Doing Good vs. Doing Better

How to create a successful corporate social responsibility program
- written by Jim Veenbaas for Alberta Venture

loria Stewart of Touchworks Communications has a thriving business that earns a healthy profit, yet the Calgary entrepreneur is more likely to boast about the company’s values and community involvement than any financial performance.

Stewart is among a growing group of business owners who are adopting a strict ethical standard that places as much emphasis on social and environmental performance as it does financial performance. Her values seep into every aspect of her business and guides the way she runs the company. That means giving her employees one paid day off each month to volunteer for the community group of their choice, donating 1% of profits to charity and actively supporting a number of worthwhile causes.

“I’m proud that my business contributes something to the community. I don’t measure success by profits alone,” says Stewart from her Calgary office. “Giving back to the community is obviously the right thing to do, but it has tangible benefits as well. It helps me attract the best and brightest staff and I think it brings me more business in the long run.”

Stewart is not alone in that assessment. Companies across the globe are adopting the mantra of corporate social responsibility (CSR) by operating in an economically, socially and environmentally sustainable way. “Companies that embrace CSR look at their business strategy through the filter of ethics, society and the environment. These businesses examine their organization, their values, principles, what they stand for and establish sustainable policies and principles to reflect that,” says Sheila Carruthers, who heads up CSR Strategies, a private consulting firm in Calgary.

The CSR movement has its roots in traditional philanthropy, but goes a step further by integrating responsible and ethical behaviour into all business decisions. Businesses establish a comprehensive and sustainable set of policies, practices and programs that maximize their positive impact on society and the environment, while providing a competitive return to investors. They are typically involved in many long-term community programs and causes and often spearhead specific projects –
donating money, manpower, equipment and expertise to make them successful. For their efforts, they expect a return on their investment, whether it is increased community support, improved public relations or an edge when it comes to hiring new staff.

“It’s not such a philanthropic effort – the attitude that we’ve made some money, it’s been a good year, so we’re going to give back. CSR is hard-wired into the DNA of a company, which makes it so much more sustainable,” says Adine Mess, president of Canadian Business for Social Responsibility, one of the largest CSR consulting agencies in the country. “There have to be benefits for business. Otherwise, it’s not sustainable. Smart business people are embracing CSR in this way. How can we do more good things and how can we make this good for the company?”
 
Many corporations now hire or appoint existing senior executives to head up their CSR efforts. They publish externally audited annual CSR reports, establish ethical, environmental and often charitable benchmarks and measure their success at reaching those goals. That kind of commitment, however, is beyond the scope of most small businesses. Stewart, with her staff of five employees at Touchworks Communications, strongly supports CSR ideals, but she can’t afford the formal processes and reporting.

What she can do is act in a way that respects human rights, the community and the environment, while focusing her efforts on carefully selected community investment projects. “We want to look at something that will be more sustainable. We will sit down together as a staff and discuss what is reasonable for us to do, what we care about, what is manageable and where we can best put our talents to work,” explains Stewart.

That may be the best approach for small businesses. Don’t start with a full-scale CSR campaign. Focus initial efforts on a well planned, sustainable community investment project that builds experience. A successful project could be the stepping stone to a more extensive CSR campaign. “Small businesses have their ears and eyes to the ground. They can be very responsive and they understand local community issues in a way that a senior executive in a corporate head office tower can never,” explains Mess.
“Small businesses are often headed up by the owner and founder of the company, who is typically more of a risk-taker. A CEO of a much larger company is typically there to produce results and tends to avoid risk. If small business owners are interested in a project, and see the value and understand the opportunity, they will embrace this much more quickly.”

Here’s some simple steps to help get started with a project that not only benefits the community but business as well.

Step 1: Engage your employees

Start the effort by sitting down with staff members and discussing the broad strokes of getting involved with a community investment project, the benefits to the community and the business. Input from employees is critical and they must play an active role in the project. There’s a variety of different ways to solicit staff input, possibly through surveys or by setting up an employee committee to spearhead the project.

