Social business, Part 7: Nonprofits tap corporate expertise

By Todd Cohen

Eighteen years ago, looking for advice on how to most effectively station supplies and equipment so it could move them quickly and efficiently to locales hit by disasters, the American Red Cross turned to FedEx, the Memphis-based global delivery company.

“We provided in-kind shipping, quality management, logistics, supply chain help, and helped come up with a plan of action to keep inventory in our warehouses and get it shipped out,” explained Rose Flenorl, manager, social responsibility, for FedEx.

FedEx now has provided over $10 million in cash and in-kind support for the Red Cross, shipping thousands of tons of relief supplies a year for the charity, including 650,000 pounds of supplies in 2011, she said.

The company also has partnered with the Washington, D.C.-based agency on a variety of other efforts, including an online survey that let small businesses find out how prepared they were for disasters, as well as an online seminar that any small business could take to get training for emergency preparedness, including how to back up their records and keep their personnel safe.

The partnership with the Red Cross “strengthens the attributes and the brand of our corporation,” Flenorl explained. “When we have a good reputation and brand, that increases our revenue. Employees want to work for a company that’s concerned about its community. Our team members live in these communities. We can recruit and retain them.”

Next: Companies team with nonprofit to solving social problems

The series:

Part 1: Companies team with causes to add value

Part 2: Companies build giving into business strategy

Part 3: Philanthropy adds value for companies

Part 4: Nonprofit builds corporate partnerships from ground up

Part 5: Company works with nonprofits to build markets

Part 6: Companies turn to nonprofits to help develop leaders

Part 7: Nonprofits tap corporate expertise

Part 8: Company teams with nonprofit to solve social problems

Part 9: Nonprofits work with companies to help find business solutions

Advertisements

Social business, Part 1: Companies team with causes to add value

By Todd Cohen

Looking for an alternative to dumping unsold inventory in landfills or paying to have returns sent back to a distribution center, The Home Depot formed a partnership with Good360, a nonprofit that distributes new product donations to nonprofits.

The American Red Cross, wanting to improve its delivery of supplies to regions hit by disasters, teamed up with FedEx for its expertise and assistance with shipping, logistics, supply-chain strategy and warehousing.

And DonorsChoose.org, hoping to find an innovative way to invest $1 million it had won through a contest sponsored by online retailer Amazon, developed and funded a charity gift card that Crate and Barrel agreed to distribute to its top customers.

Corporate social responsibility is hot. Facing rising expectations from their customers, employees, investors and vendors to improve their efficiency and bottom line in a marketplace that has grown fiercely competitive since the capital markets collapsed four-and-a-half years ago, corporations increasingly are moving beyond traditional philanthropy to make a social and environmental impact, voluntarily disclose what they are doing to be good corporate citizens, and promoting their social investment.

CSRwire, a service that distributes news releases, reports and other materials about corporate social responsibility, now has over 8,000 members, up from 117 10 years ago, with roughly 1 million readers a month and about 20,000 pieces of content on its website.

“We like to think it’s mission driven,” said Jack Wysocki, vice president of business development for CSRwire, which is based in Springfield, Mass. “But in all actuality, the large corporations are realizing that corporate social responsibility is good for the bottom line.”

A study last year by two management professors at the University of California at Davis found that companies saw big increases in their stock prices within days of distributing corporate social responsibility news releases through CSRwire, Wysocki said.

Companies also have become more strategic about their philanthropy, developing relationships with nonprofits designed to make a greater impact on social and global problems.

“Companies are looking for sources of competitiveness for the business, and realizing one way business can grow is by solving social problems,” said Talya Bosch, vice president for social ventures at Western Union.

Janelle Lin, vice president for partnerships and business development at DonorsChoose.org, explained that, when associated with a cause, a company “can stand out from the clutter and really rally the passion of their consumer base to drive loyalty.”

So in looking for corporate partners, experts said, a nonprofit should try to identify business challenges it can help companies address, as well as the value companies can add to its own organization.

Next: Companies build giving into business strategy

The series:

Part 1: Companies team with causes to add value

Part 2: Companies build giving into business strategy

Part 3: Philanthropy adds value for companies

Part 4: Nonprofit builds corporate partnerships from ground up

Part 5: Company works with nonprofit to build markets

Part 6: Companies turn to nonprofits to help develop leaders

Part 7: Nonprofits tap corporate expertise

Part 8: Company teams with nonprofit to solve social problems

Part 9: Nonprofits work with companies to help find business solutions