ADVICE & TIPS
November / December 2008
Why Do Alberta Companies Choose to Have Corporate Social Responsibility Programs?
By Scott Stoppler, President
Executrade
What is Corporate Social Responsibility?
Corporate Social Responsibility (CSR) is not a new phenomenon. Companies and organizations have always donated time and money and built foundations to support the communities surrounding them. But never before has CSR been so much a part of the company structure. In the last five to ten years, the demographic of donors has also changed. Raising money and donating money to community causes is no longer something exclusive to the wealthy. Companies of all shapes and sizes are getting involved. CSR has internal benefits for recruitment and retaining employees, as well as external benefits that help enhance company brand and identity. So, what are some of the unique ways companies, small, medium, and large, are fulfilling their CSR goals?
Internal and External Benefits to Adopting a CSR Program
Benefits of adopting a CSR program are numerous and exist internally and externally. CSR builds team morale and internal culture. Employees are engaged differently when they come together to volunteer and make a difference. As a company, you step outside your company walls to join the larger community. This sends a positive message to employees about company purpose, and in some cases enhances the possibilities for employee retention. CSR programs, if left to employees to organize and project manage, can act as a challenge and skill-builder outside of regular job duties. Among younger generations joining the workforce, CSR also helps to build awareness of the communities in their city and their various functions and needs.
Externally, CSR enhances company image and reputation. Alongside the corporate brand, an altruistic identity is developed, creating another level of trust with clients and the public that reaches beyond “quality product” and “customer service.” CSR leads companies to be innovative, forward-thinking, and competitive, and it is possible to gain favourable reactions from clients when they learn of your community support. If used as a marketing tool, CSR can be another reason for clients to bring their business to you.
How Companies Get Involved
Community involvement can be environmentally driven, youth-driven, disease-specific, institution-driven, such as Edmonton’s Stollery Children’s Hospital, or globally driven. You can support an already existing community event with monetary donations or volunteer hours, or create a foundation or event of your own.
Larger companies, such as Molson, have a CSR mandate to help build strong Canadian communities. Molson surveys its employees across Canada to find out how they want to donate company money and time. In 2007, their employees volunteered 4000 hours of company time across the country. One example of their fundraising efforts is Toque Tuesday, where employees sell toques in an effort to “break the cycle of homelessness in Canada.” Syncrude devotes an entire team to organizing large community events, for example, the successful Fashion for Compassion fundraiser held yearly in Edmonton. Mid-size companies, such as ATB (Alberta Treasury Branch), approach CSR from two different angles. The company as a whole donates to the same causes every year, including the Stollery Children’s Hospital and United Way. ATB also supports employee-driven community involvement by monetarily supporting any individual’s desired cause.
For smaller companies with fewer employees, the CSR may be more owner-driven and organized on free time. Eddie’s Men’s Wear, an Edmonton-born company supports Y.E.S.S. (Youth Emergency Shelter Society) and Kid’s Cottage in various capacities, including donating time as board members, as well as organizing fundraisers. Their reasons for choosing these organizations include the fact that they are not widely recognized and, as a result, are underfunded. For Eddie’s owners, they chose to support Y.E.S.S. because it matched their community involvement mandate: to support youths. Also, being a local business, they feel the best way to give back to community is to support it locally.
Things to Consider About CSR
CSR is about creating differences, big and small, in the community at large. Furthermore, the benefits to a company’s internal and external reputation are enormous. If you are thinking about reaching out to the community through CSR, there are a few choices to consider before diving in:
- What type of community support suits you best? There are thousands of ways in which to be socially conscious. E.g., make donations, fundraise, be a sponsor, form a partnership, create a scholarship, volunteer employee time, organize an event
- Do you prefer to make a one-time donation to a different charity each year, or do you prefer to make ongoing donations to the same charity? There are benefits to both. Changing charities each year allows you to spread the wealth and gives your employees a chance to support community causes that are more personal. If you focus on one cause, there is less research and planning each year. The cause may begin to be recognized as something your company is known to support—in this case, being community-minded can have residual value.
- For example, The Edmonton Journal’s “Raise a Reader” supports the Centre for Family Literacy, and literacy programs across Edmonton and area. As well, it supports the Journal’s overall message that it is important to give all people an equal opportunity to learn how to read.
- Will your CSR program be part of your mission statement or corporate brand and identity?
- Define the purpose of your CSR program. Do you want to raise awareness? Be a spokesperson for the cause?
- How much time and people power do you have to devote to a CSR program?
