CHAPTER 9 Community Relations and Strategic Philanthropy

CHAPTER 9

Community Relations and Strategic PhilanthropyCommunity Relations and Strategic Philanthropy

Chapter Objectives

• To describe the community as a stakeholder• To discuss the community relations function• To distinguish between strategic philanthropy and

cause-related marketing• To identify the benefits of strategic philanthropy• To explain the key factors in implementing strategic

philanthropy

Community Stakeholders

• A community includes those members of society who are aware of, concerned about, or in some way affected by the operations and output of the organization.

Community Stakeholders (cont.)

• Issues of concern include:– Pollution of the environment – Land use – Economic advantages to the region – Discrimination – Exploitation of workers and consumers

• Neighbor of choice– An organization that builds and

sustains trust within the community

Community Relations

• The organizational function dedicated to building and maintaining relationships andtrust with the community

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Responsibilities to the Community

• Economic issues

• Legal issues

• Ethical issues

• Philanthropic issues

Philanthropic Contributions

• Philanthropy- provides four major benefitsto society 1. Improves the quality of life and helps make

communities places where people want to do business, raise families, and enjoy life

2. Reduces government involvement by providing assistance to stakeholders

3. Develops employee leadership skills

4. Helps create an ethical culture and the valuescan act as a buffer to organizational misconduct

Strategic Philanthropy

• The synergistic use of an organization’s core competencies and resources to address key stakeholders’ interests and to achieve both organizational and social benefits

Strategic Philanthropy and Social Responsibility

• Companies often consider philanthropy after meeting financial, legal, and ethical obligations.

• Strategic philanthropy is often viewed as an investment that is tied to business strategies and implementation.

• By incorporating philanthropy in strategic planning, the company can address the needs and concerns of key stakeholders.

• Greater organizational accountability has led to organizational concern about performance and stakeholder accountability.

Implementation of Strategic Philanthropy• The implementation must have the endorsement and support

of the CEO and other members of top management. • Top-level support allows organizational members and

stakeholders to see the importance of the program to the company.

• Companies need to find their unique method and not clone what competitors are doing.

Planning andEvaluating Strategic Philanthropy

• Research

• Organize and design

• Engage

• Spend