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Community Relations – an essential business value
Thank you for your e-mails responding to topic requests. I will try to address the suggestions in my future columns, beginning with this month. The following article is based on an e-mail that posed this question: "Can you write about community relations programs and why you think they are important to business? It is a great query to bring up. Here is my take on the subject.
Today's society demands that corporations be socially responsible and active within the community. The community, not the government, grants corporations their licenses to operate. Because of this, Community Relations has become increasingly important as well as mutually beneficial to both the community and the corporation. From the company's side, a good corporate neighbor policy improves internal morale and assists with recruitment and retainment of personnel. From the community's perspective, the company's actions help improve the fundamental core of the area. When the information is publicized, it relays an important message and sets the pace for other companies to follow suit.
What is Community Relations, and How Does it Benefit the Corporation?
According to Business for Social Responsibility Community Relations, "community relations refers to a wide range of actions taken by companies to maximize the impact of their donated money, time, products, services, influence, management knowledge and other resources on the communities in which they operate" (Corporate Social Solutions, 2000).
Community Relations is when a corporation tries to meet the requirements and demands of society and its surrounding community. By making this commitment to the community, a corporation receives an improved reputation and stronger employee and customer loyalty.
The 1999 Cone/Roper Trends Report states that 94% of the surveyed Americans have a more positive image of companies that associate themselves with community causes. In addition, 79% are more likely to switch brands and 77% would switch to retailers who associate themselves with a cause. Therefore, a strong reputation for community goodwill increases customer loyalty and satisfaction.
The Trend Report also states that Community Relations affects current and future employees. Of the employees of companies that are involved with a cause, 90% feel proud of their company's values opposed to 56% without cause programs; 87% feel a strong sense of loyalty opposed to 67% without cause programs; and more than half of American workers wish their employers would do more to support a social cause. Therefore, companies must adopt cause programs in order to stay competitive when recruiting and retaining qualified employees.
How Does One Become a "Neighbor of Choice?"
A company must build and maintain positive relationships in its communities as well as handle community issues and concerns with sincerity in order to become a "neighbor of choice." Fundamentally, the community program must improve the quality of community life and deal with the long-term business strategies and goals of the corporation by following the guidelines below.
1. The company must write a Community Relations vision statement to recognize the community issues that have a direct relationship to the corporation and its success. This vision statement must be comprehensive throughout the organization and represent the company's commitment to being a neighbor of choice
2. The company must focus this commitment on issues that relate to the company's business goals and its services. This enables the neighbor of choice strategy to become an essential part of the company's corporate culture. This also helps to define the commitment and permits it to guide major business decisions.
3. The chief executive and/or key officer of the organization must be in continuous contact with the community through speeches and by memo to employees to demonstrate the company's commitment to the community.
4. Human and financial resources must be allocated. This includes giving departmental status to Community Relations, involving employees at all levels, and involving an outside Community Relations source.
5. Employee involvement is key to making the strategy a success. Volunteerism on the part of the employee must be rewarded in some way, acknowledging employee involvement in community issues.
Finally, all information regarding a company's community involvement should be published in both internal and external sources. This allows the employees and the community to see the results of a company's Community Relations strategy.
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