Business philanthropy (also called community involvement) is becoming more widely recognized as an essential component of business strategy for companies of all sizes – not just the Fortune 500.  Americans’ expectations of companies are at an all-time high. Supporting causes is no longer a “nice to do,” it is a “have to do.” There has been a major shift in the value equation: good business used to be primarily about providing quality products/services at a fair value. However, this is no longer sufficient for you to be truly competitive in today’s marketplace.  Your company must develop deep and meaningful emotional connections with your stakeholders by taking a stand on issues that are relevant to both your business and target audiences.  Sharing your resources including time, expertise, products/services, dollars, and networks is one way to be a “good business citizen” and show your commitment to being part of the solution to issues of our time.

In addition to the heartfelt, intrinsic rewards you feel from giving back and making a difference, there are also many business benefits available to any philanthropic company that engages with communities in authentic, meaningful, and strategic ways.  Especially during difficult economic times such as these, the need for doing “double duty” with your scarce resources has never been greater.  You need to be able to “do good” AND “do well.”

My free report offers selected research findings to show you the business case for strategic philanthropy and to provide food for thought to help you strengthen your company’s community involvement efforts moving forward.

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Strategic Partnerships with Businesses

Community involvement is one of the five essential components of business social responsibility.  Community involvement (CI) refers to the myriad ways businesses can draw upon their unique expertise, resources, and connections to actively engage with community organizations to address local and global issues.  Most commonly, companies provide contributions of cash, in-kind, and people to support the work of nonprofit organizations.  However, more and more companies are now engaging with nonprofits through commerce. 

To be most effective, community involvement needs to be authentic, strategic and linked to a company’s specific business model, mission, and needs.  Community involvement initiatives, while providing benefit to a nonprofit, also need to be designed to help the company address such issues as reputation/visibility, customers, employees, and investors.  

There are more than one million nonprofits in the United States today – and all need business support.  Therefore, companies need to be very intentional about the causes and organizations with which they choose to get involved.   There may be some very worthy organizations that are best supported as part of your individual philanthropy but for a variety of reasons may not be an optimal choice from a business perspective.   I am not suggesting businesses should support causes they don’t really care about just to make a buck.  What I am suggesting is that “all win” choices are good.  If you would like your employees to be stronger as a team, choosing to support an organization that really needs volunteers for a project might be a wiser choice than one that only wants a silent auction gift certificate.  

Food for Thought

How have you selected which nonprofits are supported by your company?

What benefits did your support provide for the nonprofit?  For your company?

Stonyfield Farm has the mission to promote healthy food, healthy people, and a healthy planet. And its product, internal business operations, and community involvement programs support these goals. For its philanthropic initiatives, Stonyfield focuses solely on environmental causes. It supports these by 1) using its own best environmental practices, 2) donating to environmental causes, 3) supporting family and organic farming, and 4) educating the public.

This philosophy is an integral par of how Stonyfield does business, and the company has seen three main benefits to it. It has helped gain customer loyalty, decreased the time it takes Stonyfield to introduce and bring to market a new product, and increased media attention. In short, its unique approach to community involvement (such as randomly giving out hundreds of samples) has increased brand awareness.

It supports causes through partnerships with monetary donations, in kind donations, and services. Stonyfield donates 10% of its profits to environmental nonprofits, provides an advertising and education platform on its yogurt covers, has instituted creative recycling programs for its products, and invests in tree planting and renewable energies to offset the emissions from yogurt production. Eligibility for donation from Stonyfield is pretty simple — interested nonprofits must help the environment, show results, and promote Stonyfield somehow.

This last requirement is especially crucial, as president and CE-Yo Gary Hirshberg has found that nonprofits often overlook these business needs. He stresses the need to remain adamant in requiring that your business gets something out of the donation, as this exposure can be a central part of marketing efforts for the company. Hirshberg also stresses the need for these partnerships to be long-term and consistent with company values. Short-term relationships that are not truly grounded in the values and actions of the business will provide neither business not community benefits, and will ultimately backfire. Stonyfield has been patient with its relationships, waiting years until they are fully developed and continuing dialogue with partners during conflicts.

On top of partnering with nonprofits, Stonyfield also helps its farmers. It does this by supporting family and organic farmers, and helps farmers with the financially daunting task of switching to organic. Over 80% of its products are certified organic, in part due to these close relationships with farmers. The company is in fact working to double the number of organic family farmers in the country through increased sales and awareness.

By Louise Doyle Based on interview with Gary Hirshberg, President and CEO of Stonyfield Farm, conducted by Susan Hyatt.

More information on Stonyfield Farm can be found at: http://www.stonyfield.com/