Philanthropy & Diversity as Outreach Strategy

Published by AYN Brand | Filed under Branding, Community Relations, Minority, Public Relations, Strategies |

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With strong petitions for giving coming from such bigwigs as Bill Gates, Warren Buffett and former President Bill Clinton, corporate philanthropy has gained increased national exposure this year. Studies have found that corporate foundations gave more than $1.8 billion to diverse communities in 2003.Diversity Inc. asked eight companies with demonstrated philanthropic success in diverse communities why this has been good for them. Here are their top five reasons:

Increases Customer Loyalty

As a leader in the healthcare industry, it is vital for WellPoint, No. 47 on The 2006 DiversityInc Top 50 Companies for Diversity list, to connect with its consumers. In an industry that historically has evoked distrust and doubt among people of color, WellPoint has put great emphasis on following through on its commitment to diversity, especially with philanthropy.

“Consumers and our associates pay more attention to what we do than what we say,” says David Casey, vice president, diversity and work-force development. “It is imperative that we engage in tangible programs and initiatives that don’t just speak to our commitment to diversity but demonstrate it.”

Keeping this in mind, WellPoint invested approximately $35 million in charitable giving to the diverse communities where its employees live and work in 2005. Much of its giving specifically targeted Latinos and blacks, including such projects as a $1-million grant to improve the quality of care of Latino parents to supporting African Community International, which assists 15,000 African immigrants in central Indiana.

“By aligning our social-investment goals with our business objectives, we put the full weight of the company into finding lasting solutions to the social issues we understand,” says Caroline “Caz” Matthews, president, WellPoint Foundation.

Verizon, No. 1 on the Top 50, also has increased consumer loyalty by building relationships with diverse communities through its giving, of which 60 percent is aimed at ethnic and/or GLBT groups.

“We see our role as one where our advanced technology and other resources are used to empower communities and nonprofit groups committed to helping people succeed in the digital age,” says Patrick Gaston, president of The Verizon Foundation.

Develops Candidates

Marriott, No. 22 on the Top 50, began a foundation more than 15 years ago called Bridges, specifically targeting young people with disabilities. It has helped more than 9,000 young people with disabilities find competitive positions in more than 1,500 different companies, including jobs at Marriott.

Food Lion, the grocery-store chain, also has used its philanthropic efforts to help the company recruit diverse candidates. “As a founding partner of Bennett College’s Johnnetta B. Cole Global Diversity & Inclusion Institute, we have access to interns, diverse talent and improved educational opportunities for women of color,” says Eric Watson, Food Lion’s vice president of diversity and inclusion.

Executives at Starwood, No. 33 on the Top 50, realized that giving to college funds for students of color provided the hospitality company a chance to pursue new opportunities with students after graduation.

Shelley Freeman, director of global diversity and inclusion at Starwood, explains that by building an early relationship with these students of color, Starwood not only increases the likelihood of employing this talent in the future but also creates the potential to “buy their goods and services if they go into business for themselves.” Freeman adds that building this type of relationship helps Starwood to learn more about how its product brands connect with different cultures.

Starwood gives more than 50 percent of its philanthropic contributions to ethnic groups, including financial support to the Hispanic College Fund, the Thurgood Marshall Scholarship Fund and the MLK Foundation, all organizations helping students of color.

Increases Brand Recognition

Allstate, No. 23 on the Top 50, gives 75 percent of its philanthropic resources to ethnic and/or GLBT groups, which has created enhanced name recognition in these communities. By focusing a lot of its attention on organizations that promote diversity, such as Latino, black, Chinese and Native American nonprofits, Allstate is gaining new customers within these communities.

“Diversity drives higher performance, connects us to our customers and enhances our brand and corporate reputations,” says Anise Wiley-Little, chief diversity officer at Allstate. “So naturally, a key focus area of our corporate and foundation giving is supporting organizations that promote diversity in the communities that they serve.”

“Our diversity and inclusion goals are to improve profitability, increase productivity and have a positive public image, making us the grocer of choice, employer of choice and an unsurpassed community leader,” Watson says.

Increases Engagement

Employees who get involved in extracurricular community projects feel more connected to their companies, according to the companies surveyed by DiversityInc. The power of engagement can lead to numerous positive results, especially increased retention and productivity. Understanding this, Allstate has encouraged its employees to get involved with each other and their communities, resulting in more than 50 percent of Allstate employees participating in volunteerism, such as the Helping Hands program. In the past year, 27,353 of its employees (nearly 74 percent of its total work force) donated $9.5 million to the diverse communities in which they operate.

Strengthens Inclusion

Sodexho, No. 14 on the Top 50, believes that “helping those in our communities is essential to creating a culture of diversity and inclusion in our company,” says Jennifer Williamson, senior director of strategic initiatives and communications. Sodexho’s strong volunteerism effort and involvement in activities that directly serve its diverse communities have led to collaboration within its employee-resource groups and recognition by those in the company that diversity at Sodexho goes beyond platitudes.

Sodexho annually publishes a full report on its outreach progress. Sodexho also encourages its employees and network groups to contribute money and hours to causes that impact the diverse groups they represent, ranging from Asian Americans to gays to Latinos.

Excerpted from Diversity Inc.