The changing face of corporate philanthropy in Australia
10 September 2008
Views on the role of companies and their responsibility to make a profit for shareholders vary and the concept of Corporate Social Responsibility (CSR) has been debated widely. Today in Australia, however, the most commonly held view is that responding to community need and social pressures, when applied appropriately, is conducive to long term returns to shareholders.
An early study (2000) conducted for the PM’s Community Business Partnership indicated a shift to community investment being entrenched into business policy and strategies and a move away from ad hoc philanthropy disconnected from corporate interests.
An updated study (2006) was undertaken to clarify current views and trends. This has shown that, amongst larger companies, ‘corporate community investment’ continues to increase and deepen, with activities progressively becoming an integral part of core business.
Most of the companies who took part in this research have indicated they plan to increase their level of community support, but with deeper involvement in a narrower range of activities. They are also more likely to seek out partners and activities that address their business needs.
The rationale for corporate community investment, apart from building a better society and promoting public benefit, includes maintaining community trust and consequent ‘license to operate’; responding to staff demands for involvement, especially Gen Y staff; to gain customer support; and to build relationships between staff and community.
Employee volunteering and involvement is expected to grow with a greater focus on meeting community need through partners accessing company skills and technologies. Companies are also looking for better strategies to measure the outcomes of their community activities and redefine their relationships with not-for-profit organisations. This will have implications for the management of these community groups.
A number of factors are expected to influence the future direction of corporate community investment strategies. These include a growth in community expectations of corporate contributions; a growing acceptance and understanding of accrued mutual benefits; greater demand for transparency and accountability from both business and community sectors; and an increased use of community investment and relationships for competitive advantage.
The original report 'Corporate Community Investment in Australia. January 2007' can be viewed http://www.fahcsia.gov.au/communities/cci_report_07/default.htm