Can organizations succeed and be socially committed through charitable initiatives ?
Some people say yes ………… some people say no way!
Just wondering what you guys think. I have found that the answer is not that easy. Normally aspects like location, culture and legal structure (sole proprietorship / corporation) would change the answer drastically so ………
Please let us know what your thoughts are.
Tags: charitable initiatives, Corporate Social Reponsibility
October 17th, 2008 at 9:42 am
Indeed - “why not”
One of the reasons that I was attracted to my new employer was that the company is something of a social enterprise. We have ambitions to set up a charitable foundation and to invest a fixed proportion of our profit each year. As a prospective employee, this was a factor in my decision-making. My previous employer was also highly committed to charitable causes - including the provision of professional services in the UK and overseas. This allowed a number of staff to take part in “pro bono” work. For example, Atkins has been active (through local offices) on the ground, in the aftermath of natural disasters. It is a key factor in why I am so proud to have worked for them (and why I am also very proud to be working for my new company).
I have a feeling that more and more potential employees are including ethical factors, such as this, when choosing the next steps in their careers.
Therefore, I think that a charitable initiative is not only a moral imperative, but makes good business sense when wishing to attract talent to the business.
To follow up Lutz’s observation, it may be the case that shareholder value is actively increased by charitable initiatives. I know that my husband and I have taken into account a number of factors, such as ‘pro bono’ work and other corporate responsibility elements when we have been choosing which shares to invest in. Where likely ROIs have been similar (based on historic performance), these factors have often been the deciding ones.
Let’s face it - the current stock market crisis suggests that, over the longer-term, concentrating just on making money (and bonuses) may not ultimately lead to a very comfortable situation for shareholders after all!
Best wishes,
Emma
October 17th, 2008 at 9:44 am
Sometimes the greatest social impact an organization can have is not manifested through charitable institutions but by influencing the organization subtly (or not subtly in some cases).
If you want to see some GREAT examples of how this is manifesting, check out Tim Sanders’ latest book - “Saving the World at Work”. Tim has written best sellers such as “Love is the Killer App” and “The Likeability Factor”.
He gives powerful, compelling examples in the book as to how people in large organizations can have profound impact on the social obligations of those organizations.
Check out the info here - http://www.timsanders.com/ .
Take care and create a great day.
Harry
http://www.harrytucker.com
http://harrytucker.blogspot.com/
October 20th, 2008 at 9:22 pm
Thanks Emma & Harry !
We all share the same goals and principals
All the best
Edison Reis
http://www.qualityassurancemanagement.com
October 23rd, 2008 at 7:49 am
This sounds great. It is wonderful to see such belief in and enthusiasm for doing good. All the best and good luck with everything!
November 6th, 2008 at 12:58 pm
Yes, as long as they can balance the two.
I would recommend looking into the Newman’s Own model and also Bill and Melinda Gates foundation that is directly attached to Microsoft.
Unfortunately, the recipients most in need of charitable giving, are usually not US-based which makes accessing, applying and qualifying for donations and grants nearly impossible. The process is complicated and lenghty, the requirements unrealistic.
An ease in access and the option to extend the donations to more than a limited circle of pre-qualified local entities must take place.
Nadia Serhani
November 12th, 2008 at 11:37 am
Excellent blog! Interesting article and very informative! I will necessarily subscribe for this blog.
November 19th, 2008 at 10:43 am
There are many known examples of companies that manage to succeed and sustaining a strong social commitment. Although the financial aspect is always important I believe that the key for social commitment will shift from the charitable innitiatives to a personal involvement. The hardship of the current global economy makes contributions or social initiatives an easy target for cost reduction efforts. Most companies downplay the social responsibility towards its own communities while striving for better results - hence eliminating from their budgets expenses associated with such innitiatives. A few companies understand that there is probably more value, a larger return and an enhanced social commitment by dedicating personal time to support the community. Instead of making donations or contributions they promote social innitiatives amongst their own employees, allowing them to provide support to their community using company time. Programs ranging from Habitat for Humanity to the local food banks can be supported by personal innitiatives. Personnel develop a larger commitment to the causes, meanwhile the company can minimize the cost concerns.
Enio Marcello