Research on Community Involvement, Employee Volunteering and Corporate Giving

EXECUTIVE SUMMARY ccc.bc.edu

COMMUNITYINVOLVEMENTSTUDY 2015

1 Community Involvement Study © Copyright 2015 Boston College Center for Corporate Citizenship

The Boston College Center for Corporate Citizenship’s 2015 Community Involvement Study is based on a survey of 236 companies and examines

how companies are investing in their communities. The Community Involvement Study has been conducted since 1995. Corporate giving and

employee volunteer programs are the major dimensions of community involvement and are defined as follows:

About Community Involvement 2015

• Corporate giving includes financial and noncash contributions to 501(c)(3) organizations or public schools, or the international equivalent of a 501(c)(3) organization.

• An employee volunteer program is a planned and managed effort by a company to provide employees with organized opportunities to volunteer, means to recognize employee volunteer efforts, or some combination of both.

Please feel free to use these findings in your own commu-nications with the Boston College Center for Corporate Citizenship’s sourcing information included.

Data in figures and throughout the text refers to survey responses based on the entire company, unless otherwise noted by the † symbol. Figures that include the † symbol are based on data from all respondents (responses based on the entire company and those based only on regional or local operations). Eighty-eight percent of the survey responses are based on the entire company.

Companies’ community involvement efforts featured in this report (clockwise from top left): KPMG LLP; Applied Materials; Northwestern Mutual; Samsung; Farmers Insurance; and Salesforce


Companies are recognizing the value that community involvement efforts offer the business as well as society, and have found that their programs

to address social issues help to improve their reputation and achieve employee-related business benefits.

Introduction

Selected findings Corporate citizenship professionals report that community involvement activities within corporate citizenship efforts contribute to enhanced reputation and the recruit-ment and retention of employees. Business executives agree—the majority of executives in the 2014 State of Corporate Citizenship study report that corporate citizen-ship contributes to achieving reputational and employee-related goals.

• More than 40% of companies indicate that community involvement is essential to their firms’ reputations.

• Companies report that community involvement contributes to achieving business goals that are important to their industry’s operating context. For example:○ More than one-half of food companies indicate that

community involvement contributes to securing a sustainable supply chain.

○ Fifty percent of energy companies report that community involvement helps improve risk management.

Employee volunteer participation is connected to increased engagement. Among the companies that measure the connection between volunteering and employee engagement, 89% found a positive correlation between participation and higher engagement scores. More than 90% of companies include improved employee engagement among the top three benefits of their employee volunteer programs (see figure below). • Executives and community involvement professionals

alike report that employee volunteer programs provide opportunities for networking, skill development, and leadership training that lead employees to feel more connected to their companies—increasing loyalty, engagement, and retention. It follows, then, that companies would seek to increase the number of employees participating in community involvement programs.

50%40% 60%30%20%10%

Figure 1Top three benefits of employee volunteer programs

Improves employee engagement

Helps to establish positive brand within operating communities

Displays organizational values in action

■ Ranked No. 1 ■ Ranked No. 2 ■ Ranked No. 3

100%0% 70% 80% 90%

• Companies may recognize employees externally in local and/or national news, internally through awards, or a combination of both. Companies that use both of these methods report an average employee participation rate of 39% compared to 32% for companies that do not offer recognition.

Companies plan to increase the proportion of giving abroad in the near future. More than 10% of the companies that give only to nonprofits in their headquarter countries plan to include nonprofits outside their home countries within two fiscal years. On average, companies that give globally already are planning to allocate a larger percentage of their giving to nonprofits based outside of their headquarter countries—from 23% to 29%—an increase of 25%.


Prioritizing issuesAs was the case in previous studies, engagement with children and

youth is a major priority for the majority of companies.

While the top areas of investment have held steady, there have been shifts in the areas companies choose to address through community involvement. Recently, companies have begun to increase focus on health and wellness programs. Now, 40% include this social issue as a top priority, while in 2009 and 2011, this issue followed environmental issues.

FIGURE 9Top social issues addressed through community involvement efforts

■ Ranked No. 1 ■ Ranked No. 2 ■ Ranked No. 3 ■ Ranked No. 4 ■ Ranked No. 5

K–12 education

Youth programs

Health and wellness

STEM training and education

Community economic development

Hunger and food security

Environmental sustainability

Higher education

Disaster relief

Arts and culture

Low-income housing

Noncommunicable diseases

Financial literacy

Work readiness

Diversity and inclusion

Small business and entrepreneurship

Gender equality

Technology access

Water

Communicable diseases

0% 10% 20% 30% 40% 50% 60%

Prioritization of social issues within industriesThe social issues that are most prioritized vary across industries, and in most cases, the issues are aligned to the core competencies and unique demands of that particular sector. For example, regional banks are most likely to focus on financial literacy, an issue to which they can strategically lend necessary materials and employee expertise, while at least 80% of companies within the computers/electronics, machine/industrial goods, and utility industries include science, technology, engineering, and mathematics (STEM) education and training among their top five issues.


