Chapter 16 Business and Community Stakeholders © 2012 South-Western, a part of Cengage Learning 1

A Company’s Positive Impact Community involvement Voluntary activities in the community Company contributions Support of programs in: Education Culture Urban development The arts Civic activities Health and welfare Corporate philanthropy Business giving Enlightened self-interest and moral reasons 2 © 2012 South-Western, a part of Cengage Learning

Benefits of Employee Volunteerism 3 © 2012 South-Western, a part of Cengage Learning

Corporate Community Involvement 4 © 2012 South-Western, a part of Cengage Learning

Developing a Community Action Plan 1.Get to know the community. 2.Assess the company’s resources. 3.Select projects to support; match community needs to company resources. 4.Monitor performance of the community actions program and make adjustments. 5 © 2012 South-Western, a part of Cengage Learning

Giving to the “Third Sector” Third sector The nonprofit sector Nonprofits require business giving to survive. No profits No tax receipts Why do companies give? Charitable giving Community investment Commercial giving where businesses expect to benefit from the donation 6 © 2012 South-Western, a part of Cengage Learning

To Whom Do Companies Give? Major categories of recipients 1. Health and human services 2. Education 3. Civic and community activities 4. Culture and the arts 7 © 2012 South-Western, a part of Cengage Learning

Community Partnerships and Strategic Philanthropy Community partnerships Occurs when a for-profit business enters into an arrangement with a nonprofit for their mutual advantage. Strategic philanthropy An approach by which corporate giving and philanthropic endeavors are designed to fit with the firm’s mission, goals, or objectives. 8 © 2012 South-Western, a part of Cengage Learning

Implementation of Strategic Philanthropy 1.Integrate philanthropy into strategic goals and company mission. 2.Connect philanthropy with other community involvement programs. 3.Budget appropriately for philanthropy. 4.Ensure effective program infrastructure. 5.Formalize policies and guidelines for funding. 6.Involve employees in philanthropy-related activities. 7.Incorporate stakeholder communication. 8.Develop long-term business/nonprofit partnerships. 9 © 2012 South-Western, a part of Cengage Learning

Plant Closings Businesses and plants close for many reasons Poor economic conditions Consolidation of organizations Moving jobs to another country with low cost labor Outsourcing or offshoring Foreign competition Declining sales 10 © 2012 South-Western, a part of Cengage Learning

Communicating With Employees Who are Being Laid Off Be complete Be consistent Inform affected employees first Inform retained employees 11 © 2012 South-Western, a part of Cengage Learning

Survivors– The Forgotten Stakeholders 12 © 2012 South-Western, a part of Cengage Learning