Corporate Social Responsibility Press Release
provided by 
11.14.2008 - 08:00am ET
News from:
Imagine Canada
Canada's Largest Corporations Move Beyond Cheque-book Philanthropy
New Research on Corporate Citizenship
(CSRwire) TORONTO, CANADA. - November 14, 2008 - A new research study from Imagine
Canada finds that the community investment initiatives of many of Canada's
largest corporations have moved beyond "cheque-book philanthropy" and are
leveraging their assets in more ways than the public, or even the
charities and nonprofits they support, might think.
"While the demand for these companies to give is persistent and
increasing, they are doing more than just cutting a cheque for charities
that have asked for help," says Dr. Michael Hall, Imagine Canada's
Vice President of Research. "What really stood out in the research is
their strategic approaches to community investment and the ways in which
they are engaging their employees and their broader stakeholder networks -
clients, customers and suppliers - to leverage their philanthropy. They are
putting a lot of thought into how and where they give, and are quite
innovative in their approaches."
This focused research report - Corporate Community Investment
Practices, Motivations & Challenges: Findings from the Canada Survey of
Business Contributions to Community - puts a spotlight on 93 of
Canada's largest companies (annual revenues exceeding $25 million) and
their community investment practices. It is based on findings derived from
a broader study (Canada Survey of Business Contributions to Community) that
looked more generally at business contributions to charities and nonprofit
organizations in Canada. This research provides the first-ever,
comprehensive portrait of business contributions to charities and
nonprofit organizations in Canada. The research is part of a multi-year
program funded by EnCana Corporation.
"This research tells me that you can't just put a dollar value on
corporate giving anymore," says Mary Ann Blackman, Manager of
Community Investment, EnCana Corporation, and a member of the Study
Advisory Committee. "Large companies are stepping up to the plate and
devoting a wider range of their assets and resources in the name of
building healthy communities, and they are doing it in unique and diverse
ways."
Since this research is meant to help Canadian businesses assess and
improve their community contributions practices, it does point to the need
for some improvements in terms of giving levels, measurement tactics and
philanthropy targets. For example, the total value of contributions from
large corporations as a percentage of pre-tax profits is actually lower
than that of the broader business community (median value of 1.0% vs.
1.25% respectively). Large corporations also give less as a percentage of
revenues (median of 0.06% compared to 0.63%). Further, the large
corporations tend to focus the bulk of their support on a narrow spectrum
of more mainstream charities and nonprofits, and overlook less-known or
emerging charities.
Highlights from the research include:
- 50% of companies surveyed are meeting or exceeding the
contribution standard set by Imagine Canada's Caring Company Program (one
per cent of profits to be directed to charities and nonprofit
organizations). 97% of the large corporations in the study made financial
donations to charities and nonprofit organizations.
- The leaders of Canada's largest corporations have very positive
attitudes about the charitable sector - far more positive than either the
broader business community or the general public. Almost 8 in 10 (79%)
agreed that most businesses would donate to charity even without financial
benefits and most (71%) strongly agree that these organizations generally
improve the quality of life in Canada.
- Over three quarters (76%) said they face difficulties arising from
increasing requests for donations. Many (38%) said that too many charities
are trying to solicit money for the same cause.
- Direct donations accounted for 81% of the total value of all
contributions while sponsorships and cause marketing accounted for 19%.
The median or typical value of all contributions reported was $340,000.
- Financial support that involved an element of promotion for the
business were also quite common, with 57% of large corporations providing
sponsorship dollars and 26% engaging in cause marketing with nonprofit or
charity partners.
- Most large corporations (82%) support some kind of employee volunteer
activity. For example they allow employees to adjust their work schedules
to volunteer (79%) or take time off with pay (72%), and/or organize
company-sponsored volunteering events (72%). They also support fundraising
initiatives by raising money from employees (reported by 83%), payroll
deduction programs for employee giving (71%), providing matching grants
for employee contributions (62%), and raising money from customers or
suppliers (50%).
- 75% of large companies cited three primary reasons for their
charitable contributions: to help build strong communities, which is good
for business; because contributing is good for their company’s
relationships with the community, and because contributing fit their
company's traditions and values.
- Companies report being more satisfied with their philanthropy when
they have organized their efforts. 79% reported having regular and ongoing
programs for their charitable contributions. However, many may not have
fully adopted elements that are representative of a strategic approach to
community investments. Only 39% reported that they had written policies,
and only 27% reported that they measured the benefits of their
contributions.
- Three quarters of the total value of donations, sponsorships, and
cause marketing went to five types of organizations: Social Services
(19%), Health (17%), Universities and Colleges (15%), Arts and Culture
(13%), and United Ways (9%).
"This study told us that the philanthropic spirit is alive and well
among the corporations in Canada with the deepest pockets," says Dr.
Hall. "It also showed that these same companies would do better if they
were more organized and strategic, on the look out for opportunities to
work with a broader array of charities, and better able to measure the
tangible benefits associated with their philanthropy."
This report includes case studies that profile the diverse philanthropy
approaches of five companies. These include Cooper's Office Furniture
(Toronto), First Calgary Savings (Calgary), EnCana Corporation, Pfizer
Canada and Manulife Financial. These case studies are available upon
request.
Imagine Canada has been championing the need for Canadian businesses to
support charities since 1988 when its predecessor, the Canadian Centre for
Philanthropy, established the Imagine Caring Company program.
Imagine Canada is a national charitable organization that looks into and
out for Canada's charities and nonprofit organizations. We deliver
research that puts the sector on the map and raises its profile in the
minds of Canadians. We influence public policy and build support,
encourage collaboration and engagement from businesses. We deliver tools,
resources and networking opportunities directly to nonprofits and
charities to build and strengthen the sector one organization at a time.
Together, they contribute to social progress and vibrant communities.
For more information please contact:
Marnie Grona, Senior Manager, Marketing & Communications
Imagine Canada
416-597-2293 x244
416-300-7220
www.imaginecanada.ca/
www.imaginecanada.ca/
News Categories:
Research, Reports & Publications and Philanthropy/Corporate Contributions
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