By Wendy Singh
Slow growth in some Caribbean economies, as well as credit rating downgrades of others; lower oil prices; and a lower percentage of tourist arrivals due to a slow recovery of the US and European economies; have caused companies to contract their social investment programmes as they try to come to terms with their lower profitability margins.
However, many companies are aware of the positive impact that social programmes have on their growth and they are beginning to look at creative ways to invest in their communities other than solely through monetary grants.
Companies like these are focusing more on increased volunteerism by their personnel in an effort to promote value creation through social issues such as health, education, poverty reduction and environmental protection. They realise that under the triple bottom line approach, investment in social and environmental issues is as important as economic- financial gains. So, although profit maximization is key for ensuring business continuity, their engagement in CSR practice not only produces a positive impact for their business, but adds value to their shareholders’ investments.
Volunteering benefits organisations in many ways, as evidenced right here in the Caribbean with companies such as Scotia Bank, which is known for its unusual Volunteer programme. For instance, in Jamaica, the ‘Scotia Volunteers’ programme embodies “a novel dimension to the bank’s charity outreach” (www.scotiabank.com/jm). This was the result of a paradigm shift in its philosophy on the best way to transform the country through volunteerism. New staff members are introduced to the programme during their orientation process, and are encouraged to become involved in projects supported by the Scotia Bank Foundation. The Bank, in turn, gives priority to these programmes through an annual internal competition, by honouring the work of staff members who advance the Foundation’s mission.
The dedication of staff at Scotia Bank is seen in the mentorship programme that they have developed to meet their commitment to recipients of scholarships. These scholars are diligently monitored and given homework assistance. The recipients are also encouraged to submit term reports and mentored if they are found to be falling behind with their school work. “Currently, over 1,000 Scotiabank staff members participate in the volunteer programme, in addition to hundreds of their close family members and scholarship recipients”. (www.scotiabank.com/jm)
The Grace & Staff Community Foundation in Jamaica matches their employees’financial contribution to community projects 2:1.
There is an urgent need for companies to engage in CSR programmes if they are going to operate successfully in their communities. Programmes should also be linked to the UN Sustainable Development Goals and the development goals of the country, and should as such focus especially on education, poverty alleviation, health and well-being and the environment.
It should be noted that while “one-day” volunteering programmes are good for public relations, programmes that require a deeper commitment and partnering with communities throughout the year, help to build better relations and are proven to be better for business. This of course should not prevent companies from giving “one off” assistance in cases of emergencies such as environmental disaster.
Caribbean countries as Small Island Developing States are subject to hurricanes and floods. Companies in the Caribbean have usually been very generous in providing financial assistance and even volunteering with “clean up” after floods and hurricanes. This was clear during the freak storm in some Eastern Caribbean countries, hurricanes Tomas and Matthew and the massive earthquake in Haiti. However, companies should move beyond assistance during environmental disasters by encouraging staff members to actively commit their time and energy to environmental preservation throughout the year.
In Trinidad and Tobago, RBC promotes volunteerism through various initiatives since the Bank views volunteering as “a fundamental act of citizenship” (www.rbc.com), while companies such as BG T&T and BP TT support their Employee- Partnering programmes. A UNDP publication “Corporate Volunteerism – Developing a Business Culture of Caring in Trinidad & Tobago”, published in April 2014, featured companies such as Scotia Bank, the Guardian Holdings Limited, the Association of Female Executives of Trinidad and Tobago and Digicel for their very successful volunteer programmes, however, it was found that corporate volunteerism was practiced by just under a quarter (24.7 %) of companies in this country.
One wonders why there is such hesitancy by companies to engage in more volunteerism, especially during a time of economic hardship since there are many examples of the positive impact of volunteerism on the companies, their employees and their communities.
According to the organization Frontstream, which helps both charities and corporations to fundraise, research by the Pew Research Centre has shown that “volunteering enhances employee recruitment”, especially by the estimated 54% of millennials who currently occupy the work force and are actively seeking career opportunities that will make a positive impact. It was further determined that millennials prefer being part of a company project as opposed to donating money to a campaign –hence their preference for volunteerism.
Second, it was found by the Corporate Institute in the USA that “volunteering increases employee engagement” in CSR programmes. Similar to the policy adopted by Scotia Bank as mentioned earlier, Price Waterhouse Coopers introduces new employees to its volunteer programmes during their orientation period.
Third, it was determined that volunteering is better for corporations’ bottom line. When employees volunteer, their companies are in a better position to serve the communities where they operate. Communities will likely respond favourably to companies that invest in their communities. In this way, volunteering results in a win-win situation for the company, the employees, and the communities where they operate.
In addition, research indicates that volunteerism increases employees’ morale and retention. This in turn, leads to increased efficiency. Volunteering is not only good for the company, but it is good for the individual employee since it helps them to become involved in worthy causes in their communities. In this regard, volunteering could help keep employees mentally stimulated and give them a sense of purpose, which in turn results in their health and happiness. Employee health and wellbeing are key factors to better performance at work, bringing benefit to the company.