Not long ago the lines were clear. Business was business. The government looked after
the poor, and needy. Lawyers and accountants were paid handsomely to keep business out
of trouble.
Now the lines are not so clear. The Prime Minister says business should do more for the
community. Lawyers and accountants are teaching business how to look after its own
ethics and compliance.
Business cannot ignore the millennium bug or tax reform; these have clear deadlines.
But when it comes to ethics, values and community responsibilities, the goals and
deadlines are fuzzier. Yet these are the issues which are becoming critical to doing
good business. The government demands it, the community (read consumers and
shareholders) demands it.
This article sketches out some concrete ideas on how business can address its community
responsibilities in practical, ethical and business-smart ways.
Business contributes 7% of the income of major Australian charities, compared to 12%
from individuals, another 7% from bequests and 43% from government. Here are some
ideas on how business can build from this base: -
- Setting an objective to commit 1% of pre-tax profits for contributions to community
needs (not highly paid professional sport or the arts).
- Categorising, measuring and reporting those contributions. Placing a value on volunteer
time given by employees and including both donations and sponsorships.
- Allocating responsibility for the program to a senior manager. Reporting on progress
to the Board and staff. While Board members have historically influenced who receives
corporate donations, management are in a better position to make selections that
support the company's interaction with the community and the interests of its staff.
- Exercising a similar level of accountability for a community project as for any other
major expense. Investigating the organisations seeking donations, asking where the
money will be spent, and insisting on follow up.
- Implementing a staff giving program. One of our corporate clients used its Social
Committee to work with staff and the payroll department to implement a program which now
sees over 50% of staff giving to 1 of 5 charities from each pay. This list was selected
from a longer list of 15 small to medium sized lower profile organisations representing 5
categories. Companies that match their staff gifts can generate goodwill with staff that
is in the true spirit of giving.
- Considering a charity for a sponsorship or cause-related marketing initiative. Many
charities have an excellent name, a strong circle of influence as well as addressing a
powerful cause. An increasing number are looking for business partnerships and
there are now marketing consultants who specialise in this area.
The community responsibility thing is very simple. Business is part of the community. It just
needs to define how and, like everyone else in the community, do its bit to help.
A community where everybody helps doesn't exist. A good community is one where everybody
knows who helps and who doesn't. A growing sense of community responsibility means that a
business that doesn't do its bit cannot remain anonymous.
|
