Jun 20 2009

Focus on triple bottom line is good business

America did not become a great nation by playing the victim.
by Toby Brink

Lately, news headlines have been dominated by discouraging economic news — the mortgage crisis, toxic assets, layoffs, scandals and the financial meltdown.

Yet America did not become a great nation by playing the victim. Challenging times bring opportunity. Americans always rise to the challenge.

Americans’ preference for voluntary contributions over forced giving through government is part of the American philosophy. Now, more than ever, it is important to remember and act according to this philosophy.

Syracuse University professor Arthur Brooks’s book, “Who Really Cares,” points out that Americans give more than the citizens of any other country. Individually, Americans give seven times more money than people in Germany and 14 times more than Italians give. Americans also volunteer more.

In our own Tri-Valley region, giving to nonprofits is down considerably from last year, with many local nonprofits reporting reduced receipts of 25-40 percent, according to David Rice, president of the Tri-Valley Community Foundation.

More than a dozen local nonprofits have canceled their traditional, annual fundraising events due to a “feared” lack of ticket sales, loss of silent auction items, and lack of donated services (free printing, etc.)

Businesses have had to reorganize to meet the challenges of our current economic crisis. Given the challenges nonprofits face today, they need to look to business

for best practices. This is a time when many charities should consider merging, avoiding duplicative services and finding new ways to be efficient.

It is also a time when companies can collaborate to help nonprofits. Corporate giving in areas where employees live and work is good for business. Supporting local nonprofits that provide critical services and strengthen community life is good for employee morale and productivity. During a recession, it is likely that some employees and their families will need to turn to local nonprofits for support.

There are more than 17,000 businesses in the Tri-Valley. We are home to several Fortune 500 company headquarters including Chevron, Safeway, Ross and two world-class business parks in Hacienda and Bishop Ranch. Nonprofits depend on these corporations to provide services to the community.

This prompts the question: Is corporate giving also good for business?

In the book, “Compassionate Capitalism: How Corporations Can Make Doing Good an Integral Part of Doing Well,” author Marc Enioff, CEO and chairman of salesforce.com, poses the question — What if every corporation in the world devoted 1 percent of its revenues, 1 percent of its employees’ time, and 1 percent of its stock to the communities it serves? What would happen?

What if businesses and corporations in the Tri-Valley included the local community in this kind of giving?

Enioff’s book not only suggests that such a radical change is possible, but lays out the blueprint to do so. According to this new model, companies leverage all of their assets — employees, equity, products, and relationships in order to provide real value to the communities in which they operate.

Corporate and individual giving can take many forms. Money, time, expertise, an employee on loan between projects, are all valuable contributions to a nonprofit.

In the current economic climate, giving back to the community is an act of patriotism.

Americans value their freedom and autonomy. Voluntary giving, whether individual or corporate, is part of the fabric of capitalism. Certainly, it is preferable and more effective than forced giving through government.

If you don’t know where to start with community-centered corporate giving, get started by contacting a local foundation. Nonprofit professionals at organizations such as the Tri-Valley Community Foundation have the expertise to get you started — at no cost. Corporate giving is not only a good investment in the community, but good for business.

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Brink is the president and CEO of the Tri-Valley Business Council. He serves as a member on the Bay Area News Group’s citizen editorial board.