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CORPORATE SOCIAL RESPONSABILITY

It is more about a partnership rather than just signing a cheque, says Coca-Cola's director of Communications.


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9 out of 10 (89%) consumers have purchased a product or service associated with a charity or cause or collected vouchers for a charity or cause in the last year.

81% of consumers agree that they are more likely to buy a product or service that is associated with a cause they care about, price and quality being equal.

66% of consumers agree they would switch from one brand to another, price and quality being equal.

Regarding financial performance, from three of the four measures of corporate value used in this study it was found that those companies in the sample with a code of ethics had, over the period 1997-2001, out performed a similar sized group who said they did not have a code.

More than two-thirds (67%) of community groups and schools in the SouthEast believe that business support is crucial to their organisation, compared to 55% in the UK as a whole.

90% of community groups in the South East believe that large companies should take responsibility for solving social problems.

57% believe that business support has been of significant financial value, whether or not the support id financial or of another nature, for example gifts in kind or mentoring.

78% of community groups in the SouthEast believe that companies do not generally pay enough attention to the value that social and environmental initiatives can add to their businesses.

For more:
Business in the Community Web site
Giving Campaign Web site


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Corporate Social Responsibility is a rapidly expanding phenomenon. Companies are now keen to publicise their involvement with local communities as well as their social and environmental policies. But figures show that business support to charities is not that generous: in 2001 it contributed to 4.9% of charities total income while individuals are contributing with 19.7%.

In the other side, it is difficult for businesses to measure results from CSR activities. Coca-cola, for example, simply can't measure the return to its investments in programmes in Hammersmith, where its office is based. Hammersmith and Fulham Chamber of Commerce hosted last week an event on Corporate Social Responsibility for local businesses. The speaker, Coca-cola's director of Communications, Martin Norris, said that CSR is a driver of corporate reputation, but what is on the table now is much more of an active partnership, where both sides can "ad value to each other", rather than simply signing a cheque.

How does it work? Coca-cola is looking for "value" with the young public, the target market for the majority of its brands, so the company's focus is on sports, arts and culture and education. Locally, Coca-cola maintains the Valued Youth programme with six local schools. It is a cross-age reading and tutoring programme targeting students in years 9 - 11, who may have lost interest in their own learning or who would benefit from the opportunity to shine in a mentoring role in primary schools.

11 students from Henry Compton Secondary Scholl and 6 from Sacred Heart School went into mentoring in four local primary schools, such as Gibbs Green School and All Saints. In one side, Coca-cola is benefiting in the long term by building a positive reputation locally and within its target market. In the other, schools reported behaviour change and improved attendance. At the Henry Compton School, for example, attendance went from 30% to 80% after the mentoring programme.

Coca-cola also supports the Hammersmith and Fulham Partnership Against Crime (HAFPAC), sponsors programmes at the Riverside Studios, the Ravenscourt Park, the Special Olympics and made in kind donations to St Paul's Church and to the Lyric's expansion.

Very well, a global company can afford it. But how can small local businesses put CSR into practise? The main question of the event remains unanswered. Hammersmith and Fulham Chamber of Commerce is planning to work together with local businesses by helping them on setting up CSR schemes. In the meantime, small and medium businesses can follow the links bellow for some tips and advice.


CommunityMark
CommunityMark is a national standard for small and medium sized businesses, of any size, that recognises small business involvement within the local community.

Giving to Charity
Some basic information about giving to charity for businesses and the benefits of giving tax-effectively. It includes:

Tax-Effective Giving: it enables businesses to claim tax relief on gifts to charity.

Gifts of equipment or trading stock to charity: Businesses who give to charity an item manufactured or sold in the course of your trade, or machinery or plant used in the course of your trade, can get tax relief.

Sponsorship payments: Businesses who sponsor a charitable activity, may be eligible for tax relief. Whether a payment qualifies for tax relief will depend on the facts. For example a payment made to get publicity for your name or product, which represents a reasonable rate of return for the amount paid, will usually qualify.

Employee Secondments: Businesses who second employees to work for a charity on a temporary basis can deduct the costs incurred in connection with the employments, including salary, in calculating taxable profits.

Payroll Giving: It is a flexible scheme that enables employees to make charitable donations straight from their gross salary. This means that they receive immediate tax relief on the value of their donation. Therefore, for a basic rate taxpayer wanting to give a £10 donation, it will only cost £7.80, or just £6 for higher rate taxpayers. As an extra incentive, the Government adds 10% to every donation made in this way, so a £10 gift becomes £11 for the charity - almost double what it costs you.

Hammersmith and Fulham Chamber of Commerce Web site

Coca-Cola Great Britain Web site