7 Essential Elements of Successful CSR Initiatives
Even if you aren’t involved in the nonprofit sphere, your business or corporation has the power to give back to your community and improve the quality of life of your customers and the places they care about. You can directly impact social change with corporate philanthropy.
Corporate social responsibility (CSR) is the practice of giving back to social causes and charitable organizations through your business and encompasses just about any charitable activities that companies can engage in.
Here are some essential elements that will contribute to better CSR impact:
Connections to nonprofits
Alignment with company values
CSR goals and expectations
A CSR team or coordinator
Open communication channels
Company-wide participation
KPI reporting
CSR is based on the concept that for-profit corporations have a responsibility to positively contribute to the communities in which their customers live, more than simply making money. Many companies make charitable contributions; an estimated 90% of Fortune 500 companies currently engage in CSR practices, which is up from 20% a decade ago. If this statistic excites you, you should certainly consider starting or evaluating your own CSR practices. Let’s explore ways to grow a company’s social footprint and build connections in the community.
The Benefits of CSR
Before creating your CSR campaign, it’s good to have a thorough understanding of why your company wants to initiate these programs, which will help with deciding on which to do.
CSR programs are usually mutually beneficial for both your business and your nonprofit partner. With CSR initiatives, a company can experience a variety of benefits, including:
Tax deductions. In order to incentivize charitable activity, the IRS makes it possible for business donations to nonprofits and exempt organizations to be eligible for tax deductions. According to DonationMatch’s guide to tax-deductible in-kind donations, this can even apply to in-kind gifts and sponsorships, so you have the flexibility to customize your commitment.
Community-building. By investing in community programs, your business can make valuable connections with local nonprofits. This opens the door for future engagements and collaborations with these organizations, which can spread your marketing reach further.
Cause marketing. Your business’ reputation can get a reputation boost by being visibly associated with a beloved cause. Plus, over 70% of customers are motivated to purchase from socially-minded companies that engage in charitable activities. Your company’s good work may earn you more business, especially from your nonprofit partners’ supporters.
Personal fulfillment. Simply put, with CSR you have the opportunity to make a real difference in the world. Working directly with a nonprofit gives you the tools and connections you need to change lives. Plus, studies show that there are tangible health benefits related to charitable activities, such as decreased stress levels. So, don’t be afraid to roll up your sleeves for the good of your community!
These are only a few of the potential advantages your company can earn from charitable engagements.
7 Essentials for CSR Success
A successful CSR initiative requires teamwork, thoughtful planning, and dedicated research. To help your business optimize its CSR initiative, let’s explore seven essentials for success.
1. Connections to nonprofits
Your CSR program’s value depends largely on your alignment and commitment with the nonprofits you’re supporting. You can make a one-time donation to a nonprofit, but your CSR program will increase in worth as your relationship with organizations deepen and your programs become more valuable over time. Just as with all relationships, it pays to invest time and effort into getting to know one another, figuring out where each can help the other, and building quality connections with the nonprofits you support.
If you’re new to CSR and would like to explore many different organizations, consider investing in a corporate giving platform. A corporate giving platform eliminates this infamous fundraising challenge: finding the right partner. Platforms can make introductions between nonprofits and businesses looking to establish partnerships. Algorithms often match partners based on their target audiences, goals, and focus areas. This type of software is great for getting started in the CSR space as well as when wanting to diversify and can lead to long-lasting new partnerships
2. Alignment with company values
The last thing your business should do is blindly throw money at a cause that doesn’t align with your values. Take your time to do research and be strategic with your choice of organizations and the messaging surrounding your efforts to emphasize the alignment between a selected organization’s mission and your own. A link between your company’s mission and values and your partner’s mission and vision will add authenticity to the campaign.
3. CSR goals and expectations
Once you’ve found your nonprofit partner, it’s time to plan your engagement. While discussing the terms of your agreement, be sure that you have expectations set from the outset, such as:
Available resources of both parties to support the campaign
The type of donation(s) you’ll be making and how the amount is determined
The timeline of the engagement
Key tasks and frequency
How decisions will be made
Specific goals for the engagement and how success will be determined
Ensuring that these details are discussed and decided beforehand is critical for the success of the engagement and maintaining a good relationship with your partner.
