Foundations of a Relevant Community Relations Program

By Craig Miyamoto, APR, Fellow PRSA

(This is the 2004 First Quarter issue of Public Relations Strategies, a quarterly publication of Miyamoto Strategic Counsel)

Sound community relations programming is predicated on three basic elements � (1) how it serves the business mission aspect of the organization, (2) how it serves the neighborhood, and (3) how it serves the organization�s employees.

The �Business Essential�

The primary (and often unspoken) objective of any community relations program is to serve the business strategy, to create an atmosphere of trust and understanding that will facilitate the company�s growth. Altruistic motives aside, a community that is well-served and respected by the organization will be more predisposed to avail itself of the company�s products and services.

Qualifying question: �How does this involvement help the organization build its business?�

Altruistic motives are often mentioned. The truth is that institutions become involved in their communities not only because it�s the right thing to do, but because it�s simply good business to do so. Participation in the business affairs of the communities served by the organization will help establish the company as a leader. That is a given. Therefore, membership in business, trade and professional associations is recommended for employees at all levels � with the stipulation that employees who are supported in their memberships must strive to become a leader in the organizations they join.

Particular attention should be paid to boards of directors composed of high-visibility business leaders.

The organization should become involved in organizations that:

1. Have a proven track record and a reputation for quality performance
2. Have high community visibility and name recognition
3. Are governed by a strong board of directors composed of influencers and top-tier leaders
4. Provide opportunities for business growth
5. Can help create strategic alliances
6. Sponsor and initiate Innovative programs
7. Target segments, demographics or geography
8. Are committed to community reinvestment
9. Enable the organization to increase employee participation and leadership in community

Being a Good Neighbor

Participation and support are keys to being a good neighbor. People tend to like others who do the same things they do. People tend not to fear companies that are candid and forthright about what they do. Being a good neighbor supports a myriad of values.

Qualifying question: �How does this involvement help the organization build its stature and reputation as a good neighbor?�

Being a good neighbor in both the macro sense (citizen of the state) and the local sense (citizen of the communities served) will certainly enhance the organization�s corporate image and the trust that customers and neighbors have in the institution. It will increase favor with customers. It will enhance employee relations. And bottom line � it will help the community.

Important stakeholders are impacted by the good neighbor element � i.e., employees, customers, community, and investors. Good neighbor involvement comes in many forms:

1. Employee volunteerism
2. Employee participation in service clubs
3. Employee and company participation in community organizations
4. Employee and company participation in educational organizations
5. Employee and company participation in nonprofit organizations
6. Corporate philanthropy (giving)
7. Company sponsorship of focus-related projects conducted by others
8. Company ownership and sponsorship of one or more focus-related projects conducted by the organization

While it is laudable to be �all things to all people,� resources are finite � there are only so many dollars, so many employees, and only so much time that can be given back to the community. Consequently, all desires to help must be tempered by a hard look at whether the involvement falls within the areas of the community relations focus.

Being a Good Employer

In a sense, the organization is a family unto itself � from executive management to middle-management to rank-and-file employees. And, extending that logic into the community, the organization�s employees are the siblings, relatives, and neighbors of the area in which they work or live. Supporting employees also supports the community families� values.

Qualifying question: �How does this involvement help the organization support employee volunteerism?�

A growing mode of corporate philanthropy has been to support employees in their volunteering for community and civic causes.

In their monthly report, �Stakeholder Power,� Walker Information notes that �Employees in the Financial Services segment gave the highest marks to the philanthropy efforts of their employees when compared to how workers in other industry groups evaluated their companies.� They have created a �Corporate Philanthropy Index (CPI) that analyzes and measures stakeholder perceptions of philanthropy practices and programs. It is available online at www.stakeholderpower.com.

When companies encourage volunteerism among their employees, two things happen: First, the community�s needs are met and lives are changed. Second, employees who volunteer through their work become more committed to their company because of its support. The net result is higher retention and lower turnover costs, greater motivation and productivity, and more favorable employee interactions with customers.

Volunteerism fulfills ethical values, and it also adds business values as well. According to Walker Information and the Council on Foundations, employees who relate to the company�s giving are more likely to act in ways that benefit the company:

• 7 out of 10 are more likely to stay with the company for at least two more years, compared to 5 out of 10 otherwise.
• 7 out of 10 are more likely to recommend their organization as a good place to work, compared to 4 out of 10 otherwise.
• 8 in 10 are more likely to do things that make customers happy, compared to 7 in 10 otherwise.