Giving Back May Be All the Rage. But Transparency is Where It’s At.

Note: A version of this essay was originally published on April 21, 2021 by Oregon Business Magazine.

There’s a lot of companies today talking about community support, contributing to the greater good and giving back. While it sure makes for a good social media campaign and compelling copy on a website, do you ever wonder how much of it is real and how much of it is just marketing?

The truth is, using a for-profit company as a force for good has to go far beyond just writing checks to non-profits. It has to go beyond simply adding inspiring copywriting and marketing pages to your website. To truly walk the talk, a company needs an overarching philosophy, a strategy, and a deeper purpose that threads the needle through every aspect of day-to-day operations and activities, informing and connecting every nook and cranny inside of the business.

If you’ve truly got a noble, higher purpose at the core of your business, ask yourself this question: What does your company do when nobody’s looking? Would you be proud to pull back the curtain and publicly share your company’s most critical internal scorecards, like financials, people policies, pay and benefits, ethics, sustainability efforts and equity metrics for staff demographics and leadership? What do you do when no one is looking?

What does your company do when nobody’s looking?

Would you be proud to pull back the curtain and publicly share your company’s most critical internal scorecards, like financials, people policies, pay and benefits, ethics, sustainability efforts and equity metrics for staff demographics and leadership?

The truth is, it’s hard to know who’s talking the talk and who’s walking the walk. It’s challenging to discern who’s sincere about what they’re doing and who’s using trendy “community” copywriting to boost their brand and lift sales numbers. The answer is transparency.

Transparency gives everyone, both internally and externally, a clear line of sight through an organization with objective measurements and tangible context to help understand what’s really happening behind the scenes. Transparency serves as a litmus test for seeing if a company’s actions align with the creative copy on the website.

In January 2021, my team made our first attempt at an Annual Transparency Report. It’s our method for pulling back the curtain — and it also very publicly shows where our shortcomings are and where we need to improve. It’s all there, worts and all.

Internally, a Transparency Report gives leaders, staff and prospective employees vital insights to help them better understand the true values, character and integrity of the business and the people running it. It sparks meaningful internal conversations and helps foster a culture of accountability, among both leaders and staff.

Transparency provides a springboard for change and impact.

Amid today’s rapidly evolving societal landscape, there’s never been a more critical moment for business leaders to consider using for-profit companies to impact the greater good. Rather than wait for government or the next grassroots revolution to spark change, what if the business community led the way? What better Trojan Horse is there to ignite the kind of change our world needs today?

Maybe you’ve heard of Warren Buffett and Bill Gates “The Giving Pledge” where they’re challenging the world’s wealthiest people to follow their lead in giving away most of their wealth to philanthropic organizations by the time they’re gone.

Well, let’s take this a step further. For a moment, let’s consider the impact if three of the world’s largest companies were to lead the way.

If Apple, Google and Amazon each gave 10% of their 2020 profits to community organizations and causes, that would be $11.8 BILLION dollars donated for one single year. As a point of reference, The Bill and Melinda Gates Foundation gave $589M in 2019.

Now imagine if all Apple, Google and Amazon employees were required (employer paid) to spend two days a year volunteering at community organizations. That would equal about 3.16 million in volunteer hours in one year alone. Similarly imagine if all of these employees were educated on topics like diversity, equity and inclusion. Five hours of DEI training per employee, per year translates to nearly 8 MILLION education hours across all three companies. Can you imagine the global impact of 1.58 MILLION people across the planet each receiving five hours of diversity training a year?

Further, consider if these global companies all committed to things like pay equity, paid parental leave, and could reach meaningful goals for diverse staff demographics. Imagine if these companies all achieved B Corp certification — meeting the highest standards of verified social and environmental performance, transparency, and accountability.

If you’re feeling inspired or even a bit curious, hear this: this is a call to all leaders in the greater business community. While it may be hard to see yourself in Apple, Google or Amazon — the good news is most U.S. businesses are small enough and nimble enough to actually execute this kind of change. Small businesses across our country are the lifeblood of the U.S. economy, creating two-thirds of net new jobs and generating about 44% of all U.S. economic activity.

Why not us?

It all starts with transparency. If one by one, small to mid-sized organizations across our communities backed-up all of the “community” and “giving back” talk by publishing transparency reports, it will help us spotlight and differentiate between the genuine articles and the genuine posers. Becoming a certified B Corp is a great place to start. Publishing a Transparency Report is an equally compelling declaration — sharing with your staff, clients, competitors and community what you truly stand for and why the rest of us should care.

More and more today, people care about where they spend their money. It’s about more than simply getting greatest product or service available. People want to know what’s behind a brand. And some people actually care more about community and societal impact than speed and convenience.

Who’s in?

RW

Note: A version of this essay was originally published on April 21, 2021 by Oregon Business Magazine.

*This is yet another essay in-part inspired by my friends Mario and Chris — please check out their work too. We believe the process of public writing helps us learn, grow and improves our lives too. We call ourselves the Western Writers League and someday we might make hats with a cool logo.