Here are highlights from the Research Archives, summarizing a few of the studies and pilot programs we found most compelling.
Philanthropy in the workplace: A formula for talent engagement?
Philanthropy, according to the classic dictionary definition, is “‘a love of humanity’ in the sense of caring, nourishing, developing and enhancing ‘what it is to be human’ on both the benefactors’ and beneficiaries’ parts.”
Americans are very familiar with that idea, especially considering that nearly 90% of Americans households give to charity each year. But does philanthropy–"doing good"–matter in business?
Yes it does.
Plenty of research demonstrates how “doing good” enhances brand engagement and supports talent recruitment and retention. This is especially the case when "doing good" is defined broadly, in terms of the emerging market realities of philanthropy, sustainability, governance, regulatory influences, talent development, and consumer-focused cause marketing. These elements are key components to the notion referred to as "corporate social responsibility," which is fast becoming a tool to build–and even restore–the nobility of business.
But does "a love of humanity," combined with the ideals of corporate social responsibility, actually impact a company's bottom line? That's the subject of one of the most compelling studies that informs the values behind corporate social responsibility and its connection to business profits. Jim Stengel, who spent 25 years in management--and seven of those as Global Marketing Officer at Proctor & Gamble--revealed in his research that "companies that center their business on the ideal of improving lives have a growth triple that of competitors in their categories."
Specifically, Stengel's research indicated that an investment in the “Stengel 50,” the top 50 businesses in the growth study, would have been 400% more profitable than an investment in the S&P 500, according to Stengel's book, Grow.
So, then, in light of the research-based validation of the positive benefits of "doing good" in corporate settings, how will tomorrow's executives, entrepreneurs and professionals be prepared and inspired to maximize this aspect of leadership, especially in an environment where rapidly changing demographics require local action with global impact?
That's an important question, and it is one that is directly impacting perspectives and tools related to talent development. In other words, what are those tools and activities that will foster a workplace environment that celebrates "success by doing good?"
In the workplace, we suspect a big part of the solution lines in an online tool that helps a company celebrate its employees for individual achievements in the ways they are already doing good. With that kind of employer validation, employees will be more likely to connect to each other through various "doing good" activities. Meaningful, genuine, and authentic connections are what matter in the workplace, because that's what motivates and inspires people to work together toward common goals, whether those goals are company goals, personal goals, or a combination of each.
Do good. Celebrate, your way. And benefit all. That's starting to sound pretty good!
Women, children and families: The future of effective cause marketing?
What is “authentic social impact engagement”? And what does it mean for traditional cause marketing? We think that is a very good question, especially as it relates to female consumers.
Work completed at Baker University during 2012 - 2014 signaled that the drivers of consumer action in the social impact arena are fundamentally different from the drivers of consumer action in a purely commercial setting. A deliberate process of affirmation, education, inspiration, and motivation is the key to generating action-oriented engagement that leads to brand loyalty and repeat buying.
For four decades, cause marketing has been a firmly-rooted method for businesses to improve public relations, increase customer engagement, and create additional marketing opportunities. But is cause marketing alone the most effective method for a business to drive a return on investment from “doing good”? Emerging research suggests that brands can dramatically enhance the results of cause marketing strategies through an “authentic social impact engagement” process.
An intensive consumer research study of mothers and children is beginning to isolate pivotal data points and key consumer perspectives related to the power of social impact messaging. This research will begin to inform marketing teams at consumer products companies who intend to deploy social impact-based strategies to drive a greater emotional connection between the female consumer and the brand.
In the study, mothers of one or more children under the age of 18 were asked to complete a “10 Ways to Do Good” arts and crafts exercise with their children. The project was designed to celebrate the good that the families were already doing–regardless of the causes supported. Following the exercise, mothers were asked to complete a brief online tutorial about the 10 Ways to Do Good.
Here’s the bottom line. (Well, three bottom lines.)
- When asked at the conclusion of the research study: “If there were products on the market today that helped you engage with your family in one or more of the 10 Ways to Do Good, how likely would you be to purchase those products?" 85% answered YES, they would be likely to purchase those products.
- When asked at the conclusion of the research study: “How likely are you to use part or all of the material in the survey to help teach your children or grandchildren, 18 years of age or younger, about the 10 Ways to Do Good?” 100% answered YES.
- When asked at the conclusion of the research study: “Do you feel like you have a better mental picture of the day-to-day activities that are part of your overall ‘social impact’–how you are making a positive difference in the lives of other people?” 91% answered YES.
Wow. With numbers like that, it only made sense that the research team had to go deeper, through 60-minute individual interviews with participants. And the results were equally powerful.
- “I want a company to acknowledge my current situation as it relates to social impact.”
- “I want a company to understand my need to educate my children about doing good.”
- “I want a company to inspire me to involve my children in doing good.”
- “I want a company to motivate me by making it easy for me to involve my children in doing good.“
How’s that for the power of consumer engagement through social impact messaging? We’re sold.
