Why My Advice For Corporate Social Responsibility Is Different Than Others

A resource for corporations & other businesses

that want to make a commitment to social responsibility
by Jayne Cravens
via coyotecommunications.com & coyoteboard.com (same web site)

Advice for Corporate Social Responsibility:

My advice is different. Here's why it matters.

This advice regarding corporate social responsibility (CSR) - financial donations, in-kind donations, employee volunteering or taking on community roles as a representative of a company, such as serving on an advisory board at a nonprofit or government group - is different from most, and maybe all, of the other advice you may have been reading or hearing.

My advice is meant to be provocative. It's meant to be disruptive. Because I believe that CSR / corporate philanthropy is long overdue for some serious disruption. I'm sharing information and approaches and complaints that so many nonprofit, NGO and public school staff want to say to corporations and foundations, but they've been too afraid to - but I've been listening oh-so-carefully.

The old way - and, sadly, the current way - of thinking about corporate philanthropy, of businesses making donations of time and money to causes and communities, is based on either garnering positive public relations for the company - perhaps just to ease tensions over tearing down a historic site to build a parking lot - or the belief that businesses know better than nonprofits and should, therefore, use their financial gifts to push nonprofits, even public schools, into the directions businesses feel are best. It's also steeped in the belief that the for-profit world is highly-skilled and deeply knowledgeable while the nonprofit and mission-based world is run by amateurs with no areas of expertise.

Every business, whether a tech-savvy start up, a small storefront or a large corporation, is a citizen of a community: that company's employees and customers live and work somewhere, and how the employees do their work, how they travel to and for work, and how that work is produced or services are provided impacts neighborhoods, people, cultures and the environment, positively and negatively. No business, no corporation, not even a consultant working at home, is an island that has no impact on other places or people, near or far.

That impact comes with responsibilities, costs and consequences - financial costs, environmental costs and cultural impacts. Maybe farmland becomes industrial lands and housing, small towns become bedroom communities, the land where a popular bowling alley stands becomes so valuable that the prosperous business owners sell and retire - and the community loses a beloved gathering place.

Many of the financial costs that communities, neighborhoods and individuals have to shoulder that result from corporate/business prosperity are not covered by taxes - especially in this day and age of massive tax breaks for corporations and other for-profit companies. Many people are struggling to address those additional costs without any additional funding, while corporations and other businesses experience record profits and larger-than-ever tax breaks.

This section of my web site provides an index of resources meant to help for-profit businesses, large and small, engage in CSR in a way that really does benefit the causes, communities or nonprofits. It was created in response to the CSR advice that is focused more on public relations benefits for companies than on actual and positive impacts in communities, as well as in response to the fact that record profits corporations and other for-profit businesses are enjoying are not coming with increased donations to nonprofits, public schools and other mission-based groups.

Take the case of Silicon Valley: the San Francisco Bay Area has rapidly become the richest region in the country. It's a place where $100,000 Teslas are commonplace, unfiltered "raw water" goes for $37 a jug, and companies pay mega bucks for parties for employees, featuring high-profile comedians and other celebrities. Yet Sacred Heart Community Service, a San Jose nonprofit that helps low-income families with food, clothing, heating bills, and other services, actually received less in individual donations from the community in 2017 than it did the previous year. "We’re still not sure what it could be attributed to," Jill Mitsch, the funds development manager at Sacred Heart, said in this story about corporate profits and philanthropy in Silicon Valley. It’s not the only nonprofit trying to keep donations up—the United Way of Silicon Valley folded in 2016 amidst stagnant contributions. Here's more in this story.

Record homelessness, record numbers of people needing health care, more and more polarization in society, more and more social isolation, less and less feelings of community - and, yet, Silicon Valley is holding on tightly to its wealth and not investing in the nonprofits that cannot keep up with demand. And this is happening elsewhere: in Los Angeles, in Portland, Oregon, in Seattle, Washington, and all over the USA.

In June 2019, Metro United Way, a major funding source for human services in the Jefferson County, Kentucky metropolitan area, announced it was immediately cutting allocations to nonprofit groups by up to 50% — dealing another blow to those already expecting cuts from city government Kentucky. The cuts affect nearly 100 agencies throughout the area, ranging from programs for disadvantaged children such as Big Brothers Big Sisters and Boys & Girls Clubs to agencies that help individuals who are homeless, disabled or who are experiencing domestic violence, mental illness or addiction. They also affect specialized programs such as the Louisville Visually Impaired Preschool Program, which helps blind and visually impaired children throughout Kentucky and Indiana. Kentucky Nonprofit Network CEO Danielle Clore said on a Facebook page post:

Time and again, #nonprofits are assured that private philanthropy will increase when tax breaks “put more money in people’s pockets.” And we are assured private philanthropy will pick up the slack when local, state and federal governments cut funding for basic human services as a result of less revenue (note that many of the services, government is mandated to provide).

