© 2005 by Nelson, a division of Thomson Canada Limited. 1 Business and Community Stakeholders Search the Web The Foundation Center is a clearinghouse that publishes the “The National Directory of Corporate Giving”:

© 2005 by Nelson, a division of Thomson Canada Limited. 2 Positive and negative effects of the business stakeholder –Community involvement –Corporate philanthropy –Plant closings

© 2005 by Nelson, a division of Thomson Canada Limited. 3 Reasons for Community Involvement 1.Business people are efficient problem solvers. 2.Employees gain satisfaction and improved morale. 3.A positive image facilitates hiring. 4.Business gains prestige and community acceptance. 5.Social responsibility over government regulation. 6.A company benefits from helping institutions essential to the continuation of business.

© 2005 by Nelson, a division of Thomson Canada Limited. 4 Community Involvement Recognition through articles, awards, and commendations Publicity about volunteer opportunities Executives who have board memberships Company- sponsored projects Ongoing endorsement of programs by CEOs Encourage Employee Volunteerism

© 2005 by Nelson, a division of Thomson Canada Limited. 5 Community Involvement Company Benefits From Employee Volunteerism Indirect community benefits Employee benefits Bottom-line benefits

© 2005 by Nelson, a division of Thomson Canada Limited. 6 Managing Community Involvement Knowing the community 1. Knowing the community—The corporation should get involved in the communities it knows. Knowing the company’s resources 2. Knowing the company’s resources— Community involvement must be cost- effective. Selecting projects 3. Selecting projects— Programs should affect and interest those employees involved. Monitoring projects 4. Monitoring projects— Management must run community involvement like other parts of the business. Monitoring projects 4. Monitoring projects— Management must run community involvement like other parts of the business. Developing Community Action Programs

© 2005 by Nelson, a division of Thomson Canada Limited. 7 Business Giving: Why Do Companies Give? The Nondonor: No evidence of charitable giving... The “ The “What’s in it for Us” Donor: Direct interest of company and employees – strategic / economic The “Company President Believes in Art Support” Donor: Interests of senior management – image / reputation The “We Are a Good Citizen” Donor: Traditional non-profits supported – less likely to be strategic but reactive The “We Care” Donor: Nontraditional, proactive choices

© 2005 by Nelson, a division of Thomson Canada Limited. 8 Business Giving: Who To Give To? Education Health and human services Civic and community activities Culture and the arts Other organizations

© 2005 by Nelson, a division of Thomson Canada Limited. 9 Business Giving: Managing Corporate Philanthropy Public Purpose Partnerships (Public Private Partnerships: 3P) A for-profit business enters into a cooperative agreement with a nonprofit for their mutual advantage –Reconciles financial and social goals

© 2005 by Nelson, a division of Thomson Canada Limited. 10 Business Giving: Managing Corporate Philanthropy Strategic Philanthropy When giving fits the firm’s overall mission, goals or objectives by: –Contributing to a firm’s economic success – Aligning with the firm’s business endeavors – Home Depot  Habitat for Humanity

© 2005 by Nelson, a division of Thomson Canada Limited. 11 Business Giving: Managing Corporate Philanthropy Cause-Related Marketing Direct link between product or service and charity: Midas  Project Baby Smart Cause branding: Avon  Women

© 2005 by Nelson, a division of Thomson Canada Limited. 12 Business Giving: Global Philanthropy - Advantages An improved corporate image A boost in market penetration Improved personal relations Improved government relations

© 2005 by Nelson, a division of Thomson Canada Limited. 13 Corporate Volunteerism in Canada: An Overview Dr. Debra Basil Dr. Mary Runte University of Lethbridge, Alberta

© 2005 by Nelson, a division of Thomson Canada Limited. 14 Business and Plant Closings What should business do? –Before deciding to close: Propose new ownership Explore employee ownership –After deciding to close: Conduct community impact analysis Provide advance notice Provide transfer, relocation and outplacement Act to phase out business gradually Assist community with replacement industry

© 2005 by Nelson, a division of Thomson Canada Limited. 15 Business and Plant Closings What groups will be affected? How will they be affected? What is the timing of initial and later effects? What is magnitude of the effect? What is the duration of the impact? To what extent will the impact be diffused in the community? Community Impact

© 2005 by Nelson, a division of Thomson Canada Limited. 16 Business and Plant Closings Factors in Plant Closing Assistance Size and impact of closing Extent of corporate commitment Length of time firm located in community The time the firm employed employees Resources available to provide assistance Firm’s sense of social responsibility