Driving Strategic Growth through Philanthropy
How to Shift Corporate Philanthropy from ‘Nice-to-Have’ to Core Business Strategy
Do you often run into the perception that social impact and philanthropy is a “nice-to-have” for an organization, but not really essential to the business?
What if I told you there’s a shift in mindset you can promote that will change the way corporate philanthropy is viewed at your organization, reveal its potential to advance your company’s mission — and even drive strategic growth?
I was recently part of a discussion with leaders about supporting initiatives that may hurt our bottom line. It was a good conversation, and the consensus was that we should put purpose over profits and try to get as many people into the dental chairs as we can. It’s that kind of purpose-driven thinking that strengthens the organization.
In my article, “5 Ways to Elevate Your Corporate Philanthropy,” I shared how thinking like a venture capitalist sharpens our philanthropy efforts on desired outcomes and creates more meaningful change. Today, I’ll focus on shifting your organization’s perception of corporate philanthropy — from a business ‘add-on’ to an essential business strategy.
1. Challenge Current Beliefs About Corporate Philanthropy
When I talk about corporate philanthropy, many people believe it should be purely altruistic; we shouldn’t expect to get anything back. And I get it. Doing good solely for the company’s gain is inauthentic.
But the problem with separating corporate philanthropy from the business is… well, it separates corporate philanthropy from the business.
If you look at corporate mission and vision statements, they all reference a higher purpose and rarely touch on bottom-line returns. Delta Dental’s mission is to advance dental health and increase access to oral care. Given we’re striving to make positive change in the world, why not use corporate philanthropy to achieve our mission?
2. Shift from Awarding Grants to Investing in Change
When we use corporate philanthropy to drive strategic growth, we need internal allies aligned with the cause.
Let’s revisit our colleagues who view corporate philanthropy as a business ‘add-on,’ and that it should be purely altruistic. The first thing I do when I discuss the topic is I shift my language from “grants” and “charity” to “investing.”
By framing corporate philanthropy as an investment rather than charity, I open the door to shift our perception, so we focus on opportunities in strategy and growth.
3. Create Win-Win-Win Situations: The Concept of Shared Value
In 2011, economist Michael Porter and social impact researcher Mark Kramer won the McKinsey Award for their Harvard Business Review article proposing a new role for business in society. They argued that business interests and social benefit can work together for the good of all.
Like most innovative thinking, the idea isn’t without opposition, but I believe when an organization invests its resources toward change that aligns to its purpose, it creates wins for the planet, communities, and business alike.
4. Invest in Change, Discover New Opportunities
In my role as head of corporate social responsibility for Delta Dental of California, I’m putting this theory into practice. One such investment is with Emory University in Georgia, where we’ve funded a two-year research and development program for a bio-medical device that tracks (among other things) oral health outcomes for seniors and expectant mothers.
This project is a model for how business goals, community impact and corporate philanthropy intersect. Our investment is advancing oral health innovation and producing research data to improve oral health care for all (our mission), while revealing new ways to serve our communities and the people we insure.
When the Stars Align
Like Michael Porter, Mark Kramer and business leaders worldwide who are committed to change, I’m a believer that when we look to the core of our business — to make the world a better place — it’s clear there’s a role for social impact in our strategy.
By aligning corporate philanthropy to our noblest business goals and investing in big ideas to solve problems for the people we serve, we reach beyond the sole aim of financial growth to achieve our highest potential as an organization.
Thanks for reading and reach out if you have questions or further ideas. Let’s start a conversation and build the change we want to see!
