As the landscape of corporate philanthropy evolves, so too does the terminology used to describe and de ne it. Changing corporate structures and “org charts,” unusual department names, and rapidly emerging disciplines all complicate the landscape and make it dif cult to navigate. Chapter 3: A Guiding Glossary highlights some of the more important terms to help nonpro t professionals, as well as corporate employees themselves, nd resources, developrelationships and create effective partnerships.
BUSINESS UNIT
A Business Unit—sometimes known as a Strategic Business Unit, Division, Af liate or Segment—is an operating structure that exists within an overall corporate entity. Most often associated with large, multi-national corporations, Business Units are often self-contained, separately managed organizations that have their own business strategies, objectives, brands and competitors that differ from that of the parent company.
Why This Is Important:
MANY POSSIBLE POINTS OF ENTRY. Business Units can be an important
point of entry, especially for smaller and/or local nonpro ts. Business Units are not necessarily located within a larger corporation’s headquarters or main campus, but instead might have a more local presence. Local organizations wanting to establish a partnership with a large corporation may nd that company has a Business Unit nearby that has an interest in partnering with local organizations.
CAUSE MARKETING
Cause Marketing—or Cause-Related Marketing—refers to a type of marketing where a company connects the marketing of a product or service to a cause and/or anonprofit. Cause marketing—sometimes the responsibility of the marketing organization, while other times the responsibility of individual employees embedded in the business—differs from Corporate Philanthropy or Corporate Giving, in part, because it is a marketing relationship with expenditures that are not generally tax-deductible.
Why This Is Important:
CREATING SOMETHING NEW FOR CONSUMERS TO CONSIDER. Cause Marketing has been around for decades, giving consumers the choice to support a cause through buying a product. Nonpro ts might consider working with a company to co-brand a product related to their cause, and share the revenue from its sale.
COMMUNICATIONS (EXTERNAL)
Most large organizations have a Communications department, while smaller ones might have specific personnel dedicated to coordinating external messaging. This department or employee may also be labeled Strategic Communications, Corporate Communications, Press, Press Relations, Public Relations or Media Relations. Common activities may include writing press releases, speaking at conferences, developing and executing events, and working with the press.
Why This Is Important:
MESSAGES FROM MANY PLACES. Not all organizations use the same terminology for their communications structure. But a communications strategy to external stakeholders and the media regarding a company’s philanthropy can be an important part of developing awareness of and support for a nonpro t partnership. That strategy should begin by understanding an organization’s communications structure and the roles and responsibilities of the personnel in it.
COMMUNICATIONS (INTERNAL)
Sometimes organizations separate communications responsibilities between external and internal messaging. People working in the Internal Communications department of an organization coordinate messages and announcements to employees.
Why This Is Important:
ENGAGE EMPLOYEES. Engaging a company’s employees and making sure they know about new partnerships, volunteer events, diversity initiatives or other social responsibility opportunities is important. Nonpro ts that build partnerships with companies should ask about ways to engage the Internal Communications team to make sure the message gets out.
CORPORATE PHILANTHROPY
Corporate Philanthropy or Corporate Giving is the act of corporations donating a portion of their pro ts or resources to various nonpro t organizations. The function of corporate giving can be handled directly by the corporation or through a company foundation. The most common resource that corporations donate is cash; however, corporations also donate the use of their corporate facilities; property (such as used computers, buildings or land); gifts of products, services and equipment; advertising support; or executive loans. Many corporations also have employee volunteer groups that donate their time. Corporations give to a wide variety of nonpro ts, which include education, the arts, human services, health, the environment, public bene t and many others.
Why This Is Important:
A VARIETY OF OPPORTUNITIES FOR RESOURCES. Corporate Philanthropy is a term that encompasses the many ways that a company provides resources to nonpro t organizations. Nonpro t organizations should not think about Corporate Philanthropy strictly as cash but as the wide variety of resources provided by a company that could bene t nonpro ts.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Sometimes known simply as Corporate Responsibility, Corporate Social Responsibility (CSR) is when a company tries to understand and embrace the impact it has on the world inside and outside its walls, including the environment, consumers, employees, communities, shareholders and other stakeholders. Other terms that companies sometimes use to describe aspects of their CSR work include Community Relations, Corporate Citizenship or Responsible Business. CSR might be managed by a sophisticated global organization, a cross-functional task force, or a single person—depending on the size, budget and commitment of the company.
Why This Is Important:
KNOW A COMPANY’S COMMITMENTS. CSR has gained attention in recent years as consumers, community groups, shareholders and other stakeholders have become more interested in companies acting and operating responsibly. Many companies now issue periodic CSR reports that summarize their commitments, strategies and long-term visions for improving their impact on the world around them. Sixty percent of business leaders worldwide said CSR is more important to their businesses now than it was a year ago, with only six percent saying it was less important. And 69 percent of leaders of private and public organizations worldwide expect pro-social initiatives to have a positive impact, and they are making their largest investment increases in this area among all the topics surveyed.2
DIVERSITY & INCLUSION (D&I)
Sometimes referred to simply as Diversity, Diversity & Inclusion (D&I) departments and personnel may drive a company’s commitment to diversity initiatives both inside and outside the organization, including the development and operation of Employee Resource Groups (ERGs). Some organizations have Chief Diversity Of cers, embed the function in the Human Resources (HR) department, and/or publish the details of their diversity commitments and policies on their corporate websites.
Why This Is Important:
DEVELOP A RELATIONSHIP WITH D&I. An organization with a commitment to diversity—through HR personnel, D&I departments, ERGs or publicly available diversity policies—may indicate that hiring and training a diverse workforce, creating diversity-related initiatives, or supporting diverse organizations are priorities. Nonpro ts may nd opportunities to develop speci c partnerships and nd resources in these and other diversity-related structures of a company.
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