4. A CSR team or coordinator
No matter the size of your business, your CSR engagement shouldn’t be an afterthought compared to the rest of your activities. It requires thoughtful planning and maintenance from both sides of the partnership. Therefore, having a team member specifically in charge of social engagements ensures that the partnership receives the care and attention it deserves.
5. Open communication channels
A CSR campaign has many more stakeholders than just you and your nonprofit partner. In order to satisfy everyone involved, keeping communication channels open with all stakeholders is a must.
Your business has a responsibility to maintain transparent public-facing communication as well. And with respect to cause marketing and donations earned as a portion of sales, state regulations may dictate what must be shared and/or made available for public audit. Most nonprofits that are public charities have to disclose how funds are earned and spent. Transparency and honesty are key throughout all stages of the process to keep your campaign running smoothly.
6. Company-wide participation
Your CSR initiative shouldn’t be limited to just your business’ leadership circle. There are many ways to encourage widespread involvement from all of your employees to amplify your campaign’s positive impact internally as well. Here are some ways to promote universal support at your company:
Adopt a matching gifts program. A matching gifts program is a way to reward your employees for their charitable activities. Your company can pledge to match or even multiply your employees’ donations to your nonprofit partner. According to 360MatchPro’s matching gift statistics, 84% of surveyed donors say they’re more likely to donate if a match is offered. Capitalize on this sentiment by matching your employees’ gifts to ensure larger gifts.
Offer volunteer grants. One of the most valuable resources you can donate is time. You can motivate your employees to volunteer for your nonprofit partner by offering paid time off to volunteer. This will increase the likelihood that your staff will participate as they won’t have to worry about organizing volunteering on their own time.
Company volunteer days. Take volunteer time off a step further by organizing volunteer days when employees all volunteer at the same time. This can boost company morale and build teamwork while helping out your nonprofit partner.
Chances are, your employees spend a lot of their time thinking about work. Giving them opportunities to engage in charitable activities through your company can provide convenient ways to give back, motivating them to feel good about their employer and give back to your nonprofit partner.
7. KPI reporting
When it’s all said and done, you will need to measure the success of your CSR campaign to assess the next steps. Throughout the campaign, it’s a good idea to collect quantitative and qualitative data for key performance indicators (KPIs), such as:
Total amount raised/average donation amount
Number of employees participating
Total time volunteered
Total time spent on project management
Stakeholder satisfaction ratings
Employee satisfaction, before and after
Visibility/impressions/pageviews of campaign websites
Channels utilized, and engagement of each
Amount of sales and/or new customers attributed to the campaign
To collect these metrics, work with your nonprofit partner to coordinate the reporting of information gathered by their customer relationship management (CRM) platform, website, social media channels, etc. Keeping digital records makes reporting easier and helps you stay organized throughout the process.
Piloting a CSR program is undoubtedly a lot of work, but when done right, it can transform your organization’s public image and increase morale among your employees. Ultimately, this process can be made much more manageable by digital tools such as corporate giving platforms and matching gift software. Be willing to invest in these solutions to streamline your campaign management and make a notable difference in your community.
Renee Zau, CEO and Co-Founder of DonationMatch
Renee Zau, CEO and Co-Founder of DonationMatch
Renee is the CEO and Co-Founder of DonationMatch, a turnkey platform that brings vetted companies and nonprofits together so products and services can be donated more efficiently. DonationMatch was created as a result of Renee's direct experience as both a silent auction chair and marketer, which inspired her to create a streamlined platform for companies to provide in-kind donations to the right event audiences.
Renee holds a B.S. in Bioengineering from UCSD, is a graduate of the Founder Institute accelerator program, and has been awarded NAWBO San Diego’s Trailblazer Award and Woman Business Owner of the Year. She believes in win-win collaboration as a tool for success in both business and life.
Renee Zau, CEO and Co-Founder of DonationMatch
