When Corporations Embrace Solidarity

A new way to motivate employees: offering them the opportunity to work more in order to… give more. But it is for a good cause! Companies are adamant: it is a win-win situation for everyone—employees, non-profits, and… the company itself, of course.

Companies are giving. They give to education, to the environment, and above all, to social causes. Two-thirds of corporate sponsors contribute to solidarity-based initiatives (only half focus on the cultural sector). They also lend. They “lend” their employees to help combat social exclusion, disease, and disability.

Corporate sponsorship has exploded in France in recent years, surpassing one billion euros in 2005. While the ruthless world of business is still a far cry from Little House on the Prairie, even if MDs, the HR Director and communications directors haven’t exactly transformed into Marie Ingalls, even if they would like us to believe so. A moment of realization or a new management approach?

To understand, one must step back and look at the bigger picture. The elevator glides up to the 30th floor of a building in La Défense. There, with her phone wedged between her shoulder and ear, Katia explains a cash management contract to a client… She is a “business implementation” project manager at HSBC. Around her, dozens of colleagues are constantly using the same anglicisms. The pace is stressful, and business isn’t always booming, but Katia has just found a great way to cope: volunteering. Since May, through her company’s corporate social responsibility department, she has committed herself to an association that enables deaf and mute children from underprivileged backgrounds to travel to the far reaches of the globe. For her, « it is a complement to their profession ». One could almost call it a breath of fresh air.

Corporate sponsorship has grown in France since 2002, as companies can now deduct 60% of their contributions from their taxes. However, executives have also seen it as a way to increase employee loyalty.

Motivating goodwill and… tax-deductible
In fact, just a short distance away in Levallois-Perret, at the software publisher Business Objects, there is no attempt to hide it. The corporate sponsorship department is managed by the human resources department. One of the primary objectives is to increase employee retention and reduce turnover. « We sincerely hope that the community department is an integral part of the company’s success, and that employees take pride in it », explains Claire Gillissen, who has been managing this new initiative for a year. This year, the company donated 54,000 euros to charitable organizations selected in partnership with employees. Every year, BO also grants its employees one day of leave to volunteer for a charity of their choice. In 2006, 190 employees spent their day at the Restos du Cœur in Colombes (Hauts-de-Seine). Others went to donate blood plasma to the Laurette-Fugain association. Just one month ago, several members of the team also participated in a charity run to raise awareness for cystic fibrosis.

While BO does not publicly communicate regarding its corporate social responsibility initiatives, a corporate film is currently in production. The objective is strictly internal, and employees are well aware of this.  « In the past, we were sent to Guadeloupe for a few days or to take cooking classes to strengthen internal company bonds. Today, we engage in corporate sponsorship; it is much the same thing., an employee explains.

Unions wary, employees delighted
A BO, even the CGT has little to say. To the question: « Do you believe that the sense of corporate loyalty fostered by philanthropy leads employees to be more lenient toward their management?, David Babut, the union representative on the Works Council, responds: « Philanthropy is not enough to mask the deep-seated discontent that emerges when it comes to light ». He regrets, however, that« charity does not always begin with oneself » and that BO has not been exemplary in its management of workforce reductions. Finally, it acknowledges that the personal involvement of employees partially blurs the lines between professional and private life, which creates « a loss of bearings ».

But employees, for their part, are delighted. Certainly, « Corporate sponsorship serves to reinforce company values so that employees feel: my employer cares. But it is also a key driver of motivation », explains Kandara Samphon, who was able to spend a year in Phnom Penh through Business Objects to assist in the creation of a computer science school. He adds: « For me, it was essential support. BO helped me financially. Above all, it is very important to depart under good conditions, because one day, you have to return… and rejoin the company.

Merging utility with philanthropy
Yet, corporate sponsorship is more than just a management tool. At HSBC, the objectives are twofold. Séverine Coutel, head of the foundation, acknowledges this. « Corporate sponsorship serves to instill a sense of pride in employees, but it does not stop there. Furthermore, the corporate philanthropy department falls under the communications department, and the company does not hesitate to showcase its activities through press conferences. « The corporate image has been tarnished, particularly that of banks and insurance companies. Philanthropy also aims to defend this image externally.

