{ Can Corporate Volunteering Support the Bottom Line? } The Challenges. The Opportunities. The Case for Investment.
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1 V { Can Corporate Volunteering Support the Bottom Line? } The Challenges. The Opportunities. The Case for Investment.
2 I firmly believe that the number one thing that will make or break any company is its culture, and volunteerism has a significant impact on the culture of any company. Bill McDermott President and CEO SAP America, Inc. 1
3 V V=? DOES VOLUNTEERING = PROFIT? The concept of corporate citizenship the belief that companies have an obligation to actively help maintain the health and wellbeing of the communities in which they do business has formally existed in the United States since the early 1950s. However, over the past two decades, a growing number of business leaders have come to view corporate citizenship, including volunteerism, as not just the right thing to do, but a key business imperative that can generate value for the company, its employees, and the community. 1 3
4 V OUR EFFORTS. THIS BOOKLET. THE FULL REPORT. To better understand the relationship between business, volunteering, and the bottom line, the Case Foundation and Hands On Network commissioned LBG Associates to review existing research on corporate volunteering and efforts to measure its impact on employees and the bottom line. LBG Associates findings are mixed, but promising. While there is much anecdotal evidence suggesting that corporate volunteerism positively impacts communities, employees, and companies, very little is known about how, and to what degree. This booklet highlights what we know and what areas still need more research. For the complete report and detailed information about the studies cited here, visit or This effort is part of Hands On Network s Corporate Service Council, a new alliance of corporations and national organizations that aims to raise the total number of volunteers in the U.S. by 6.4 million, and to increase the number of their employees who volunteer in local communities by 10 percent over the next two years through a national Hands On campaign. 5
5 82% of executives surveyed said good corporate citizenship helps the bottom line. 52% said corporate citizenship is part of their business strategy. Center for Corporate Citizenship at Boston College,
6 V INNOVATIONS IN VOLUNTEERISM AND MEASUREMENT Corporations are a leading source of American volunteer power. Here are just a few examples of the innovative steps corporations are taking to track the results of their investments: In 2004, to celebrate Cisco s 20th anniversary, President and CEO John Chambers challenged employees to contribute a collective 175,200 hours of service (the equivalent of 20 years of service). The company offered to donate up to $3 million to community development if Bob Nardelli, Chairman, President, and CEO, The Home Depot, digs in during a volunteer service day. the employees met the goal within a year. By the end of the campaign, employees had exceeded the goal by more than 30 percent, by serving over 234,000 volunteer hours in communities around the world. Under the leadership of Chairman, President, and CEO Bob Nardelli, The Home Depot has boosted its commitment to volunteerism. In 2004, the company launched its first-ever week of service, and associates donated a total of 264,000 hours to complete nearly 1,700 community service projects. Associates contributed to more than 5,500 nonprofits, repaired more than 9
7 5,300 homes in partnership with Rebuilding Together, and responded to hundreds of emergencies, including tornadoes, wildfires, ice storms, floods, and hurricanes. Deloitte & Touche USA measures a wide range of benefits of its annual IMPACT Day, when more than two-thirds of its U.S. employees serve nonprofits across the country. In addition to skills training, the company measures the impact on the community by the number of hours donated, the amount of time saved by the communities and nonprofits, and the number of dollars saved. Qwest s 41,000 employees and 45,000 retirees volunteer more than 1 million hours each year. Through the Qwest Matching Time program, an employee who volunteers 60 hours of service over six months can earn $500 for the nonprofit they serve. In 2004, employees contributed more than 90,000 hours, earning $500,000 for nonprofits. Accenture recently launched a web-based volunteer promotion and tracking system that allows team leaders to initiate, promote, manage, and track volunteer events and activities. It also helps Accenture more effectively track the level of employee volunteering. In addition, the company 11
8 measures employees perceptions of the company s programs through its annual U.S. Employee Giving and Volunteerism and Global People Satisfaction surveys. In the 2005 survey, 91 percent of employees reported being satisfied or very satisfied with their corporate volunteer experiences. 13
9 72% of business executives surveyed said corporate volunteering enhances the company s image as a good corporate citizen. 72% said their corporate volunteer programs provide nonprofits with needed manpower. 59% said corporate volunteering supplies nonprofits with expertise and specialized skills. Other perceived benefits include building employee pride, creating a positive work environment, improving employee retention, and building brand awareness. Measuring Corporate Volunteerism, LBG Associates, 2004
10 V SO, WHY MEASURE BOTTOM- LINE IMPACT? Here are a few business reasons why companies are interested in measuring the impact of their volunteer activities on communities, employees, and profits: Increase Corporate Support for Volunteering Nationwide. Many companies invest in community engagement because it s the right thing to do, and because it s part of their business culture. If companies knew the extent to which volunteer programs could positively impact their bottom line, there would likely be an increase in corporate investment in volunteering. Strengthen Relationships with Customers and Local Partners. Some corporate leaders believe that community involvement boosts loyalty and trust among their customers, which in turn can have a direct impact on the company s bottom line. Demonstrate Value to Shareholders. Businesses have a fiduciary responsibility to demonstrate how their investments and activities are increasing shareholder value. Companies spend a great deal of time and energy measuring the return on investment in marketing, recruitment, production, and other initiatives, so why should it be any different for volunteer programs? 17
11 Provide Greater Value. Measuring the impact of volunteer programs helps businesses determine if their volunteers efforts are truly making a difference, and provides information that could lead to even greater value to the community, their employees, and the company.
12 In order to yield the full benefits from corporate volunteer strategies, companies must incorporate these strategies into what they measure. Corporate volunteerism can best contribute to the bottom line when it is integrated into employee hiring, training, and retention strategies and into the broader corporate marketing and philanthropic initiatives. Michelle Nunn Co-Founder and CEO Hands On Network
13 V NOW WHAT? What will it take to determine the value of volunteering? Although tools and metrics exist for measuring some aspects of programs, measuring long-term impact is uncharted territory. Collectively and individually, corporations, nonprofits, and the government can take a number of steps to increase the investment in corporate volunteering and measure its social and financial value. Adopt, Implement, and Adapt New and Existing Tools and Standards. Companies should determine whether they could adapt existing tools to evaluate the long-term, systemic impact of volunteer programs. They also should consider integrating volunteer metrics into existing human resources surveys and measurement tools. Once more is known about the impact of volunteering, a collaboration of the private, nonprofit, and public sectors can develop turnkey tools that will allow accurate and efficient measurement. 23
14 Collaborate. Companies should work together to find ways to measure the impact of corporate volunteer programs. Nonprofit and government partners should support the measurement process by helping to identify measurable goals and objectives, collect data, and analyze and decipher the results. Experiment and Share Results. Many companies are experimenting with a wide range of volunteer practices, and these innovations should be catalogued and evaluated. Successes and failures in measurement should be shared, so that efforts can be fine-tuned and so other companies and nonprofits will better understand what works. Invest in Research. While some research has been done on volunteerism and measurement, there is an urgent need for more. Because the private, nonprofit, and public sectors all stand to gain from volunteering and its resulting benefits, all sectors should identify appropriate research and invest in it. 25
15 Businesses, nonprofits, and the government all have an inherent interest in promoting and supporting volunteering and demonstrating real, lasting benefits. Companies have already started to see the value of and make the case for corporate volunteer programs. A great deal more needs to be done to get to the bottom of what works and why so practices can be replicated and the positive impacts can be spread more widely across America and around the world.
16 For a copy of the complete report upon which this booklet is based, visit or V 2005 The Case Foundation. All Rights Reserved. BOOK DESIGN BY TROY, NY8
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