Giving

Corporations know that potential employees are investigating their reputations in the community and finding out if they give back. Job candidates often want to know what opportunities they might have to connect with their community through work, Yoder says.

Bill King, president of the Minnesota Council on Foundations, cites Medtronic’s STAR (Science and Technology Are Rewarding) program as a local example of strategic philanthropy. Since 1992, the company has funded efforts to improve science education in grades K-12. While the end result might mean a wider pool of students who pursue a career in science—and some might ultimately work for Medtronic—the STAR program also aligns with the company’s mission to give back in the areas of health, education, and local issues.

More companies are also encouraging their staffs to volunteer and serve on boards, which benefits organizations but also helps employees develop skills they could use at work, says Yoder.

“Companies have really gotten more strategic about understanding what resources they bring to the table,” King says. “They are using these resources to impact community issues and the company reputation, to recruit and retain employees, and have a good product.”  

Paying it Forward

Some businesses regularly go to great lengths to involve employees in their charitable giving. This holiday season, Fargo-based State Bank & Trust earned national attention for its Pay it Forward challenge in which the company gave its 510 employees more than $500,000 to pass onto charity. The bank awarded full-time employees $1,000 and part-timers $500 to donate to a worthy cause or person. The bank also gave each employee a video camera to record the good deeds.

Every year, State Bank & Trust gives away about 5 percent of its earnings or $600,000 to various causes, from North Dakota State University to local Boy Scout troops. It’s a company tradition to honor all requests for charitable contributions, says COO Michael Solberg.

With its philanthropy, the bank seeks to tell employees, customers, and communities that despite a quickly consolidating industry, it’s not going anywhere. “Three families own the vast majority of the company, and they are not very bottom-line oriented,” Solberg says. “They feel very strongly about giving back.”

State Bank & Trust sees many benefits to its corporate philanthropy in the form of employee fealty and new customers. Since the bank shared the story of its “Pay it Forward” challenge, it has received a flood of new customers. “Our employees, customers, and the community are so loyal because they know we’re not just there to make money,” Solberg says. “It has become a major recipe for success. The less we focus on the bottom line, the faster we grow and the more money we make. We’ve had record years for the past 10 years.”

It’s also proof that using business resources to give back can help a company flourish.