Community involvement programs connect to key business goals The majority of companies report that community involvement

contributes to key business goals, including improved reputation

and the attraction and retention of employees. More than 80% of

companies offer an employee volunteer program, and almost all of

them identify improved employee engagement as a key benefit of

these programs.

The connection between community involvement and key business goals is consistent with the results of the Center’s State of Corporate Citizenship 2014 study. In the 2014 study, the majority of business executives report that the environmental, social, and governance dimensions of business contribute to enhanced reputation and the recruitment and retention of employees.

Employee volunteer programs connect to business goalsIn addition to improved employee engagement, the majority of companies identified two reputational-related benefits among those ranked in the top three: helps to establish a positive brand within operating communities and displays organizational values in action.

Enhance reputation

Improve ability to recruit employees

Improve ability to retain employees

FIGURE 2Corporate citizenship contributes to business goals†

■ Community Involvement 2015■ The State of Corporate Citizenship 2014

60% 65% 70% 75% 80% 85% 90%

50%40% 60%30%20%10%

FIGURE 3Benefits of employee volunteer programs




Improves morale within teams

Enhances employee professional skills

Opportunity to identify future leaders


100%0% 70% 80% 90%

Enhance reputation

Improve ability to recruit employees

Improve ability to retain employees

FIGURE 2Corporate citizenship contributes to business goals†

■ Community Involvement 2015■ The State of Corporate Citizenship 2014

60% 65% 70% 75% 80% 85% 90%

50%40% 60%30%20%10%

FIGURE 3Benefits of employee volunteer programs




Improves morale within teams

Enhances employee professional skills

Opportunity to identify future leaders


100%0% 70% 80% 90%

† Data is based on all respondents: responses based on the entire company and those based only on regional or local operations.


Volunteer programs help increase employee engagementCompanies themselves have found empirical support for the relationship

between volunteering and employee engagement. Of the 60% of com-

panies that measure the connection between engagement in their

employee volunteer program and employee engagement, 89% found

a positive correlation.

Companies use a variety of ways to engage employees in their volunteer programs. They clearly see the value of employee volunteer programs to attract prospective employees as nearly 60% of companies include information about their volunteer programs during recruitment. Approximately 60% of companies recognize exemplary employee volunteers in some manner. Recognition may be externally in local and/or national news, internally through awards, or a combination of both. Companies that recognize employees both internally and externally report an average employee participation rate of 39% compared to 32% for companies that do not offer recognition.

50%40% 60%20%10%

FIGURE 5The ways that companies engage employees in volunteer programs

Orientation or onboarding of new employees

Team-building activity option for managers

Includes write-ups in employee newsletter

Employee ambassadors

Social outings for employees

Process of recruiting employees

Training, toolkits, and other resources

Recognizes excellent employee volunteers with awardsRecognizes employee volunteers externally (local and/or national news)Volunteer participation as a leadership development goalEmployee annual development plan/performance reviewOffers financial incentive bonuses for volunteer participation

Company requirement

70% 80% 90%30%0%

FIGURE 4Companies that measure the relationship between volunteer participation and employee engagement scores

■ Companies found a positive correlation between volunteer participation and engagement scores

■ Companies did not find a positive correlation between volunteer participation and engagement scores

89%

11%

50%40% 60%20%10%

FIGURE 5The ways that companies engage employees in volunteer programs

Orientation or onboarding of new employees

Team-building activity option for managers

Includes write-ups in employee newsletter

Employee ambassadors

Social outings for employees

Process of recruiting employees

Training, toolkits, and other resources

Recognizes excellent employee volunteers with awardsRecognizes employee volunteers externally (local and/or national news)Volunteer participation as a leadership development goalEmployee annual development plan/performance reviewOffers financial incentive bonuses for volunteer participation

Company requirement

70% 80% 90%30%0%

FIGURE 4Companies that measure the relationship between volunteer participation and employee engagement scores

■ Companies found a positive correlation between volunteer participation and engagement scores

■ Companies did not find a positive correlation between volunteer participation and engagement scores

89%

11%


Employee engagement through workplace giving programsEmployees play a key role in companies’ community

involvement efforts by participating in workplace

giving programs. More than 80% of companies

offer workplace giving programs. These companies

are most likely to offer giving campaigns, followed

by disaster relief programs.

The majority of companies extend workplace giving opportuni-ties beyond full-time employees to include those who work part time. However, these initiatives are not offered to other internal stakeholders by the majority of companies.