Veolia has even gone a step further in this approach. Its foundation is located on the 5th floor of a building on rue des Sablons, just steps away from the Trocadéro. Here, they manage an annual turnover of five million euros. Many of the subsidized associations operate in emerging or developing countries. « Internal communication is a critical challenge, acknowledges Marie-Laure Buisson, Deputy General Secretary of the foundation, but it is clear that when we achieve success within a country, it also places us in a stronger position to win international contracts.” Speaking on condition of anonymity, an employee of an association supported by Veolia summarized the situation as follows: « When I arrived in Africa to work, it became clear to me that Veolia had chosen this village because the mayor was also the Prime Minister, which subsequently allowed him to win the contract for the capital’s water sanitation services a few months later. This underscores the need for strict oversight regarding the selection of subsidized associations. At Veolia, employees have a say in how aid is allocated, while at BO, they are directly involved in the decision-making process. Robust control mechanisms are in place to prevent any suspicion of misuse of corporate assets.

On one hand, employees are happy to be supported in their involvement with non-profit organizations. On the other, these organizations find a level of support they can no longer rely on from the State. Finally, companies are able to increase employee retention and enhance their corporate image. Everything would be perfect in an ideal world if, through corporate philanthropy, companies did not sometimes attempt to pose as something they are not: benevolent patronesses. Charity begins at home…

Two worlds enriching one another
Corporate sponsorship is, above all, the meeting of two worlds that have often overlooked one another: the corporate sector and the nonprofit sector. While dedicated employees often already have experience working with non-profits, the latter remains wary of these large corporations seeking to provide assistance.

Didier Vom Hofe, from the Nature et Aventure association—which enables deaf and mute children to travel to the far reaches of the globe—wasn’t quite sure what to do with these employees of HSBC who wanted to invest in his projects. He, on the other hand, turned to philanthropy out of necessity: « I received no response from the Ministry of Education, the Ministry of Health, or the Ministry of the Environment.Today, he receives multiple forms of aid from HSBC, the Sisley Foundation, and that of Orange.

To stage a musical with students from her school, Véronique Bavière, principal of the Château-Rouge elementary school in Paris’s 18th arrondissement and founder of the association Les Serruriers magiques (photo below), reached out to Business Objects, HSBC and the RATP. For her, this partnership is a significant advantage: « It is exciting that the business world is taking an interest in us; it is a true recognition of our hard work. Initially, she was deeply concerned about potential abuses, but today, she is delighted: « What I appreciate is the exchange between people from different worlds. It is truly enriching. And she smiles: « I realized that we weren’t the only ones with a stressful job… With the support of these grants, Les Serruriers magiques will perform at the Théâtre de Ménilmontant from December 5 to 8.

“Corporate sponsorship is not philanthropy”
3 questions for Jacques Rigaud, President of Admical (Association for the Development of Industrial and Commercial Philanthropy).

Do you feel that we are witnessing an explosion of corporate sponsorship in France, and how do you account for this?
Jacques Rigaud: It is more than just an impression; it is a certainty. In 2005, corporate sponsorship funds totaled one billion euros, and this year, we have seen further growth. This development is thanks to the founders of Admical. Since 1979, despite widespread indifference and facing skepticism from business leaders, we have worked to convince companies that corporate sponsorship offers significant benefits to them.

What does all this money bring them?
J. R.: First and foremost, they find value in the communication aspect. Corporate sponsorship is a way to diversify and enhance a company’s brand image. It is also a partnership that brings together the corporate world, with its focus on rationality, and artists who understand the inherent risks of the creative process, as well as those from the non-profit sector who deal with hardship on a daily basis. From this dual perspective, immense enrichment can emerge. Sponsorship has contributed to a true breaking down of barriers in mindsets. It also strengthens the sense of belonging within the company, as employees take great pride in it.

Finally, for companies striving to stay ahead of the curve—those that utilize costly marketing studies to identify emerging societal needs—corporate sponsorship can trigger entirely unexpected shifts.

Are there any abuses? Are there companies using corporate sponsorship solely as a means to win new contracts?
J. R.: Why speak of misconduct? When Renault supports the Orchestre de Paris for a tour in Argentina, it is because they intend to make investments there. There is no shame in that. A company looking to enter a foreign market gains an advantage by supporting a local initiative. Corporate sponsorship is not the same as philanthropy.

Sponsorship figures:

• Corporate sponsors primarily come from the service sector, with 53% of them being SMEs. 
• Industries served: 
• 66% of companies are involved in corporate social responsibility.
• 52% in the cultural sector.
• 22% in sports.
• 11% in the research sector.

These figures are drawn from a national survey conducted by Admical in 2005.