Lubna,

This has been cut significantly out of corporate budgets. Businesses are looking to survive the downturn and cut all discretionary spending.

I want to answer the third question before the second. Just like businesses, people are looking to survive. To ask an employee to give up some of their salary is a very hard sell. It is not that they are bad or greedy people. They just want to make sure they take care of their family first. And they should.

Now for the second question you ask. Getting the employees to donate their time would be the best approach during these times. But the company should also give. They should allow some time during business hours to work on community projects. It could be done by matching hours up to a maximum per week or month. For example, for every three hours of an employees own time they give the company will give them one hour of company time to work on the project up to 5 hours per week. Of course you would make this the way it would best fit for your organization.

I have always been a strong believer that every organization has a corporate responsibility to the communities they do business in. They should all be involved and this is one way of doing this during both good and bad times. If every organization did this, the communities would be in a much better position.

posted October 27, 2008

Hi Lubna, Indeed times are difficult with everything pointing to things getting worse. There are indeed companies that have cut spending, especially when it comes to nonprofits and it is very difficult to ask others to give when you are not giving. There are also corporations that use downturns, that don't impact them as badly as it impacts others, and cut back as well. This is true of individuals who are not really effected, but use the overall climate as a way to cut back.

Employee time is a good option, but not one that all community based, or general nonprofits need to survive. Funding is always the bread and butter of any company's survival.

The ironic thing here is that we know business and government are going to cut back on what they are able to do, more people will be unemployed and all sectors are going to look towards the nonprofits to pick up the slack...and they too will be letting employees go and be unable to do the work, since there will be no funding.

The circle of business and economics can be very cruel. It is for this reason that business and individuals should find a way to keep alive the organizations they most believe in. We will all want them to be there in our hour of greatest need.

posted October 27, 2008

Great questions, Lubna.

1) I expect that budgets will be drastically cut in this area. It is ridiculous, however, that a program with the word "responsibility" in the title is considered "discretionary.". That said, an organization can surely make cuts without reducing its commitment or approach to CSR.

2, 3) Employee time is what will keep business afloat. In good times or bad, the balance of a company's commitment of volunteers and budget to CSR describes its overall character. Anyone can give when there is excess, but to give for the sake of giving is much different. I would argue that if a company is doing all that it legitimately can, it is doing all that can possibly be expected.

4) Discussing world events and the organization's commitment to improving any situation within its reach with employees can often motivate employees so long as the discussion is genuine. It comes down to values versus good branding, believing versus simply doing, on both the individual and corporate level.

posted October 27, 2008

Lubna,

(1) Certainly, there will be cuts. CFR (Financial) comes first, then the CSR. However, those who had planned CSR commitments before the crisis, may still like to fulfil them. CSR is an ongoing process. May be the pace will be slower.
(2) CSR commitments are always combinations of money ('cheque-book philanthrophy') and free labour. (Say employees' wives club may go buy grovery and cook food for a day in an old-age home).
(3) Celebrate Deepawali with poor school children. Plant sapplings along with those school children. etc - Besides spnding 'some' money you also make them feel good, of belongingness. . . .Collect old but usable clothes from the employees and organise to send them and distribute to the Kosi flood victims .
(4) Pursuation may not always be a good idea. Just deduct from the salaries (very small amount- not hurt them), collate a big chunk and send, say, to flood victims. Also, organise to see that the money is spent properly and reaches the indigent.

cheers
RS

posted October 28, 2008

Greetings Lubna,

1) In my view corporate budgets have gone down in the area of social responsibility and will likely continue to go down.
2) I think companies can be convinced that it's good for employees to participate in CSR programs, I'm not sure if it's top of mind though.
3) As a former manager at AT&T, I would often combine CSR with teambuilding and/or professional development. This was both a great cost saver and motivational tool. What a great way for a team to get perspective then working with each other at a homeless shelter on a Friday afternoon. I think very clear projects, objectives (and possible professional benefits) and timelines need to be described to the Corporation. By professional benefits, I mean - the CSR project might be designing a web-site or newsletter for the NR. This would provide an opportunity for someone to enhance their web development or writing skills.
4) I think during economic downturns people tend to be more organic and want their dollars to really count. I think you would need to make a very compelling employee presentation (if given the blessings on the corporation) that provides specific goals of the program and use of the money, to get buy-in.

