Most companies feel compelled to give to charity.
Few have figured out how to do it well.
Michael E. Porter and Mark R. Kramer
Harvard Business Review Dec. 2006

Three years ago when Orenda began, I subscribed to a google alert for “strategic corporate philanthropy”. I would receive a notice on average about once a week, which I would read with great anticipation. Three years later I receive so many each day that I can’t keep up with them. The evolution of corporate philanthropy from check writing to business strategy is mainstream. I read this week that even Wal-Mart, America’s #1 corporate donor, is revising its giving plan to be more streamlined and focused.
www.nwanews.com

Along with the common sense of corporate giving becoming more relevant and focused, is the increased awareness of the value of employee engagement in the initiative. This issue of the ORENDA CONNECTION is focused on employee engagement.

Two members of the Orenda team, Heather McKelvey and Jonathan Pelosi have spent much of the past couple of months researching employee engagement and corporate philanthropy. The results are fascinating, staggering and validating for us that what we’ve been doing with and for our clients is helping them move forward by giving back. We report some of those results in this edition of The ORENDA Connection.

Yes, we missed Corporate Philanthropy day in February.  It was our intention to get this issue out to celebrate the day; however, we’re growing so fast and scrambling to keep up with it. It’s a good thing…and reflective of this evolution of corporate philanthropy!

Here’s a link to some of the goings-on on Corporate Philanthropy day - February 25th ‘08.
www.corporatephilanthropy.org

As the next big day on our calendar is Earth Day, we have profiled SOFTCHOICE, a technology solutions provider and their inspiring employee engagement program around the environment; and EVERGREEN, a non-profit ready to show up “corporate ready” with employee engagement programs that bring nature to the city. Enjoy.

Gratefully,
Peggie Pelosi
Vision Keeper - Orenda Connections

Is Your Workplace ENGAGING?
When organizations and leaders discuss philanthropy, they often site employee engagement as one of their primary reasons for developing corporate philanthropy programs.  But what exactly is employee engagement and why is it so important to business in the 21st century?

The Gallup Management Employee Engagement study identifies three types of employees:

• Engaged employees work with passion and feel a profound connection to their company.  They drive innovation and move the organization forward.
• Not-engaged employees are essentially “checked out.”  They are sleepwalking through their workday, putting time – but not energy or passion – into their work.
• Actively Disengaged employees aren’t just unhappy at work; they are busy acting out their unhappiness.  Every day these employees undermine what their engaged co-workers accomplish.

How can you tell if you employees are disengaged?  Some symptoms include:

• Low morale
• Cynicism
• Absenteeism
• Mistakes
• Lack of energy
• Lack of attachment
• Lack of satisfaction
• Minimal Performance
• Bureaucratic and rule driven
• Declining innovation

The 2004 Gallup Management Journal Employee Engagement Index estimates that in the United States

29% of employees are engaged,
54% are not-engaged 
17% of employees are actively disengaged. and
33% of employees are actively looking for work elsewhere

The survey goes on to speculate that the U.S. economy loses $300 billion per year as a result of disengaged workers.

Recent studies suggest that employee disengagement is increasing and management is unaware of how to combat the rising numbers.  While some organizations are hesitant to make the required investment to develop employee engagement programs, it is becoming clear that overlooking the issue is no longer an option.

Comprehensive employee engagement programs demonstrate that companies value their human resources and present a positive corporate image to numerous stakeholders, including employees.  During a time when many are concerned about a labour shortage due to a declining and aging population, as proven by a 2008 Statistics Canada survey reporting that for the first time more than half the workforce is under the age of 40, standing out from the competition is important when attempting to attract, retain and motivate employees. 

Firms are also facing strong demand for CSR from their employees, so much so that it has become a serious part of the competition for talent. Ask almost any large company about the business rationale for its CSR efforts and you will be told that they help to motivate, attract and retain staff. People want to work at a company where they share the values and the ethos.
Mike Kelly, head of CSR, KPMG Europe

A positive corporate image attracts high quality recruits as many workers are seeking employment with a company that fosters a positive corporate culture and provides a meaningful work experience.  Once the organization has spent the money recruiting new employees, it must immediately focus on retaining them. 

Engaged employees tend to be more motivated, stay with an organization longer, advocate products and services, drive innovation and have even been known to contribute to business performance as a positive relationship exists between employee engagement and profitability.  Successfully executed employee engagement programs have the potential to reduce turnover, increase productivity, and improve customer satisfaction; ultimately contributing to overall organizational performance and enhancing the bottom line.

