While leading US corporations provide the public with significant amounts of information on their corporate citizenship activities—which typically include corporate grants, employee volunteerism, and community engagement—they stand out from most of corporate America.
According to a recent report by The Conference Board, 98% of 100 leading US firms report on their charitable contributions and 61% of the S&P 500 do so, compared to only 25% among the full Russell 3000. Among top companies, disaster response is the most common topic addressed (included in 66% of reports), followed by racial equality (65%), local community needs (60%), and education (46%).
Yet even companies with robust reporting practices are seeking to enhance their reporting, as a way of both improving and proving the value of their activities. A survey of corporate citizenship executives finds that only 40% are satisfied with their reporting. Moreover, 81% expect it to become more challenging in the future.
As the report points out, one focus area is to step up reporting on impact: 58% of leading firms report on the “outputs” of their work (e.g., the number of people served), 21% report on the outcomes of their corporate citizenship initiatives, such as improved health, while just 3% report the return on investment (ROI) to the company of their efforts. Reporting on outcomes and ROI can both help to assess the effectiveness of programs, while building support among key constituencies, such as boards, senior management, and investors.
The report was produced with True Impact and E4E Relief. It draws upon the analysis of Fortune 1000 company disclosures; a survey of 97 leading companies, more than half of which have an annual revenue of over $11 billion; and a series of Chatham House Rule roundtables with 247 participants from 99 firms.
Additional insights and findings include:
About half of leading companies report on their citizenship efforts within larger ESG or sustainability…
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