Defining and Declaring the Value Proposition

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Employee Engagement Today:

Defining and Declaring the Value Proposition

PANELISTS

Bradley K. Googins, Ph.D.

Associate Professor Organizational Studies.

Former Executive Director Center for Corporate Citizenship Carroll

School of Management at Boston College

Margaret Coady and MODERATOR

Director, Committee Encouraging Corporate Philanthropy

Kathleen Mayglothling

Program Manager, Employee Programs, GE Foundation

© 2012, Committee Encouraging Corporate Philanthropy

Ten years ago, who would have guessed?

Cellular-telephone adoption increase from

738 million in 2000 to over 6 billion today

Warren Buffet and Bill Gates lead the world in philanthropy

Investments in renewable energy technologies overtake investments in fossil fuel technologies

Greenpeace partners with multiple multi-national corporations

SOURCE: United Nations Environment Programme (UNEP), Sustainable Energy Finance Initiative, International

Telecommunication Union (ITU), US Chamber of Commerce, organization website

Unscientific look at changes in corporate giving:

Local, reactive, heartstrings-driven

 Give if asked; “good neighbor” giving

 Give to causes important to senior leaders

 Intentionally NOT strategic or connected to the business for fear of a backlash

Visible, proactive

 See other companies begin to get credit

 Grants are proactive and “make sense”

 Better measurement of inputs

Strategic, aligned, beyond cash

 Accept very few unsolicited grantee proposals

 Giving as a “portfolio” of expectations to manage

 Co-design initiatives with nonprofit partners

 Greater attention to employee engagement

Session Objectives

In a fastchanging environment, let’s examine:

 Trends in employee engagement

 How corporations are defining the value proposition for employee engagement internally and externally

 Pertinent data to help build and define value of employee engagement

 How corporations and their employees identify success in employee engagement

© 2012, Committee Encouraging Corporate Philanthropy

Employee Engagement Today:

Defining and Declaring the Value Proposition

PANELISTS

Bradley K. Googins, Ph.D.

Associate Professor Organizational Studies.

Former Executive Director Center for Corporate Citizenship Carroll

School of Management at Boston College

Margaret Coady and MODERATOR

Director, Committee Encouraging Corporate Philanthropy

Kathleen Mayglothling

Program Manager, Employee Programs, GE Foundation

© 2012, Committee Encouraging Corporate Philanthropy

Employee Engagement

Charities at Work Summit

Bradley Googins PhD

Professor Management and Organization

Former Executive Director Center for

Corporate Citizenship

Boston College

April 2011

Engaging Employees

Top Companies

Typical Companies

Levels of Engagement: LOW and getting LOWER….

Source: Gallup Employee Engagement

Index

What is the meaning of CSR?

Source: Fleishman Hillard/National Consumers League study,

“Rethinking Corporate Social Responsibility”

Corporate Citizenship

US Consumers’ Perspective – What matters most

1. Values and treats employees well and fairly

2. Executives and business practices are ethical, honest, open and transparent

3. Authenticity

4. Goes beyond what is required to provide safe, healthy and reliable products and services

5. Listens to consumer, customer and community input when making business decisions

6. Active and involved in the communities where it does business

Committed to corporate social responsibility, sustainability, economic opportunity, environmental stewardship, etc.

7. Donates or invests its fair share of profits, goods or services to benefit others

Source: Golin Harris Corporate Citizenship Gets Down to Business 2006

Relevance of Corporate Citizenship:

Employees in High versus Low CC

Firms

41

82

Negative View of Firm's CSR

Work

Positive View of Firm's CSR

Work

17

67

21

71

37

75

80 0 20 40 60 100

Sirota Survey Intelligence, 2007

12

The Corporate Handprint

Philip Mirvis & Bradley Googins

Corporate

Footprint

Green--Environment

Reduce/Minimize

Do Less Harm

Reactive

Report

Green is Gold !

Corporate

Handprint

Social & Ecological

Increase/Maximize

Do More Good

Pro-Active

Reach Out

Blue is too— for business & society!

Reducing the Corporate

Footprint is Good, but….

Can’t Your Company do

Better?

PRODUCTS

PLANET

PROSPERITY

PURPOSE

PEOPLE

The Corporate Handprint

Relational Model: Engaging the ‘Whole Person’

Across Identity Spheres

Employee

Engagement

Self-in-Work

Roles

Self-in-

Affinities

Self-in-the-

World

Who am I?

Who am I to become?

Self-in-Life

Roles

Millennial Generation on

Corporate Citizenship

Three of four young people want to work for a company that

“cares about how it impacts and contributes to society.” Nearly

seven-in-ten say that they are aware of their employer’s commitment to social/environmental causes and 65 percent say that their employer’s social/environmental activities make them feel loyal to their company.