Yours, Annemarie

posted October 28, 2008

1. I suspect the answers depend upon the industries. When vision, mission, and values are properly aligned, CSR should remain the same.
2. In some industries, like mine in healthcare, CSR is sometimes tied to what is known as CBISA (Community Benefit Inventory for Social Accountability). Again, this depends on proper alignment. I have found that when CSR is the vision, mission, and values, and the product and service lines are understood as investments and not cost centers, there is a different outcome than when CSR is an after thought.
3. Sounds easy to say and quite different to accomplish, but I think it goes back to what kind of public or private value is being created and maintained. In very simplistic terms, it is the difference between whether CSR is a before thought or after thought as in "Do we invest the first 10% or the last 10% in that which we say is our vision, mission, values."
4. Leadership by example. When the Senior Leadership adopt and implement Servant Leadership as a lifestyle choice and not a program of the week, I think it has the kind of outcome that persuades employees to donate their share of salary and resources (prayers, presence, gifts, and service) ALL the time.
Hope this helps. Jay

posted October 29, 2008

Lubna,

One thing companies can do even in downtimes is donate time--the time of their employees. Especially those firms who have excess people but have decided not to lay them off.

Josh.

posted November 1, 2008

Lubna,

I'm writing from the UK, and presume that "cut down here" means in the US.

CSR, surely is about social responsibility as a corporation, an embedded culture that acknowledges the community as stakeholders. In this context is should first be about paying its suppliers and taxes on time.

Going further, into the philanthropic arena, should be just as serious a commitment at a board level. To depend on greater contribution, either in time or financial terms, by employees, would be equivalent to passing on costs to customers, or delaying payment to suppliers in order to maintain margins.

To my mind it really is time for business to stop showcasing and posturing about these things, and distinguish between the concepts of "pay it forward" and "pass it on".

Consider the added value of procuring services from social business suppliers. Those which themselves invest in social and community purpose. CSR, otherwise will remain merely corporate gesture while it distances itself from the growing social economy.




When it becomes a question of

posted November 1, 2008

Great question. And yes, as a nonprofit, we've felt the impact of corporate budget cuts. While support of our programs is strong in some cases, companies are just not in a position to provide financial support. Coupled with what is undoubtedly low morale within the ranks, it has been hard to move past the "we wish you luck on your endeavors, but are unable to provide you with support at this time." Given the state of things, who could blame them.

posted November 4, 2008

Lubna,

Budget cuts seem to be par for the course these days. Who can blame anyone for cutting spending on items that are low hanging fruit.

I think boosting time is a great idea provided employees want to spend their time participating in CSR iniatives. Not only does it provide visability within the community but it also will provide increased satisfaction for the employee. The question is, how much time willl an organization allow employees to focus on CSR within their role? Time is more valuable to a non profit than money will ever be unless you are someone who has significant funds available for contribution. The little contributions people make really only cover daily operations and do not fund the significant projects in most cases.

I think the key is making employees aware of volunteer opportunities and those organizations that are in need of volunteers and money. To get people motivated to do either, they need to find a non profit that is alligned with their own lifestyle and beliefs etc.. Forcing and making volunteer work manditory defeats the purpose. CSR should be a part of the corporate culture, which in turn would make employees not feel bullied into donating time and/or money.

I think encouraging employees to donate is all an organization should do. I have been pressued to donate to certain orgaizations at work and I will not do so. The more you pressure me, the more I will rage against the machine.

Irrrespective of the downturn or not, people should give back to the communities that they live in or were brought up in to continue to make them better places to live in.

Happy Diwali to yourself.

Regards,

Phil
http://www.philparkinson.com/

posted November 6, 2008