Engagement remains the ultimate prize for employers. Companies may use different names or define it slightly differently, but the endgame is the same for everyone: discretionary effort.  At a time when virtually every organization is struggling with cutbacks and financial pressure – trying to improve performance with fewer people and dollars – having a critical mass of employees who freely give that effort is of tremendous value.
The 2003 Towers Perrin Talent Report

In order for an employee engagement program to have the desired impact, the workforce must trust their employer. According to the Edelman Trust Barometer Survey (2007), the most important actions for companies to take when building trust in order of importance are:

• Listening to employees
• Demonstrating its corporate social responsibility
• Communicating the company’s business strategy
• Having the CEO be accessible to employees
• Communicating the company’s financial performance
• Communicating openly about layoffs
• Providing information about career advancement

One key component of corporate social responsibility, corporate philanthropy, has been  seen to have a significant impact on employee engagement.  However, to be effective, corporate giving must be done strategically; in many cases donations are still given to causes that resonate with senior executives rather than to those that compliment business operations.  In order to derive value from a philanthropy program, it must be focused and in line with operations and strategy.

87% of employees at companies with cause programs feel a strong sense of loyalty to their employer, versus 67% of those who don’t have such a program.
Cone/Roper Cause Trends Report 1999

In order to demonstrate the business value of corporate philanthropy in the US workplace, a Corporate Philanthropy Index (Walker Information), which scores a company on its philanthropic giving, was developed.  Companies are measured on awareness of the program, effectiveness of the program, and “fit ” (relevance) with the corporation. In the Walker study, to be classified as High CPI, the philanthropy program must meet three objectives:

• There must be awareness of the company’s giving programs (awareness);
• They perceive what the firm does in this area is effective (effectiveness); and,
• They believe that the philanthropy efforts undertaken “fits” with the culture or character of the corporation (fit)

Upon comparing the attitudes of employees that work at High CPI organizations to those at other organizations, with average or low CPI scores, it is apparent that there are many benefits associated with High CPI Employees:

• They are more likely to will stay with the company longer;
• They are more likely to recommend their organization as a good place to work;
• They are more likely to do things to make the customer happy;
• Employee productivity is increased;
• Corporate culture is enriched; and,
• Customer loyalty is increased.

In fact, the High CPI companies had on average a 9 percent increase in employee retention. That translates significantly on the bottom line. According to an Ipsos Reid study, the cost of replacing an hourly employee is the equivalent of 6 months pay, and  the cost to replace a Manager or Professional is 18 months salary.

Employees who participated in volunteer programs showed an overall improvement in productivity of 17%, especially in the areas of communication skills, collaboration and team-working shills and creative thinking skills.
Emory University Corporate Citizenship Company Study, 1998

There is an obvious link between corporate philanthropy and employee engagement that is critical for employers to understand.  However, in order to fully take advantage of the benefits associated with an employee engagement program, philanthropic efforts must be relevant to business operations, effectively communicated, and ongoing. 

The fact is, the prevailing approaches to CSR are so fragmented and so disconnected from business and strategy as to obscure many of the greatest opportunities for companies to benefit society. If, instead, corporations were to analyze their prospects for social responsibility using the same frameworks that guide their core business choices, they would discover that CSR can be much more than a cost, a constraint, or a charitable deed—it can be a source of opportunity, innovation, and competitive advantage.
Michael E. Porter and Mark R. Kramer, Harvard Business Review, December 2006

Spotlight on SOFTCHOICE: 
Focus, Relevance and Employee Engagement

Softchoice is one of North America's leading providers of technology solutions and services, and they have been helping businesses and organizations of all sizes select, acquire and manage their software and hardware technology resources since 1990. With over 40 sales offices and 30 distribution centres located in major cities around North America, Softchoice has experienced substantial growth and change over the last 18 years. 

But one thing hasn’t changed…their commitment to people.  Whether it is providing exceptional customer service to their clients, fostering a progressive work environment for talented employees, or giving back to those who are less fortunate, Softchoice prides themselves on their passion for people. 

The Challenge:
In 2004 Softchoice made a commitment to give back to the community and sought to engage employees in the process through an initiative known as “Softchoice Cares.”  An employee committee was selected to design the program, and over the next few years the company supported a number of different causes through employee engagement programs. However, in spite of the best intentions, Softchoice management was concerned that something was missing.

The Assessment:
Each year the Softchoice Cares committee would select a different project to support, from Tsunami relief to World Vision to Habitat for Humanity building projects.