“Put the time in up front, get your employees around the table, give them a chance to think about the kinds of things they would like to do in the community. A lot of employees can build their skills by doing these types of things. Getting the employees to take charge is a great way to build morale,” says Jocelyn Daw, vice-president of marketing and social engagement for Imagine Canada, a national not-for-profit group that promotes public and corporate giving, volunteering and support to the community.

“Many employees don’t want to work for a company that is strictly focused on making money. They want to work for a company that is involved in the community. There’s no question it improves loyalty and morale, leads to greater job satisfaction and greater retention, which at the end of the day translates into better financial performance.”

Step 2: Select your cause

Ideally, the project should have strategic value for the business to ensure it becomes sustainable and integrated into a company’s operations. Supporting a literacy program, for instance, can benefit a variety of businesses searching for new employees. Restaurants should consider donating leftover food or meals to needy people.

“There’s so many incredible things community groups are doing and they need help. You need to look at it strategically because there are so many non-profits out there. Choose an area that not only helps the non-profit but benefits your business as well. Think about a project your staff are interested in,” says Daw.

Step 3: Find partners

Once you have selected a cause or project, and have determined who will lead the effort within the company, select a not-for-profit group to work with. Representatives of the not-for-profit should meet with staff members to discuss specific projects and what the business can do to help in a meaningful way.

“There has to be some dialogue, there needs to be some research, whether that’s meeting face to face or conducting some actual research,” says Carruthers. “A true partnership is well balanced between the stakeholders. If the relationship is just about money, then it’s not a true partnership.”

Step 4: Develop a plan

Consult with your partner to determine what type of support you can give that goes beyond financial donations. Establish specific goals and objectives for the project, a marketing plan if one is needed, and create a detailed blueprint for achieving goals.
“Businesses can bring so much to the table. What form that involvement takes is really a reflection of what the cause or organization needs, and the specialized skills your business and employees can bring to the table,” says Daw. “There are lots of different ways you can get involved. As you’re meeting with the non-profit, you figure out the best way to get involved. Really it’s just getting out there and doing it.”

Step 5: Keep communicating with employees

To maintain the campaign’s momentum and keep employees excited, communication must be continuous and effective. Staff members working on the project should become cheerleaders as well, promoting the project with other employees and encouraging their support. This will boost staff morale and create pride in the company.

“Employees are a critical, competitive advantage for any business. Attracting, motivating and retaining the best staff is increasingly becoming a major challenge in Alberta and these types of projects can be a real advantage,” says Daw.

Step 6: Analyze the results

Study the results of your project and determine if the goals and objectives have been met. By establishing benchmarks early in the process, it will be much easier to determine the success of the project. For example, if you’re supporting a literacy program, set a target for the number of program graduates. If you are giving staff paid time to work with a charity, gauge whether this is more effective than donating the equivalent cash cost to the organization.

“Determine what is working and what isn’t. It’s inevitable that some things won’t work and this will help you make adjustments to improve the effectiveness of the project,” says Daw.

Step 7: Celebrate success

Don’t be afraid to toot your own horn and share the success with everyone in the community. Although most businesses do not get involved with a project for the glory, this step should not be ignored. It shows others in the community what can be done and it boosts the morale of your staff.

“Some people don’t want to tell anyone what they are doing. They do it because it’s the right the thing to do. That is absolutely honourable, but if no one knows about it, no one is able to learn from what you’re doing and do it themselves,” says Carruthers.

Although a successful project has tremendous benefits for the community and the business, a true CSR campaign has a formal structure that filters through to every level of business and is reflected in all its actions. Small business owners like Stewart can’t sit down and map out a comprehensive CSR campaign the way a big company can, but they can personally commit to the spirit of ethical and responsible behaviour and champion many community projects.

In fact, Stewart is the chair of Good for Business, a coalition of Calgary businesses and volunteer groups created in 2005 and linked together by a common belief in community betterment and social responsibility. “It’s surprising how many businesses are out there doing things. These are younger entrepreneurs who are very committed to their values and want to make a difference,” says Stewart.

“A lot of it is under the radar and a lot of it goes unreported. It reminds me a lot of the ’60s where there was such a passion to change the world and that’s happening again. It’s really a new movement of civic engagement and it will be interesting to see how it evolves and what kind of projects we take on collectively.”

- see the article on the Alberta Venture website

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