The thinking is flawed and it’s dangerous, especially for our most vulnerable citizens. If human needs aren’t your thing, know that there’s an economic impact - cuts in funding and declines in donations mean jobs are lost. The #nonprofit sector employs 1 in 11 tax-paying, grocery shopping, goods and services buying Kentuckians.

This situation isn’t unique to Louisville- it’s happening in communities large and small across this Commonwealth. And yet another blow awaits some organizations if their pension issues aren’t addressed by June 30.

We simply cannot cut our way to prosperity. And we most certainly cannot do it on the backs of #nonprofits.

According to this Jun. 7, 2019 article from Business Insider, the top 1% of earners are holding record amounts of money: $303.9 billion to be exact. Large companies are overwhelmingly and uniformly choosing not to reinvest much of it into their businesses nor in the community, and avoiding taxes at record levels; instead, they're hoarding cash and buying back stock. Companies could pay their workers more, but "that would be terrible for the stock market," says Neil Shearing, chief economist at Capital Economics — half-jokingly. money that would previously have been split between businesses, workers and the government for projects like schools, health care and infrastructure is instead sitting in corporate accounts earning little to no return.

The backlash against corporations has already started: early in 2019, after much publicity and fanfare and a nation-wide search that many felt was disingenuous, Amazon pulled out of its plans for massive new offices in Queens, New York, when the local community and others balked at the tax breaks and grants worth at least $2.8 billion for a company that is one of the world's richest and already has much of its online sales exempt from taxes, doubted the estimated 25,000 jobs Amazon said it would bring, expressed fears of rising rents pushing out long-term residents and talked about images of high-paid executives buzzing over nearby low-income housing projects on their way to company's helipad. In short, the deal became a symbol of corporate welfare.

And consider this: more than 200 charities from across the United Kingdom took part in in-depth surveys and interviews about how they are working with businesses and what could make these relationships even better. The report revealed that 6 in 10 charities believe that businesses put their own needs first in relationships and 76% say that businesses do not have a good understanding of what it takes for charities to manage employee volunteers. The report, which was released in March 2020, also had these takeaways for businesses:

The importance of engaging with smaller, local charities (not just the big players) and doing so in a way that doesn’t stretch their limited resources further;
How to be driven by charities’ needs (not employee preferences) when designing volunteering programmes, whether these take place online or in person; and
The largely untapped potential for charities to provide insight into how companies can better serve those who are vulnerable in society.

In addition to CSR being something corporations and other businesses should look into for ethical reasons, it also is worth investing time and money in because it will help those companies attract and retain talent: A Spherion study in 2018 found that 78% of the employees surveyed consider their connection to a company’s culture and values during their job searches and 65 percent say that a company's online reputation is equally important as the offer in determining whether they will accept a job. How does your CSR activities reflect and promote your company's culture, values and reputation?

My approach to CSR is different than most other consultants: I strongly encourage a spirit of respect and collaboration between for-profit businesses and the nonprofits and communities they want to support. That means collaborative decision-making and goal setting, rather than a business telling a nonprofit, "Here's what we're going to do for you." It means listening to nonprofits, regularly, as they try to address the communities most critical needs, and hearing both their ideas for their solutions and their funding needs. It means corporations and other businesses stepping up and fulfilling their ongoing obligations as citizens, supporting not just social service organizations, but the arts, environmental groups, and other organizations that build our connection with each other. It also means nonprofits, including schools, feeling comfortable telling a business, "Thank you, but that's not something that fits with our mission. Here are some other ideas for you..." The end result is CSR that actually makes a difference and goes far beyond charity.

My advice regarding CSR comes from experiences both as a the corporate philanthropy representative at a Fortune 500 company and as the nonprofit liaison with various corporate funders and partners, in the USA and abroad.

If you want to see how my advice differs from others, see this list of CSR Resources From Various Initiatives.

These resources are in development. To know when new resources are launched, follow me on social media:

