Giving money to make money?

Have you ever considered that your Corporate Social Responsibility program can have an alter ego and actually help you increase sales?

I helped a previous employer develop a CSR that was strategic, purposeful, and had defined goals and metrics in place. It was an interesting exercise because as a small business, all dollars spent had to be effective and add value. There is this tendency among companies to sponsor events and give money to charities or community events with no guiding principles. Many times, companies don't have the time or resources devoted to making it an efficient program that [gasp] actually has a ROI.

Social responsibility efforts are fantastic, but when it comes to business there is something lost in translation. Businesses are in business to make money! So why is it that our corporate donations are often inefficient, lack direction, and have no accountability for a return? 

Because we don't like mixing charitable activities with ugly, capitalistic, free market money hounds. But does that really make sense?

Think about it. Corporate giving SHOULD be a strategic part of your business. A good plan has  goals, supports business objectives, has defined boundaries, dedicated resources, and annual reporting (and supports business objectives!). Your CSR should help you build your brand, expand into new markets, develop new markets, and have employee support. It should consolidate donations to be more impactful and promote the long term health of a non-profit. A good plan will even help you say 'no' without feeling terrible.

Once a good plan is established, management of the process is streamlined and has oversight so all activities are monitored to ensure giving is directed and purposeful in supporting business objectives.

"How can you put such a corporate spin on giving," you ask? 

Simple. Your company works hard to bring in those dollars. You have decided to spend some of it by giving back and improving the community where you, your employees, and customers live. There is nothing wrong with expecting the resources you donate to provide you with something in return. In fact, if you don't effectively communicate these CSR efforts, you are leaving money on the table.

Besides, it is a lot easier to tell your shareholders and employees your CSR program has business objectives, than keeping the money and suffering the consequences of communicating you don't care.