Despite the recession, most companies are staying involved in charitable work, writes RONAN McGREEVY
THE PAST three years have been very difficult for charities as public and private sources of funding have dried up and the recession has dragged on.
The concept of corporate social responsibility (CSR) as a business strategy began in the 1970s in the US, but is a comparatively late development here.
A survey last year of Ireland’s top 100 chief executives found that two-thirds of them will continue to invest in their CSR strategies despite the recession, and 86 per cent felt it was important to helping to restore the reputation of Irish business.
Early last year, Bord Gáis chief executive John Mullins called on Irish companies to do more to help charities in the recession.
“There are a lot of companies in Ireland who are profitable out there, but they don’t necessarily step up to the plate,” he said at the announcement of the Bord Gáis Community Energy Fund.
Elaine Stephen, senior consultant with Business in the Community Ireland, said being involved with charity work is a great help for staff morale, given the difficulties faced by many employees at this time.
“A number of Irish companies are doing fantastic work in local communities throughout the year and especially at Christmas. We have found through working with companies that the benefits to staff of getting involved in volunteering activities is huge,” she said.
“Employees who see that their companies actively commit time and resources to local community groups and charities often comment that it gives them great pride in their employer. By being allowed the time to partner with groups on both short and longer term projects, employees can feel valued and it also helps cement closer ties with the local community.
“Increasingly, companies are realising that these types of activities in the community can boost staff morale and help build trust and reputation. Employees can benefit from renewed team spirit through volunteering and the sense of giving something back.”
Financial services multinational State Street recently ran a toy appeal for Barnardos and a food hamper appeal in aid of local conferences of St Vincent de Paul.
State Street community support manager, Shane Doyle, said: “Employees appreciate having opportunities to easily contribute to causes important to them at this time of the year.”
Early last year, O2 joined forces with Headstrong, the National Centre for Youth Mental Health, as its new charity partner in Ireland. A key element of the partnership has been the launch of a new programme called Think Big through which the company wants to enable young people to deliver projects within their communities that will make a difference to youth mental health.
As part of its fundraising activities for Headstrong at Christmas, O2 employees took part in carol singing on Grafton Street and cake sales were held in its offices in Dublin and Limerick. O2 spokesman Diarmuid O’Neill said: “It’s been a really great way to bring staff closer to the charity, to raise much needed monies and to lift morale in what’s been a busy year for everyone.”
Despite the gloom, there are Irish companies making money and many of these are engaged in a major effort to help charities survive these tough times.
Another company that has seen fit to spread its good fortune is multinational Glanbia. It has had a very good year, posting half-year profits of €60 million, up 58 per cent on 2009.
In 2008, Glanbia entered into a three-year agreement with Barretstown, the not-for-profit summer camp for children with serious illnesses which was founded by actor Paul Newman.
It aimed to provide money from three sources: a corporate donation from Glanbia; public donations through its brand name Avonmore (especially its Big Picnic day out); and through fundraising by its 2,000 staff in Ireland.
This year, Glanbia’s corporate donation of €250,000 will push its contribution to Barretstown past €1 million.
Glanbia human resources manager Brian Phelan said the partnership is of mutual benefit. Avonmore’s sponsorship of the weather on RTÉ, which mentions its association with Barretstown, gives both brand and charity huge exposure on a daily basis.
“The association with Barretstown and the Avonmore brand reflects a conscious decision by Glanbia to align its corporate and employee giving programmes with its business strategy,” he said.
Phelan stressed that there was no corporate benefit in terms of exposure to the brand for the work that its employees do for Barretstown. They simply do it because they want to help out.
This year, staff have managed to raise €60,000 with fundraising ventures such as a climb of Carrauntoohil and a cycle challenge around Kilkenny city.
“They have gone beyond what you would expect, especially in the current year in terms of raising the money that they have raised. They have been hugely committed and it has captured their imagination,” he said.
The money raised by Glanbia is critical for Barretstown. Its 10-day summer camps cost €3,500 per child – all of which is paid for by donations from the public.
It costs €5 million a year to run the centre, which is based in Ballymore Eustace, Co Kildare.
Barretstown’s new chief executive Dee Ahearn said the money from Glanbia has been critical in developing its therapeutic recreation programme, but it was also important for raising awareness of what they are doing.
“Awareness for Barretstown is really important as well, not just for raising funds but for families who might have a child out there who has been diagnosed with cancer. It helps us show them that this wonderful, magical place exists, and it is a place where they can send their child,” she said.