The impact of corporate citizenship
by Melissa Barecca
The impact of corporate citizenship
Public Relations by Melissa Barreca & Kathy Callahan
The results are in-corporate support of communities results in priceless word-of-mouth support and a direct boost to the bottom line
If you've ever wondered whether your company's efforts to support your community have had a positive impact on your bottom line, rest assured the answer is yes.
Numerous studies have shown a direct correlation between strong sales and corporate citizenship programs, most recently GolinHarris' "Corporate Citizenship Gets Down to Business: Doing Well by Doing Good 2006," which had 5,000 consumers rank 152 brands using 12 categories of corporate citizenship.
On analysis of the study, the message is clear. Companies that are perceived as good corporate citizens enjoy a boost to the bottom line. As a result, corporate America is starting to realize that community relations and char-itable giving programs are a real asset and should be managed accordingly.
The key trend is that Americans now expect the companies they patronize to provide them with the best products and services, and to support causes and do business in a way that aligns with their personal value system.
In other words, consumers are more often choosing to patronize businesses based on values that extend well beyond product or experience. They want both of these, but more important, they want to spend their money with a company they can feel good about.
Awareness breeds loyalty
In the GolinHarris study, found at www.golinharris.com, the 10 companies with the top corporate citizenship scores reads like a who's who of Wall Street success stories-in order-Ben & Jerry's, Target, Patagonia, SC Johnson, Gerber, Southwest Airlines, Johnson & Johnson, The Body Shop, UPS and 3M. These companies have more in common than their strong association with charitable and community activities. They also happen to own some of the most recognizable brands in the world and are each leaders in their categories.
Companies in any for-profit enterprise can take a lesson from these respected corporate citizens...but especially in the casino business. In our business, brand loyalty is our bread and butter. Keeping our best customers coming back is what drives bottom-line performance. That's why casinos should take notice of the changing tide of consumer priorities and redouble their efforts to be active and visible supporters of their communities.
The more we "get out there," the better for business. That means it may not be enough to simply sponsor a Chamber of Commerce lunch once a year. How about adding one of your executives to the board? What about allowing your managers to attend events on company time to get to know their peers in the local business community? You may find that there's really no substitute for old-fashioned hand shaking and personal one-on-one connections when it comes to your business success.
According to PR News, "When Americans experience authentic corporate citizenship, they get down to business in their relationships with brands...good corporate citizenship can impact business results by stimulating Americans to be loyal, passionate and frequent business advocates and committed customers."
Therefore on a wider scale, it's vital to reach out to potential brand advocates through strategic charitable giving. If you haven't already, take the time to evaluate causes that are aligned with your goals and (most important) with your core customer. Begin to support those causes. Proactively decide on your giving criteria and publish it on your Web site. That way, you can educate the community about causes you actively support and say no gracefully when causes do not fit the criteria.
Community networking
Once your guidelines are determined, actively pursue opportunities to support your causes with both money and volunteers. You will find that your employees appreciate an opportunity to serve their neighbors through volunteering, and the community will see the human face of your organization. From a communication standpoint, that type of giving is worth a million self-serving check presentations because of the authenticity of the interaction.
The result will be a loyal core of customers that actively recommend the company to their family and friends and become your biggest boosters.
In fact, as traditional advertising continues to decline in effectiveness, we enter a new era of marketing where word-of-mouth is the holy grail in reaching consumers. The challenge is to quickly and effectively cut through increasing communication clutter by harnessing the power of personal relationships, the top source consumers rely on for purchase decisions. The best way to do this on a large scale is to forge personal ties with our customers through a strong and strategic corporate citizenship program.
But it does little to boost your company's image if no one knows about your support of worthwhile organizations and causes. It's vital to effectively communicate your company's support without seeming self-serving. If you blow your own horn too loudly, corporate citizenship can backfire by making your commitment seem less than authentic. That's why an experienced communication team should be strategically communicating your company's efforts at every step of the way, to all of your constituents.
As an industry, it's good business to do the right thing. With opponents that are eager to limit legalized gaming and many public misperceptions about our industry, doing good in our communities can make a vital difference in the business climate.
Melissa Barreca is communications project manager for Ameristar's corporate office in Las Vegas. She can be reached at (636) 825-9802, or by e-mail at melissa.barreca@ameristar.com. Kathy Callahan is director of communications for Ameristar's corporate office in Las Vegas. She can be reached at (702) 567-7053, or by e-mail at kathy.callahan@ameristar.com.
