AEGON sustainability experts discuss the idea of "strategic philanthropy".

1. Everyone’s a winner
Every year companies give away millions to good causes. It used to be a
matter of simply choosing a charity and signing a cheque. Now, companies
are taking a more thoughtful approach. It’s not just a cheque anymore; it’s a
way of strengthening the company’s business.
The idea is ‘strategic philanthropy’, and here’s how it should work: start by
picking a good cause that’s linked to your business and your values –
something, in other words, that you believe in. People will see that, when
you say you believe in something, you mean it. Customers will be more
likely to stick with you. Distributors and other business partners will want to
work with you. With a bit of luck, employees will get involved and will feel
happier that they’re working for a company that cares about the community.
Productivity will go up. Your business will benefit, and not just in terms of
brand and reputation, which are difficult to measure, but in terms that your
accountants and auditors will understand – in dollars and cents.
There are other spin-offs too: team up with a charity and it can help you
bring in the kind of skills and perspectives that you simply don’t have within
the company. It can help you broaden your employees’ horizons and it can
help you solve problems.
Win-win
It’s a win-win. The company benefits. The charity benefits from the money,
time and resources you’re prepared to commit. And, most important of all,
the cause – whether it’s a local community centre or blindness in the
developing world – also benefits.
There is one big pitfall, of course. Cuddling up to a charity or a non-profit
organization simply because they will improve your image won’t work. If
customers don’t see through you, your employees will. You’ll get none of
the benefits – and your image, far from improving, will probably end up
worse than it was before.

2. You can’t fake sincerity. But, assuming you don’t try to, a more strategic
approach to corporate giving makes sense.
A number of companies have already gone down this route. Bank of
America’s Neighborhood Builders program, for example, contributes
millions to improve communities across the United States. The thinking is
straightforward enough – create more prosperous and vibrant local
communities and you create a better environment for lending and investing.
A second example is Lipton, the tea maker. For the past few years, Lipton
has been working with the Rainbow Alliance to make its tea 100%
sustainable by improving living standards for growers and reducing the
impact on the environment. As a result, the company has been able to tap
into an upswing in consumer demand for certified sustainable tea in
Europe, Asia and North America.
It’s not easy to come up with a programme that will please everyone –
customers, employees, management and communities. But it’s not
impossible – and, if you get it right, this new, more thoughtful approach to
corporate giving can pay big dividends.
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