Busting Myths About Corporate Volunteering

As an introduction to the 2010 National Conference on Volunteering and Service being held in NYC right now- Michelle Nunn, CEO of Points of Light Institute and William Daley,Vice Chairman of JPMorgan Chase & Co.William wrote an excellent account in this weekend's Hufington Post about the current direction in corporate volunteering and serving community: "Business Serves Local Communities: Doing Well By Doing Good." They highlighted the importance of corporate volunteerism as both an old tradition in American corporate culture as well as a new wave of creating shared value within the community.

This brought on a slew of cynical comments based on what I think are some myths about the mix of corporate goals and doing good. I don't mind questioning motives of businesses in their "Doing Good" practices, since I have done so on my own blog here, as when KFC partnered with the Komen for Cure, in their Buckets For the Cure Campaign. This kind of scrutiny is a good thing as it keeps businesses focused on their true philanthropic and social repsonisibility goals and keeps them mindful of the impact of their philanthropy for the recipients and for their own business.

This last week I participated in a meeting hosted by the Bay Area  Corporate Volunteer Council and by the Bay Area Entrepreneurs Foundation. The main topics of the gathering were: Employee Development, Rewards and Recognition, and Skills Based Volunteering. Participants in this meeting included representatives from large companies such as: Intel, Hewlett Packard, AT&T, and smaller ones like NetSuite and Technology Credit Union. This gave me an opportunity to hear of the many approaches of corporate volunteerism that businesses use and their benefits to both the business and the community. These programs served as examples that could bust any of the following myths about corporate do-goodism and making money as an impossible mix,

Myth #1. Businesses can't be trusted to "Do Good" without having purely selfish motives. 
Most businesses acknowledge that volunteerism, CSR and corporate giving is great PR and a great way to build a relationship with a community and yes, hopefully that may translate into good business. Businesses not only do not hide the fact that they gain benefit, but see it as a win-win for everyone in building a thriving community.


Myth #2. Employees don't get their jobs done while wasting time on volunteering.
 In fact companies also reap huge benefits of volunteerism in training and development of their employees, team building, building morale, and recruitment. The result is more productivity on the job.

Myth #3. Employees have to volunteer on their own time. 
Pro-bono and skilled based services are types of volunteering that are paid for by the company and are often the most costly volunteer services for the company. Many companies offer long term employee services to non-profits. Many volunteer hours are during work hours as many projects such as food or toy drives are on company premises. Employees who have started their own volunteer project at work, have often parlayed that experience into a full-time community relations position at that company, running volunteer programs as their full time job. Some companies offer time-off from work as rewards for community service.

Myth #4. Corporate bosses leave the volunteering to the employees.
Many executives are well known to sit on boards of non-profits where they bring to the table their knowledge of strategy and management.One company reported that their executives are required to sit on non-profit boards as part of their corporate responsibilities. Many executives work hand in hand on volunteer projects with their employees showing corporate support of these efforts.

Myth #5. Companies substitute volunteerism for monetary support of the non-profit. 
Studies have shown that corporate volunteerism translates into monetary contributions to the non-profits that are served. Several companies have Dollar for Doers programs, where volunteers hours are added up and a matching amount of money is donated to the volunteer's designated charity.

I look forward to following the sessions at the National Conference for Volunteering and Service, particularly the corporate volunteering sessions, for some more myth busting examples of corporate volunteering.

Businesses have arrived at a new era of responsibility and service to their communities and are challenging the idea that business cannot be focused on creating shareholder value and on the community benefit as well.

One Gets Multiplied

Green is good, but sometimes action and expertise pack an added wallop. Philanthropic groups can always use a little extra financial support, but the vigorous energy and informed skills of businesses can also do a lot to boost social good. That's the mindset behind the "1/1/1" model of philanthropic giving, in which businesses donate one percent of their equity, but also one percent of their product and one percent of employee's time.

Put simply, it's the power of one compounded.

All this week, I've been profiling the "power of one" trend in business philanthropy. On Monday, I explored the "buy one, give one" model in which businesses donate one product for each one sold. On Wednesday, I delved into the "one for humanity" facet of the movement, where businesses contribute one percent of their revenue to a cause. The 1/1/1 model evolved organically from the two, leveraging the built-in benefits of market expertise to support social good on a variety of levels.

