As companies experience more success, there is a growing trend towards increased emphasis on Corporate Social Responsibility (CSR). According to a Harvard study, around 90% of companies on the S&P 500 published a CSR report in 2019, compared to just 20% in 2011.
Large companies now recognise that the environment and communities in which they operate can contribute significantly to their bottom line. This realisation has led to an increasing focus on CSR, which involves operating in a way that benefits society over the long term. CSR involves focusing on the three Ps: people, planet, and profit; taking responsibility for a company’s impact on the environment as well as other stakeholders like employees, customers, and the general public. Companies can achieve this by reducing their environmental impact, improving working conditions, and supporting non-profits that align with their mission.
In today’s world, embracing CSR is no longer just a moral obligation, but it’s also a smart business decision that can benefit a company’s bottom line. For instance, another Harvard study found that companies with strong CSR initiatives outperform their peers in the long run. By demonstrating a commitment to social and environmental causes, companies can increase customer trust and loyalty, attract top talent, and ultimately boost their financial performance. Therefore, it’s time for companies to recognize that CSR isn’t just a “nice to have”, it’s a critical component of a successful business strategy.
In this article, we will examine the best kinds of non-profits for companies to partner with, and some of the ways that companies can help these non-profits to increase their social impact. A cash injection is not always the best solution.
Finding the Right Non-Profit
If a company is considering partnering with non-profits, it’s important to keep an eye out for certain key factors to ensure success.
Below we explore five areas that businesses should prioritise when selecting a non-profit partner.
1. Mission Alignment
When it comes to partnering with a non-profit, mission alignment is crucial. Not all non-profits have the same objectives, and businesses should carefully consider whether their missions are aligned before committing to a partnership.
A business should seek out a non-profit that shares similar values and goals, whether that be in the areas of health, education, youth development, public safety, or ESG. For example, if a company is committed to reducing its environmental impact and has a goal of achieving net-zero emissions, partnering with a non-profit that focuses on environmental sustainability can be a win-win. The non-profit can help the company achieve its sustainability goals while also advancing its own mission, creating a partnership that benefits both parties.
To ensure that the partnership is successful, businesses should seek out non-profits that have a clear and focused mission. Non-profits that take a surgical approach to their mission are often easier to align with, as it’s more straightforward to determine if there’s a common goal. For example, Darden restaurant group’s partnership with Food Donation Connection (FDC) is a great example of mission alignment. FDC’s mission is to minimise food waste directly aligns with Darden’s commitment to fight hunger and address food insecurity. By partnering with FDC, Darden has been able to make a meaningful impact in the community while also achieving its own sustainability goals.
2. Proven Track Record
Companies should look to partner with non-profits that have a proven track record. Since day-to-day operations are typically opaque, a non-profit’s credibility and reliability have to be inferred from its strong reputation in the community for delivering measurable results. For example, Feeding America is a non-profit with a proven track record of providing hunger relief to communities across the United States. With a network of food banks and partnerships with local organisations, Feeding America has been able to distribute billions of meals to families in need. As a result, companies that partner with Feeding America can feel confident that their contributions will have a tangible impact on the community.
3. Measurable Impact
Partnering with a non-profit that has measurable metrics for success is crucial to ensuring that the partnership has a meaningful impact. Companies should seek out non-profits that regularly conduct audits and track progress towards their goals as this demonstrates a clear commitment to transparency and accountability. A great example of a non-profit with a strong focus on measurable impact is Charity: Water. They have a clear and ambitious goal of providing clean drinking water to everyone on the planet, and they regularly report on their progress. Through detailed reports and metrics, Charity: Water is able to show the impact of their work. By partnering with non-profits like Charity: Water, companies can have confidence that their efforts are making a real difference.
4. Culture of Accountability
Having a culture of accountability is essential for both non-profits and companies to achieve their goals. Non-profits that are transparent about their mistakes, and that take responsibility for their actions, demonstrate a commitment to accountability and a willingness to learn and grow. For example, Kiva is a non-profit that allows individuals to provide small loans to underserved communities in 80 countries. They are transparent about their lending practices, and regularly report on their impact and the challenges they face. By partnering with non-profits like Kiva, companies can be confident that the organisation is committed to achieving its goals in a responsible and ethical manner.
