Matthew Beecher and Drs. Ted Stoddard, Marriott School of Management; David Whetten, The Center for The Study of Values in Organizations
Business social responsibility programs face challenges and forces that were not known in recent years. Because of greater pressures to support diminishing government responsibilities by approaching more social problems, businesses now need to establish, define, and strengthen corporate-giving programs. Other challenges that are shaping the evolution of corporate philanthropy include an expanding definition of community stakeholders, problems with evaluation and assessment of corporate social activities, organizational downsizing and cost cutting, and changes in public opinion.
This research examined these shaping forces as well as what emerging trends are successful in dealing with these challenges. The research was conducted by acquiring and analyzing data from many national foundations and organizations that study corporate-giving strategies. The Conference Board, a corporate-giving research and reporting organization based in New York City, provided extensive data on current corporate-philanthropy trends and practices. Many other reports were obtained from similar organizations including the Points of Light Foundation.
Direct information was received from various large organizations that have shown leadership in corporate-giving practices. Current, relevant data was collected from Microsoft, Ameritech, IBM, Marriott International, Intel, Dayton-Hudson Corporation, and others. This information was obtained in many forms including annual reports, corporate-giving reports, videos, Internet sites, and personal interviews.
Some practices that seem to be bringing greater strength to existing programs include volunteer activities, organizational partnerships, and the strategic management of social responsibility initiatives. Each of these methods was analyzed in the research. This research was summarized and reported as part of the student’s Honors Thesis for graduation with University Honors, which occurred April 1998. The results were reported during a thesis defense, and the thesis was published and bound for future reference. Additionally, the results were presented by the researcher at the Western Regional Honors Council Conference in Albuquerque, New Mexico in April 1998.
Within the thesis and these presentations, advantages and weaknesses were identified and contrasted among different giving methods, suggestions for effective establishment of these methods were offered, and practical examples of successful implementation were given. The observations and recommendations focused on implementing and improving volunteerism, organizational partnerships, and strategic philanthropy. Each of these best practices is presented and briefly explained in the paragraphs that follow.
Volunteer programs are a form of corporate support that is increasing in environments where overall corporate giving programs are decreasing. Volunteer programs not only augment financial donations, but they also provide benefits to the company in the forms of increased workforce capabilities, company loyalty, and worker unity. Volunteer programs should be focused around issues that are 18 major community concerns. Managers can influence volunteers by the way they advertise opportunities, provide incentives, and recognize participants. Organizational partnership in social causes may occur within one organization, among two or more corporations, or among nonprofit and other community-service organizations. These partnerships increase results by ensuring diversity, pooling resources, and leveraging the power of previously established community-service organizations. Care must be taken to invest in long-term partnerships that will advance both business goals and philanthropic goals.
Strategic philanthropy is an emerging best practice that is characterized by efficient, enduring, forward-planning giving programs. Strategic philanthropy combines social-cause objectives with business profitability objectives. Linking social-support efforts to a specific competency within the business is an effective way to meet community needs. Other ways to strategically design citizenship programs include structuring a focused theme of giving, creating a more rigorous public-relations campaign that enhances the image of the business, and targeting potential and current customers with social solutions.
As these emerging practices are refined and implemented, businesses will be able to have a remarkable impact on the societies in which they operate, in spite of funding and resource cuts to social programs. Business social responsibility programs must leverage the power of their social presence if they are to survive the transition to the twenty-first century.
The grant received through the ORCA program greatly supported the completion of this project. As students are encouraged to pursue research and creative activities, these students are enriched by the experience in ways that cannot be duplicated by typical classroom-learning techniques. This grant, and the opportunities that were enabled by it, has provided a solid foundation of research and writing that will increase the student’s contribution to education and society for many years to come. The researcher expresses gratitude for the award of the grant and for the doors of opportunities that were opened as a result.