Corporate Leaders as Volunteers

This article examines the role of corporate executives as volunteers. The history and evolution of executive volunteerism is reviewed along with the social forces that have influenced its evolution. The growth of organized charity is reviewed and the role of executive volunteers in that growth is explained. Corporate volunteer programs are examined and examples of these programs are provided. The rise of service clubs is reviewed and membership trends, the types of projects they support, and the levels of funding they provide are examined. The return on involvement for individual executives and for corporate volunteer programs is also reviewed.

Keywords: Benevolent and Protective Order of Elks (BPOE); Charitable Donations; Compassion Fatigue; Conscience Industry; Corporate Volunteer Programs; Kiwanis; Lions Club; Philanthropy; Rotary Club; Service Clubs; Shriners; Volunteerism

Overview

History of Volunteer Organizations: The United Way

Corporate leaders have long been volunteers. In the past they have given time, money, expertise, and perhaps most importantly influence and validation for efforts in the arts, education, community development, and social change. As post World War II business models emerged, so did new models of organized charity and executive volunteerism. The United Way, which dominated that urban landscape of corporate charitable involvement and giving for 40 plus years, was central to that new model. From the 1960s into the new millennium, the United Way campaigns in cities across America drew from the local pool of top executives and middle managers to staff, promote, and drive annual fund raising efforts.

During the 1990s, things started to change. There were many macro forces driving change including globalization, the Internet, new generations of corporate leaders, and pressure to increase the return on involvement for corporations who provided time and resources for charitable campaigns. There was also new competition emerging for the charitable dollar and this competition was both innovative and motivated. With competition also came a new glamorized model of charitable work, which could bring volunteers into contact with movie stars, racecar drivers, rock stars, and a new generation of corporate executives leading the Internet revolution.

Rising Competition

Sociological research on nonprofit organizations has identified several strategic responses to these challenges. These responses ranged from conforming with external rules and regulations to proactively shaping the environment. According to Barman,

One of the primary marketing tools for the emerging charity was a strategy of differentiation. To differentiate is to make one-self unique and distinct. Differentiation needs to occur when nonprofit organizations encounter competition within their environment. Facing a limited amount of resources, nonprofits will seek to increase their share of a crowded market. They will work to convince other actors that they, rather than their competitors, deserve resources. To that end, they will assert their uniqueness and superiority over rivals. In order to make this claim of difference, they will construct a hierarchical relationship between themselves and their competitors based on particular criteria (Barman, 2002, p. 1194).

The competitive nature of the emerging charities paid off and did so at the expense of United Way. In 2003, just as United Way was starting its fall fund-raising campaigns, United Way of America announced that donations among the 1,394 United Ways plummeted 7.5 percent in 2002-3 — far more than the 3 percent or 4-percent decline that the organization predicted in April. Over all, United Ways raised $3.71 billion in their 2002-3 annual campaigns, compared with $3.95-billion the previous year. The erosion in donations, the worst United Way had suffered in three decades, meant that some charities that depend on United Way contributions had to cut programs and staff members.

United Way drives were also marred by bad publicity. Wrongdoing at two United Ways contributed to the overall fund-raising decline. A major accounting and management scandal at the United Way of the National Capital Area, in Washington, caused the group to raise nearly $30 million less than the previous year. And in East Lansing, Michigan, the United Way's former chief financial officer was convicted in June of embezzling two million dollars. The slow economy and a wave of corporate closings and mergers also contributed to the decline (Lewis, 2003).

The Growth of Alternative Funds

From 1996 to 2001, pledges to so-called alternative funds — federations of charities that operate campaigns separate from the United Way — grew almost 36 percent, compared with 24 percent for United Ways. In 2001, alternative funds raised almost $222.3-million, a $94.3-million increase from 1991, before adjusting for inflation. The National Committee for Responsive Philanthropy supports a larger role for alternative funds in on-the-job fund-raising drives because the funds typically provide donors a greater choice of charities that advocate progressive political causes than do United Ways. Non-United Way groups made the most gains among donors who annually give $1,000 or less to employee drives. In 1991, alternative funds received six percent of on-the-job donations made by those donors. In 2001, they received 11 percent of donations. Conversely, United Ways have experienced a decline in giving by people donating $1,000 or less. In 1991, those donors provided 61 percent of gifts to United Ways, but by 2001, they accounted for only 45 percent (Wilhelm, 2003).

