Cause and effect: Measure how your corporate giving is making a difference

Chances are, you started up a corporate giving program because you care about one or more causes and want to make a difference – whether your goal is to help eradicate a disease, provide a warm meal or shelter for those in need, or clean up the environment. Just participating may seem to be reward enough, but measuring and promoting your program’s effectiveness is a wise business strategy.

There are a number of stakeholders who will benefit by learning the program’s results:

• The partnering nonprofit organization
• The individuals who are the end recipients of donations and volunteer efforts
• Your employees
• Your board of directors
• Your customers who contribute to your cause program
• Community members

Promoting the results gives a positive boost to all those involved and encourages ongoing effort.  It also enables you to make adjustments during the process to better reach your goals, and to help you assess at year’s end whether to continue the cause relationship.

First, decide what you want your corporate giving program to accomplish, and then which metrics are important to track. Consider the following areas:

Donations and donors

Generate enthusiasm by setting a financial goal and a timeline. In many cases, the nonprofit organization can help you determine your first year’s goal based on your company size. For subsequent years, develop a stretch goal that exceeds the previous year.  Track online donations through a dedicated landing page on your Web site, or through sites such as GiveMn.org. Keep counts of noncash donations, such as number of toys donated to Toys For Tots or pounds of nonperishable items for food shelves.

Corporate growth and brand perception

Determine how much your company revenue and brand reputation is benefiting from your cause promotion by gathering a variety of metrics and other information, such as:

• Leads generated from cause marketing efforts tracked through unique toll-free numbers, URLs or “how heard” questions
• Sales trend (over  five years, if possible)
• Share value trend (over five years)
• Customer testimonials
• Focus groups and customer surveys on brand perception

Employee satisfaction, loyalty and recruitment

According to the 2009 Corporate Citizenship Study, 56% of survey respondents believe that working for a socially responsible employer makes a difference. Determine the effects of your corporate social responsibility program by measuring the following:

• Employee satisfaction through surveys conducted before the program’s initiation and annually thereafter
• Annual contribution of employee volunteer time, five-year trend
• Employee growth, five-year trend
• Employee retention, five-year trend

Include the above results in your annual report or as a separate corporate social responsibility report. Round out hard data with testimonials from a representative of your nonprofit partner organization, customers, employees and community members.

- LuAnne Speeter

Related post: Enrich the lives of your employees with socially responsible efforts

10 ethical questions to ask yourself before closing the sale

I was asked to bid on a marketing project yesterday. While preparing the bid, I found that I needed to clarify my stance on certain business practices. Specifically, I stated to my prospect that a form of partnership he was seeking was not permissible within my ethics and posed a conflict of interests.

In other words, I knew that type of partnership would make feel disingenuous and possibly cause me to lose sleep down the road.

In our day-to-day business dealings, most ethics-based decisions are cut-and-dried. Companies often have codes that specify what’s acceptable and what isn’t. But in the sales field, when deals are often made on-the-fly, requiring flexibility and innovation, we’re tempted to push the ethical boundaries. So it’s especially important to not only know your company’s code of ethics (the “letter of the law”), but also apply moral standards (the “spirit of the law”) to situations that aren’t so black-and-white.

Sometimes being ethical means you sacrifice a sale. But clarifying your position upfront helps you avoid an uncomfortable situation or damaging legal ramifications.

Temptations and traps to avoid

• Misrepresenting your product or service
• Price fixing
• Bait-and-switch practices
• Surprise charges and add-ons after the sale
• Misuse of proprietary data and customer lists
• Padding an expense account
• Badmouthing a competitor
• Kickbacks to the buyer
• Unauthorized signing of agreements

Whether or not your company has a defined code of ethics, defining and following certain guidelines are not only common sense, but good business.

Ethically responsible questions to keep in mind

1. Do I know these claims to be true or am I just saying them because it guarantees a sale?
2. Am I doing my best to educate the customer about the product before the sale?
3. Do I understand the terms of the sales policies and what’s legally binding?
4. Can this data be divulged or is meant to be proprietary?
5. When quoting statistics, do I know the primary source and if it’s reliable?
6. Do I know federal and state laws that apply to the company’s products and warranties?
7. Am I making clear what triggers any claims to a money-back guarantee?
8. Do I always think twice before saying anything negative about a competitor, another customer or a fellow employee?
9. Do I ask permission before using a testimonial from a satisfied customer?
10. Am I focusing on solving my client’s problem or am I just intent on making the sale?

