This year, one of the biggest consumer trends is the concept of global citizenship: finding your identity within a global community and recognizing that humankind is interconnected and interdependent. Businesses that engage with their local communities and the world, and then help consumers do the same, will see a return on their investment in both tangible and intangible ways.

A History of Giving

Corporate giving and social responsibility isn’t a new concept. In the early 1900s, Andrew Carnegie and John D. Rockefeller countered their reputations for being ruthless businessmen by donating enormous amounts to charity. Today’s consumers, particularly millennials, prefer to patronize businesses that support the community. According to a May 2013 study by Cone Communications and Echo Research, 82 percent of U.S. consumers consider corporate social responsibility when deciding which products or services to buy and where to shop.

“Frankly, it can be a risk not to have a strategy — these days, corporate community involvement is expected by consumers and community members,” said Julianne Hodges, director at Changing Our World, a philanthropic consulting firm based in New York City. Philanthropic involvement in the community has numerous business-related benefits. Engaging with the community increases customer goodwill, loyalty and sales by enhancing a business’ reputation and brand recognition. “This recognition and goodwill can help a business stand apart, and above, competitors,” Hodges said.

Many successful corporations are known as much for their charitable giving as their products. Patagonia outdoor clothing has shown the entire clothing industry how to grow profits while maintaining deep commitment to social responsibility. Dean’s Beans, distributor of 100 percent organic/fair trade coffee, uses its profits to fund village-led development projects.

Ben and Jerry’s ice-cream, a small start-up out of rural Vermont, now controls over 40 percent of the super-premium ice cream market, arguably because of their popular commitments to environmental and social causes.

Financial Contributions

Contributing financially to causes that are important to customers and employees is an important element of corporate social responsibility. Mister Car Wash operates more than 200 stores across the country. Since its fundraising program began in 2007, Mister Car Wash has helped more than 1,500 organizations raise $1.5 million. “Staying connected to these individual communities is very important to us,” said Megan Everett, Mister Car Wash brand manager. “We believe that we have a responsibility to the community that extends beyond our car washes. Our program is simple and proven to be successful by allowing an organization to sell passes and keep 50 percent of the proceeds. We welcome any type of organization that wants to participate.” Recent additions to Mister Car Wash’s community giving portfolio include scholarship and school-supply kit programs.

Volunteerism

Gina Argento, CEO of Broadway Stages in New York City, the largest full-service TV, film studio and production facility on the East Coast, places philanthropy at the heart of her business. Broadway Stages’ commitment to the community includes generous financial contributions, but volunteerism is Argento’s greatest focus. “I like to be involved very personally and very hands on… it’s in my blood and something that was important for me to instill in my team,” Argento said.

Broadway Stages founded two urban farms on the roofs of its soundstage and partners with local schools to bring students to learn about agriculture and healthy eating habits. This past holiday season, Argento and her employees at Broadway Stages worked with NYPD’s 94th precinct to serve meals to those in need. “We were in the middle of everything; serving the food, working the deep fryer, serving the burgers,” she said. “We made a Broadway Stages assembly line, throwing on the toppings and handing one to everyone there.”

Argento’s contagious passion for giving has created a dynamic work culture at Broadway Stages. “It boosts morale for my employees. It’s such a tremendous opportunity for them,” Argento said. “Because it improves morale, I find that the employees want to be here, and everyone works just a little bit harder to meet our goals.”

Argento is open to new philanthropic opportunities and often finds inspiration for Broadway Stages’ next project from her employees. “At Broadway Stages, we are a family, and if something is important to someone here, it is important to me too.”

Charitable Partnerships

Since 1998, Autobell has helped raise over $8 million for charitable groups in Autobell communities. Creating strong and lasting partnerships with non-profits that share Autobell’s footprint is the backbone of the company’s successful fundraising campaigns. “We believe, as a business practice, in creating long-lasting relationships that are true partnerships. In a non-profit partner, we are also looking for an organization whose culture and purpose is similar to ours,” said Andi Watkins, marketing and brand manager at Autobell.

Autobell partners with the American Red Cross in fundraising efforts by donating one dollar from each Manger’s Special purchased at the organization. “We know that our customers are solicited in many retail situations, so we try to present them with an opportunity to purchase knowing their choice of wash will make a positive impact,” Watkins said. Autobell also works with the Red Cross to host and promote two large blood drives, one an employee drive and one for customers. Autobell works closely with the Red Cross to ensure the sites are properly staffed so that wait times are minimal and convenient for customers. Autobell employees volunteer their time to man the registration for the drive so other volunteer resources of the Red Cross can be used for other programs. In 2016, Autobell raised a total of 282 pints of blood in one week, potentially saving over 800 lives.

When Hurricane Matthew forced Autobell to evacuate their Charleston location, Autobell worked with the Red Cross to spread safety information to customers through the company’s social channels and employees. “Safety is important to our customers. The relationship we have with our customers and the Red Cross shows we are doing so much more than just collecting a dollar a few weeks out of the year,” Watkins said. “At Autobell, we believe that being a good community member happens on many levels. This means understanding, engaging and serving our customers. It means supporting our employees and their endeavors. And it means being involved in things that are important and relevant to our communities and the environment,” Watkins said. “Through our support of organizations and our communities, we lead by example and hope it will inspire others to do more in their communities, too.”

Autobell Car Wash, America’s second largest full-service, conveyorized car wash company, takes supporting employee participation in volunteerism a step further. Autobell’s Adopt-a-Stream program encourages employees to volunteer cleaning up local waterways by paying the employees for their time as if they were on duty at the car wash. “Many of our employees work because they have to support themselves and don’t have the time to volunteer like they would like to. This is a unique opportunity for us to support something that is important to our employees,” said Watkins.

Possible Pitfalls

When introducing a charitable giving program, businesses should be aware of the possible pitfalls of an ill-conceived charitable strategy. “Greenwashing” is a term that refers to businesses that exude a faux support for environmentalism. It has now become more broadly applicable in describing any community involvement effort that is an obvious ploy to gain attention and recognition.

“Avoid this by engaging in meaningful, authentic community work and communicating efforts and impact in a thoughtful manner,” Hodges said. Companies can also run into trouble when there isn’t a logical fit between the business and the cause. “A classic example is when KFC partnered with Komen for the Cure on a ‘Buckets for the Cure’ campaign and received significant backlash,” Hodges said. Be sure to engage employees in your giving program. “Your community involvement will not reach its full potential if employees are not engaged in and supportive of your work,” she said.