Globalization

Globalization has also taken its toll on the long established charity infrastructure. Business is now global. Culture is also global, with rapid cross-pollination of influences, art, music, fashion, and fad. And causes can now become global. It takes less than an hour for the world wide media system to bring the latest up-to-the-minute news about earthquakes, fires, hurricanes, or floods. When hurricanes Katrina and Rita struck, for example, foundations and companies contributed more than $1-billion in cash and goods for relief efforts. In addition, it is estimated that about $6.5-billion was donated by individuals and grant makers (Bermudez, 2007).

The Effects of the Internet

Then there is the Internet. A 2007 survey indicated that the Internet is playing an important role in communicating with don ors of all shapes and sizes. This makes the Web site of a nonprofit organization looking for contributions a very important asset. The same survey showed that people who support a particular nonprofit organization often use Web sites to obtain information before making donations. The more committed a person is to an organization the more likely they will be to use the Web site on an ongoing basis. In addition the study found that the higher the income of donors, the more likely they research nonprofit organizations to which they are considering making a donation (Wallace, 2007).

The Conscience Industry

Charitable contributions, philanthropy, and volunteerism have also gone through a process of glamorization over the last two decades. Compassion is now often flaunted: Celebrities launch charities, charities become fashionable, and a business of giving has been created. This new age look and feel of giving to charity works well for celebrities, consumers and businesses alike. Celebrities gain further exposure and fame. Consumers have a relatively inexpensive opportunity to be associated with faddish activities and meet new people. Businesses can gain exposure and leverage their involvement in marketing and public relations.

The conscience industry is also driven by media coverage of events, especially those that are on the air for days and days. In the case of the 2004 tsunami in Asia, over $700 million was raised in the United Kingdom by The Disasters Emergency Committee. Events like the tsunami in Asia and hurricane Katrina in New Orleans give people and corporations the opportunity to provide high-profile contributions. The downside of this is that contributions to other smaller charities can fall rather drastically after the big events consume large portions of monies that were earmarked for giving campaigns of individuals and corporations alike.

In addition to consuming the financial resources of givers, large-scale events also consume the compassion for giving and participating in charitable organizations. Charitable giving is, in reality, only a small part of life. Once people have given so much each year they may well start winding down their giving activities.

Some observers now contend that the charity industry has no scruples about exploiting media coverage for all it's worth. However, any industry with annual revenues of over $200 billion a year has grown that large because it has something to offer and it knows how to sell! (Blackburn, 2005).

Volunteering & Business

The one thing that has not changed for the executive volunteer is that volunteering can help to boost a career. This goes beyond the perks of a fundraising party or annual dinner. Volunteering can expand an individual's network of business contacts. It can also help an individual develop skills that can be used at work. But volunteering can also enhance an individual's professional reputation by demonstrating involvement and dedication. This is seen as far more important than glamour giving (Allyene, 2007). In addition, work and social involvement have benefits; older people who volunteer enjoy noticeable health benefits, including added years to their lives (according to numerous studies conducted over the past 20 years). Volunteering "can also help lower rates of depression. And people who volunteer recover from illness faster than those who do not" (Wilhelm, 2007).

Applications

Corporate Volunteer Programs

Corporate executives play two major roles in volunteerism:

  • They volunteer their own time and resources to support community efforts, local nonprofits, national initiatives, or global causes.
  • Secondly, they promote, support, and facilitate volunteerism in their companies through informal efforts as well as structured organization policies and procedures that encourage and motivate employees to become volunteers, or what are often referred to as corporate volunteer programs.

Lockheed Martin, General Electric, and many other large companies have internally managed volunteer programs. Many organizations that benefit from the efforts of corporate supported volunteer programs help facilitate volunteer opportunities including The Miami Metro Zoo, The Houston Zoo, Los Angeles County, The Idaho Botanical Gardens, and the Arkansas Children's Hospital.

