Cash or contribution? Effective corporate citizenry

As long-standing community engagement professionals, we’ve noticed how some companies are better at working with communities than others.

While some companies struggle to engage with affected stakeholders, some do well to find opportunities that really benefit a community. 

Take this example: Around 15 years ago, a regional town of about 1500 suddenly became the focus of major industry due to its abundant natural resources. Multiple operators swirled about, preparing and lodging development applications for new sites and facilities.

Knowing the nature of their business was environmentally impactful, Company A came armed with their chequebook. They sponsored the local footy team, built things at the primary school, paid for a community event and gave away a lot of money.

Company B also knew their activities would likely affect the townspeople. They engaged in a lengthy series of conversations to understand the aspirations residents had, and identified where help may be needed, and aligned this with their own expertise.

Company B contributed knowledge, practical assistance and in-kind donations of materials. They united sections of the community which had never collaborated before, producing partnerships which secured longed-for improvements around the village.

A few years down the track, how had the companies fared? Well, Company A had a change of management and the chequebook was closed. It didn’t take long for the locals to become agitated about the non-delivery of commitments and a perceived lack of care for the community.

Company B, meanwhile, found themselves integrated into community life. So much so that the employees responsible for community liaison were nominated as the town’s Citizen of the Year at the local Australia Day ceremony!

While community donations and sponsorships can be enormously effective, Company B established a reputation as a ‘contributor’ from the start and as a business wanting to be part of the community.

When Company B needed to modify their planning consents and increase operations, instead of coordinated resistance, the only reactions from residents were a few informed questions and expressions of support.

There are some things which money simply can’t buy.

Paul Jackson, Senior Communication & Engagement Consultant