Forecasting a summer focus: Philanthropy education--for learners of all ages
When families embark on a journey to make philanthropy a part of their lives across generations, it often starts with simple concepts: Having fun as a family, being authentic and open about values, donating canned goods or clothing to families in need, recycling cardboard and aluminum cans, celebrating every birthday and holiday with a big cake and a gift to charity, buying wrapping paper from the school fundraiser, contributing to a handful of favorite charities--even eating healthy food and appreciating every peaceful moment. In any household, “doing good” is a powerful way to create a sense of belonging--in the family, the community, and the world.
That’s why we’re tracking closely the emerging trends for ways to make giving back an easy, fun and rewarding part of everyday life. We’re testing ideas, gathering data, and working with a handful of leaders in the field who share our vision for celebrating good. Our inspiration for this line of research is heavily influenced by a pilot project conducted in 2011 at the Greater Kansas City Community Foundation--A Case Study in Teaching Charitable Values.
Since then, our research team has continued to experiment with strategies and techniques to isolate the best of the best ingredients for igniting the spirit of generosity in children. To that end, we are advancing a nationwide research initiative with community foundations to further refine the magic formula for engaging families in “doing good’ and community impact.
National Focus: Donor Advised Funds and the Unprecedented Growth of Donor-Focused Philanthropy
An impressive research initiative is the 2014 Donor Experience Study, an independent research initiative sponsored by Crown Philanthropic Solutions, providers of the DonorFirst technology, and Embolden, a digital communications group. The first part of the study is a review of existing literature. The overall research initiative is designed to help philanthropy learn more about the characteristics of a positive online donor experience and the return on investment it can bring to a philanthropic institution’s mission. The work is part of an ongoing commitment to provide research and resources to community foundations, donor advised fund providers, and other donor-focused philanthropic institutions to help improve the donor’s experience with philanthropy.
Donor advised funds are gaining popularity as the charitable giving vehicle of choice. In fact, total asset levels in donor advised funds are approaching $50 billion, after double-digit annual increases in recent years. We are especially interested in material related to the psychology of donor-focused philanthropy. Indeed, research to uncover the key factors that influence a positive donor experience, regardless of the specific nonprofit or cause a donor supports, is critical work to ensure that philanthropy in America--2% of GDP--stays strong to support the basic infrastructure of people helping people.
Regional Focus: Emerging Thought Leadership
At Baker University, the faculty and administrative leadership have studied compelling market trends in philanthropy, listened to the expectations of the region’s employers, and then connected these elements to the needs of undergraduate and graduate students. The result is that Baker launched the Institute for Leadership & Positive Change in 2014. The Institute’s curriculum and programs reflect real-world dynamics and deploy industry realities as economic catalysts to empower students and future leaders to build–and even restore–the nobility of business. The Institute is designed to promote success by doing good and to offer a comprehensive approach to leadership development based in the disciplines of "doing good": philanthropy, sustainability, governance, regulatory influences, talent development, and consumer-focused cause marketing.
Trend Watch: Six Emerging Market Realities
Philanthropy. Philanthropy represents 2% of GDP. 88% of households give to charity, and the average annual household contribution is $2,213. Giving USA Foundation, 2013
Sustainability. Over the next decade, the number of food insecure people worldwide is projected to increase by 37 million. USDA
Cause Marketing. 91% of global consumers are likely to switch brands to one associated with a good cause, given comparable price and quality. 2013 Cone Communications/Echo Global CSR Study
Regulatory Influences. More than 75% of the top 100 companies in the United States report on their corporate responsibility performance. Global Reporting Initiative
Talent Demands. 88% of Millennials want to work for a company that cares about how the company impacts and contributes to society. USA Today, 2012
Governance. In 1968, 70 percent of Americans answered “yes” when asked “Does business act responsibly?” By 2008, that percentage had dropped to 20 percent. Yankelovich and CNN/USA Today Gallup Poll
The increasing popularity of online giving platforms is a trend worth watching closely. The big question for philanthropic institutions--or any organization that strives to create a good experience for a person giving money to a cause--is how to capture the potential of the "retail philanthropist" and encourage these donors to get more involved. Especially when there are so many choices for "doing good." Two helpful resources here are the perspectives offered by the Markets for Good initiative, as well as a white paper, Four Key Elements of Donor Experience Management: Inspiring Loyalty Through Online Engagement, made available through Crown Philanthropic Solutions.
Worth reading is a white paper, New Ideas in CSR. This paper offers five new ideas for designing a CSR experience to create authentic brand engagement.
Confusion? Perhaps! "Doing good" in the workplace is an idea with many names. Corporate giving. Corporate citizenship. Community relations. Civic engagement. Community investment. Corporate sustainability. Corporate social responsibility . . . . and many more!
Enthusiasm? Yes! Research suggests 10 types of employee-focused activities going on in most workplaces today.
