Developing a Charity to Enhance Your Company’s GR Program and Brand

The following is a presentation given By Robert Waite to the Seventh Public Affairs Conference in Ottawa on February 1, 2010.

Partnership with a charity can be very powerful, but execution can be tricky.

Philanthropic alliances can help build a brand – but  badly executed, they can damage it.

There must be:

• Alignment
• Credibility
• Consistency

Corporate charitable activities defined. Donation vs. Sponsorship

• A donation is just that – the transfer of money or in-kind time and materials without expectation of commercial gain. Usually a tax-receipt is granted.
• Sponsorship is an investment in brand or product visibility, typically leveraged with additional advertising and promotion dollars.
• Not always black and white between the two.

What is expected of corporations today?

• Corporate Social Responsibility (CSR)
• CSR Definition: “A company’s commitment to operating in an economically, socially and environmentally sustainable manner…while recognizing the interests of its stakeholders.”
• CSR grew out of “Good Corporate Citizenship”
• For years, there was an active debate about the validity of corporate philanthropy
• Debate is now essentially over

Social and community activities are now widely accepted by shareholders– and expected by employees, customers and governments. Some companies were early pioneers, not only in aligning themselves with worthy causes, but also finding the right “fit”.

• McDonald’s and Ronald McDonald Houses.
• Tim Horton’s and Canadian youth hockey.
• Canada Post and literacy.

But the game changed in the 1980’s, ’90’s

• Companies judged across a far wider set of criteria
• Environmental impact and footprint
• Procurement and supply chain
• McDonalds (for example) earned high marks for taking care of the families of sick children, but was questioned about nutritional issues, creation of litter and waste, sourcing for its meat, etc, etc
• Community activities just one piece of the puzzle

Consumer attitudes, behavior is changing

• 2008 Ipsos Reid survey found that 52% of Canadian consumers say they have refused to buy a product  because they believed the company was not a good corporate citizen.
• Canadians willing to pay a up to a 5% premium for products that are “environmentally friendly”.
• 84% of Canadian CEO’s believe that ethical behavior- in all its forms- contributes to profitability.

CEO’s say they expect CSR to :

• Enhance reputation and brand.
• Create competitive advantage.
• Provide access to markets and capital.
• Reduce risk.
• Attract and retain of employees.
• Produce cost savings.
• Forestall more onerous regulation.

(Source: Ron Knowles, University of Toronto)

 

CIBC Run For the Cure

• Run founded in 1992 in Toronto; 1,500 participants; $85,000 raised for breast cancer.
• CIBC involvement was organic, bottom-up – branch employees volunteered (CIBC 70% female).
• Strategic review pointed to the Run as a signature event with employee, customer, GR benefits
• CIBC became title sponsor in 1997.
• 2009 the Run involved 170,000 Canadians (13,000 CIBC) in 56 locations raising  $26.5 million!
• Important to be the lead or presenting sponsor (“own the space”)
• Important to align with and help facilitate your employee’s genuine interests
• Leverage the activity at the federal, provincial, municipal levels (invite political figures)
• Place your senior executives out at key locations (CEO in Ottawa, for example)  

CAE Canada Day Sponsorship (’95-’00)

• Objective: To raise visibility in Ottawa.
• Focused on youth, science and technology (aligned with federal government’s agenda).
• Employee involvement. 
• Flight simulator demos (invited Ministers to bring their children); astronaut appearances.
• Roberta Bondar Scholarships (encouraging girls to go into science).

Canada Post Mental Health Foundation

• High priority for federal, provincial governments (mental health issues cost the economy billons).
• High employee interest (as per survey; focus group sessions).
• No clear advocate or champion.
• Risk – “Going Postal” stigma.
• Strong executive support.
• Created a Mental Health Foundation
• Became the lead sponsor of Mental Health Awareness Week
• Issued a semi-postal stamp ($1 donation with each book of 10 domestic stamps purchased)
• Collected money at Post Office counters  (point of sale) during the month of October
• Raised more than $1 million in the first year
• Money distributed across the country both to research and community support organizations

Lessons learned

• Make it real – not white- or green-wash.
• Understand the government’s agenda.
• Involve your employees.
• Involve your customers and suppliers.
• Make sure it makes sense.
• Own the space if you can.
• Commit to the long term – never leave a charity in the lurch.