;
- Helps give employees a 'common purpose'; and
- Enhances employee relations - companies that back causes tend to be ones that have the attitude and tools that garner loyalty and commitment from employees.
Author Credits
Kelly Services is a global recruitment company, operating in
37 countries delivering temporary and full-time recruitment and
HR/Recruitment Outsourcing and consulting. To request staff, please
contact Kerri Johnstone on 02 9246 6759 or visit
www.kellyservices.com.au. All content in this article © 2008 Kelly
Services (Australia) Ltd. Reprinted with permission from the original
article at www.smartmanager.com.au
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