Please comment and tell others what you’d add as #11.

- LuAnne Speeter

Related post: How ethical are you really? Take this quiz

Why are you keeping your cause a secret?

Maybe it’s shyness, humility or simply Minnesota Nice. But many small business owners around the state are keeping the good they do for charity to themselves. Whether they’ve contributed a check, a percentage of annual sales or employee volunteer hours, some companies never get the word out to the public.

That’s a shame.

By being quiet, you could be depriving your cause. Your donation is only a portion of the potential benefits your chosen charity will derive from your partnership. If you really want to maximize your effectiveness, take on the role as ambassador. That means you could:

• Show photos of your volunteers in action on your Web site, on your company’s Facebook page or in your newsletter.
• Include the cause’s logo on your home page and add your commitment, such as “2% of every dollar you spend with us is donated to help [cause name] achieve its goals.”
• Display your cause’s logo with photos at point-of-sale locations.
• Talk about your cause – world of mouth is the most powerful influencer.
• Submit press releases about your cause partnership to local newspapers. Increase the odds of it being picked up by including a human interest story, too.

Minnesota businesses are generous. According to a 2002 survey of 595 companies conducted through Building Business Investment in Community,* the vast majority of businesses make cash contributions to their favorite charities:

Business size by # of employees	% of businesses making cash contributions
<20	72%
20-99	76%
100-499	93%
500+	96%

In addition, many companies donate products, sponsor scholarships and events, contribute employee hours to school and community projects, and serve on nonprofit or agency boards. Add more impact to your generosity and dedication. Tell the community about your partnership, give information about the cause and provide others with a way to contribute, too.

*A project of the Minnesota Council on Foundations, the Minnesota Chamber of Commerce and 12 Minnesota business and philanthropic organizations.

- LuAnne Speeter

M.B.A. programs prepare socially aware entrepreneurs

A growing number of graduate students are seeking to specialize in social entrepreneurship – the development of for-profit companies that deliver socially responsible products or services, or are tied to social causes. As a response, business schools are tailoring their curricula to accommodate their interests.

The following are a few graduate programs that address this new paradigm:

The Skoll Centre for Social Entrepreneurship at the University of Oxford’s Saïd Business School explores such models as venture philanthropy and an ethical stock exchange – an alternative that is less focused on financial and more on environmental and social returns than the traditional exchange model.

The Allwin Initiative for Corporate Citizenship is an on-campus group at Tuck School of Business located at Dartmouth College. The vision of the Allwin Initiative is to embue Tuck students with “a heightened social conscience, a strong sense of business ethics, an understanding of social enterprise, and a familiarity with the management tools that facilitate corporate responsibility and community involvement.”

The Center for Responsible Business at the University of California at Berkely/Haas School of Business was founded in 2003 thanks to the generosity of actor/philanthropist Paul Newman, among others. The Center offers an integrated portfolio of research, teaching, experiential learning and outreach.

According to the Center for Sustainable Global Enterprise at Cornell University’s The Johnson School, solutions to environmental and social problems “are business opportunities, not a cost of doing business.” The program includes such courses as Sustainability as a Driver for Innovation in the Entrepreneurial Organization and Corporate Social Responsibility: Organizational Issues.

A number of conditions within the U.S. and globally could be driving today’s budding entrepreneurs to have a deeper sense of social and environmental responsibility, such as:

• A natural outgrowth of our more socially aware society.
• A tightening of the job market, leading to more creative start-up ventures.
• A reaction to the financial crisis and what is interpreted as Wall Street greed.
• An opportunity for laid-off employees to find greater meaning in their next career stage.

In any case, we can look forward to an era of significant social and environmental solutions by for-profit businesses. If they do it right, they will do well by doing good.

- LuAnne Speeter

Online charitable giving is for businesses, too

Many charitable organizations make donating to their causes as easy for consumers as purchasing from a favorite online vendor. You’ve probably seen the “Donate Now” buttons on pop-up windows for a merchant’s charity or on e-mail messages from politicians.

A new program – GiveMN.org – is set to launch on Nov. 2 and will enable participating charities in Minnesota to not only provide online donation capabilities, but a number of other features to facilitate giving. For example, donors can search for a charity based on type of cause – such as an animal shelter or free clinic – or by location. Plus, donors can track their donations to various charities in one location, making reporting easier at tax time.

Better still, GiveMN.org gives donors the tools to generate group giving through social media sites, such as Facebook. And, depending on the charity, you’ll be able to designate how your donation will be used.

