Leveraging the Alberta Community Advantage: Recommendations for the Private Sector in Building a Community Prosperity Strategy
By Marokh Yousifshahi, CCVO Policy Analyst; and Alexa Briggs, CCVO Director, Policy & Research
Our previous #ABCommunityAdvantage posts provided recommendations for the nonprofit sector, the provincial government, and funders and other stakeholders in building a Community Prosperity Strategy that leverages the Alberta Community Advantage. This post focuses on recommendations for the private sector and how it can continue to support the nonprofit sector. The private sector is uniquely positioned to provide the nonprofit and charitable sector with the right expertise, knowledge, financial support, and resources necessary for building a Community Prosperity Strategy.
Through our engagement with nonprofits, community organizations, and research, we have identified the following recommendations for the private sector:
Encourage and support an organizational culture of giving and volunteerism by: providing more opportunities for employee involvement on nonprofit boards; making a commitment to support social issues in partnership with nonprofits; and continuing employee engagement with nonprofit organizations through innovation in this new environment.
Find and recognize ways to advance the prosperity of local communities through supporting the nonprofit sector with expertise and knowledge by: supporting technology access, training, and maintenance; providing access to corporate training opportunities; and providing access to emergency planning professionals.
Leverage the nonprofit sector's contributions to the prosperity of our communities through: robust and vibrant social infrastructure that benefits communities and supports business objectives; and more advocacy on how much nonprofits contribute to society.
Recommendation 1
Encourage and support an organizational culture of giving and volunteerism.
One of the most popular ways for the private sector to give back to their communities is through volunteering. Employees are often encouraged by their employers to volunteer with nonprofit organizations, and research shows that volunteering boosts morale and employee pride within a company.[i] Opportunities for employees to engage with nonprofits prove mutually beneficial to both the private and nonprofit sectors. Opportunities for employee engagement include:
Involvement on nonprofit boards, especially for small-to-medium-sized nonprofits that may find it challenging to attract skills-based experts – in areas such as marketing, finance, legal, HR and others – to participate at the governance level.
Nonprofit board service is useful for employees to develop higher job performance skills.[ii] The skills developed as a nonprofit board member include board governance, networking, communication, strategic planning, decision-making, critical thinking, and problem-solving.[iii] Businesses are encouraged to embolden employees to serve on boards by providing their employees with services that train, prepare, and then match them with nonprofit boards based on their skills and expertise. When companies offer employees preparation and training opportunities to succeed as a board member, employees are more likely to seek board positions.[iv] Companies can “integrate board service into the company’s corporate social responsibility strategy, and align it with diversity and inclusion, talent development, sustainability, and philanthropy.”[v] This will maximize their overall investment in the community and build companies’ corporate brand and reputation, develop the skill set of their workforce, and position their employees as community leaders.[vi] Companies will benefit from encouraging board service from all employees and not solely senior executives.[vii]
Make a commitment to support social issues in partnership with nonprofits.
Through cross-sectoral partnerships, several social issues can be improved when the right strategies are put into place. Imagine Canada’s Caring Company Certification encourages companies to adopt a leadership role as investors of at least 1% of pre-tax profit into stronger communities. The percentage of pre-tax profit invested in the community is a common metric used by companies to determine annual budgets.[viii] This type of partnership benefits both parties, producing a significant investment that can have long-term benefits for both the community and the company, and one that enables nonprofits to access skills and expertise, and extends the reach of their impact.[ix] Companies do not have to sacrifice profits to give back to their communities; “when done right, the benefits to the business are clear.”[x] Businesses that publicly show their commitment to social issues can improve their relationship with the community and cooperation with society in the long term. Additionally, employees are more likely to prefer working for companies involved in doing good within their community and more likely to intend to stay with their employer – and high employee engagement within the company is likely to lead to other positive results such as productivity and profitability.[xi]
Partnerships with the nonprofit sector are most successful when they achieve a high engagement level, frequent interaction, bidirectional exchange of interdependencies, and sharing of resources, risks, and benefits.[xii] Such partnerships can spur innovation as different ideas and perspectives are brought together. They also reduce duplication and competition of businesses, increase organizational efficiency and effectiveness, and expand both parties' organizational capabilities.[xiii]
Continued engagement with nonprofit organizations and being creative in employee engagement opportunities.
According to Gallup, companies with high employee engagement levels saw a 16% increase in profitability in comparison to companies with employees who were not engaged; general productivity was 18% higher than other companies and; customer loyalty was 12% higher.[xiv] Additionally, there is a known connection between engagement and volunteering – in Ireland, 87% of employees who volunteered with their companies reported an improved perception of their employer, and 82% felt more committed to their place of work.[xv] Overall, engaging employees boosts employee morale and promotes a better working environment in comparison to companies that do not engage their employees.
