Posted on August 03, 2012 by PM Team
More focus needed on impact in corporate giving
There is a lack of guidance in the field of corporate philanthropy about what constitutes good practice in community investment, according to Catalyst Australia, a member-based policy network and think tank.
"There is a clear need for companies to be able to measure the
impact of their giving so as to make it more effective," said
Catalyst executive director Jo-anne Schofield.
A new report by Catalyst Australia concludes that most companies
undertake their community investment activities without a strong
framework, strategy or tools to measure the performance, impact or
effectiveness of their approach. The report argues, however, that
Australian companies could improve the effectiveness of their
corporate donations relatively easily, by developing simple
strategies to monitor the impact of their giving.
The new report, "What gives? How companies invest in
communities" looked in detail at 12 major Australian companies and
found that together they donate a significant half a billion
dollars to the community annually. The report finds however that
the reporting regime around the donations was opaque and that
improved reporting standards and disclosure would lead to better
targeted philanthropy and significant reputational enhancement for
the firms concerned.
"There is a clear need for companies to be able to measure the
impact of their giving so as to make it more effective," said
Catalyst executive Director Jo-anne Schofield. "Corporate community
investing clearly helps make Australia a better place, and every
dollar spent has an enormous potential to change lives. We hope the
report encourages companies and communities to work collaboratively
to shape innovative new approaches so those dollars will be best
put to work."
Copies of the full report can be downloaded here.