Rising Trends In Corporate Philanthropy And CSR Strategies

Nurturing a giving culture

By Laura Neuffer, Carebook Technologies

The modern workplace has undergone a dramatic shift in recent years, driven both by competitive markets and a growing social consciousness. Organizations are increasingly turning to philanthropy or corporate social responsibility (CSR) as strategic tools that can be applied to hiring and retention, employee wellness, and public relations.

According to research from the National Philanthropic Trust, corporate charitable giving (including the gifting of funds and pro-bono goods and services) rose to $21.08 billion in 2021 - up 23.8 percent from 2020. This massive increase could be partially attributed to increased need after the peak of the Covid-19 pandemic and its associated economic uncertainty, illness, and general societal unrest.

Additionally, employers may be realizing the altruistic advantages of corporate philanthropic efforts.

For employers, incorporating philanthropy into their strategy not only increases visibility within the community but is also an attractive benefit to current and potential employees - a more focused way of giving back to society. Employees often appreciate the chance to give time and money to various causes, whether through a formal volunteering program, matching donations, or other initiatives.

In fact, many employees, especially Gen Z, report that it’s important to them to know that their organization has values that align with their own. Having a formal social responsibility statement is a good start - but to attract and retain talent, putting words into action is key.

For example, if a company is committed to reducing its carbon footprint, it can create policies that make it easy for employees to participate in furthering that goal.

These could include installing bike racks at the office, providing a company rebate on e-bikes, offering free or reduced-fare bus passes, a recycling program, use of sustainable fuel, or a no-paper policy.

Benefits of Corporate Philanthropy and CSR

Corporate philanthropy offers benefits for both the employer and the employee:

1. Including philanthropy in employee goals and providing rewards for employee achievement of those goals can help increase employee morale and motivation, giving workers a stronger sense of purpose and satisfaction;

2. This leads to increased productivity, improved customer relationships, and stronger business loyalty.

3. Healthy corporate communities are also more likely to attract and retain talent. Employees value companies that care about issues relevant to their daily lives, such as education, environment, poverty, homelessness, and even access to health care.

As many of these outcomes are the same goals associated with an employee wellness program, some organizations are combining the two by making CSR and philanthropy part of an overall wellness program. After all, the well-being of a workforce is linked to the well-being of the community and society in which it exists. Philanthropy also provides a connection to corporate values that employees seek and is key to happiness.

According to Mark Horoszowski, CEO of MovingWorlds, “If the social, health, and environmental crises of this past year are not enough to compel business leaders, then leaders need to hear this: You need a social impact strategy not just to do some good, but to remain relevant and competitive.”

Philanthropy and CSR as Part of an Employee Wellness Program

Comprehensive employee wellness programs have long included wellness challenges that give back to the community as part of an overall health and wellness initiative. These can include fundraising walks or runs for charity, employee volunteering days, and charity events for team-building activities.

“Giving back” and volunteering are known to improve mental health. Philanthropy could be an effective part of an employee mental health or stress reduction program. Research from the Cleveland Clinic suggests that “volunteering is great for your mental health. It has been shown to decrease stress levels, depression, anxiety and boost your overall health and satisfaction with life.”

Wellness Challenges for Charity

Fundraising initiatives can be an engaging way to build morale, encourage physical activity, and exercise the values the organization supports. One way to accomplish this is through walking challenges that pit teams of employees against each other, with the winning team choosing a charity to donate to. Or, for less competitive populations, the total of all steps logged during a steps challenge can be tallied up and converted to a contribution toward a charity related to the company’s core values.

Walking challenges that involve charitable giving are a fun way to boost corporate philanthropic efforts. These types of challenges have existed in wellness programs for years and can be easy to organize. Wellness programs that support personally meaningful values have a higher likelihood of engagement and completion.

Assess Current CSR Efforts

The first step in creating or improving CSR programs is to understand what is currently offered. Start by auditing your organization’s current philanthropic efforts. Most often, the benefits of CSR are not measured in impact outcomes or dollar amounts; rather, through the boosted perception of the organization, better community relations, improved worker experience and employee well-being, and more, including the benefits listed above.

Define Goals

The most effective goals will be relevant and personally meaningful to employees. Let them choose what goals they want to achieve. When workers have a sense of ownership in charitable activities, they’re much more likely to be engaged and excited about the work. And, hearing about a volunteering opportunity, for example, from a work friend is much more interesting than getting a company-wide email from human resources. A company-wide survey or suggestions and voting could be helpful in choosing a cause.

Determining Appropriate Allocation of Resources

When deciding how to allocate money or other resources to philanthropic causes, leaders should carefully consider the philanthropic effort's overall goals and which organizations can use the donations optimally. To ensure efficacy and return on investment, and in order to make sure money or resources are being used effectively, leaders should have metrics in place to track their progress and the progress of their philanthropic partners. Having clearly defined goals can help make these easier to track.

Businesses have long embraced corporate philanthropy by giving back to their communities and the world. This trend has continued growing in the face of increased competition and the vast array of social causes today. As such, it is important for organizations to assess the effectiveness of their corporate philanthropy efforts in order to ensure they are as impactful as possible.

Laura Neuffer, M.S., has more than 10 years of experience in corporate wellness. After earning a bachelor’s degree in Public Health and Health Education at Oregon State University, she began working with a corporate wellness company as an account manager, working directly with on-site staff to plan, deliver, and analyze worksite health programs. Laura now works at Carebook Technologies as a Wellness Content Development Coordinator to help create technology and programming that is used in worksite wellness programs around the world. Laura is also a registered yoga instructor and a former university adjunct professor of communications.

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