3rd August 2020
In the wake of Covid-19, companies, organisations and institutions will need to re-think their approach to employee care, Corporate Social Responsibility (CSR), and what they are seen to publicly support.
In ancient Greek, “philanthropy” means “love of humanity,” and an element of CSR (in addition to being ethical) is being philanthropic. Philanthropic CSR can therefore be understood as corporates spending their financial and other resources, such as time, towards supporting social and environmental issues.
A CSR study found that 78% of people want to engage with CSR initiatives – in other words, a company that is actively involved in charitable work. Companies are continuing to recognise the importance and benefit of corporate philanthropy both for their employees, and to strengthen client relationships. It serves to directly assist not-for-profit organisations and their beneficiaries, whilst encouraging employee engagement and generating business value.
What are the benefits of corporate philanthropy and where should a business start?
Working towards a deeper purpose, collectively as an organisation, can improve engagement and productivity. This is particularly true for younger generations, such as Millennials and Generation Z. In our previous post about the future of giving, we spoke about how younger generations who are in a position to give, would prefer to have a significant and active role in the process of giving, and do not merely want to donate and move on. Employees within this generation would like to work for companies that are actively invested in doing good. Essentially, Corporate Philanthropy engages employees, primarily when staff are directly involved, and creates deeper connections between employees and the company.
However, finding the right balance can be difficult, as philanthropy is inherently a personal choice, so deciding which charity (or charities) to support might not be unanimous. A solution could be for employees to do pro-bono work or a volunteer day, where they are able to choose their own charity, whilst the corporate giving program is dedicated to a wider cause that can be changed annually to reflect more opinions and voices. It’s therefore crucial to understand what matters to employees and align the company’s values and ethos with the employees’ passions.
2. In-house Foundation
Prism the Gift Fund provides white label foundations for corporates so that they can focus on what their corporate philanthropy will represent and achieve, rather than be burdened by the administration and governance of it. This “Own-Name Foundation” encourages corporates to have ownership over their grantee selections without the liability and responsibility of creating a foundation. The funds collected can be requested to go to causes in the UK or overseas, depending on the company’s charitable objectives. The flexibility of the structure enables a company to choose which method works best for them – whether that be a quasi-board comprised of employees to approve charities for grants, or an open application from charities to apply under certain criteria for grants. Click here to read more about Prism’s ‘Own-Name Foundation’ solution for corporate philanthropy.
3. Attract Talent
These days, younger generations are demanding attention to corporate responsibility from brands, which includes philanthropic efforts. Corporate philanthropy is a great way for companies who are looking to acquire young talent to build a healthy future for their workforce. Millennials and Generation Z generally measure the success of the businesses that they work for based on its’ positive impact on the world around them, as they place a large emphasis on beingsocially conscious.
Prism offers three unique services to streamline and minimise the administration around charitable giving and will help companies through the entire process of Corporate Philanthropy, beginning to end.
Get in touch with us today for more details.