When Louisiana was hit by Hurricane Katrina in August 2005, corporate social responsibility came front and center for the New Orleans-based agency Gillis, Ellis and Baker.
Fortunately, the agency had updated its business continuity plan two months prior to the devastating storm, which enabled it to shift part of its operations to an emergency recovery unit parked in Baton Rouge, La. This allowed the agency to take claims from customers and forward them to carriers.
Anderson Baker, president of Gillis, Ellis and Baker, said the agency's social responsibility involved more than just serving its clients affected by the storm—it also involved helping the community, which included the agency's own employees. In fact, the agency purchased two condominiums for its employees within a week of the disaster.
"There's nothing we wouldn't do to help improve the community in New Orleans after Katrina—to get everyone back on their feet and make it place where people could live and work again," Baker said.
When one thinks of corporate social responsibility, charitable contributions often come to mind. But at its core, corporate social responsibility is a commitment to certain principles like integrity, expertise, service and generosity. It benefits all stakeholders: customers, employees and the community at large.
Instead of simply writing a check, agencies can donate time to a cause or event. For example, agency employees can volunteer at the local food pantry or help clean a neighborhood park.
Alper Services LLC in Chicago is involved with numerous local philanthropic activities. When the agency volunteered at a soup kitchen, Bobette Puckett, president and chief operating officer, said employees felt good about giving back to the community, and it was also a team-building experience for the agency.
She said Alpers' corporate social responsibility involves both charitable giving with employees' time and monetary donations as well as having senior leaders serve on the boards of their nonprofit clients.
"Corporate responsibility grew organically," said Leslie Morse, director of claims management and corporate counsel at the agency. It started at the top—from the agency's beginnings when Chairman Howard Alper served on a client's nonprofit board—and then filtered down to the rest of the organization. Today, 50 employees support more than 40 local charities or organizations.
Helping locally based nonprofit clients gives agencies an opportunity to not only strengthen the community but to network with the nonprofits and their partners and be seen as an agency that gives back—all important goals for agency success. In other words, engaging with the community, networking with clients, insurers and other business partners allows the business to grow as well as deepen and solidify relationships.
Getting started
With many pressing societal needs, it can be hard for an agency to decide which causes to support. Consider choosing an issue that fits the agency's personality, benefits a local need or aids people hurt by natural disasters.
"After Katrina, our charitable organization, The Gillis Foundation, received nearly $70,000 in donations from our Assurex partners. We gave the money to seven employees who were affected by the storm. It made a real impact on their lives," Baker said. "We took a lesson from that donation and have now started a pass-the-hat collection, where we donate any money collected to help others affected by disasters. For example, we recently sent a donation to those impacted by the floods in Nashville."
Experts in corporate social responsibility recommend that companies start with a strategy based on the organization's goals. Once those goals are established, it is easier to select the programs or nonprofit organizations that fit with the agency's values and determine where its efforts will do the most good.
Another method is to choose issues that are relevant to the agency's customers. Getting personally involved with a client's cause is a way to cement the customer relationship.
Many agencies are also involved with their local chambers of commerce. The chamber is a great resource for networking, but it is also usually involved in some sort of community improvement project. By actively engaging in those projects, agencies have another avenue to build a corporate social responsibility program.
Finally, many agencies also partner with insurers to benefit the local community. Alper works with one of its carriers' local branch offices to provide whole meals to local charities during the holidays. The charities then distribute the food to the appropriate families.
"We collect the turkeys and they collect the side dishes—potatoes, stuffing and vegetables. Together, we take the food to the charity," Puckett said.
Accordingly, agency and insurer relationships are strengthened, and the local community is the beneficiary.
Benefits of corporate social responsibility
There are many benefits to corporate social responsibility. Beside the obvious—helping those in need—cause marketing, aligned with an agency's core business, is a powerful tool to propel an agency's success.
According to a Fidelity Charitable Gift Fund study, which surveyed 146 entrepreneurs, 62 percent said that giving back makes their organization more successful in the long run. In addition, the survey said that nearly 70 percent did not wait for success before they started giving back—respondents thought they should support charities while growing their company.
Corporate social responsibility also gives employees an outlet to use their specialized talents or help them improve their business skills. Here is one area where newer employees can hone their abilities. Contact the local high school and see if an agency representative could talk to students about careers in insurance. This exercise naturally builds leading and speaking capabilities, and it might even one day result in future employees for the agency.
One note of caution: There is a fine line between altruism and opportunism. Crossing that line can be detrimental to the agency, and people may feel that the agency is exploiting a tragedy for commercial gain. One recent example, according to Deseret News, involved the Japan earthquake and tsunami when Microsoft tweeted a message from its Bing Twitter account offering to donate $1 to the earthquake victims each time a user forwarded the tweet. Twitter users accused Bing of trying to profit from a tragedy. Microsoft later that day sent an apology message and immediately donated $100,000. The company has since committed to donating $2 million.
With cause marketing, it is important to guard the agency's reputation. If there are any concerns about the way donations are obtained (i.e., only for self-aggrandizement or commercial gain), the charitable endeavor might be misconstrued and cause reputational harm to the agency. Agencies should think about how its messaging will come across in the public square. Consult with marketing and/or public relations personnel about the agency's corporate social responsibility campaigns, making sure all messages are clear, and contributions are made for the right reasons.
"Actions speak louder than words," Morse said. "The public sees when there is genuine care behind the actions that come from helping others."
Agency success hinges on many best practices, including growing revenue, serving both clients and business partners and giving employees the tools and resources needed to get the job done. But one more best practice, which helps define success, is corporate social responsibility. View it as an opportunity, not as an obligation. Donating time and expertise to charities and local community endeavors are ways to help the agency's reputation, improve relationships with customers and the community, and empower employees to make a difference.
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