Widely credited with originating the concept, cloud computing company SalesForce and its dynamic, celebrated CEO Marc Benioff have done lots to popularize the 1/1/1 concept. SalesForce, through its charitable arm, the SalesForce.com Foundation, started by donating 1% of founding stock in the form of grants to qualified nonprofits specializing in youth development and technological innovation.

Their efforts expanded from there. Next SalesForce offered employees six paid days of volunteer time each year. To date, those volunteers, often partnering with groups of their own choosing, have worked 38,126 hours, mentored 178 young students, served 57,340 meals to the homeless and given 159 units of blood.

But perhaps the most inventive part of SalesForce's giving structure is their 1% of product donated. So often, businesses large and small possess a wealth of knowledge and know-how. Realizing this, the SalesForce Foundation started donating 1% of their cloud-computing applications and licenses, then training nonprofits in the use of them, offering advice and assistance in their specialty areas of sales, service and customer relationship management. By sharing their time, tech and accumulated knowledge with the philanthropic community, Sales Force has established itself as a leader in the 21st century integration of business and giving.

Others have followed their example, too. The funky, Australian-based software development company Atlassian, as noted last month on this blog, is in the midst of a dynamic 1/1/1 iniatitive with their Causium software distribution model. Noticing flagging sales of a software product tailored to small business, Atlassian decided to give away the product at an ultra-low price, or "micropayment," then donate the profits to the literacy group Room to Read.

But Atlassian didn't want to cut any corners, so employees chipped in to supply Causium buyers with free tech support and training for the software. So far the effort has been staggeringly successful, raising $500,000 for Room to Read, and leaving Atlassian determined to cross to cross the million dollar mark.

Other businesses have hopped onboard as well. Another cloud computing company, C-Level Management has drafted a series of "Giving Back" philanthropy goals based on the 1/1/1 model and similarly patterned after the notion of sharing their expertise, here in the form of consulting grants to nonprofits and educational institutions. NewVoiceMedia, a telephony technology developer based in the UK, has also crafted a program of paid volunteer days for employees, as well as product donations and discounts to qualified charities.

By integrating their success with the wellbeing of society, SalesForce and similar companies have forged a dynamic new role for business. Multiplying by one, it turns out, can yield huge dividends.

One for Humanity

This is the story of how a drop in the bucket turns into a flood. That's the foundational notion behind the "one for humanity" movement. Over the course of this week, I'm illustrating the myriad ways in which the "power of one" is slowly impacting the face of business philanthropy. On Monday I profiled the "buy one, give one" model through which businesses donate one product to charity for each one purchased. Today I'm turning my attention to a similar concept, the "one for humanity" model, in which businesses commit 1% of their earnings to a cause of their choice.

As a spark starts a fire, it's easy to see how one 1% could be an acceptable sacrifice for any socially-minded business, and yet still become a potent force for good as the ranks of participating businesses swell.

Credit for this model, at least in part, belongs to 1% For Humanity, an association of businesses dedicated to donating just that fraction of their annual revenues to any of an array of worthy humanitarian organizations around the globe. 1% For Humanity has provided an idea impetus much like that of Buy1,Give1, the organization I mentioned in Monday's post, providing a platform to help businesses give their 1% to nonprofits like CARE, the Hunger Fund, Feeding America, and an organization I've worked with myself, Amor Ministries.

The flagship member of 1% For Humanity was the hip, youth-oriented retailer Jedidiah Clothing, which bills itself as "fusing the beauty of art with the fabric of clothing for the greater good." Jedidiah's commitment to their philanthropy is woven into the ethos of their company. Several years ago, they created a custom line, the Hope Collection, to raise funds for a rotating roster of targeted causes, one for each season of their fashion line. To date, the Hope Collection has raised $328,963 for these groups.

Based on the same idea, 1% for the Planet, a similar business association, encourages businesses to donate 1% of their earning to environmental causes. Created in 2001 by Yvon Chouinard, founder of outdoor apparel mainstay Patagonia, and Craig Mathews, owner of Blue Ribbon Flies, 1% for the Planet aids businesses in paying what Chouinard playfully calls the "Earth tax." Made up of over 700 participating businesses from every continent on Earth, 1% for the Planet fuels nonprofits specializing in a staggering spread of issues, including alternative energy development, environmental justice, wildlife protection, air quality and bike advocacy.

All told, these "one for humanity" groups illustrate the power of collective action, the simplicity with which a tiny splash from many cups can build a tidalwave of change.