5. Openness to Collaboration
Collaboration is key when it comes to successful partnerships between companies and non-profits. Non-profits that are open to consulting with experts and partnering with other organisations can achieve greater social impact by adopting best practices and leveraging the strengths of multiple organisations. For example, the partnership between TOMS and WaterAid illustrates the power of collaboration. TOMS provides shoes to communities in need, while WaterAid works to improve access to safe water and sanitation in developing countries. By partnering with WaterAid, TOMS was able to expand its impact beyond shoes and make a significant contribution to improving health and well-being in underserved communities. This partnership is a great example of how collaboration can create a win-win situation for both companies and non-profits, and lead to greater social impact.
Empowering Non-Profits Through Skill-Based Volunteering
Companies should look to support worthwhile non-profits. Two of the most obvious ways that companies can do this are via financial support and employee volunteer programs. Donating money and employee time can benefit the company by fostering a sense of community, boosting employee morale, and creating positive word of mouth.
However, there is also a third way that companies can support non-profits: skill-based volunteering. Skill-based volunteering involves sharing a company’s professional skills and expertise to help non-profits address key challenges and achieve their goals. Non-profits often need help to overcome many of the same challenges encountered by for-profit businesses. By providing support in this way, companies can offer employees an opportunity to build professional experience in a way that is aligned with the company’s business strategy and existing operations.
The type of skill-based volunteering that you provide will depend on the type of company you work for. Here are three examples of skill-based volunteering.
1. Business Insights
Management consulting firms can leverage their business acumen to provide strategic insights, data analytics, and implementation services. This might include assisting a non-profit to streamline its mission statement, or providing analytics to assess capacity and plan for sustainable growth.
Non-profits often focus primarily on their social impact and neglect other important aspects of their mission, such as developing a sustainable business model. This can lead to loss of revenue, especially during tough times like the COVID-19 pandemic.
Consulting firms can offer guidance to help non-profits develop a sustainable business model, such as through a subscription model or sourcing financial support from large donors like government, corporates, or philanthropy.
By providing non-profits with the tools to endure tough times sustainably, consulting firms can help to ensure that non-profits are able to continue providing important public services over the long term.
2. Financial Management
One impactful way that financial services firms can engage in skill-based volunteering is by providing financial management services to non-profits. This might involve developing a financial plan to diversify revenue streams so that the non-profit is less reliant on donors. This could require developing a new business model, modifying existing products, and tracking key financial metrics.
By improving their financial management, non-profits are likely to become more financially stable and better positioned to attract funding. This may lead to increased confidence among donors and an increase in overall donations.
3. Marketing and Communications
Marketing and communications expertise can be incredibly valuable for non-profits seeking to spread awareness of their mission and to attract support. This might include support in areas such as social media management, graphic design, copywriting, and public relations. Non-profits can use these skills to build their brand identity and develop targeted marketing campaigns that engage potential donors and volunteers. For example, a marketing agency might help a non-profit dedicated to environmental conservation to create social media content that encourages people to make eco-conscious lifestyle choices.
By more effectively communicating with key stakeholders, non-profits can increase public awareness, enjoy greater community support, and make a more significant social impact.
The bottom line
Companies are increasingly recognising the importance of CSR in contributing to their bottom line, and it has become a critical component of successful business strategy.
By partnering with non-profits that have a clear mission, strong reputation, measurable impact, and a commitment to accountability, transparency, and collaboration, companies can achieve their own social and environmental goals while also advancing the mission of their non-profit partners and making the world a better place.
Although companies can support non-profits via donations and employee volunteer programs, they can also make an impact by deploying their professional skills and expertise in a way that builds institutional experience, increases employee engagement, and improves the overall reputation of the firm.
Rhulani (Ruce) Ndlala is former President of the UCT Consulting Club and holds a Bachelor of Commerce (Accounting) from the University of Cape Town.
Image: Pexels
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