While GiveMN.org is directed to individual donors, it can easily be adapted for use by business owners, too. For example, consider sending an e-mail blast to your customers specifically to promote a cause – preferably one that is rooted in your community – and include a donation button. Draw readers in by explaining your personal commitment to the cause or tell the story of an individual whose life could be made better by your customers’ support. Begin a Facebook page dedicated to the cause to track the donations and invite your customers to share their thoughts or experiences. 

With the holiday season and end-of-year giving nearly upon us, now is the perfect time to select a cause for your business. Online giving makes it easy to launch a fundraising program and generate support that could make a real difference in your community.

What motivates employees to volunteer? Hint: The answer isn’t personal recognition

If your company’s social responsibility program includes volunteerism, it can have tremendous impact not only on the community, but also on your company and employees.

How the community benefits

• Increased access to resources
• Improved health and welfare
• Enhanced economic development
• Community needs are addressed

How your company benefits

• Enhanced reputation
• Increased product/service awareness
• Raised productivity
• Improved staff satisfaction and retention

How your employees benefit

• Increased community awareness/involvement
• Heightened employee satisfaction
• Acceleration of professional development
• Opportunities for leadership
• Improved attitude and outlook 

Source: Corporate Volunteerism Council – Twin Cities

But what motivates employees to offer their time and skills to a charitable cause? The answer may surprise you.

In past years, personal recognition was the primary motivation for corporate volunteering, according to LBG Associates, the firm that launched the study involving more than 8,000 employees in 36 companies. However, the latest study, conducted from late 2008 to early 2009, showed the following:

When it comes to recognition, employees rank “a donation made to my charity when I volunteer” highest among all other forms of recognition.

When asked to rank the reasons they volunteer, employees listed the following on a 1-5 scale, with 5 as “very important”:

• The cause is important to me personally (4.35)
• Community organizations are experiencing financial hardship (3.61)
• My volunteering results in a donation for the organization from my company (3.53)
• The cause is important to my company (3.35)
• The charity came to the company to talk about what they do for the community (3.08)

When you’re selecting a charitable organization and you want maximum participation from your employees:

1. Start by looking at several options that are relevant to the majority of your employees’ interests and skill sets.
2. Choose venues that are local and easily accessible.
3. Ask employees to vote among the charities and go with the most popular choice(s).

- LuAnne Speeter

3 ways your business can be generous without giving cash

As the year heads into the fourth quarter, your business is likely receiving an onslaught of requests for charitable donations. But if you own a start-up business or your cash flow is suffering due to the ongoing recession, it may not be possible to write out big checks this year. Before you change the nameplate on your door to Ebenezer, consider these alternative ways of contributing to those in need.

In-kind product donations. Establish a partnership with a nonprofit whose needs fit the scope of your business. For example, a restaurant could donate nonperishables to neighborhood food shelves. Or, if you own a retail store, provide clothing or household items to shelters for the homeless or domestic violence victims.  Build companywide support by inviting employees to join you in delivering the products. Be sure to develop a strategy just as you would with cash donations, determining in advance how much you want to donate for the season or year. Contact your tax advisor so you’ll know what portion of the donation can be written off.

Employee volunteer programs. Many businesses are now incorporating more flexibility into the work week to encourage volunteerism. Some companies allow a number of hours annually of paid release per employee for donating time and skills to preapproved organizations. Nonprofits often seek out services donated by computer technicians, attorneys, marketers and graphic designers, in particular. If you embark on such a program, business owners and C-level executives should lead the way by volunteering time as well, either by rolling up your sleeves with a project or event, or by serving on the board of a nonprofit organization.

Purchasing cards and gifts from non-profits. Consider organizations such as the Courage Center when purchasing your holiday greeting cards. By doing so, you’ll help support programs for adults and children with disabilities. Need gifts for clients or coworkers? Shop at Twice the Gift, a store operated by Partnership Resources, Inc., opening Oct. 15 in the IDS Crystal Court in Minneapolis. The store offers unique gifts and Share Cards, with proceeds benefiting 60 area nonprofits.

No matter which avenue you take in your charitable donation program, generate greater exposure for your causes by encouraging stakeholders – employees, customers, vendors, etc. – to offer their support, as well. Check with organizations about using their logos on your Web site and include a link or “Donate Now” button so customers can participate in the charitable partnership.

- LuAnne Speeter

Whose version of the homeless doll story do you believe?