(Source: The Cone Millennial Cause Study).

– How many students believe that business should work toward the betterment of society? Over 80 percent of the members (and

66% of nonmembers). How many agree business is currently working for the betterment of society? Some 18 percent of members (and 24% who are not members). Corporate citizenship matters to tomorrow’s business leaders.

(Source: Net Impact)

Employee Engagement Today:

Defining and Declaring the Value Proposition

PANELISTS

Bradley K. Googins, Ph.D.

Associate Professor Organizational Studies.

Former Executive Director Center for Corporate Citizenship Carroll

School of Management at Boston College

Margaret Coady and MODERATOR

Director, Committee Encouraging Corporate Philanthropy

Kathleen Mayglothling

Program Manager, Employee Programs, GE Foundation

© 2012, Committee Encouraging Corporate Philanthropy

Introduction to CECP

Who We Are

 Nonprofit organization founded in 1999.

 The only international forum of business CEOs and chairpersons with an agenda exclusively focused on corporate philanthropy.

What We Believe

 Philanthropy is a long-term investment

 Executive leadership is essential

 Corporations have unique resources

Who is Engaged

 Over 175 CEOs and Chairpersons

 Companies from each industry sector

 Companies represent over 40% of all corporate giving in the United States

Our Strategic Focus

 Represent the CEO voice.

 Bring business discipline to corporate philanthropy.

 Own the standard on philanthropy practice and measurement.

© 2012, Committee Encouraging Corporate Philanthropy

“I helped to start CECP with the belief that corporate

America could be a force for good in society.”

- Paul Newman

The CEO Perspective

“When considering a change in your company’s contributions, which constituency most influences your decision?”

© 2012, Committee Encouraging Corporate Philanthropy

Measuring the Value of Corporate Philanthropy

Between Grant Recipients and Giving Officers

• How to assess whether grantees are achieving the intended results

• How to estimate a "return on investment" (ROI) numeric for comparing and/or aggregating the effectiveness across different grants in achieving social results.

Between the Giving Officers and the CEO

• "business case" and demonstrate how supporting the philanthropic initiative will be valuable to business.

Between the CEO and the Investor Community

• Investors want assurance that spending on corporate philanthropy enhances (or at least does not diminish) shareholder value.

• Concurrently, a number of investors ask that the companies in which they invest demonstrate greater philanthropic leadership and social responsibility.

© 2012, Committee Encouraging Corporate Philanthropy

Measuring the Value of Corporate Philanthropy

Enhance employee engagement.

• Companies engage employees through group volunteer programs and awareness of their philanthropic initiatives, which raise employee motivation, productivity, and a sense of identification with the organization.

Build customer loyalty.

• Especially in consumer-oriented industries, a company’s commitment to communities and certain philanthropic causes enhances brand perception, customer loyalty, repeat business, and word-of-mouth promotion.

Manage downside risks to the company’s reputation.

• Philanthropic initiatives provide companies with a fresh opportunity to prioritize and address stakeholder risks, i.e., ways in which the company may not be meeting public expectations.

Contribute to business innovation and growth opportunities.

• Philanthropy also provides access to new relationships and opportunities whereby the company can find, test, and demonstrate new ideas, technologies, and products.

© 2012, Committee Encouraging Corporate Philanthropy

Measuring the Value of Corporate Philanthropy

CORPORATE

PHILANTHROPY

ACTIVITIES e.g.: grants and employee volunteer programs

BUSINESS IMPACT

• Increased output, sales, and productivity

EMLOYEE NEEDS

FULFILLED

• Self-enhancement

• Work-life integration

• Reputational shield

• Bridge to company

• Collective self-esteem

INTERMEDIATE

OUTCOME TO BE

TARGETED AND

MEASURED

EMPLOYEE ATTITUDES

• Sense of organizational identification

OTHER MODERATING FACTORS

• Extrinsic incentives, e.g. compensation and performance-linked rewards

• Employee characteristics, e.g. tenure and training

• Employee perception of HR practices, work environment, management, and company capabilities

Source: Adapted from Bhattacharya, C. B., Sen, S. & Korschun, D. (2008) and Bartel, C. (2001).

© 2012, Committee Encouraging Corporate Philanthropy

JOB-RELATED

BEHAVIORS

• Reduced absenteeism

• Retention

• Efficiency

• Cooperative behaviors

• Work effort

• Advocacy

Measuring the Value of Corporate Philanthropy

Employee Attitude or

Job Behavior

Collective self-esteem

References

Luhtanen & Crocker

(1992).

Metrics and Survey Instruments

Survey completed by employees with eight-item scale to reflect a member’s personal evaluation of the group (private collective self-esteem), as well as his or her assessment of how non-members evaluate the group (public collective selfesteem):

1.