Giving money to a charity of choice, directly or through a corporate foundation or matching gifts program (think corporate and employee donations to nonprofits or giving in the wake of natural disasters)
Volunteering in the community (think team-building days of service)
Recycling and respecting a sustainable environment (think stainless steel forks instead of plastic)
Serving on civic boards and committees (think time off for nonprofit board service)
Celebrating favorite causes by supporting and attending community events (think filling tables at chicken dinners)
Marketing with a focus on a charitable cause (think bake sales)
Purchasing products and services that include a charitable element (think Girl Scout cookies!)
Donating inventory, or collecting necessities to give to people in need, such as canned goods or used clothing (think food drives)
Sharing with others, including fellow employees and their families (think collections for medical costs)
Caring for health, a commitment to wellness and physical fitness, gratitude, self-worth and self-expression (think green smoothies in the break room)
Emerging Trends in Social Responsibility: What Philanthropy Needs to Know
Philanthropy, and the nonprofit sector it serves, for decades has been a respected catalyst for positive change in American communities. Indeed, the formula for giving back has typically relied heavily on engaging consumers through donations to charitable, religious and educational institutions. But doing good is no longer the exclusive domain of philanthropy and charitable organizations. Americans are casting a much wider net, celebrating social responsibility in its many forms.
According to the Giving USA FoundationTM and its research partner, the Center on Philanthropy at Indiana University, Americans give a total of nearly $300 billion in donations each year to nearly 1.5 million registered charities and religious organizations. Individuals, including family foundations and bequests, account for 88 percent of giving, with other foundations and corporate giving making up the rest.
Despite the large numbers, tax-deductible giving to registered charities and religious organizations as a percentage of GDP has held steady at roughly 2 percent for nearly four decades. That doesn’t mean giving is on the decline, though. Quite the contrary. Doing good is everywhere. And it is increasing. Positive social change is on the minds of most Americans. Even during the recent challenging economic times, although four out of five people said they felt the recession's impact, 70 percent explored ways to have a more meaningful life and give back to the community.
Women are particularly generous. The Giving USA FoundationTM reported in 2011 that 95.5 percent of female heads of households who earn more than $103,000 annually give to charity, compared with 75.8 percent of men at the same income level, and the average annual giving by those women is $1,910 versus $984 for the men. Even though women typically earn less than men, have less money in retirement and outlive their spouses, women are nevertheless still more likely to give--and give more--to charity than men at all income levels.
Over the past decade, giving to nonprofit organizations, although stagnant as a percentage of GDP, has held steady as an important value in American society. But the big picture of doing good has changed rather dramatically. What was once largely the domain of philanthropy, the platform for doing good is now more diffuse, extending beyond the traditional nonprofit sector into other industries, influencing consumer behavior and marketing, talent development, corporate priorities in sustainability, governance practices and regulatory paradigms.
The marketplace demands a socially responsible lifestyle, with 88 percent of new job seekers choosing employers based on strong corporate social responsibility values and 83 percent of consumers willing to change their consumption habits based on their perception of a company's social responsibility--or lack thereof. Market trends suggest that consumers and employees are beginning to define doing good as a combination of ten activities that create a socially responsible lifestyle:
- Giving money to a charity of choice, directly or through a foundation
- Volunteering in the community
- Recycling and respecting a sustainable environment
- Serving on civic boards and committees
- Celebrating favorite causes by supporting and attending community events
- Marketing with a focus on a charitable cause
- Purchasing products and services that include a charitable element
- Donating inventory, or collecting necessities to give to people in need, such as canned goods or used clothing
- Sharing with others, including fellow employees and their families
- Caring for health, a commitment to wellness and physical fitness, gratitude, self-worth and self-expression
The expanding definition of doing good is a direct reflection of a societal realization that generosity empowers the giver. Gratitude and giving are widely recognized as catalysts for happiness in today’s culture. For example, in a series of studies at the University of California, grateful people reported feeling 25 percent more happiness and energy—and 20 percent less envy and resentment—than ungrateful people. University of California studies also showed that grateful people slept 10 percent longer each night and exercised 33 percent more if they wrote down what they felt thankful for. Sonja Lyubomirsky, author of The How of Happiness, says that “Gratitude is an antidote to negative emotions.” Everyone, it seems, is striving to find ways to be happier and more grateful. Especially through experiences with social responsibility.
It is against this backdrop that philanthropy faces a compelling need--and a rich opportunity--to attract new donors with success and keep existing donors satisfied and engaged. Now is the perfect time for innovative strategies that celebrate all forms of doing good while still preserving traditional notions of donating to nonprofit organizations.
Sources: Social Ethics: A Peek into 2012, Linda Novick O’Keefe, Founding Executive Director, Common Threads; Harvard Business Review, Green Research – Annual Sustainability Executive Survey, 2012; 2009 Edelman “Goodpurpose” survey of 6,000 consumers aged 18-64 across ten countries. 2006 Millennial Cause Study, Cone Inc. and AMP Insights. Committee Encouraging Corporate Philanthropy, “Giving In Numbers” Study, 2011. Giving USA, Center on Philanthropy at Indiana University, 2011.