Corporate Social Responsibility: Do Companies Have a Responsibility to Their Communities?

July 5, 2015

John Kimball

John Kimball, President and CEO at Convention Data Services. John places great importance on the value of relationships in business and attributes his successful 20-year career in the tradeshow industry to this principle. ConventionDataServices.com 
 

More than ever, employees and customers want to work for and with a company with a strong social conscience. Developing a social conscience for your company not only impacts the greater good of society but it has a positive effect on employee morale and customer loyalty.

Corporate Social Responsibility: “The continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large." (Source: World Business Council for Sustainable Development)

Do companies have a responsibility to their communities? The resounding answer is yes! Companies, no matter the size, do not operate in a bubble. The decisions a company makes impact their employees, customers and vendors, all of whom are part of the communities they serve. When companies get involved in helping their community it creates a positive domino effect on those they aid. Companies need to take the lead on this because if they don’t there’s no guarantee that someone else will.

What are the benefits to your business? Giving to a charity either financially or through volunteer hours gives employees a greater sense of purpose and connection to the community. This type of commitment ultimately builds a stronger community and results in more positive contributors to society that will drive your business. Company leaders need to understand that it is not enough to only be responsive in the midst of a natural disaster or crisis. It’s about contributing and building a community all year long.

According to the 2015 annual Edelman Trust Barometer Global Study, respondents decisively indicated that business shoulders a responsibility to deliver both economic and societal benefits. Specifically, 81 percent of the 33,000 respondents agree that a company can take actions that both increase profits and improve the economic and social conditions in the community where it operates.

(Source: 2015 Edelman Trust Barometer, conducted by research firm Edelman Berland)

CDS has always made monetary donations to worthy causes, but a few years ago I made the decision to expand our commitment, create a formal corporate giving program and begin a legacy of giving. We knew that in order to make it successful we needed to get input from our employees about what features they would like to see included in the program.

Three things stood out:

1.       Give employees a voice and make them part of the decision-making process.

2.      Create a corporate giving committee comprised of employees at all levels within the company where the members rotate so that everyone has the opportunity to participate.

3.      Include paid time off for employees to volunteer their time at their favorite charity.

It only takes a few seconds to write a check. The difficult part is giving by donating time. Time is such a limited and precious resource; therefore, the donation of even a couple of hours to a nonprofit organization can be very impactful to employees and the organizations they touch. For our employees, the ability to volunteer their time was a critical component.

Thinking about creating a program for your organization? Here’s how to begin:

·         Involve your employees in the decision-making process.

·         Decide whether your program will benefit a broad range of nonprofit organizations or target a few specific areas of interest.

·         Determine the components of your giving program such as company donations, sponsorships, employee matching donations and/or time off for employees to volunteer their time at their favorite charities. Survey employees to gauge their interests.

·         Consider focusing on local charities for a greater impact and opportunity for employees to get involved in volunteering.

·         Get everyone at all levels of the company involved and passionate about donating or volunteering.

·         Have your company management involved—lead by example.

Start small and create a ripple effect. Make giving contagious and fun!

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Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.    Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.    Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.   The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.    MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.     MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.