The Wehero Corporate Impact Report

The WeHero Corporate Impact Report

www.wehero.co t is not surprising that corporate volunteering and giving programs are not always top of mind for business leaders. IYet, more and more people are paying attention to these areas, and with good reason. While many businesses may not know it, effective corporate volunteering and giving programs are crucial to unlocking success in today’s business environment. Don’t believe us? Here are a few of the highlights: 1

Employee Engagement Our mission is to enable • Employees who feel that their organizations are businesses to achieve their involved with and give back to their communities are up to 13x more likely to enjoy going to work than goals by realizing and those who do not see that connection. reaching their potential when

• Nine out of ten employees feel that companies that it comes to corporate giving sponsor volunteer activities cultivate better work and volunteering. environments than companies without these programs. This is a lot of value, yet many companies do not seek to • Over 75% of employees see volunteer activities as critical to their well-being. change or know where to start. Luckily, the team here at WeHero can help. To us, the phrase ‘do well by doing good’ is much more than a catchphrase, it is a paradigm Brand Sentiment for how we view the world, the health and flourishing of 60+% of customers want to buy from companies that take individuals, teams, organizations, communities, and our a stand on issues they care about and communicate those global society. values. Our mission is to enable businesses to achieve their goals by realizing and reaching their potential when it comes Financial Benefits to corporate giving and volunteering. These activities Firms with high employee engagement see increased are integral parts of a healthy and prosperous business earnings per share over their peers, and 1% changes in and we rejoice when we can share that power with our engagement can drive significant fluctuations in revenue. corporate partners.

13 x 9 out of10 60+%

Employees are 13x more likely to employees feel that companies that of customers want to buy from enjoy coming to work if they perceive sponsor volunteer activities cultivate companies that take a stand on issues that the organization they work for better work environments than they care about and communicate gives back to the community. companies without these programs those values. 2

Background

n an August 2019 announcement, the Business Roundtable changed the way it defines the purpose of a corporation Ito include a broader group of stakeholders - employees, customers, community members, suppliers - as well as shareholders. While this announcement may not change the daily operation of companies, it does suggest that corporate leaders are starting to see their operations, as well as the tools at their disposal, in a more holistic manner.

The future of business around the globe will continue to necessitate greater attention to corporate giving and volunteering as part of this evolution. We want companies to see the impact these activities can have not only on the world but also on their success as organizations.

WeHero acts as a partner and a catalyst to provide businesses with the tools to engage their employees and communities in a more impactful, focused, and deliberate manner. All while also achieving better corporate and financial results.

That said, we recognize that, as the saying goes, not all heroes wear capes. It can be tough for leaders to identify and understand the true impact of corporate giving and volunteering in today’s business world. To remedy this lack of clarity, we put together the following white paper, combining insights from our own expertise and work with key findings from academic research and consulting studies. Our goal in sharing these findings is to show that not only are corporate social activities good for the world, they also have tremendous positive impacts on organizations and their employees. 3

Key Insights

Corporate giving and volunteering can have outsized impacts not only in the community but also within organizations. While observing and measuring the good that an organization does for others is somewhat easy, grasping and cataloging the benefits to the company is not always readily apparent. Yet, these benefits are substantial!

Internal Benefits Corporate giving and volunteering programs are shown to increase worker engagement and employee retention rates, strengthen company culture, spur productivity, and promote worker health and happiness.

External Benefits Brand sentiment, companies’ reputations, their public relations, and publicity also gain from these activities.

Adding to the Bottom Line Lastly, corporate volunteerism and giving programs are linked with better financial results for companies.

The following sections will look at each of these in turn along with the data, but the key takeaway is that companies really can have it all when it comes to corporate giving and volunteering programs - financial success is not sacrificed for other objectives. In fact, it is bolstered by the efforts! 4 5

Internal Benefits

So much of the rhetoric around corporate giving and volunteer programs focus on external benefits. Companies set up giving programs and “encourage” employees to volunteer as a way to engage with local communities or bolster a corporate public image. Not only does this viewpoint mischaracterize the goals and external benefits of corporate giving and volunteering, it misses the larger point of internal benefits for companies, their employees, and other stakeholders.

In our analysis, we luckily don’t need to re-create the wheel. There is a growing body of academic and journalistic literature which demonstrates that companies that give and volunteer can increase worker engagement, bolster employee retention, and see improved employee health and happiness.

Worker Engagement

Connecting employees with philanthropic opportunities is an important task for both the employee and the company they work for. This will only become more important as the nature of work continues to be increasingly global and at to work for and buy from companies that give.” Here are a the same time yet locally impactful. As our work here at few statistics on the topic: WeHero and other research shows, ensuring that workers are engaged with their work is paramount to success. And • Employees are 13x more likely to enjoy coming to this engagement is strongly linked with the social impact work if they perceive that the organization they work activities companies pursue. We like to say, “people want for gives back to the community.