While Softchoice had many of the elements of a successful philanthropy program in place, the focus and relevance of the projects they were undertaking seemed to be missing. As a technology solution provider, Softchoice employees had difficulty making the connection between the purpose of their work and the causes they were supporting. There was no clear line extending the corporate mission beyond the balance sheet in a strategic way.

The Solution:
By exploring where social needs existed relative to their business purpose, the Softchoice Cares committee concluded that they could in fact create the Emotional Profit Center™ by addressing 2 significant issues: the environment and education. 

As a technology provider, it made sense for Softchoice to address the issue of toxins being released into the ground as a result of computer hardware ending up in landfill. Focusing on this specific issue has allowed them to create a comprehensive sustainability program and by recycling computer hardware, they have been able to prevent computers going to landfill. 

Taking the program one step further, these recycled computers are being refurbished and distributed to students and families in the inner cities of the communities they serve, as well as to schools in the developing world which are in dire need of computer access.

The Program:
Each quarter employees are encouraged to take initiative and organize fundraising events; Softchoice then matches the donations.  Past events have included: 50/50 draws, golf tournaments, poker tournaments, silent auctions, BBQs, designer t-shirt sales, holiday cookie drive, boat cruises, sports pools and more.  In the first two quarters of 2007 alone Softchoice employees raised $44,581.61; once this was matched by Softchoice the donations totaled $89,163.22.

The money raised by Softchoice Cares is currently funding three projects:

1. A computer lab in Cambodia in partnership with Room to Read;
2. A computer lab in Laos in partnership with CHI KI Children’s Fund; and,
3. A computer lab in Montreal in partnership with Youth Unlimited Chateauguay.

In addition to giving back through Softchoice Cares, employees are encouraged to volunteer on their own time and the company has set a goal to have 80% of their employees organizing or participating in fundraisers, activities and other local volunteer opportunities.  To help them reach this goal, employees are given two volunteer days off work to participate in the activity of their choice. 

The Results:
2007 was a record year for employee cash contributions and volunteer time to the Softcoice Cares program and was also a record year for Softchoice financially, both in revenue and earnings.  Softchoice has been voted as one of the Best Workplaces in Canada in 2006 and 2007. 

Employee Reactions:
"It is important to me to belong to a company that is dedicated and responsible in the context of the larger community. Softchoice has made great efforts to empower those who need assistance. I feel fortunate to be part of such a conscientious organization."
Faye Joyce - Customer Master Analyst

For more information on the inspiring Softchoice cares program visit:
www.softchoice.com

Spotlight on EVERGREEN
Creating Emotional Profit Centers™

Geoff Cape, founding executive director of Evergreen, was honoured on December 5th, 2007 with the prestigious Schwab Foundation Social Entrepreneur of the Year Award for his work creating and growing Evergreen into a leading national organization. Evergreen is a not-for-profit organization that makes cities more livable. By deepening the connection between people and nature, and empowering Canadians to take a hands-on approach to their urban environments, Evergreen is improving the health of our cities—now and for the future. Evergreen engages people in creating and sustaining healthy, dynamic outdoor spaces - in our schools, our communities and our homes - through four core programs:

1. Learning Grounds brings teachers, students and community members together to transform traditionally barren asphalt and concrete school grounds into healthy, safe and creative outdoor learning environments;
2. Common Grounds works with community organizations, local volunteers, urban and parks planners and developers to restore, design, maintain and steward public open spaces;
3. Home Grounds educates people about how to garden naturally in their own backyards;
4. Evergreen Brick Works will be the product of Evergreen's transformation of Toronto’s historic Don Valley Brick Works factory from an underused, deteriorating collection of buildings into a thriving environmentally-based community centre that engages visitors in diverse experiences connected to nature.

Understanding the importance of helping their partners establish an Emotional Profit Centre™, Evergreen has developed opportunities for corporate donors to create employee engagement programs.  By choosing partners that share their vision of environmental stewardship, an instant connection is made between the two organizations, and between employees and their local environment.

Comprehensive employee engagement opportunities around philanthropy include opportunities for employees to fund projects, to give them a sense of ownership, and/or volunteer for the cause, to get them up close and personal to the need.

Fundraising for Evergreen
Employee fundraising events and optional automatic payroll deductions, allow employees to link arms and give collectively. It is short sighted of business leaders to think that a corporate cheque for charitable giving is enough to make employees feel engaged in their employer’s chosen cause. They also need that sense of ownership that personal financial contribution can create.  
 
