Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://www.e-digitaleditions.com/i/1194330
What are some of the finance-related business factors that companies must consider when doing social good and/or pursuing philanthropic endeavors? Q: WINTER Evan Delahanty, founder and CEO, Peaceful Fruits For any business that wants to make doing good part of its mission, you must remember that it all comes down to sustainability and impact. To make a real difference, you have to be able to keep it up over time and you have to do something meaningful. That means you have to think about how something will hit the bottom line and get creative through marketing and operations to turn a giveback into something that works for you. Let me say this explicitly, it's 100 percent okay to consider the ROI of doing good. Our challenge is to make it work in the short term, in your budget, as well as in the long term for our larger community and environment. For example, that might mean sharing the impact stories of your mission with your customers to encourage relationship growth. Our employees with disabilities love to share their stories with customers and we see the positive impact that has both on individuals and on sales. At the same time, we seek out grant dollars that help underwrite the wages of some of the people we employ, so we can work with them even if it isn't the most efficient thing to do. At the end of the day, we think critically about the impact—it's about the people you touch, not just a flashy giveback. The more you can make that a part of your everyday operations, communications, and relationships, the more good you'll be able to do each and every day. David Gremmels, president, Rogue Creamery There are numerous financial aspects associated with B Corporations and nonprofits that serve to align a company with the social fabric in which it was created. By developing financial models that reflect its mission and articles of incorporation, a company builds into its DNA an identity as a philanthropically driven business. Typically, short- and long-term goals are established to target social, economic, and environmental impacts that align with the corporation's desires. To support these efforts, contributions can be made in diverse ways—such as financial, in-kind, and through volunteerism. These contributions are reported transparently to the public in the form of an annual report. Within the report, the contributions take on formulaic structure; it shows how they relate to income, team members, volume, customers, raw materials, power usage, land in production, conservation, vendors, and so much more. The impact is quantified and compared year over year. In the case of B Corporations, this information is meticulously gathered and reported for audit every three years. Taking the added step of becoming certified as a Social Benefit Company proves a business is prepared to invest time and resources in gathering and tracking data on how well they are doing in their efforts to make a difference. Plus, by comparing its audit scores to those of other certified businesses, a B Corporation can find inspiration for improvement—uncovering new ways to increase its impact on community and environment. Thierry Ollivier, founder and CEO, BrandStorm Inc./Natierra When creating a program such as our Feed a Soul Project, it is important to ensure its sustainability and success by linking it with successful product lines that can support its financial cost while still maintaining margins. Our passion to pursue social good and philanthropic endeavors led us to our Natierra Buy One Bag, Feed One Child Program. It required a sound vetting process to identify our trusted partner, Convoy of Hope, and ensure ongoing oversight that all funds generated are used with maximum benefit to the children in need in Haiti whom we are committed to feed. This includes a full review of third-party partnerships, their systems, finances, and accountability of meals provided as well as the administration percentage of donated funds. We travel for field visits to see first-hand that the monies raised are utilized for the specific designated purpose and assess the systems put in place by the partner organization. In addition, our company contributes marketing, digital platform, and design costs, to clearly communicate the program on product packaging, as well as internal resources to manage the communication of the value-added program. The systems put in place should not deter from the day-to-day business and should confirm that all stakeholders are cared for. In essence, find the best third-party partner fit and instill systems for accountability and transparency. Julie Gallagher is managing editor of Specialty Food. "To make a real difference, you have to be able to keep it up over time and you have to do something meaningful. That means you have to think about how something will hit the bottom line and get creative through marketing and operations to turn a giveback into something that works for you."