Nonprofits and businesses will need to work together in new creative ways to tackle the challenges within their community. The private sector can encourage employee engagement by:
Reaching out to nonprofits to understand their needs to provide them with the right support. One of the highest anticipated challenges for employee community engagement during the pandemic in Canada is finding virtual ways for employees to support nonprofits’ needs while also being sensitive to employee needs and interests.[xvi]
Encouraging more employee virtual volunteering and in-person volunteering when safe to do so. However, to keep employees engaged, internal policies and processes related to a company’s engagement or volunteering program will need to shift with the dynamic environment of COVID-19. Additionally, individuals are often aware of their local nonprofits and smaller organizations and have extensive knowledge about the community they live and work in. It's best to let employees lead by asking what causes and issues they care about to boost locally driven nonprofits and smaller organizations. Listening to employees promotes trust between the company and the nonprofit organizations they want to support.
Offering skills-based volunteering and pro bono virtual projects enable people to use their unique skills to help causes they care about, while also helping them develop skills that will further benefit them, as well as the company. Since the pandemic, some Canadian businesses have moved from company-organized to employee-initiated activities.[xvii] Businesses also anticipate skills-based volunteering and learning opportunities for employees on community issues and challenges facing the nonprofit sector.[xviii] Skills and expertise will vary between each employee and, therefore, will create unique opportunities for companies to leverage these skills to boost local nonprofits. Businesses can maximize social impact by combining employees’ expertise with their products, services, or philanthropy. For example, providing support to local charities that help undeserved people find employment through mock interviews to prepare people for getting back to work.[xix]
Encouraging giving through employee matching programs. For example, 3M, a large multinational corporation that employees thousands of people, donates money to eligible nonprofit organizations when a 3M employee or retiree volunteers 25 hours or more per calendar year.[xx] These matching programs are intended to help employees support the organizations they are passionate about.
Employee recognition to motivate more employee engagement with nonprofits.
Customized plans that engage employees will build the capacity of local nonprofits. Offering employees the opportunity to donate their time to volunteer can build lasting relationships with local nonprofits. A more significant impact can be achieved when employees, organizations, communities, and community partners collaborate.
Recommendation 2
Find and recognize ways to advance the prosperity of local communities through supporting the nonprofit sector with expertise and knowledge.
The private sector will play a key role in the preparedness, early response, and longer-term recovery of nonprofits over the next few years. Business professionals can provide expertise to help with administration and technology, and offer nonprofits training opportunities to be more sustainable. The private sector can also provide access to emergency planning professionals to prepare organizations before another disaster or pandemic impacts communities.
Support technology access, training and maintenance.
Businesses can do a great deal by supporting nonprofits with the help of technology to advance their impact and help attract and engage donors. Many nonprofits are constrained by their budgets and cannot invest in technology and upgrades to better serve their communities. As a result, many are using outdated platforms and collaboration tools. Additionally, there are now greater cyber risks that require greater cybersecurity.[xxi] Businesses can set up specific programs that strengthen small-to-medium-sized nonprofits in rebuilding and weathering economic downturns and improving or adapting their fundraising capabilities to virtual means. Additionally, the private sector can provide support and training opportunities for IT, website development, and other digital skills. The private sector can provide technology support and help nonprofits navigate the dynamic pandemic landscape.
Provide access to corporate training opportunities.
The needs of large and small nonprofits are likely to differ from one another. Small-to-medium-sized nonprofits may not have the necessary training to fully meet their mission, as they do not always have established HR practices in place and may not have the resources or capacity to promote and provide professional development opportunities for their employees. In times of disaster or a pandemic, this can be counterproductive for the organization as they may not have the skills required to withstand the impacts. The private sector can improve nonprofits' resilience by providing critical skills through opportunities that help nonprofit employees. Programs can be set up for employees to offer their business skills and experience while also improving and developing leadership skills, interpersonal communication skills, and problem-solving skills. These programs can be set up for specific projects that will help the recovery of nonprofits.
Provide access to emergency planning professionals.
The private sector is often prepared with strategies to respond to an emergency, whereas nonprofits are resource-constrained and may not have these critical plans in place. Therefore, nonprofits are more vulnerable to the impacts of an emergency, although they are also providing essential support during an emergency or disaster. Smaller nonprofits with minimal staff are less likely to have the resources and capacity to implement emergency plans and are also at a greater risk than others. To address this issue and have organizations better respond and be sustainable, the private sector can provide access to emergency planning professionals who can better support nonprofits in their mitigation and preparedness plans.
Recommendation 3
Leverage the nonprofit sector's contributions to the prosperity of our communities.
We know that the pandemic has already had a tremendous impact, with the magnitude of the fallout still unknown. Nonprofits have been those closest to the prevailing issues and the communities that have been most at risk, and provide the kinds of community support that is needed by the private sector for a thriving environment that attracts investment and talent. As a result, it is crucial for the private sector to use its influence to support nonprofit advocacy through investment, promotion, and recognition.
Robust and vibrant social infrastructure benefits communities and supports business objectives.