Evergreen has provided tangible contribution levels to give employees the satisfaction of knowing how their contributions are making a difference in their local environment. Whether these contributions are made weekly or monthly through payroll deductions, or at quarterly fundraising events, giving employees the opportunity to fund projects themselves bring the projects to life for them. It creates an inclusiveness, that shifts a corporate culture form “them” to “us”.
 
Examples include:
 
$5/month will provide each month one bucket of mulch that can be scattered under a newly planted tree to help it absorb rain water and prevent invasive weeds from growing up and competing for sun.

$10/month will buy garden gloves and a trowel each month for a community food garden where at-risk youth can work together to develop life skills and self-esteem.

$15/month will provide the funding each month for native tree or shrub that helps absorb air pollution, prevents erosion, provides habitat for birds and insects, and adds biodiversity to our city. That’s 12 a year!

$25/month will add up to the cost of a boulder for a school ground that provides children with a place to play or simply sit and observe the wonders of nature.
 
$100/month can provide, by the end of the year, funding to help green a school ground, giving children the gift of green space and shade over their play areas.
 
Employee teams have the opportunity “adopt” a public site, a schoolyard, or a community food garden and with ongoing feedback see firsthand the difference their contributions are making in the community.
 
Volunteer at Evergreen
The environment and global warming top the list of concerns today. Volunteering at Evergreen offers a great opportunity to personally help address these issues while making a positive impact. Since 1991, over 90,000 volunteers have contributed to Evergreen’s mission of bringing nature back to our cities.

Volunteers at Evergreen help out with hands-on events like planting, stewardship and community gardening or with projects, special events and office administration.

By combining employee financial contributions with team planting and stewardship days, a comprehensive office eco-strategy and ongoing follow up and communication, any company has the foundation for an inspiring employee engagement program. Employees feel the corporate commitment not only to being a good steward of the environment, but also to involving them in the process. The result: an Emotional Profit Center™.
For more information, visit www.evergreen.ca

Great Reading

Book: 
From Green to Gold: How Smart Companies use Environmental Strategy to innovate, Create Value and Build Competitive Advantage
Daniel Estey and Andrew Winston
Green to Gold is the new template for global CEO’s who want to be good stewards of the Earth while simultaneously building the bottom line,
www.eco-advantage.com

Article: 
Companies with a Heart: In search of better corporate philanthropy. 
www.economist.com

Article: 
Deciding where – and when – to get involved: Companies can’t afford to neglect good corporate citizenship.
By Daniel Muzyka and Darcy Rezac, the Vancouver Board of Trade.
www.boardoftrade.com

Upcoming Events

2nd Annual Social Responsibility Forum, April 15, Toronto.  “Doing good is good for business–if your employees, stakeholders and consumers know about your good works.  That’s where the Social Responsibility Forum comes in. Whether you’re a CEO, CMO, media buyer or media seller, the event will help you identify the business opportunities that exist when CSR initiatives reinforce your brand DNA. But how do you create that alignment? Who’s doing it well? And most importantly, does your marketing reflect the good things your company is doing?  The Social Responsibility Forum will give you a global perspective on these and many other questions. In the process, it will help you build a roadmap for the future of your business–and a marketing plan that will guarantee success.”
www.strategymag.com

Global Summit on Social Responsibility, April 30 – May 2, Gaylord National Resort & Convention Center, Washington, DC.  “At the Global Summit on Social Responsibility - Leveraging the Power of Associations for a New Magnitude of Leadership, we will define how associations can harness their power and influence to create a worldwide social responsibility movement, speed the spread of solutions and ultimately help build a better world. Global Summit participants will collaboratively craft the principles, guidelines and actions that will transform this initiative from conversation to action.”
www.eshow2000.com

The National CSR Conference, May 20 – 21, Toronto.  “Corporate social responsibility programs have come a long way in the last decade. CSR initiatives are now expected to deliver a motivated workforce, increased public approval, loyal consumers, improved financial performance, a cleaner environment, and a more humane workplace around the world. Have all the policies, programs, and reports made a difference?  Find out at the National CSR Conference, held this year in Toronto.
www.conferenceboard.ca

The 2008 Cause Marketing Forum Conference, May 28 – 30, The Westin Chicago River North.  “Supercharge your cause marketing efforts with crucial advice from the pros. Get real world guidance on such key issues as how to: Harness the power of new media, create strong partnerships and avoid damaging alliances, engage consumers, manage delicate communications , and measure program impact.”
www.causemarketingforum.com

Corporate Climate Response, Sustainable Manufacturing Summit, April 8-9, Chicago.  “The Sustainable Manufacturing Summit takes a detailed view of the relationship between climate response and the manufacturing process by offering unparalleled access to the companies and experts emerging as leaders in this area.”
www.greenpowerconferences.com

Green Drinks:  Join other environmental professionals and people interested in green things for drinks each month.  To find out if your city has a Green Drinks Pub Night, visit www.biothinking.com

and don’t forget your own community  Earth Day Events, April 22, 2008

Got kids? Why Not Consider...