Matching information and employee participation Nearly 80% of companies that match contributions are most likely to offer a 100% match. Of all the matched-gift programs offered by organizations, company-organized giving campaigns are the most popular with employees. Thirty-six percent of employees participated in company-organized giving campaigns in the most recently ended fiscal year, while 15% of employees engaged in gifts for any purpose (median values).

50%40% 60%30%20%10%

FIGURE 20Type of gifts offered in workplace giving programs

Giving campaign

Disaster relief

Gifts to higher education

Gifts for any purpose

100%0% 70% 80% 90%

50%40% 60%30%20%10%

FIGURE 21Who is eligible to participate in workplace giving programs

Full-time employees

Part-time employees

International employees (based outside the headquarter countries)

Retirees

Other (e.g., board members, contractors, and interns)

100%0% 70% 80% 90%


Growth in global givingDespite the complexities involved with global giving, companies

are planning to expand their giving to nonprofits based outside

of headquarter countries in the near future.

More than 40% of surveyed companies give to nonprofits outside of the country in which they are headquartered. A higher percentage—67%—of global companies give to nonprofits based outside of their headquarter countries.

Planned increases for global givingOf the companies that currently give only to nonprofits in their headquarter countries, 13% plan to include nonprofits outside their home countries within two fiscal years. Companies that give globally are likely to focus the majority of their giving efforts in the country where they are headquartered. On average, 77% of corporate giving is distributed to domestic nonprofits, while 23% is distributed abroad. In two fiscal years, these companies are planning to increase the proportion of their budget allocated to global giving from 23% to 29%.

FIGURE 30Corporate giving to nonprofits based outside of headquarter countries*

■ Companies that give to nonprofits based outside of their headquarter countries

■ Companies that only give to nonprofits based within their headquarter countries

FIGURE 31Source of companies’ giving to nonprofits based outside company headquarter countries

■ Giving from the company and through the foundation

■ Giving from the company only

■ Giving through the foundation only

■ Other

FIGURE 32The average split in giving between domestic nonprofits and nonprofits based outside the headquarter countries*

■ Percentage of giving allocated to domesticnonprofits

■ Percentage of giving allocated to nonprofits based outside of the headquarter countries

42%

58%

48%

39%

11%

2%

77%

23%

*Note: Data represents only companies that give globally

*Note: Data represents domestic and global companies

FIGURE 30Corporate giving to nonprofits based outside of headquarter countries*

■ Companies that give to nonprofits based outside of their headquarter countries

■ Companies that only give to nonprofits based within their headquarter countries

FIGURE 31Source of companies’ giving to nonprofits based outside company headquarter countries

■ Giving from the company and through the foundation

■ Giving from the company only

■ Giving through the foundation only

■ Other

FIGURE 32The average split in giving between domestic nonprofits and nonprofits based outside the headquarter countries*

■ Percentage of giving allocated to domesticnonprofits

■ Percentage of giving allocated to nonprofits based outside of the headquarter countries

42%

58%

48%

39%

11%

2%

77%

23%

*Note: Data represents only companies that give globally

*Note: Data represents domestic and global companies


Profile of companies surveyedData in figures and throughout the text refers to survey responses based on the entire company, unless otherwise noted by the † symbol. Figures that include the † symbol are based on data from all respondents (responses based on the entire company and those based only on regional or local operations). Eighty-eight percent of the survey responses are based on the entire company.

20%15%10%5%

Finance and insurance

Manufacturing

Information

Energy

Professional, scientific, and technical services

Utilities

Regional banks

Retail and wholesale trade

Health care/Pharmaceuticals/Biotechnology

Computers and electronics

Machine/Industrial goods

Food

Health insurance

Industry

0%

Note: Industries based on North American Industry Classification System (NAICS) and MSCI industries

Company typePublicly traded for-profit company

Private for-profit company Private nonprofit corporation

Other

Governmental and quasi-governmental corporations

Business type

Both B2B and B2C

B2B

B2C

Other

Company operationsGlobal

Domestic (headquarter countries only)

Company revenue for prior fiscal year< $1 billion

$1 billion to < $5 billion

≥ $5 billion

More than one-half are global companies

More than one-half are publicly traded, for-profit companies

Almost one-half of the companies are both B2B and B2C

Employee size

Fewer than 1,000 employees (17%)

More than 1,000 employees (83%)

100,000 or more (6%)

50,000 to 99,999 (5%)

25,000 to 49,999 (8%)

10,000 to 24,999

(18%)

5,000 to 9,999 (14%)2,500 to 4,999 (12%)

1,000 to 2,499(20%)

