Sharing Works
Measuring the value of community investments
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This month Sharing Works asked Molly Cartmill, Sempra Energy’s
director of Corporate Community Partnerships, how companies evaluate their
community investments.
Every company is different in its approach to corporate giving and community
involvement, as well as the ways it values the results. Some companies are
motivated by the involvement of their employees. For some, it’s positive
public relations. For others, it’s cause marketing, or helping to sell
more products. But the one thing most companies share is the desire to respond
to a need and make a difference.
Most companies evaluate their community investments in a variety of ways:
- Societal benefit. How many people ultimately
benefit from the contribution? To what extent is a problem
solved or a need met, and what is the overall impact to society?
If it is an event, how many people does it attract? How much
money is raised, and how is the money raised spent?
- Relationship benefit. Does the contribution provide the ability to develop, reinforce or enhance relationships with key stakeholders? With customers? With business, community and opinion leaders? With employees? Does it provide an opportunity to build a partnership with an NGO that makes sense from a business standpoint?
- Employee benefit. Is there a willingness among employees to volunteer for this effort? To raise and/or contribute their own money? Does the event or program provide leadership or development opportunities for employees?
- Public relations benefit. Does the contribution result in positive visibility for the company? Does it provide an important positioning opportunity for an executive or a key employee?
- Business benefit. Does the contribution directly support a business objective? Does it reinforce a key value of the company? Does it support marketing activities or new business development? Help recruit skilled employees?
The community partnerships that are the most valuable are those that provide benefits on multiple levels: they provide real impact to the community, support relationships with stakeholders, invigorate employees, provide opportunities to showcase community involvement to the public and are directly connected to business objectives or strategy.
While every company evaluates its corporate giving program differently, most start with a goal of impacting society in a positive way. Successful corporations want to do business in healthy and vibrant communities, and healthy communities need successful companies to prosper and grow.