LBG Canada Blog

In light of recent events, many LBG Canada companies have expressed an interest in learning how corporations are responding to natural or man-made disasters. As it becomes increasingly evident that disaster response will be an ongoing part of community investment and CSR programming, the importance of establishing management systems to guide corporate response to local, national and global disasters has become more apparent.

In response, a short poll was conducted by SiMPACT of LBG Canada companies, and found 88% of respondents stated their community investment program has included a corporate disaster response. Within that group, however, only 29% stated they have a guideline or a policy in place to frame their decision-making process.

Sixteen companies within the LBG Canada group were polled. The results also demonstrate how companies are responding, whether through traditional fundraising campaigns, in-kind donations or perhaps by engaging employees through matched giving or volunteering programs. In addition, the results show a strong focus on short term, reactionary emergency relief rather than a trend towards a hands-on approach to disaster recovery.

To review the full results and highlights visit LBG Canada Reporting or read it here.  

Recently it was announced the American retail chain, Target, will be arriving in Canada. As consumers anxiously await the discount retailer’s arrival, Canadian companies such as Sears and HBC are preparing for the entrance of foreign retail competition. 

While companies look to differentiate themselves among their US rivals, LBG Canada believes investing in communities is a valuable way for established retailers to stand apart from foreign competitors. By demonstrating their links to the community, and effectively communicating the value of long term national partnerships and/or relationships with local groups, companies can attract and engage consumers in a powerful and more meaningful way.     

Understanding the competition is vital in the retail industry, and from an LBG Canada perspective, the annual benchmarking process can help companies understand where peers or other large national focussed companies are investing. The process is also highly effective in helping a company identify where they can achieve business benefits as well as community benefits. Understanding these benefits enable companies to communicate the results in a more engaging and tangible way.
 
For Canadian retailers facing foreign competition, identifying areas to invest strategically can also help companies highlight impactful stories that demonstrate the importance of being a good corporate citizen - reminding consumers their business is here to stay and is an important part of the fabric of society.

For more information on the introduction of foreign retailers to Canada view http://www.theglobeandmail.com/globe-investor/sears-canada-ceo-resigns/article2072155/ 

As the facilitator of LBG Canada, SiMPACT is aware of the many challenges community investment professionals often face day-to-day. Whether it is lack of staff support or handling a large number of requests for funding, a common stressor we also hear from professionals is how to respond when their CEO asks: What is the ROI of our community contributions?

Although this question seems straightforward, where the frustrations lie is in trying to find a value that represents a diverse portfolio with numerous investments - and communicating that value in terms understood by senior management.

Although community investment professionals often understand the added business benefits to investing in the community, i.e. building rapport, engaging new employees, etc.- executives, on the other hand, want more tangible results, in a language they can understand, such as return on investment (ROI).

To help clarify what is intended by the ROI Question, we encourage community investment professionals to first determine clear objectives and agree with management on what the company is trying to achieve overall. 

When a company approaches us to join LBG Canada, we often start our conversation with them by asking the following three questions:

1. As a contributor to society, does your company want to be known as a responder, i.e. someone who is there to provide help immediately, or do you want to be known for making long-term societal change? Can your portfolio sustain both?
2. Based on the above, how can you focus your investments so they are making the greatest impact in the business and the community? How many focus areas should you have, and how will they be prioritized?
3. Who can you involve to help reach your objectives? Can you leverage any external resources through suppliers, clients, and employees etc. to have the greatest impact?

By determining the objectives that direct company contributions, the community investment team can then begin to put metrics in place to measure a return on investment. Although it can be difficult to measure something as subjective as social change, many LBG Canada companies find the results from their annual benchmarking gives professionals the language and evidence needed to make a strong business case for investing in the community.