Giving

During its 143 year tenure, Cargill has grown vast agricultural interests into the second-largest privately held company in the United States, while quietly sharing its success with communities where it does business. Charitable giving has always been a core tenet of the company’s operations, but it didn’t necessarily trumpet this philanthropy from the rooftops.

These days, however, Wayzata-based Cargill is revealing more about its dedication to giving back both here and abroad. One reason for the publicity: In-house surveys found that employees care deeply about Cargill’s reputation in the community and whether it is a good corporate citizen.

“Charitable giving matters to employees and it helps attract and retain good people,” says Mark Murphy, assistant vice president for corporate affairs and executive director of the Cargill Foundation. “Plus, in today’s marketplace where brand is king and reputation is critical, speaking out more and finding ways to gain recognition and credit for the goodwill you are bringing is increasingly important.”

Each year, Cargill donates 2 percent of its global pretax earnings to charitable causes—$37 million last year—and the company constantly seeks new ways and new partners for giving back, including its focus on eliminating the achievement gap among socio- and economically disadvantaged students in Minneapolis and its northern and western suburbs, as well as its international outposts.

 Not only does this philanthropy help the company meet its mission to nourish people and ideas, it also strengthens ties between Cargill and its employees.

“Having engaged employees is critical because if they are engaged, they will do a better job,” Murphy says. “Part of that is to make them proud of their company and make them feel like they are doing more than helping the company make money.”

Beyond Altruism

The residual benefits of charitable giving are increasingly embraced by corporations in the form of strategic philanthropy. These companies help a cause, while also meeting other business goals, such as retaining employees or ensuring that the workforce meets its future needs.

Randi Yoder, senior vice president of donor relations at Greater Twin Cities United Way, has tracked the strategic philanthropy trend in recent years. “Corporations today see philanthropy as a business strategy. They want to be perceived as good neighbors and good investors in the community,” she says. “If they want to have a good workforce and one that’s engaged and feels good about working for them and staying with them, then they need to be involved in the community. Employees just require it.”