My CSR Resources

Designing and launching CSR activities
If your company is launching a CSR program, including financial donations, employee volunteering or in-kind donations, or your company wants to think more strategically about the CSR activities it's already undertaking, this is where you start.
What Should Be On A Company Web Site Re: Corporate Social Responsibility (CSR)
Members of the public, members of the press, politicians, activists, mission-based organizations (nonprofits, schools, charities, etc.) and even your own employees will want to be able to access at least summary information about your company's corporate social responsibility activities (CSR). Your web site needs to cater to the information needs of all of these different groups. Here's what absolutely needs to be on your web site regarding your CSR activities, as well as some additional suggestions beyond the basics.
Employee Volunteering Initiatives: Different Approaches & Keys to Success
Detailed advice for employee volunteering, including specific advice regarding executives on loan, expert staff going on volunteering sabbaticals, and employees serving on boards, group volunteering (everything from Habitat for Humanity builds to hackathons), employees volunteering abroad, virtual volunteering and microvolunteering.
In-kind giving (product and other equipment donations)
Your facilities department may have already been giving away surplus furniture to nonprofits without reporting it to whatever department is in charge of your philanthropic activities. Your marketing department may have bought a table at a special event for the local ballet. Your IT department head may have donated his staff's time for half a day to a nonprofit he cares about. You need to get all of these activities under written policies and appropriately tracked.
Coping With Community Disasters / Emergency Appeals
Before your company starts a clothing drive to help hurricane victims, sending employees into neighborhoods or sending money to the first disaster-aid organization that comes to mind, read this advice.
Advice for Celebrity Philanthropy and Activism
Many celebrities see their fame as an opportunity to help improve people's lives, encourage better treatment of the environment, address an injustice, even to advance legislation, and it's a tradition for celebrities to champion causes and lend their name to help various charitable or activist causes. But many celebrities don't think strategically about the philanthropic and activist activities they might want to undertake. The result of not being strategic may be wasted energy and even negative publicity, despite the best of intentions. And some celebrities are so overwhelmed with requests to contribute in some way to a charitable effort, human rights campaign or environmental cause that they just say no to everything rather than try to screen and evaluate them all. This web page is meant to give celebrities, or their staff members, some very basic resources to help their philanthropy and activist activities be effective, actually make a positive difference and not be completely overwhelming.
Understanding the culture of nonprofits, schools and other mission-based organizations - Coming soon
They are different than the corporate world - and you could learn a lot from them. Understanding and respecting their culture will make your giving more effective.
Stop with the demands for limits on overhead spending - Coming soon
Just like a for-profit business, nonprofits, charities and other mission-based organizations have to pay rent, pay for computers, pay for upgrades to computers, pay for qualified staff with particular skills and more. Your limits on your donations being used for "overhead" are hurting those served by nonprofits. ENOUGH! This page includes better advice on how to ensure your financial contributions are being used efficiently and appropriately.
Effective partnerships with mission-based organizations - Coming soon
Keys to working with nonprofits, charities, NGOs, schools and other mission-driven agencies. This resource will help you regularly, honestly answer the question, "How good of a partner are we?"
Options Regarding Financial Giving - Coming soon
Giving money is more than writing a check whenever you might be moved or whenever someone asks. Setting guidelines for how you will give financial donations, and how much, keeps staff on the same page and will cut down on inappropriate requests.
Responsible & Ethical Business Practices as a Part of CSR - Coming soon
Corporate social responsibility isn't limited to just philanthropy - financial donations, in-kind donations, employee volunteering, etc. It's also about responsible and ethical business practices beyond what is required by law, such as sustainable environmental practices (recycling, responsible waste management, use of energy-efficient lights) and activities that address environmental impact pay equity (women paid the same as men for the same work) inclusive hiring and promotion practices (ensuring women and ethic minorities have access to senior management positions) and more.
Evaluating your CSR approaches & reporting results - Coming soon
How do you know if your philanthropic activities are garnering results, because good public relations? Number of employee volunteer hours says as much as success as number of staff members you have - it's mostly just a number.
Talking about your CSR activities - internally and externally - Coming soon
Guidance for your internal and external communications regarding your CSR activities.

Consider:

The Pitfalls of Having a Program Sponsor
(and suggestions for mission-based organizations on how to avoid them)
For-profit companies, particularly large corporations, often sponsor specific programs at mission-based organizations (non-profit organizations, non-governmental organizations/NGOs, civil society, school, etc.), providing funding, donated staff time, and in-kind equipment and services to help launch and maintain a program. In most ways, this is a blessing for the mission-based organization. But there are often hidden costs that lead to frustrations for everyone involved. This is a list of some of those hidden costs, and ways they can be avoided.

I'm Jayne Cravens. I'm a consultant regarding communications and community engagement, primarily for nonprofits, NGOs and other mission-based organizations. I have many years of experience working with corporations, governments, foundations and other donors, and for two years, I ran a corporate philanthropy program at a Fortune 500 company. I created these corporate social responsibility (CSR) pages on my web site out of frustration of the continuing disconnect between what mission-based organizations, including schools, are trying to accomplish and what corporations and other businesses want to fund and volunteer for. Most advice for CSR comes from people in the for-profit world who have never worked for a nonprofit, charity, public school, etc., and often has a paternal approach to working with mission-based organizations. My approach is different: I am urging the business world to be partners, not dictators, when it comes to the third sector.

Here are the services I can provide regarding CSR.

I have a range of other consulting services as well.