Majority of companies have an annual revenue of at least $1 billion

One-half of companies have at least 5,000 employees

54%

32%

5%

5%

4%

46%

38%

15%

1%

29%

35%

36%

58%

42%

20%15%10%5%


Manufacturing

Information

Energy


Utilities

Regional banks





Food

Health insurance

Industry

0%




Other


Business type

Both B2B and B2C

B2B

B2C

Other





≥ $5 billion




Employee size



100,000 or more (6%)

50,000 to 99,999 (5%)

25,000 to 49,999 (8%)

10,000 to 24,999

(18%)

5,000 to 9,999 (14%)2,500 to 4,999 (12%)

1,000 to 2,499(20%)



54%

32%

5%

5%

4%

46%

38%

15%

1%

29%

35%

36%

58%

42%

20%15%10%5%


Manufacturing

Information

Energy


Utilities

Regional banks





Food

Health insurance

Industry

0%




Other


Business type

Both B2B and B2C

B2B

B2C

Other





≥ $5 billion




Employee size



100,000 or more (6%)

50,000 to 99,999 (5%)

25,000 to 49,999 (8%)

10,000 to 24,999

(18%)

5,000 to 9,999 (14%)2,500 to 4,999 (12%)

1,000 to 2,499(20%)



54%

32%

5%

5%

4%

46%

38%

15%

1%

29%

35%

36%

58%

42%

20%15%10%5%


Manufacturing

Information

Energy


Utilities

Regional banks





Food

Health insurance

Industry

0%




Other


Business type

Both B2B and B2C

B2B

B2C

Other





≥ $5 billion




Employee size



100,000 or more (6%)

50,000 to 99,999 (5%)

25,000 to 49,999 (8%)

10,000 to 24,999

(18%)

5,000 to 9,999 (14%)2,500 to 4,999 (12%)

1,000 to 2,499(20%)



54%

32%

5%

5%

4%

46%

38%

15%

1%

29%

35%

36%

58%

42%


Methodology and additional offerings

Survey 236 companies Mostly U.S.-based medium and large companies Conducted Jan. 22 – Feb. 19, 2015

History The survey has been conducted since 1995

Examines how companies are investing in their communities

Corporate citizenship professionals and executives provide insight into how their companies are managing and executing their community involvement programs

2015

Additional resources for Boston College Center for Corporate Citizenship member companies:

The full report and presentation slides are available for download from the Center website, ccc.bc.edu.

Customized presentations by industry will be available for download December 2015 from ccc.bc.edu.

Interested in a customized view of the Community Involvement report related to a business

demographic? Feel free to contact [email protected].

Not a member of the Boston College Center for Corporate Citizenship but are

interested in learning more about the value that membership provides?

Contact our membership department at [email protected] or 617-552-4545.

Methodology


Celebrating 30 years helping companies align corporate citizenship objectives and business goals, the Boston College Center for Corporate Citizenship comprises a network of more than 420 member companies creating one of the largest membership organizations in the United States.

Join. Connect. Grow.

20%15%10%5%


Utilities


Health care and social assistance


Retail trade


Food/Beverage/Tobacco

Information

Consumer products

Top 10 industries (21 industries represented)

0%

■ Fortune 1,000 companies■ Fortune 500 companies■ All other companies

More than 40% of our members are from

Fortune 1,000 companies

Company type

■ Publicly traded for-profit company

■ Private for-profit company ■ Private nonprofit corporation■ Governmental corporation

or congressionally authorized organization

Company revenue

■ < 1 billion■ 1 billion to < 5 billion■ ≥ 5 billion

Both B2B and B2C

B2B

B2C

Business type

40%30% 50% 60%20%10%

Business region Members represent 13 countries, 43 U.S. states (plus DC), 7 Canadian provinces

66% Global companies

34% Domestic companies (headquarter countries only)

Company membership

23% of our members have

been with us for 10 years or more.

12% 27% 15% 21% 11% 7% 7% < 1,000 1,000–4,999 5,000–9,999 10,000–24,999 25,000–49,999 50,000–99,999 ≥ 100,000

Employee size

42%

58%

64%

32%

4% 1%

22%

33%

45%

28%

Based in the Carroll School of Management, the Boston College

Center for Corporate Citizenship combines the most valuable aspects

of a professional community and the resources of a leading academic

institution for our members. We integrate the perspectives and

experience of some of the leading corporate citizenship professionals

in the field today with management best practices, helping you align your

corporate citizenship objectives and business goals. We also conduct

ongoing research, which is available to members through weekly, monthly,

and biannual publications. Center resources and professional develop-

ment opportunities support positive outcomes for your functional area,

your organization as a whole, and for you as a leader.

140 Commonwealth Ave., Chestnut Hill, MA 02467 | t: 617 552 4545 f: 617 552 8499 e: [email protected]

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Research on Community Involvement, Employee Volunteering and Corporate Giving

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Transcript of Research on Community Involvement, Employee Volunteering and Corporate Giving