Culture of giving flows from the bottom up

With economic conditions in Australia improving as Christmas rapidly approaches, businesses are being encouraged to consider their commitment to corporate social responsibility (CSR) and to support those Australians who have been impacted by the global economic downturn. 

While it is important for business leaders to align their charitable causes with their business, the biggest difference can be achieved when employees are empowered to support these initiatives.

A business investment

According to Chris Riley, general manager, sales and marketing, Manpower Australia & New Zealand, organisations should view CSR programs as a business investment, and allocate the same level of scrutiny and resources.

"Introducing or formalising CSR policies demonstrates that the organisation is serious about making a difference," says Riley. "While many companies go in to 'protecting profit' mode during a downturn, this shouldn't mean cutting CSR programs. Instead, it's an opportunity to re-evaluate, streamline and focus the program with clearer goals and more effective evaluation tools."

A September Manpower survey of 2,804 HR professionals revealed that many organisations underestimate the impact of CSR on employee engagement, citing 'contribution to society' (70%), 'public relations strategy' (53%) and 'environmental concerns' (40%) as the top three drivers behind CSR.

Yet 'improved employee morale' was the most consistently reported benefit (33%) for those companies with programs in place, followed by 'a stronger public image' (29%).

Employee engagement and retention, says Riley, should not be ignored just because of the downturn. In fact, CSR can be a powerful incentive for organisations unable to offer financial benefits to retain top talent.

"Smart companies will counter wage freezes and cut backs by offering non-financial benefits, to ensure it remains an attractive place of work. For example, community service leave, for employees to volunteer to work with community and charity groups, has been a popular but low-cost benefit in our own organisation," he says.

Riley added that as the economy recovers and the war for talent resumes, candidates will look for more than just salary or stability.

"We are getting more and more questions at interviews about an employer's approach to CSR, indicating that job seekers are increasingly ranking CSR high on their employment criteria. With our survey revealing that less than half of organisations participate in such programs, CSR could provide an important point of difference to attract higher quality candidates," he says.

Employee buy-in: Kmart Wishing Tree Appeal

The Kmart Wishing Tree Appeal has been in operation for 22 years, during which time over 4.5 million gifts have been donated to those in need at Christmas through the Appeal's charity partners such as The Salvation Army, The Brotherhood of St Laurence and Charity Link. The Appeal uses Kmart's 172 stores across the country as collection points for Australians to donate gifts, which are then distributed via the Appeal's charity partners. Gifts do not need to be purchased from Kmart stores, which simply facilitate gift donations for the six weeks leading up to Christmas.

Employee buy-in has been crucial to the success and longevity of the Kmart Wishing Tree Appeal. Each Kmart store's annual Wishing Tree Appeal campaign is coordinated by a representative known as the Wishing Tree Champion. According to Kmart managing director Guy Russo, this grass roots involvement has been the key to ensuring a positive community response at each store, even in the midst of economic uncertainty.

"Senior executives are often the ones who decide which cause they will support and how they will support it. However, the Kmart Wishing Tree Appeal was in fact an idea generated by one of our store team members in Adelaide in 1988. Having this level of team member involvement in the initiative has been extremely beneficial to the Appeal, and the community has benefitted strongly as a result," Russo says.

Russo is very familiar with the importance of giving back to the community, having previously served as Chairman of Ronald McDonald House and is currently Chairman of Half the Sky Foundation, a not-for-profit organisation which supports orphaned children in China.

"When you are able to understand your employees' needs and empower them with the opportunity to make a difference, that is when you will see the most positive results both from an internal and external perspective," he says. 

Further to the Appeals conducted at each Kmart store, businesses and councils are also able to make their own contributions by establishing individual collection points for staff, with gift donations collected just before Christmas. 

Corporate donors also regularly contribute substantial amounts to the Kmart Wishing Tree Appeal, and the greatest impact is achieved when they establish synergy between the cause and their business.

A recent example is Hachette, Australia's biggest book publisher, which recently donated 20,000 books to the 2009 Kmart Wishing Tree Appeal as part of its end of year corporate social responsibility program.

"We have donated to the Appeal for a number of years and, by providing books to those in need, we're not only providing a gift under the Wishing Tree, but we're also offering people the chance to develop the skill of reading which will benefit them for years to come," says managing director Malcolm Edwards.

"Now is an important time for businesses to consider what can be done to give back to the community - not only in a short term but also in relation to how they align themselves with a charity and consider how their contribution can be a lasting one. I believe it's important not simply to put a cheque in the mail but, rather, to identify how you can make a difference for the long term," Edwards adds.

The Kmart Wishing Tree Appeal is aiming to receive 400,000 gifts across Australia this year and, while signs are encouraging with an increase of 20% on gifts donated compared with the same time last year, Russo says there is still much work to be done with almost 250,000 gifts still required before Christmas to reach this target.

New South Wales needs a further 60,000 gift donations to reach its target of 90,000 across the state.

"The Kmart Wishing Tree Appeal has been helping less fortunate Australians for over two decades and, with so many Australians still in need at this time of year, I encourage all businesses throughout the state to consider what they can do to help. There are a huge number of worthwhile causes that need our support so we hope that corporate Australia will take up the challenge," concludes Russo.

Key cultural element

The message from Manpower's research is that CSR makes good business sense.

"Even though an initial investment may be required, companies can reap long-term benefits including improved staff engagement, lower overheads from energy-saving initiatives and improved relationships with customers," Riley says.

On the other hand, a failure to consider the broader community may have a negative impact both now and in the future.

A company's CSR policy - or lack thereof - can highlight its organisational culture to an even greater degree in a downturn, especially if other, unpopular decisions have to be made. "It's naive to think that potential employees or customers won't look at a company's commitment to the community and environment, just because the economy is under pressure," Riley concludes.

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