Doing right: The business value of community engagement

The conversation has definitely changed. The ongoing COVID-19 response, the increasing urgency of the climate crisis, and a generational shift in priorities have put communal values and behavior at the forefront of discussions everywhere.

People are doing more than expressing their opinions in words. Their values are guiding all kinds of decisions, such as whether to apply for an open position, whether to recommend a product to a friend, or even whether to buy from a company in the first place.

For example, in the 2021 UPS Smart E-commerce Report, 75 percent of Europeans surveyed said that perceptions of sustainability are a strong factor in their decisions about where to shop. It also found that nearly 70 percent of Europeans consider the way at which a retailer supports and works closely with local communities as an area of key importance when deciding who to shop with.

These potential customers have never been more informed. People are looking at all levels of a companies' supply chain to make their buying decision. If one of your vendors engages in unfair labor practices, people will associate it with you, even if your headquarters are on the other side of the world.

This renewed focus on Environment, Social, Corporate Governance (ESG) should send a clear message to companies. Businesses must be able to demonstrate how their products, services and activities contribute to the communities where they operate and beyond.

Customers are not the only stakeholders expecting clarity and a clean record in ESG. Those vendors on the other side of the world? They have sustainability goals of their own, and if you can't articulate your aims, document your progress, and explain what steps you'll take to achieve them, they'll do business elsewhere.

And of course, don't forget about your employees.??

Employees want purpose and commitment

Employees and candidates want to know that organizations are doing what they can to focus on societal needs, and this is especially true for younger generations. They increasingly insist that companies focus on a meaningful mission, with sincerity and authenticity. If we want to attract and retain the most highly motivated people, we must show them that we are concerned, engaged, and committed to concrete action.

I have been with UPS for 25 years, and time and time again I have seen the interdependence of my company's success and social engagement. I have also been made proud many times by our efforts in humanitarian relief and community volunteering.

Several times a year, The UPS Foundation and UPS partner to deliver urgent supplies to areas of need around the world. These shipments are a unique combination of financial resources and know-how that enables fast action.

For example, UPS recently worked with the Red Cross to deliver thousands of protective eyeglasses and masks to La Palma, Spain, which is suffering from reduced air quality and visibility following a volcanic eruption.?

Providing assistance where it's needed is important, but there's also an interesting follow-on effect. Employees who are part of such projects express fulfilment and gratitude in being involved.

In addition to the gratification of helping others, these missions are opportunities to re-skill and up-skill, develop a sense of belonging and pride in work, and collaborate across departments and business units that people might not have otherwise met. The same is true for organized events in community involvement.

UPS was a sponsor of the Boston College Center for Corporate Citizenship’s Community Involvement 2021 study. In this latest snapshot of community involvement, the study found that 96 percent (of companies who track employee volunteering) found that those employees who participate in community events are more engaged than their non-volunteering peers.

Higher engagement is a great indicator of your company's chances for success, and it has impact on your ability to attract candidates, retain employees, and maintain your reputation. All of these also have bottom-line impact. In fact, companies that create shared value by addressing societal challenges as part of a core strategy achieve higher market capitalization and enduring competitive advantage.

To remain competitive in today's world, corporations have to do more than generate profits. They have to create economic value in a way that also addresses social and environmental needs.

Links

1. 2021 UPS Smart E Commerce Report
2. Boston College Center for Corporate Citizenship Community Involvement Report: 2021 Release