According to the just-released 2020 Porter Novelli Executive Purpose Study, more than 80 percent of large company executives believe for-profit companies have a responsibility to play a role in resolving social issues. The study also found that most executives believe a social impact strategy improves customer loyalty (93 percent) and helps motivate a buying decision (91 percent).

How should you approach advising your corporate clients about the structure for their social impact programs, especially now that those programs play an increasingly important role in philanthropy?

Encourage corporate clients to consider the component parts of a well-rounded corporate social responsibility program, such as:

Mission: Embrace and follow an overarching mission statement that is consistent with the purpose of the business and integrated into the company’s objectives for success. This can reinforce the company’s values in the community. 

Structure: Typically, a corporate foundation serves as the hub — or at least a key part of — the overall corporate social responsibility program. Companies are wise to evaluate what type of corporate foundation structure would be most effective. For example, a corporate donor-advised fund at the Community Foundation can be established as a tax-advantageous “ABC Corporation Foundation.” This allows the company and its team to stay in the forefront as the face of the corporate foundation while utilizing the behind-the-scenes capabilities of the Community Foundation to process grants, handle accounting, receive and process gift transactions, and maintain records. 

Alignment: A strong program includes a mechanism for ongoing cause identification and research to stay current with employee, customer, and community trends. It also helps when a company can make a case for why corporate causes are aligned with the business’s purpose and the needs of the overall population of its industry or marketplace. 

Engagement: Employee engagement and participation in a company’s community relations and investment program will drive employee loyalty and retention and, in turn, consumer brand engagement. Companies should harness the enthusiasm of employee-led volunteer and fundraising activities. 

Communications & Sales: Celebrate the company’s program in a manner that is integrated with, and complementary to, the company’s overall brand image and public relations strategies. This occurs in the media, through events, on the website, in printed materials, and social media. 

Evaluation & Reporting: Best practices suggest ongoing monitoring of the program results against one or more indicators of success, including employee engagement, employee loyalty, operating efficiency, community impact of money invested, customer perception, and marketplace reputation.  

Contact Amy Francis at 410.280.1102 or email amy@cfaac.org to learn more about CFAAC Corporate Giving options.