The Lockheed Martin Program

Employee volunteers across all levels of the corporation drive Lockheed Martin's tradition of volunteerism and community service by donating time, money, and energy. Lockheed Martin employees have logged millions of hours of volunteer service over the last decade. One of the company's most popular contributions is the national math competition, MATHCOUNTS®, which has reached more than a half-million students.

Volunteer Outreach

Lockheed Martin has created an internal Volunteer Website that enables employees to record and track their volunteer efforts. Statistics can be generated in a variety of ways including corporate-wide, by activity, or for company-sponsored activities vs. those being done independently.

In addition, several Lockheed Martin facilities have established volunteer councils. One group which has facilities in Arizona, California, Pennsylvania, and the Washington, D.C., region has also established a volunteer network for employees. The network helps to coordinate volunteer activities ranging from tutoring programs, to collection drives, to fund-raising activities for a wide variety of charities.

Volunteer Recognition

Recognition is an important tool for motivating and rewarding volunteers. Lockheed Martin formally recognizes employees who log more than 100 volunteer hours on the Volunteer Website. In addition, all employees who record hours receive a Certificate of Appreciation for their volunteer work.

Donations

In addition to supporting volunteerism, Lockheed Martin donates millions of dollars every year to community projects. Donations are allocated to educational programs, with particular emphasis on initiatives in the areas of math, science, engineering and technology as well as homeless shelters, food drives, and children's programs.

Lockheed Martin Employees Care is a corporate-wide program that sends care packages to military troops overseas through United Service Orgnization. Over the years the corporation and its employees have contributed more than $675,000 to the program which has paid for more than 27,000 care packages (www.lockheedmartin.com, 2007).

Los Angeles Corporate Volunteer Council

The Los Angeles Corporate Volunteer Council (LACVC) was established to create internal and external community opportunities for businesses to become more involved in the Los Angeles community through volunteerism. The LACVC acts as a clearinghouse of the best practices and models of community involvement and to foster collaborative efforts in community wide volunteer activities. The core supporting organizations of the council are Citibank, Connect LA, Creative Artists Agency, Disney Worldwide, Home Depot, Merrill Lynch, and Washington Mutual (www.volunteers.org, 2007). The LACVC provides and infrastructure to support corporate programs that work to involve executives and employees in community efforts.

Programs Supported by the LACVC

Examples of high priority programs supported by the LACVC on their website, www.volunteers.org include:

  • A nonprofit organization that provides services to homeless and low-income families and individuals that is seeking volunteers to assist with numerous programs such as: One-on-one mentoring program for teens; preparing and serving hot meals to homeless men, women and children; assist in connecting homeless people with services and case management; assist in the day care and preschool programs; sort and distribute food bags to needy families; assist homeless and homebound elderly with case management, home visits and grocery shopping; assist with the thrift store; assist homeless and at-risk mentally ill adults with money management, finding housing etc.
  • Delivering pet food Countywide to homebound clients. Assist the sick and shut-in in your neighborhood with feeding their pets. This opportunity is with a Los Angeles-based non-profit organization dedicated to preserving the human-animal connection for low-income seniors and people disabled by a life threatening illness by helping them keep and care for their companion animals. Volunteers are needed every third Saturday of the month for about 4 hours.
  • Volunteers to be a mentor to an at-risk youth, offering both friendship and academic help. Mentoring is simply spending some time with youth in a variety of activities. For example, sports, board games, reading, field trips, homework, or good old fashion conversation! The purpose of the program is to improve student success for children who are vulnerable to educational failure by providing high quality, one to one mentoring relationships that promote academic excellence, post secondary education and positive life skills.
  • Book distributions and parents/home literacy workshops. This agency is hosting three book distribution celebrations this school year for all of their students (parents and children). Each child enrolled in the Early Childhood Education classes will receive his/her own book (three in total). There will also be motivational entertainers or guests (such as Dora the Explorer or Elmo in costume), food, & fun! Passing out books and prizes, and childcare (especially) is needed. They also have four parent in-home literacy workshops scheduled. Themes include: Parent Orientation, Reading Aloud, choosing Good Books, and Reading and Conversation ("LACVC Opportunities," 2009).

