Research Reports

Measuring the Value of Corporate Philanthropy:
Social impact, business benefits,
and investor returns.
By Terence Lim, Ph.D.

Corporate philanthropy is as vital as ever to business and society, but it faces steep pressures to demonstrate that it is also cost-effective and aligned with corporate needs. Indeed, many corporate giving professionals cite measurement as their primary measurement challenge. The industry critically needs to assess current practices and measurement trends, clarify the demands practitioners face for impact evidence, and identify the most promising steps forward. This research report aims to meet that need, by presenting the corporate philanthropy community with an analysis of current measurement studies, models, and evidence drawn from complimentary business disciplines as well as from the social sector.

Drawing from a set of common questions that senior corporate management and giving professionals often face, this report is organized according to a hierarchy of three conversations,:

Between grant recipients and their funder's Chief Giving Officer (CGO). The funder wants to know: How to assess whether grantees are achieving the intended results, and how to estimate a "return on investment" (ROI) numeric for comparing and/or aggregating the effectiveness across different grants in achieving social results.
Between the Chief Giving Officer (CGO) and CEO. When pressing the CEO for significant commitment to philanthropic programs, the CGO is often asked to articulate a "business case" and demonstrate how supporting teh philanthropic initiative will be valuable to business.
Between the CEO and the investor community. Investors want assurance that spending on corporate philanthropy enhances (or at least does not diminish) shareholder value. Concurrently, a number of investors ask that the companies in which they invest demonstrate greater philanthropic leadership and social responsibility.

> Download a free copy of the Report (PDF)
> Download the CEO Executive Summary (PDF)
> Download the Giving Officer Summary (PDF)

Business’s Social Contract:

Capturing the Corporate

Philanthropy Opportunity

CECP presents this exciting study on the practices of efficient corporate philanthropists based on research and analysis conducted by McKinsey & Co. The research includes a survey of 700+ global C-suite executives, interviews with CECP CEO members, and the results of the 2008 Board of Boards CEO conference roundtable discussion. Report highlights include:

The Shifting Social Contract. 84% of corporate executives believe that society expects businesses to take a more active role in environmental, social, and political issues than it did five years ago. Corporate philanthropy is one effective way to meet these new expectations.
The Evolution of Corporate Philanthropy. Companies are developing more sophisticated initiatives to address the three levels of their contract with society (laws and regulations, implicit nonlegal expectations, and frontier issues such as obesity or human rights) and employing broader resources for community impact, including volunteerism, product donations, and capacity building.
The Complexity of Getting It Right. Fewer than 20% of companies surveyed said their philanthropic efforts were very or extremely effective in meeting social or business goals. To help optimize these efforts, companies must define the focus of philanthropic efforts, gain public recognition for their programs, and allocate appropriate CEO time to philanthropy.
Capturing the Corporate Philanthropy Opportunity. Examining the behavior of leading corporate philanthropists uncovered three keys to philanthropic success: deep involvement from the CEO and board of directors, alignment between philanthropic and business strategy, and management of philanthropy as a business investment.

> Download the report (PDF)

Exploring Corporate Philanthropy

Drawn from interviews with philanthropy executives at 31 CECP member companies, this report examines the evolving management practices of corporate giving programs and provides actionable best practices and “quick tips” for practitioners. Report highlights include:

Significant Emphasis on Strategy and Restructuring. 68% of giving departments significantly revised their philanthropic strategy and structure between 2001 and 2004 in response to several developments, including the tsunami in Asia, 9/11 tragedies, government legislation, the external business environment, and shifting business objectives.
Increased Interest in International Philanthropy. 42% of corporate respondents reported having an international philanthropic presence, while 46% were developing plans to increase and refine their global involvement.
Importance of Employee Initiatives. More than 90% of giving departments reported having volunteer programs, while 48% encouraged volunteerism through providing paid time-off to engage in personal volunteer projects or creating coordinated volunteer events.
Changing Perspectives on Publicizing Giving. While 71% of giving departments used PR as a communications strategy, 35% leveraged marketing or advertising to raise awareness, and 26% issued annual community relations/corporate responsibility reports.
Decentralized Decision Making. Only 26% of the companies interviewed managed their giving departments exclusively from corporate headquarters, 20% incorporated local or regional management into areas of their corporate philanthropy program, and 54% operated through a hybrid model of the two.
Popularity of Signature Campaigns. 55% of giving departments engaged in one or more signature campaigns, which are defined as significant initiatives that are a central focus of a company’s philanthropy. The majority of companies not engaged in signature campaigns plan to launch this type of program in the future.

> Download the report (PDF)

Resources