Public Relations by Melissa Barreca & Kathy Callahan
The results are in-corporate support of communities results in priceless word-of-mouth support and a direct boost to the bottom line
If you've ever wondered whether your company's efforts to support your community have had a positive impact on your bottom line, rest assured the answer is yes.
Numerous studies have shown a direct correlation between strong sales and corporate citizenship programs, most recently GolinHarris' "Corporate Citizenship Gets Down to Business: Doing Well by Doing Good 2006," which had 5,000 consumers rank 152 brands using 12 categories of corporate citizenship.
On analysis of the study, the message is clear. Companies that are perceived as good corporate citizens enjoy a boost to the bottom line. As a result, corporate America is starting to realize that community relations and char-itable giving programs are a real asset and should be managed accordingly.
The key trend is that Americans now expect the companies they patronize to provide them with the best products and services, and to support causes and do business in a way that aligns with their personal value system.
In other words, consumers are more often choosing to patronize businesses based on values that extend well beyond product or experience. They want both of these, but more important, they want to spend their money with a company they can feel good about.
Awareness breeds loyalty
In the GolinHarris study, found at www.golinharris.com, the 10 companies with the top corporate citizenship scores reads like a who's who of Wall Street success stories-in order-Ben & Jerry's, Target, Patagonia, SC Johnson, Gerber, Southwest Airlines, Johnson & Johnson, The Body Shop, UPS and 3M. These companies have more in common than their strong association with charitable and community activities. They also happen to own some of the most recognizable brands in the world and are each leaders in their categories.
Companies in any for-profit enterprise can take a lesson from these respected corporate citizens...but especially in the casino business. In our business, brand loyalty is our bread and butter. Keeping our best customers coming back is what drives bottom-line performance. That's why casinos should take notice of the changing tide of consumer priorities and redouble their efforts to be active and visible supporters of their communities.
The more we "get out there," the better for business. That means it may not be enough to simply sponsor a Chamber of Commerce lunch once a year. How about adding one of your executives to the board? What about allowing your managers to attend events on company time to get to know their peers in the local business community? You may find that there's really no substitute for old-fashioned hand shaking and personal one-on-one connections when it comes to your business success.
According to PR News, "When Americans experience authentic corporate citizenship, they get down to business in their relationships with brands...good corporate citizenship can impact business results by stimulating Americans to be loyal, passionate and frequent business advocates and committed customers."
Therefore on a wider scale, it's vital to reach out to potential brand advocates through strategic charitable giving. If you haven't already, take the time to evaluate causes that are aligned with your goals and (most important) with your core customer. Begin to support those causes. Proactively decide on your giving criteria and publish it on your Web site. That way, you can educate the community about causes you actively support and say no gracefully when causes do not fit the criteria.
Community networking
Once your guidelines are determined, actively pursue opportunities to support your causes with both money and volunteers. You will find that your employees appreciate an opportunity to serve their neighbors through volunteering, and the community will see the human face of your organization. From a communication standpoint, that type of giving is worth a million self-serving check presentations because of the authenticity of the interaction.
The result will be a loyal core of customers that actively recommend the company to their family and friends and become your biggest boosters.
In fact, as traditional advertising continues to decline in effectiveness, we enter a new era of marketing where word-of-mouth is the holy grail in reaching consumers. The challenge is to quickly and effectively cut through increasing communication clutter by harnessing the power of personal relationships, the top source consumers rely on for purchase decisions. The best way to do this on a large scale is to forge personal ties with our customers through a strong and strategic corporate citizenship program.
But it does little to boost your company's image if no one knows about your support of worthwhile organizations and causes. It's vital to effectively communicate your company's support without seeming self-serving. If you blow your own horn too loudly, corporate citizenship can backfire by making your commitment seem less than authentic. That's why an experienced communication team should be strategically communicating your company's efforts at every step of the way, to all of your constituents.
As an industry, it's good business to do the right thing. With opponents that are eager to limit legalized gaming and many public misperceptions about our industry, doing good in our communities can make a vital difference in the business climate.
Melissa Barreca is communications project manager for Ameristar's corporate office in Las Vegas. She can be reached at (636) 825-9802, or by e-mail at melissa.barreca@ameristar.com. Kathy Callahan is director of communications for Ameristar's corporate office in Las Vegas. She can be reached at (702) 567-7053, or by e-mail at kathy.callahan@ameristar.com.
