January 2007: KC Small Business Monthly
Corporate Citizenship Is a Business Asset
Contributing to the betterment of your community has intangible and tangible rewards.
By John Landsberg
One simple definition of public relations is: "Doing good and getting caught at it." That could also sum up the practice of corporate citizenship.
Corporate citizenship is not just something businesses should do because they want to be nice, but something they should do if they want to make a positive impact in their communities while increasing their bottom line. It should be a win-win situation.
Many businesses�large and small�view community involvement as "something nice to do." However, a recent study says that practicing "authentic corporate citizenship" can positively impact business results and make customers committed to you and your brand image.
Be Genuine
"Authentic corporate citizenship," means supporting those issues a company truly believes in. Consumers today can tell which companies are genuine in their commitments to causes versus those who are trying to jump on trendy issues.
As an example, a few years ago some companies were donating food to groups such as Harvesters, and sending out news releases to highlight their great generosity. No problem with that, they were doing good and helping themselves get "caught" at it.
However, it was alleged that many of these companies were actually donating food that was going to expire in a few days. They were giving away items that they were going to have to destroy anyway, so they could get a charitable tax write-off. The public reaction was just the opposite of what the companies desired: Consumers were rightfully furious.
Corporate Examples
GolinHarris interviewed 5,000 Americans for its Corporate Citizenship Index. The results proved conclusively that Americans are sending a strong message that being a good corporate citizen is critical to business success in good times and bad.
The top-rated company in the survey was Ben & Jerry's, followed by Target, Patagonia, SC Johnson, Gerber and Southwest Airlines. Others that were considered good corporate citizens included Johnson & Johnson, The Body Shop, UPS and 3M.
The key aspects of the survey noted that consumers said:
Good corporate citizenship should be approached as an investment, asset and competitive advantage for businesses; and, making a contribution to their success.
Businesses should invest significantly more money, time, attention and resources in corporate citizenship than they do today.
Corporate citizenship should be considered an essential, high priority compared to other priorities companies face.
The question on the minds of many small business owners at this point might be, "I don't have the money or staff available to be a good corporate citizen like Ben & Jerry's and Target." You're right, you do not have those kinds of resources. But, you also aren't trying to influence people across the United States. Your main customers are right in your own backyard. Get involved and support the causes that your customers and potential customers are interested in.
Act Locally
The causes you support don't necessarily have to be major ones like saving whales. They can be something as simple as taking out an ad in a high school program for an event. Or, donating some product to a needy group. You can work with a school or a civic group on a project discussing entrepreneurship. Or, get involved by joining local civic groups. There are lots of opportunities to contribute to the community.
It makes no difference whether your business has five employees or 5,000, you still can be a good corporate citizen. Your customers will appreciate it and reward you by being committed to your business for years to come.
John Landsberg operates Bottom Line Communications, a Leawood-based marketing communications company. He also is an adjunct professor of marketing and consumer behavior at Baker University. You can reach him at (913) 338-5760 or [email protected] .
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