CCVO has made a case for the positive impact of government investment in social infrastructure. The same positive impacts for communities can be attributed to private investment in social infrastructure. Social infrastructure can be defined as networks, relationships, organizations, services, and facilities that allow communities to build capacity that goes beyond providing assets, such as enhancing skills and knowledge, and access to a range of appropriate services and responses.[xxii] Social infrastructure is in a range of social service sectors, policy areas, and activities that enable society to work effectively and includes areas that help individuals, families, groups, and communities meet their social needs, such as health and human development.[xxiii] This type of infrastructure is imperative for the economic growth and well-being of citizens,[xxiv] and is supported by the Calgary Chamber of Commerce in their Budget 2021 submission, which recommends that the Government of Alberta invest in social infrastructure to “yield the job creation we desperately need, and over the long-term, will reduce the social and economic challenges associated with individuals made vulnerable by economic systems and who are experiencing poverty and homelessness.”[xxv] We encourage the private sector to explore social infrastructure investments and implement policies that will continue to boost investment and innovation and, in turn, spur job growth.More advocacy on how much nonprofits contribute to society.
The private sector can play a significant role in driving social change by advocating for issues that align with or are important to their organizations. The nonprofit sector has been a champion in providing front line service during the pandemic, and organizations will require continued support to follow through with their mission. The private sector can help advocate for the vital work that nonprofits do. Companies can do this through storytelling initiatives and through raising awareness of the work and impact of nonprofits and the value of this work in advancing the shared goals of the private and nonprofit sector.
These recommendations are only a few ways in which the private sector can support nonprofit organizations in their efforts to rebuild their communities and their organizations so that they can continue to support those most at risk. This is our last set of recommendations in our #ABCommunityAdvantage blog series. We encourage you to share your thoughts about what makes a community great, helping to build a collective Community Prosperity Strategy as we wrap up our blog series and begin our facilitation process. Join the conversation on our website or social media using #ABCommunityAdvantage.
Read our other blog posts in this series
references
[i] Im, S.; Chung, Y.W. (2018). Employee Volunteering Meaningfulness and Organizational Citizenship Behavior: Exploring the Effects of Organizational Support, Pride, and Trust. Sustainability, 10, 4835.
[ii] Korngold, Alice. (2017). Better World leadership: The 2017 Nonprofit Board Leadership Study. Available at https://alicekorngold.com/studies/
[iii] Ibid.
[iv] Korngold, Alice. (2019). Better World leadership: Nonprofit Board Programs to Develop Business Leaders for a Sustainable Future. Available at https://alicekorngold.com/studies/
[v] Ibid.
[vi] Imagine Canada. (2019). Corporate Community Investment in Canada: 2019 report. Available at https://imaginecanada.ca/en/caring-companies#resource
[vii] Ibid.
[viii] Ibid.
[ix] Bosetti, L. (2019). Corporate community investment: A strategic approach. Symphonya, (1), 68-85. DOI:10.4468/2019.1.06bosetti
[x] Imagine Canada. (2019).
[xi] Ibid.
[xii] Scott, Victoria C,PhD., M.B.A., Lamont, Andrea,PhD., M.A.S., Wandersman, A., PhD., Snapper, L., B.S., Shah, Mona,PhD., M.P.H., & Eaker, E., M.H.A. (2018). Learning from the opportunities and challenges of a philanthropy-private sector partnership. The Foundation Review, 10(2), 67-79,107-108. DOI:10.9707/1944-5660.1416
[xiii] Ibid.
[xiv] Realized Worth. (2020). Business Case #1: Employee Volunteering Creates Employee Engagement. Available at: https://www.realizedworth.com/2018/11/20/business-case-1-employee-volunteering-creates-employee-engagement/
[xv] Ibid.
[xvi] Volunteer Canada & Volunteer Ireland. (2020). Effects of the pandemic on employee community engagement. Available at https://volunteer.ca/vdemo/CorporateCitizenship_DOCS/Effects%20of%20The%20Pandemic%20on%20Employee%20Community%20Engagement%20October%202020.pdf
[xvii] Ibid.
[xviii] Ibid.
[xix] Benevity. (No date). Employee Volunteering Guide: 7 strategies for turning your volunteering program into a cultural driver. Available at https://www.benevity.com/sites/default/files/eBook//employee-volunteering-guide.pdf
[xx] 3M. (2020). 2020 Sustainability Report: Improving every life. Available at https://multimedia.3m.com/mws/media/1836747O/2020-sustainability-report.pdf
[xxi] Integral Org. (2020). Take time to hope for the best but prepare for the worst: Top risks facing nonprofits in 2021. Available at https://integralorg.ca/blogs/posts/take-time-to-hope-for-the-best-but-prepare-for-the-worst-top-ris/
[xxii] Cowen, Deborah & Parlette, Vanessa. (2011). Inner suburbs a stake: Investing in social infrastructure in Scarborough.
[xxiii] International Trade Union Confederation. (2016). Investing in the Care Economy: A gender analysis of employment stimulus in seven OECD countries. Available at https://www.ituc-csi.org/IMG/pdf/care_economy_en.pdf
[xxiv] European Commission & European Association Long-Term Investors. (2018). Boasting Investment in Social Infrastructure in Europe. Available at https://ec.europa.eu/info/sites/info/files/economy-finance/dp074_en.pdf
[xxv] Calgary Chamber. (2020). Calgary Chamber Submission for Alberta’s spring 2021 budget. Available at: https://www.calgarychamber.com/2021-budget-submission-alberta