Community Investment in Tough Economic Times
As companies navigate the economic climate, community investment budgets are often impacted. Oil & Gas, Mining, Manufacturing, Forestry, Retail... the list of companies working through change is endless and ever-changing itself!
Among those that have experienced declines in community investment budgets, companies within LBG Canada demonstrate that a community footprint can be maintained, in partnership with stakeholders.
Between fiscals 2015-2016, 65% of LBG Canada companies demonstrated a decline in community investment expenditure, by an average of 17%. And yet, 30% of those companies increased expenditure in community regardless of a decline in the amount of community investment. Of the companies that managed to increase their stakeholder involvement, this increase represented a change from a decline of 7% to an increase in community impact of 9% on average.
This result has been particularly noticeable in Alberta, where companies have seen tangible participation increases in employee giving programs, in a time of staff layoff, reduced salaries and lower levels of corporate expenditure.
How was this increase achieved? Companies leveraged their stakeholders in two different ways: through increases in employee giving, and through leveraging the contributions of external stakeholders.
Companies that increased employee giving did so with an average increase of 25% in the contributions made to community by their employees. Those that created an increase through their external stakeholders, whether through direct funds or the contribution of in-kind goods, had an average increase of 60%!
Though economic uncertainty might have an impact on program budgets, employees and other stakeholders might welcome the opportunity to participate.
Through good times and in bad, how well are you engaging stakeholders?