Community Investment

Abstract

Most businesses, once they reach a certain size and level of resources, provide support for activities of organizations in their communities that are dedicated to address social issues or needs in the community. There is no shortage of issues that companies can focus on in their communities and in any given community businesses of any size can make a meaningful contribution in relatively simple ways such as supporting reading programs for young children, raising awareness of infectious diseases and other health-related issues or providing meals to homeless people in the community. The form of community contribution and engagement by a company can vary significantly, running from a one-time cash donation to a “good cause” to investment of cash, in-kind resources and management time into the creation of long-term partnership with a community organization that works on a broader and deeper solution to a particular issue that has a material impact on the business and the community in which it operates. While positive social and environmental impact in the community is important, when developing the business case for a community investment consideration also needs to be given to the potential contribution that the particular project will have as a “business driver” including benefits such as compliance with global certification requirements, competitive advantage, customer loyalty, compliance with governmental requirements, building the company’s social license, risk management, reputation, access to land and improving local workforce skills and productivity.

Keywords: community engagement, community investment