Companies that give and volunteer can increase worker engagement, bolster employee retention, and see improved employee health and happiness. 6

• In a Cone Communications’ study, 74% of respondents to begin with. Being able to attract, recruit, and retain said that the find their job more fulfilling when they are top talent is a priority for any successful business, and provided opportunities to make a positive impact at ensuring that access crucial. The evidence is clear that work. not thinking intentionally about social impact will limit a company’s access to talent. A 2016 Cone Communications • Almost 90% of respondents in a Deloitte Impact Study study showed that 51% of respondents said they would believe that companies with sponsored volunteer not work for a company that does not have strong social activities foster better work environments than commitments and 93% said that they want to work for a companies that do not present these opportunities. company that cares about them as an individual. Those • Time and time again, it is shown that volunteering can are two numbers that we expect to only go up over time. strengthen the ties between fellow employees, help Employee retention and engagement go hand-in-hand. reinforce company values, and even lead to increased productivity. Employee Health

We know firsthand how important it is for companies to If employee retention and engagement are geared more meaningfully engage their employees and are pleased that towards attracting and fully reaching an employee’s the academic research reflects our experience. potential as a worker, there is also substantial evidence that volunteer work is linked with people feeling healthier and Employee Retention happier. So not only can a strong social impact program be good for the internal operations of organizations, it can In addition to bolstering employee engagement, it isn’t also improve the lives of those who participate: surprising to see that companies with thoughtful giving and volunteering programs are better at retaining employees. • A United Health Group study demonstrated that 78% Workers who identify as “engaged and thriving” are 60% of adults who volunteer report the activity makes them less likely to look for a job with a different organization in healthier, including lowering stress levels. the next 12 months. Not only does this provide continuity • A Deloitte study also found this result, with 77% of and the retention of institutional knowledge, it decreases those surveyed marking volunteer activities as critical the cost of finding and replacing employees. for employee well-being. • In a study by Babson College, corporate responsibility • Research also points to volunteering helping programs can decrease a company’s annual turnover employees make job-related contacts and better rate by up to 50%, saving up to 200% of each career opportunities for individuals. employee’s salary for each position that stays. And with over 90% of workers wanting to work for • A study of millennial workers found that it costs companies that care for them as individuals, not only can a companies $15,000 - $25,000 to replace a millennial well-thought out social impact program increase employee worker. engagement, it can boost health of a company’s workers, With these explicit costs in mind, it is also worthwhile impact productivity and improve the health outcomes for to consider the implicit costs of losing out on top talent individual employees. Those are results that we love to see! 7

74 % 78%

In a Cone Communications’ study, 74% of respondents A United Health Group study demonstrated that 78% said that the find their job more fulfilling when they are of adults who volunteer report the activity makes them provided opportunities to make a positive impact at work. healthier, including lowering stress levels. 90% Almost 90% of respondents in a Deloitte Impact Study believe that companies with sponsored volunteer activities foster better work environments than companies that do not present these opportunities. 50% 13 x In a study by Babson College, corporate responsibility Employees are 13x more likely to enjoy coming to work programs can decrease a company’s annual turnover if they perceive that the organization they work for gives rate by up to 50%, saving up to 200% of each back to the community. employee’s salary for each position that stays. 60% Workers who identify as “engaged and thriving” are 60% less likely to look for a job with a different organization in the next 12 months. 8

External Benefits

While the internal benefits alone provide staggering evidence for why a company should seek to be thoughtful and intentional with its social impact actions, there are also benefits external to organizations that we would be remiss not to mention. First and foremost, company social impact programs are powerful for the benefits that they confer onto the broader community.

But, there are perceptions surrounding giving and Brand Sentiment volunteering activities that they can take time, resources, and attention away from other operations of the business The numbers around brand sentiment and corporate for an ephemeral goal of helping others. Yet, as the volunteerism and philanthropy are staggering. renowned business strategist Michael Porter argues, Increasingly consumers desire companies that are “there is no inherent contradiction between improving thoughtful on social impact issues and in an intentional [a company’s] competitive context and making a sincere manner. A 2018 Accenture report found that 62% of commitment to bettering society. Indeed, as we’ve seen, customers want to buy from companies that stand for the more closely a company’s philanthropy is linked the issues that they care about and find that firms that to its competitive context, the greater the company’s communicate those actions more desirable. contribution to society will be.” Furthermore, over half of consumers that are disappointed

We agree with Professor Porter. And while measuring with a company’s actions or their brand will complain the impact that businesses can have on society is out of about it! the scope of this report, we do see tremendous positive So not only do consumers care about what companies impacts to companies’ brand sentiments, reputations, are doing, they actively seek out brands they align with public relations, and general publicity stemming from and will voice their disappointment in companies that are their volunteering and giving activities.

