The Real ROI of Corporate Giving

Conventional wisdom tells us that corporate giving is smart. Sure, it makes us and our customers feel good. If you ask most people, they'll tell you that businesses help charities and other causes solely for the publicity. But how can you measure the return on investment of giving?

In our case (we donate to Habitat for Humanity, YMCA, among others), I admit that's a happy side effect, but it's a far distant fourth place in the reasons we give. Here are the top 3 reasons we give, and why you and your company should as well:

1. It's an obligation: The more successful you are, the more obligated you are to give back. I think that's self-explanatory. If it isn't, then the rest of this article probably won't make much sense to you.

2. It reinforces your core values: As CEO, one of my key objectives is to have the right people performing at their highest level -- to help people become the best they can be. It's consistent with our core value to Improve Continuously. We become better by donating our time, money, and creative talent. Core values are only core values if you and your company clearly demonstrate them with behavior.

3. It creates a culture of regard: Our goal is to WOW every customer. To do that, we must be keenly attentive to them, listen actively, ask relevant, probing questions to uncover customers' needs and wants, and then take action above and beyond their expectations. I believe that performing charitable acts of kindness and giving encourages employees to be more attentive and receptive to doing those things.

Here's a great example:

A few days ago, one of our Customer Service Specialists, Annette, wowed a customer. Annette had learned that the customer was attending her mother's chemo treatments. Annette sent her a heartfelt, personal note and small gift. The customer wrote back:

Annette --
I don't know you, but I KNOW you are an angel. My mom just received the beautiful teapot and miniature roses and we were FLOORED when we read the card. How something so thoughtful can make the day of someone. I started crying when I read the card to her and was shocked. I told my Mom that I have ordered blinds from your company in the past but never ever would have expected something so special. Thank you once again from the bottom of our hearts. Mom just finished up her first round of chemo (she will have 3) and continues her daily radiation. We continue to remain hopeful. God bless you all.

When you improve the value of those around you (i.e. the less fortunate, family, co-workers, neighbors, community, city, etc.) you also increase the value of your business. You'll attract new employees, create new opportunities, and make your people, your departments, and your company better, too. Giving back is the logical next step when you have the ability to do so. Customers will feel it and respond.

What's the ROI of that?

Photo courtesy of Flickr by historic.brussels