Making your child’s next birthday party more charitable and green?  As a soon-to-be-grandmother for the first time, this caught my attention!

ECHOage, launched in February, is a company that offers an alternative to traditional birthday parties which are often characterized by excess. 
“Toronto-based ECHOage is "convenience and conscience wrapped up in a big green ribbon," as cofounder Alison Smith puts it. Specifically, the service offers a way for concerned parents to turn their child's birthday party into an environmentally respectful and socially mindful celebration by applying the philosophy of "one gift, one cause." It works like this: Parents and children planning a party begin by choosing from a variety of online invitations available on the site. Next, they sit down with the birthday child to choose from a list of charitable causes that ECHOage has screened and selected based on their track record of helping children and the environment. Participating charities include Nourish America, EarthCorps, International Child Art Foundation and Girls Inc., among others. Invitations are sent via email, and instead of bringing a wrapped gift, guests are asked to make a secure online donation of $10 to $30 (USD or CDN, depending on where the party takes place). After deducting a 15 percent administration fee, ECHOage sends half of the party proceeds to the child's chosen charity, and remits the other half to the party's host towards the purchase one really special and meaningful gift for the child. The site handles invitations, RSVPs, thank-you notes and reminders as well as collecting parent contact details and allergy information about guests. At the end, the host even gets a tax receipt for the portion of funds donated to charity.”
For more information,
visit www.echoage.com.

In this edition:

Employee Engagement and Corporate Philanthropy
Most companies feel compelled to give to charity.
Few have figured out how to do it well.
Michael E. Porter and Mark R. Kramer - Harvard Business Review Dec. 2006
Read the story

Is Your Workplace ENGAGING?
When organizations and leaders discuss philanthropy, they often site employee engagement as one of their primary reasons for developing corporate philanthropy programs.  But what exactly is employee engagement and why is it so important to business in the 21st century?
Read the story

Spotlight on SOFTCHOICE:
Focus, Relevance and Employee Engagement
Softchoice is one of North America's leading providers of technology solutions and services, and they have been helping businesses and organizations of all sizes select, acquire and manage their software and hardware technology resources since 1990. With over 40 sales offices and 30 distribution centres located in major cities around North America, Softchoice has experienced substantial growth and change over the last 18 years. But one thing hasn’t changed…their commitment to people.
Read the story

Spotlight on EVERGREEN
Creating Emotional Profit Centers™
Geoff Cape, founding executive director of Evergreen, was honoured on December 5th, 2007 with the prestigious Schwab Foundation Social Entrepreneur of the Year Award for his work creating and growing Evergreen into a leading national organization. Evergreen is a not-for-profit organization that makes cities more livable. By deepening the connection between people and nature, and empowering Canadians to take a hands-on approach to their urban environments, Evergreen is improving the health of our cities—now and for the future. Evergreen engages people in creating and sustaining healthy, dynamic outdoor spaces - in our schools, our communities and our homes - through four core programs:
Read the story

Great READING:

Book:  From Green to Gold: How Smart Companies use  Environmental Strategy to innovate, Create Value and Build Competitive Advantage
by Daniel Estey and Andrew Winston
Read more

Article:  Companies with a Heart: In search of better corporate philanthropy. 
The Economist.com.
Read more

Article:  Deciding where – and when – to get involved: Companies can’t afford to neglect good corporate citizenship.  By Daniel Muzyka and Darcy Rezac, the Vancouver Board of Trade.
Read more

Upcoming EVENTS

2nd Annual Social Responsibility Forum, April 15, Toronto
Read more

Global Summit on Social Responsibility, April 30 – May 2, Gaylord National Resort & Convention Center, Washington, DC
Read more

The National CSR Conference, May 20 – 21, Toronto
Read more

The 2008 Cause Marketing Forum Conference, May 28 – 30, The Westin Chicago River North
Read More

Corporate Climate Response, Sustainable Manufacturing Summit, April 8-9, Chicago.
Read more

Green Drinks
Read more

Got kids? Why Not Consider...
Making your child’s next birthday party more charitable and green?  As a soon-to-be-grandmother for the first time, this caught my attention!
Read more