I feel good about working for X.

2.

I often regret that I work for X.

3.

Overall, I often feel that working for X is not worthwhile.

4.

In general, I am glad to be an employee of X.

5.

Overall, X is considered a good company by others.

6.

In general, others respect what X stands for.

7.

Most people consider X, on average, to be less effective than other companies.

8.

In general, others think that X is not a good company to work for.

Co-operative behaviors McAllister (1995).

Survey completed by managers with ten-item scale to reflect affiliation, cooperation, and assistant co-operation behaviors:

1.

Takes time to listen to other people’s problems and worries.

2.

Rarely takes a personal interest in others.

3.

Frequently does something extra that won’t be rewarded, but which makes co-operative efforts with others more productive.

4.

Passes on information that might be useful to others.

5.

Willingly helps others, even at some cost to personal productivity.

6.

Rarely takes others’ needs/feelings into account when making decisions that affect others.

7.

Tries not to make things more difficult for others at work.

8.

Goes out of his/her way to help co-workers with difficult assignments.

9.

Offers to help others who have heavy workloads.

10. Covers for absent co-workers.

© 2012, Committee Encouraging Corporate Philanthropy

Overview of Matching Gifts

94% of companies offered at least one matching gift program

(N=170).

57% of companies increased matching contributions from

2009 to 2010

(N=133).

$1.70 median matching gift million contributions in 2010

(N=133).

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Matching Gift Allocations

Matching Gifts as Percentage of Cash Giving, Medians, 2010

All Companies (N=159)

Consumer Discretionary (N=19)

15%

16%

Consumer Staples (N=15) 11%

Energy (N=8) 7%

Financials (N=41)

Health Care (N=22)

Industrials (N=13)

Information Technology (N=17)

Materials (N=8)

Utilities (N=14)

13%

14%

16%

22%

17%

16%

Matching Gifts

26

85%

84%

89%

93%

87%

86%

84%

78%

83%

84%

All Other Cash Giving

Note: Telecom. Services industry not detailed due to small sample size

Volunteer Programs, 2010

Paid-Release Time and Outside-Company-Time

69%

62%

54%

50%

69%

54%

27

2008

Offered Paid-Release Time Program

2009

Offered Outside-Company-Time Program

2010

28

Employee Volunteer Program Offerings, 2010

92

91

78

76

73

67

66

54

53

48

44

40 40

33

32

34

27

18

15

16

10

4

Dollars for

Doers

Employee

Recognition

Awards

Flexible

Scheduling

Paid-Release

Time

Family

Volunteering

Domestic N=143

Day of

Service

Board

Leadership

Team Grants Retiree

Volunteering

Pro Bono

Service

International N=83

Incentive

Bonus

Examples of Paid-Release Time Program Policies

SPECIALIZED Policy :

• Manager approval for paid-release time requests

• Offering different opportunities by division or region

• Restricting paid-time off to company-wide days of service

• Restricting paid-time off to employees participating in team grant activities

• Restricting paid-time off to employee volunteer programs specifically run by the company.

• Offering fellowship or sabbatical options.

HOURLY Policy:

• Hours per year: 8 hours, 10 hours, 12 hours, 16 hours, 20 hours, 24 hours, 40 hours

• Hours per month: 4 hours, 5 hours, 6 hours

DAY Policy:

•Days per year: 1 day per year, 2 days per year, 3 days per year, 5 days per year, 6 days per year, and 3-6 month sabbaticals.

29

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Data Collection Happening Now!

Giving in Numbers

Since 2001, the Giving in Numbers report has provided thorough analysis and comprehensive benchmarking data for corporate philanthropy professionals seeking to assess the scope of their contributions initiatives.

Free download: CorporatePhilanthropy.org

Includes findings on:

• Giving and the Economy

• Benchmarking Tables

• Giving by Program Area

• Giving by Motivation

• Employee Volunteerism

• Matching Gifts

• International Giving

• Corporate Foundations

• Giving by Gender and Ethnicity

• Management & Program Structures

Employee Engagement Today:

Defining and Declaring the Value Proposition

PANELISTS

Bradley K. Googins, Ph.D.

Associate Professor Organizational Studies.

Former Executive Director Center for Corporate Citizenship Carroll

School of Management at Boston College

Margaret Coady and MODERATOR

Director, Committee Encouraging Corporate Philanthropy

Kathleen Mayglothling

Program Manager, Employee Programs, GE Foundation

© 2012, Committee Encouraging Corporate Philanthropy

GE Employee Engagement:

GE Foundation Matching Gifts

Kathleen Mayglothling

Program Manager

Charities at Work Summit

April 3, 2012

“ I find out what the world needs, then I proceed to invent it.”