American Girl, the Mattel-owned manufacturer of pricey dolls with a story, is soon to discontinue a limited edition doll named Gwen. Gwen is just one of many American Girl dolls that represent a lifestyle from Americana – such as Samantha from the Victorian era; Addy, who with her mother escaped from slavery during the Civil War; and Molly, whose family planted a victory garden while awaiting her father’s return from World War II.

And each doll comes with a book, telling of courage and other character traits discovered along the road to maturity. I know many of these stories well, having read them aloud years ago to both of my daughters. The dolls, which now sell for $95 each, their wardrobes and furniture sets were generally too pricey for me but became a great gift-giving solution for my girls’ grandmothers and aunts.  

But back to Gwen. Gwen’s story is unique because she’s homeless. She is introduced as a friend of another doll character, Chrissa, who comes to Gwen’s defense after she’s bullied in school.

Since Gwen’s arrival earlier this year, there has been a social media fury over the incongruity that, while representing the homeless faction, she sells for just under a hundred bucks. Columnists and bloggers reason that the money would be better spent donated to a homeless shelter. Unlike the other dolls, Gwen has no extensive wardrobe (of course), few accessories and no furniture set. One mom who purchased Gwen posted a comment on the American Girl site bemoaning the lack of clothing options. Seeing it from another angle, a Huffington Post reader commented, “Realistic. She comes with a cardboard box to sleep in.”

Others, however, think the Gwen doll presents an opportunity for parents and children to discuss the realities of homelessness, bullying and discrimination attached to social status. And, while they may have missed the boat on “using” the story to advocate directly for donations to homeless shelters, American Girl does have an extensive corporate philanthropic commitment.

So you be the judge. Is Gwen in bad taste? Or is the doll just that – a doll with a valuable story? I welcome your comments!

- LuAnne Speeter

Quick survey: How do your company’s charitable practices compare?

If you own or work for a small business, you play a pivotal role in your community – and your community would suffer without you.

Not only does your small business provide valuable products and services to your surrounding neighborhoods, but in most cases you also:

• Live in the community and become involved in local interests.
• Hire employees who reside in the community.
• Plow much of your profits back into other businesses in the community.
• Pay local taxes, which stay in the community.

But when it comes to charitable donations and social responsibility, are you more likely to stock the neighborhood food shelf or contribute to large nonlocal foundations and nonprofits? And are you too strapped for cash – and time – to even do the research and donate to worthy causes?

Please take this quick 10-question anonymous survey about your small business and social responsibility. I’ll share the combine results in a future post so you’ll know how your company stacks up against the rest.

Please take the survey now. Thank you!

- LuAnne Speeter

Pick a social mission that’s true to your core business

Most companies have a corporate mission statement. Sometimes they’re rather predictable, like Dell’s:

“Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve.”

Other mission statements are more inspired and true-to-brand, like Coca-Cola’s:

“To refresh the world…to inspire moments of optimism and happiness…to create value and make a difference.”

But consumers today are often seeking more than a corporate mission from the companies they do business with. Studies show they’re more likely to buy from companies who stand for something of social or environmental value. (See “5 steps to enhance your brand with cause marketing.”)

At the same time, many businesses are proactively seeking to make a difference in their communities – or even globally – beyond the visions and values that comprise their corporate mission. In many cases, that may require adding a social mission into the mix.

A social mission ties your social initiatives to your corporate mission and gives them authenticity. While your corporate mission communicates how your company makes a difference through its profits, your social mission addresses your commitment to having an impact beyond profit.

Starbucks is an example of a company with two missions. We’re familiar with the corporate:

“To inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time.”

The company’s social mission is evident, not only through its environmental mission statement –

 “Starbucks is committed to a role of environmental leadership in all facets of our business”

– but also in other prominent features on its Web site: A home page video about The Food Project, Starbucks Shared Planet project and its customizable Global Responsibility Report.

Ben & Jerry’s, an organization renowned for its social activism, has not one, not two, but three parts to its mission statement: social, product and economic. Speaking at the 2009 CECP Corporate Philanthropy Summit, Ben & Jerry’s CEO Walt Freese stated that “a company’s overall marketing mission should be separate from it social mission even if they at times join forces. Consumers need to understand that your social mission is coming from a genuine place.”

When determining your own social mission and initiatives, choose what works well with your corporate mission and your core products and services. For example, Western Union’s core service and tagline, “Connecting families around the world,” is in perfect unison with its Our World, Our Family program. Such authenticity will only enhance your brand reputation while contributing to the greater good.

- LuAnne Speeter