Increasingly consumers desire companies that are thoughtful on social impact issues and in an intentional manner. 9

not living up to social impact goals. Corporate giving and study asserts that “CFOs, investment professionals, and volunteering are incredible tools to use to demonstrate a corporate social responsibility professionals agree that company’s commitment to social impact. These areas get maintaining a good corporate reputation or brand equity employees involved and form genuine connections with is the most important way [volunteering programs] create communities and consumers. value.” While we agree that reputation is an important benefit to giving and volunteering, as the analysis Reputation presented in this paper shows, it is far from the most or only important aspect. Intimately linked with brand sentiment, a company’s reputation benefits or suffers greatly from the social Publicity and Public Relations impact actions of a company. A Porter Novelli/Cone research report from 2018 argues that companies unlock The last benefits that companies get from social impact reputational gains by leading with a purpose. Over work - specifically corporate giving and volunteering three-quarters of Americans desire companies that are programs - is publicity and public relations. While it is responsible, give to important causes, advocate on issues, important to acknowledge this impact because these and are stewards of the environment. programs can have positive effects for brand sentiment and reputation (as mentioned above), thoughtful While these numbers can be surprising, it is worthwhile corporate giving and volunteering programs should not to keep in mind that reputation is something that takes be reduced to purely instrumental benefit of better press time and effort to build and nurture but can crumble at a coverage. Engagement with customers and communities moment’s notice. Building a strong base of support with a are commendable goals themselves and giving and volunteer and giving programs is important. A McKinsey volunteering can certainly help build those connections. 10

The Bottom Line

If the internal or external benefits cannot convince a company to think seriously about it’s giving and volunteering programs, the financial results should be able to. Besides reducing the cost of finding, recruiting, and retaining talent, there is evidence that strategic and well-implemented giving and volunteering programs are financially lucrative for businesses:

• Babson College’s Project ROI Report found that over a 15 year period, leading CSR firms’ market values outdid peers who lagged behind in these activities by as much as 4-6% over that timeframe. This is in addition to the engagement and productivity benefits that researchers found to benefit firms.

• Research from Gallup supports the success of firm’s with strong employee engagement. Not only was earnings per share higher (around 147% higher) for these companies than the competition, they also recovered from the recession quicker as well. These are not insignificant insights and they offer strong • A study specific to SAP found that it’s revenue support that not only can giving and volunteering bolster fluctuated to the tune of $40 million when it’s the operations and image of companies, they can also employee engagement changed - in either direction - by 1%. drive financial results.

These are not insignificant insights and they offer strong support that not only can giving and volunteering bolster the operations and image of companies, they can also drive financial results. 11

Conclusion

Corporate giving and volunteering programs benefit the employees and teams within a company, the culture of an organization, and its effectiveness. These activities spur better brand sentiment, reputation, and yes, can give publicity boosts as well. Lastly, not only can giving and volunteering create this value for companies, they can boost financial performance as well. As business continues to evolve, with such overwhelming evidence as to these positive effects, the only question remains, how can companies give and volunteer in a more thoughtful manner? WeHero is here to help.

Sources and References

https://www.accenture.com/gb-en/insights/strategy/brand- https://hbr.org/2002/12/the-competitive-advantage-of- purpose?c=strat_competitiveagilnovalue_10437228&n=mrl_1118 corporate-philanthropy https://www.babson.edu/media/babson/site-assets/ https://www.huffpost.com/entry/corporate- content-assets/academics/centers-and-institutes/the-lewis- volunteering_b_1856314 institute/project-roi/Project-ROI-Report.pdf https://www.interbrand.com/best-brands/best-global- https://www.businessroundtable.org/business-roundtable- brands/2017/ranking/ redefines-the-purpose-of-a-corporation-to-promote-an- http://millennialbranding.com/2013/cost-millennial- economy-that-serves-all-americans retention-study/ http://www.conecomm.com/research-blog/2016-employee- https://www.nationalservice.gov/pdf/07_0506_hbr.pdf engagement-study https://www.psychologytoday.com/us/blog/ http://www.conecomm.com/research-blog/purpose- vitality/201404/the-neuroscience-giving premium https://news.uga.edu/uga-study-finds-volunteering-increases- https://www.csrwire.com/blog/posts/1746-heres-how- workers-job-performance/ volunteering-can-strengthen-your-company https://www.sap.com/integrated-reports/2018/en.html https://www2.deloitte.com/us/en/pages/about-deloitte/ articles/citizenship-deloitte-volunteer-impact-research.html https://www.unitedhealthgroup.com/ newsroom/2013/0619healthvolunteering.html https://www.entrepreneur.com/article/226974 https://wehero.co/diy/ https://fortune.com/2018/02/09/bank-of-america-giving- back/ https://www.gallup.com/workplace/236927/employee- engagement-drives-growth.aspx https://hbr.org/2009/09/helping-others-helps-yourself About WeHero

WeHero gives companies the solutions to accomplish their social mission through powerful giving and volunteer programs to create a better culture, a better brand, and a greater social impact. We live to help companies fulfill their potential by doing what we do best - creating, tailoring and implementing giving and volunteer opportunities so companies can experience the internal, external, and financial benefits that come from intentionally designing and successfully implementing these programs. This is our passion and we want to enable companies to do well by doing good. If you would like to learn more, please feel free to check out our website or reach out!