– Thomas Edison

GE Foundation Matching Gifts

Page 33

GE Today

GE works on things that matter. The best people & the best technologies taking on the toughest challenges. Finding solutions in energy, health & home, transportation & finance.

Building, powering, moving and curing the world.

Not just imagining. Doing.

GE works.

GE Foundation Matching Gifts

Page 34

GE’s Citizenship Framework

Making an Impact in Communities Around the World

Make money

Strong, sustained economic performance

Make it ethically

Rigorous compliance - financial & legal rules

Make a difference

Ethical actions, beyond formal requirements

Citizenship for GE is not just about “giving back” but about enabling positive changes around the world… a full-time commitment with the same goals, strategies & accountabilities that drive business.

GE Foundation Matching Gifts

Page 35

Community Engagement

The Goal: To build deep and positive relationships where

GE people live and work

Communities

Town

Neighbors

Local Infrastructure

GE People

Contributions

Time

Expertise

Education

Environment

Health

GE

Company/Foundation

Matching Gifts

United Way

GE Volunteers

Humanitarian Relief

The Opportunity: GE and its employees & retirees help meet community needs through a variety of resources & skills.

GE Foundation Matching Gifts

Page 36

Time, Talent, Treasure

Matching Gifts

• 1:1 match of employee & retiree contributions to eligible charities

• Includes broad variety of areas; available year-round

• 2011 Total: $70M

United Way Giving Campaigns

• Supports UW & other charities with pledges, volunteers, & supplies

• Additional 50% contribution from

GE Foundation to local UWs

• 2011 Total: $26M

GE Volunteers

• Employees & retirees donate time & effort towards initiatives in their local communities.

• 80 year+ tradition

• 220+ Volunteers Councils in 51 countries organize over 6,200 projects annually

• 1.3M volunteer hours per year

Supporting GE employees and retirees in their personal philanthropy and volunteerism

GE Foundation Matching Gifts

Page 37

Matching Gifts Created by GE

“The employer matching gift program was the brainchild of Philip Reed, chair of the General Electric Board of

Directors, who wanted to encourage

GE employees to contribute to their alma maters. Reed believed the incentive to contribute was greater if the company matched the employee’s gift.”

Since the launch in 1954, many others have followed suit and $2B has been contributed by individuals and their employers to education alone.

* Source: HEP Data

GE Foundation Matching Gifts

Page 38

FSG Analysis

Are these the results we seek?

 Retirees claim a large portion of matching funds, primarily for Higher Education institutions

 Cumbersome process on community side deters employees and broader participation

 High matching limits favor officers, directors, retirees

“The only value in employee engagement efforts lies in the actions taken once the data has been collected and analyzed.”

Bersin & Associates Research Report

Employee Engagement: A changing marketplace (Sept. 2010)

GE Foundation Matching Gifts

Page 39

Matching Gifts – Then & Now

Gifts Registered (#)

Total Matched ($)

Charity Participants (#)

GE Participants (#)

1954

5,234

$200K

359

4,928

2004

32,941

$18M

1,781

13,927

2011

109,948

$35M

13,360

30,194

Annual Max per person

($)

$1,000 $50,000 $50,000

Substantial increases across the board, particularly following the 2005 Program enhancements

GE Foundation Matching Gifts

Page 40

The Value Proposition

Encourages giving to many organizations and causes

Empowers employees & retirees to direct GE’s charitable giving

Helps strengthen recipient charities and institutions

Builds internal reputation and goodwill

Demonstrates Company support of employee & retiree interests

Employee

Concerns

Matching

Gifts

GE Fdn.

$$

GE Foundation has matched more than $460M

GE Foundation Matching Gifts

Page 41

Impact Examples

Special Food & Shelter 2:1 Matching Gifts

Partnerships –More than Just $$

• GE Aviation & the Lynn Shelter Association

(Mass.): 250 volunteers donated 1,500 hours to rehab 10 apartments, build a library & computer center, & redo the lighting. Others have donated professional skills, such as IT employees providing computer support. President Bill Hayes said, "Since GE has gotten involved, the

Association has been on an upswing. It has become highly respected in the community."

• African American Forum (AAF) at GE

Healthcare: conducted a food drive across the country, collecting more than 2,000 pounds of food for multiple charities.

Employee Responses

• “It is great to know that GE is still capable to support and help needed families during challenging times

(financial crises all over the world).”

• “The 2:1 is a great program and I am proud to be associated with a

Company that believes in taking the extra step to support those of us who engage in philanthropic activities.”

• “I was so pleased to tell my local shelter that GE would double my donation. This encouraged me to give more.”

GE Foundation Matching Gifts

Page 42

Discussion Questions:

• What does successful engagement look like to you?

• What challenges have you overcome or continue to face in engaging employees?

• What are your learning objectives for this conference?

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