Giving Back

Corporate philanthropy provides a significant source of funding to nonprofit organizations within the community, especially when government contracts and grants dwindle during times of economic hardship. There are several benefits to the company as well if it participates in philanthropic activities. My push for developing a robust corporate giving program at ON Semiconductor is premised on four main arguments:

1. Public Relations: The more involved a corporation is within the community, the more visible it will be to the public. Very rarely does a company's philanthropic work go unnoticed by the media. Customers also often demonstrate loyalty to a company based on its reputation. Greener companies are generally preferred by consumers and investors both. While many employees may already donate through the workplace, a comprehensive corporate giving program is better able to track donations and measure the impact of giving. This in return provides for greater publicity. 
2. Profit: Linked to positive PR is profit. With positive publicity, organizations are able to gain a larger customer base and reap greater profits as well. 
3. Employee engagement: Employees are increasingly looking for additional benefits when selecting a place of work. Along with the usual health, dental, and pension, millennials are looking for ways to give back while in the workplace. Corporate giving can give individuals the opportunity to make a bigger difference in the community by asking their employer to match contributions. Several large companies now offer sabbaticals to long-term employees where they can use skills they have developed in the workplace to address a community need. Additionally, employees can team up with other coworkers for certain causes. 
4. Morale: Ultimately, greater employee engagement boosts morale. The more pleased an employee is with the corporate culture of a company, the more productive she or he is likely to be. Increased engagement leads to less absenteeism and tardiness.

While there are several reasons for a company to pursue a corporate giving program, there must also be certain guidelines in place to ensure that company dollars are being spent wisely. Drafting eligibility criteria and developing minimum thresholds can ensure that appropriate background checks are conducted on the organization prior to giving. The last thing any organization wants is to associate itself with a nonprofit that lacks transparency, efficiency, and financial stability. If the proper mechanisms are in place, however, a company can give back to the community significantly.