Building Corporate Social Responsibility (CSR) Partnerships

Corporate social responsibility is a term I find myself explaining frequently to nonprofit colleagues. In the for-profit world, companies make public commitments to local, national, or global communities. These commitments stem from Environmental, Social, Governance (ESG) goals. Companies build corporate social responsibility partnerships to help achieve ESG objectives. These partnerships are important because corporate stakeholders track impact as a measurement of success. 

Why do companies build CSR partnerships? 

There is a lot of alignment between how companies build CSR partnerships and how donors engage with nonprofits. In many ways they are the same, but there are subtle differences. Measurement is important to companies. They have shareholders, executives, and boards that demand tangible results. Measurement of progress against CSR objectives is essential to demonstrate return on investment (ROI). While we also see this behavior with individual donors, there is more flexibility to deliver qualitative results and less demand for quantifiable metrics.

How do companies build corporate partnerships?

Companies look for partners they trust who are doing work in the sector they aim to impact. Relationships play a critical role in building connections and fostering trust. Ultimately, a company needs to have confidence that their investment in a CSR partner will help advance their goals. One way nonprofit organizations can stand out as a partner is to report on the tangible impact they have made through other partnerships or donations. When a nonprofit can measure progress and connect that progress to specific philanthropic investment, donors at all levels are able to evaluate that organization relative to their specific objectives and desired outcomes. If there is alignment, that organization becomes a viable candidate for partnership.

What is the difference between corporate giving and CSR partnerships? 

The short answer is, but it can depend on the company’s policies. In many cases, charitable giving by a corporation must be tied to specific outcomes. CSR dollars are rarely provided for general mission support, or unrestricted contributions for those working in nonprofits. Cross promotion, by marketing, is an important part of CSR partnership and expands beyond the general framework of stewardship. In addition to supporting a particular initiative, corporations want to create visibility around that partnership for their stakeholders. Building a marking plan to support CSR investments is an important aspect of being a good partner. 

How do you build programs that meet CSR objectives? 

It’s important to begin with the end in mind. When I was setting up NCCER’s philanthropic programs that would be supported by donors, I knew measurement mattered. I looked at our key objectives, starting new construction programs in high schools for example, and I worked backwards to consider the possible impact points. How many programs were started is a quick and easy metric. Looking more deeply at the program, I thought about what NCCER hoped to accomplish by starting more CTE programs in high schools. How many students would enroll? What industry-recognized credentials would they earn? These points of measurement tied to our partner’s goals of building the workforce. What is the sustainability practice to ensure the program continues after initial funding? This demonstrates longevity of impact. These are all essential questions that elevate any donor or partner’s understanding of the program. The longitudinal nature of the data provides an opportunity to report on short and long term impact and offers an opportunity to keep partners and donors engaged. 

CSR partnerships are a two way street. These partnerships create meaningful impact in communities and have tangible outcomes that further ESG goals as well as nonprofit missions. Nonprofit organizations are experts in mission delivery. Partnering with effective nonprofit organizations that are committed to outcomes will make for strong partnerships that drive positive change and build stakeholder confidence.

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