Corporate Social Responsibilty Investment in Communities Rose in 2009

Remember 2009? Not unlike today, that was the year in which many sectors of our economy saw a decline in spending, so it would seem reasonable to think that corporate social responsibility investments were down, too. Not so, according to a recent report by the Center on Philanthropy at Indiana University and the Giving USA Foundation on 2009 corporate giving. But first let's put some context around a few investments in different sectors.

First, personal spending was down in 2009. Baby boomers dropped their daily average spending from $98 in 2008 to $64 in 2009, according to Gallup. In fact, the majority of generations self-reported a drop of about $30 a day in 2009 from last 2008. Ad spending declined by around 11.5% in 2009, according to data by The Nielsen Company. And overall philanthropic giving dipped to about -3.6% in 2009. So what about corporate social responsibility investment to communities in 2009?

Turns out corporate social responsibility contributions in 2009 grew by approximately 5.5% According to the Giving USA Foundation and Center on Philanthropy report, cash and in-kind contributions, particularly by larger companies, increased. Studies such as the 2009 Global Edelman goodpurposeTM Consumer Study claim that despite the economic dip, the commitment folks feel about helping others, as well as to brands and for-profit entities that put their money where they mouth, continues to be strong.

While I'm as pleased as anybody about this path by the executives behind corporate social responsibility programs to increase their support of community investment, the inner skeptic wonders about the motivation behind the 2009 increase. Are more companies really stepping up to the plate with their dollars because they recognize it's the right thing to do as corporate citizens? Is a shift in corporate social responsibility consciousness the real deal, or is the motivation self-serving? In other words, the more the company gives its customers the impression that it's investing more of its dollars into social and environmental causes and projects, is the company expecting greater loyalty by its customers? And if so, is that company's motive genuine or is it a disguised 'investment' that's really about guarding their own interests? Will this be a sustained initiative over the course of the next few years as our economic systems crawl back out of their respective holes?

Time will tell, of course. Some companies with genuinely altruistic corporate social responsibility programs will be able to pass the transparency mustard with flying colors. Others who talk the walk but don't walk it will be fleshed out. And of course they'll be other companies whose CSR motives will not be so black and white. Regardless, it seems an increasing number consumers are spending their hard-earned dollars on brands that demonstrate a social purpose. About 57% of the 6,000 surveyed people representing 10 countries indicated that a "company or brand has earned their business because it has been doing its part to support good causes (with Asian countries coming in highest with China [85%] and India [84%].Two out of three [67%] globally say the would switch brands if another brand of similar quality supported a good cause, peaking in Brazil [83%] and Italy [74%]."

For a more detailed look at the findings of the Edelman goodpurposeTM Consumer Study, see "Global Recession or Not, Consumers Willing to Back CSR Brands with Social Purpose" .