Business and
Community
Stakeholders
Search the Web
The Foundation Center is a clearinghouse that
publishes the “The National Directory of
Corporate Giving”: www.fdncenter.org
© 2005 by Nelson, a division of Thomson Canada Limited.
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Positive and negative effects of
the business stakeholder
– Community
involvement
– Corporate
philanthropy
– Plant closings
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Reasons for Community
Involvement
1. Business people are efficient problem solvers.
2. Employees gain satisfaction and improved
morale.
3. A positive image facilitates hiring.
4. Business gains prestige and community
acceptance.
5. Social responsibility over government regulation.
6. A company benefits from helping institutions
essential to the continuation of business.
© 2005 by Nelson, a division of Thomson Canada Limited.
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Community Involvement
Encourage Employee Volunteerism
Recognition
through articles,
awards, and
commendations
Executives
who have
board
memberships
Publicity about
volunteer
opportunities
Ongoing
endorsement
of programs
by CEOs
Companysponsored
projects
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Community Involvement
Company Benefits From Employee
Volunteerism
• Indirect community benefits
• Employee benefits
• Bottom-line benefits
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Managing Community
Involvement
Developing Community Action Programs
1. Knowing the
community—The
corporation
should
get involved
in the
communities
it knows.
2. Knowing
the company’s
resources—
Community
involvement
must be costeffective.
3. Selecting
projects—
Programs should
4. Monitoring
affect and
interest those projects—
Management
employees
must run
involved.
community
involvement like
other parts of the
business.
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Giving:
Why Do Companies Give?
The Nondonor: No evidence of charitable giving . . .
The “What’s in it for Us” Donor: Direct interest of company and
employees – strategic / economic
The “Company President Believes in Art Support” Donor:
Interests of senior management – image / reputation
The “We Are a Good Citizen” Donor: Traditional non-profits
supported – less likely to be strategic but reactive
The “We Care” Donor: Nontraditional, proactive choices
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Giving:
Who To Give To?
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Education
Health and human services
Civic and community activities
Culture and the arts
Other organizations
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Giving:
Managing Corporate Philanthropy
Public Purpose Partnerships
(Public Private Partnerships: 3P)
• A for-profit business enters into a
cooperative agreement with a nonprofit for
their mutual advantage
– Reconciles financial and social goals
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Giving:
Managing Corporate Philanthropy
Strategic Philanthropy
• When giving fits the firm’s overall mission,
goals or objectives by:
– Contributing to a firm’s economic success
– Aligning with the firm’s business endeavors
– Home Depot  Habitat for Humanity
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Giving:
Managing Corporate
Philanthropy
Cause-Related Marketing
• Direct link between product or service and
charity: Midas  Project Baby Smart
• Cause branding: Avon  Women
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business Giving:
Global Philanthropy Advantages
•An improved
corporate image
•A boost in market
penetration
•Improved personal
relations
•Improved government
relations
© 2005 by Nelson, a division of Thomson Canada Limited.
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Corporate Volunteerism in
Canada:
An Overview
• Dr. Debra Basil
• Dr. Mary Runte
• University of
Lethbridge, Alberta
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Business and Plant Closings
• What should business do?
– Before deciding to close:
• Propose new ownership
• Explore employee ownership
– After deciding to close:
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Conduct community impact analysis
Provide advance notice
Provide transfer, relocation and outplacement
Act to phase out business gradually
Assist community with replacement industry
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business and Plant Closings
Community Impact
© 2005 by Nelson, a division of Thomson Canada Limited.
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Business and Plant Closings
Factors in Plant Closing Assistance
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Size and impact of closing
Extent of corporate commitment
Length of time firm located in community
The time the firm employed employees
Resources available to provide assistance
Firm’s sense of social responsibility
© 2005 by Nelson, a division of Thomson Canada Limited.
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