From PhilanthropyJournal.org
Social, environmental and economic responsibility practices are changing, and
even small to mid-sized businesses must adapt to what is increasingly becoming a
new management paradigm. In fact, small businesses often have an advantage over their larger peers
engaging in this new frontier, as they are able to adapt to these challenges
more quickly.
The marketplace dynamics have really changed with respect to discussions
about "doing good in society," more commonly referred to as corporate social
responsibility (CSR). What used to be a simple matter of donating money has now become a critical
component of reputation management and cultivating a competitive business edge. Companies now have to better integrate their philanthropic contributions into
their business functions, and make it a core part of their strategic marketing
and communications planning.
A great place to begin is by asking the right questions upfront:
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The cause target: How will my company properly contribute to the
community to advance public interest?
The value proposition: What impact will this have on our brand, our
stakeholders and our performance?
The evaluation and measurement plan: How do we demonstrate the
effectiveness of what we're doing over the long-term? Many companies fixate on
demonstrating philanthropic impact within the earning season and their own
bottom line. However, sustainable development is a long-term process.
Transparency: How can we be more accountable? Stakeholders want to
know what progress you're making. Even if you don't say, "We saved two trees or
three kids' lives," what steps are you taking towards your goals?
If you're just starting out with a philanthropic endeavor, be sure you have
good answers to these questions upfront. And if you already have a long-term
funding relationship with a nonprofit you don't want to lose, asking these
questions might enhance the way you work together.
It's not enough, however, for senior management to undertake this critical
discussion alone.
Take an integrated approach
Corporate-philanthropy efforts must adopt an integrated approach upfront. Not
only should an organization's philanthropy reflect the consensus of all its
stakeholders, it should be part of a company's vision and culture. For example, asking
your employees to donate some of their time to the effort, will empower your staff
across all departments and divisions.
Do your research
The next step is to understand which causes mean the most to your
company, customers and other stakeholders. The litmus test for ideas
should be as to how well the cause aligns with and enhances your
brand. For example, CIGNA partnered with 'Water for
People' to provide 1 million days of clean water to Bolivia, Guatemala,
Honduras, Malawi and West Bengal, India. Besides goodwill, CIGNA managed to get 19 million online impressions. The tie-in between providing clean drinking water and health was a simple one to figure out.
For smaller businesses, there are many opportunities to get engaged
with well known and not so well known nonprofits that represent a diverse range of causes. Don't fund the same national nonprofit that
all the big corporations already support. In other words, look at differentiating your efforts.
Market, but collaboratively
A lot of companies make the mistake of not properly marketing their
philanthropy to key stakeholders. You go to their websites to look for their
philanthropic intent, and you can't find it.
It's one thing to announce publicly what you're going to do, but you also
have to make sure your programs are properly communicated to your employees,
manufacturers and distributors.
CSR reports and regular updates are a great
vehicle for sharing the impact of your philanthropy: how it relates to your
brand, product and company values; how it has increased employee productivity;
how it has become a source of innovation and growth for both the nonprofits
you're funding and the company itself.
But when you communicate, do it jointly. A lot of companies don't collaborate
enough with the nonprofits they fund or work with.
For example, if you invested in a major sponsorship or event such as a museum
opening, it is important to demonstrate what impact your money is making, beyond
just the logo on the front door.
Nonprofits should be treated as visionaries. They have the expertise,
research and resources working all over the world in places where smaller
companies may be looking to expand their business.
Don't take all the credit. Work to become integrated in community development
and outreach, as well as collaborative grass-roots education campaigns. Give
your nonprofit partners the chance to say that they're part of the partnership,
too.
Photo: pbs.org
FULL STORY
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Even these days, when for some, cash isn't "flowing" quite like it used to, small businesses are still making philanthropic giving a priority. Even if they can't give like Oprah, smaller companies realize that there are many ways to contribute to their community... and it can be really good for business if done properly.
New customers are the lifeblood of business. Although mailing can get expensive when you add up printing and postage costs, it remains a viable way to gain new customers. 
Did you know that every year over $30 billion is wasted on failed product development projects. That's where 
