Finding new ways to put the term “money talks” to work, many consumers are choosing to buy from companies that support outside missions. And it goes even further than that. Perhaps fueled by millennials, an overwhelming commitment to work for companies that value social responsibility has also blossomed.
Now, I don’t believe in the work-life balance movement as it is typically advertised; it’s unrealistic, in my mind. The way it is often portrayed is that you must hate what you do for a living. You put in eight hours at work, and then you can go do “life.” In reality, work is a part of life and not a separate existence. I believe that fulfillment comes from doing something you enjoy and believe in every day of your life, and in that respect, the two are intertwined.
It makes sense, then, that companies are looking more closely at CSR programs as a multifaceted marketing tool. Used smartly, they stand to yield immeasurable benefits.
Since joining Lendio almost three years ago, I’ve seen how a successful CSR program has the ability to unify staff and create economic impact beyond the boardroom.
The great news is that developing a CSR program is easier and less expensive than you might think. When you adhere to three distinct principles, you’ll find that giving back to the community benefits multiple stakeholders.
1. Understand your company’s bandwidth.
Truth be told, it’s hard for a small business to have a CSR program. First, it needs to take care of itself (make enough money to survive). Then it needs to widen its circle (hire staff and expand), and finally, it must commit to its community (through a CSR program).
At Lendio, our CSR program is simple yet impactful. For every new loan facilitated on our lending platform, Lendio Gives provides a microloan to a low-income entrepreneur around the world through Kiva. The program structure is simple, too: Employees choose to participate in a 1:1 employer-matching program through automatic withdrawals from their paychecks. Much like one would contribute to a 401(k) plan, the transfer is seamless and painless.
Although we are a thriving business today, the company underwent a few business model changes before getting the growth formula right. Our charitable endeavor didn’t start until 2016 — we took a good five years trying to find the right product-market fit before we were able and ready to expand our circle.
You can’t help others unless you first help yourself. That’s not being selfish — just realistic.
2. Lead from the top.
It is essential that a company’s leadership be all-in on the CSR program. A company should treat it as its baby: Birth it, nurture it and contribute to its growth through maturity.
Sounds like a lot of work for the top brass, right? It is. But, I’d argue that it’s essential work.
Successful CSR programs should blend seamlessly into the company culture. That’s how it is with our Lendio Gives program. Our mission as a company is a social responsibility mission to begin with — pairing small business owners with the right lender to meet their capital needs. It’s a natural fit, then, that Lendio Gives has chosen the nonprofit Kiva as the main partner for this charitable initiative.
If employees didn’t see a level of dedication from the top, they would not prioritize an initiative like this. That’s why members of our C-suite continue to dedicate their time toward this cause and its success. Employees follow suit, opting to donate a chosen amount from their biweekly paychecks, which is then matched by the employer.
I’m reminded of Richard Branson’s call to action to create “circles of support.” It urges people to first connect with themselves and meet their own needs, but then widen their circle to help friends, neighbors and communities solve different challenges. By continuing to expand the circle of influence, leaders can empower a new generation of leaders to solve problems together.
3. Make it easy.
Creating something with staying power doesn’t have to be complicated; in fact, it should be easy.
Although we keep track of how many employees participate, we don’t set hard metrics. In our minds, having strong goals doesn’t feel right. The sentiment has, and always will be, for employees to contribute what they can. There’s no hard sell here. We do, however, quantify how their dollars help entrepreneurs, and Kiva helps tell our story.
Choose a program that is easy to participate in, and where the impact will be visible by your employees. And of course, make sure the concept aligns perfectly with your company’s mission. It took several years for us to put all of these pieces in place. Before launching a CSR program, you must first determine it’s realistic at the current stage.
Embrace the giving; ditch the PR.
You don’t need to waste money on building buzz around CSR programs to make them successful, especially if you’re already following these three principles. Use your outreach work for good, not a public relations (PR) tactic to combat bad press or make up for your company’s shortfalls.
You do, however, need to develop strategic messaging that communicates your mission. This will ensure your employees remain engaged in the cause, and anyone who comes across your brand can also be engaged and invested in your community work.
Know your bandwidth, and decide when you’re ready to expand your circle of influence. Then utilize strong leadership to develop a CSR program that’s easy for your employees to participate in and talk about. These three principles will help willing and ready businesses do real good in their communities; anything extra is just gravy.
Article Credit: forbes