Service Organizations

One of the oldest organized forms of volunteerism is the service club. Many of these clubs were originally formed by businessmen and corporate executives seeking to build business contacts and organize local charitable efforts. These service clubs have undergone considerable change and evolution over the last 100 years. Membership has grown and declined for some. Others have become global organizations. In spite of changes, many of the service clubs hold impressive records of contribution and have attracted members from the boardrooms and management teams of the largest companies in the world.

Many of the service clubs were established before the United Way Campaigns were established and instead of annual campaigns, service clubs work year round to raise funds and work in their selected program areas. The service clubs also provided long-term involvement opportunities where members could work with each other for decades instead of on a one-year campaign.

Membership Declines

One of the most sweeping changes in the history of service clubs was the inclusion of women as members. Like most institutions in the first 60 years of the twenty century women were routinely discriminated against. As civil rights laws in the United States changed and membership in the service organizations was declining the clubs had little choice. In addition, several of the clubs became less stringent on meeting attendance and started to modernize their meeting format (Nasser, 2007).

Younger people, however, are not joining at the same pace as previous generations. Speculation is abundant as to why younger people are not interested in the clubs. It could be because the image of the clubs is conservative of that the service focus of the clubs does not appeal to a generation that is integrated into their society via the Internet (Woodard, 1998).

The International Expansion of Service Clubs

The concept and the growth of the service club are no longer rooted in America and has grown worldwide. During the last 80 years the American-based service clubs started expanding to most industrial and business focused countries.

This growth may have been tied to emergence of global societies and economies which began after World War II. Motivations for joining the clubs ranged from a simple interest in t community to the economic opportunity and the possibility of making business contacts. Local service clubs have always acted somewhat independently and have focused their efforts on projects that can best help their local communities. This includes campaigns for literacy, environmental protection, educational programs, drug and alcohol abuse prevention, and even youth leadership development training.

In the modern world, as club members travel on business or pleasure, they are encouraged to make contact with club members in other countries. They may also find a warm welcome and the same social and business opportunities that clubs have fostered in their home countries (Wikle, 1999).

The Rotary Club was the first American-based service organization to actually charter a club outside of the United States. By 1930, clubs had been established on most continents around the world. Much of the Rotary Club's expansion resulted from members traveling around the world or because international travelers came to the United States and learned of the concept.

The international expansion of service clubs occurred quickly in Latin America during the 1930s. Just prior to World War II, service clubs were also established in Australia, Canada, and Western Europe. When the Lions became an international organization in the early 1930s, chapters were rapidly started in many countries.

Communist governments tended to dislike service clubs. After World War II the formation of the People's Republic of China brought an end to Rotary there. Neither did governments in some Middle Eastern countries where clubs were banned. The growth of clubs did continue and new service organizations were established in several countries in Africa as well as other countries around the world.

When the Soviet Union collapsed, many new service clubs were established or old clubs revitalized in many parts of Eastern Europe and the former Soviet Union. Clubs started becoming active in Hungary and Poland. New clubs were established in Lithuania, Latvia, Estonia, Romania, and Bulgaria.

Several challenges remain for the continued expansion of service clubs in some countries where the government may fear the clubs believing they are there to support American business or extend the foreign policy of the United States. In some countries, however, there is not a legal status of nonprofit organizations and that makes service clubs ineligible for the equivalent of tax exempt status (Wikle, 1999).

A summary of the history and activities of some of the largest service clubs follows:

The Rotary Club

The Rotary Club of Chicago was formed in 1905 by Paul P. Harris, and derived its name from the early practice of rotating meetings among members' offices. Within ten years there were Rotary clubs across the United States. The Rotary club expanded beyond serving club members' interests and started helping communities in need. The club's motto became "Service Above Self." By 2000, the Rotary club had over one million members and 32,000 clubs around the world.

During World War II some clubs were not active while others provided service and relief to victims of the war. In 1942, at a conference to promote international education, the Rotary Club started efforts that led to the establishment of UNESCO and by 1945, over 40 members served in 29 delegations to the United Nations (UN) Charter Conference. The club remains active in UN conferences.

The mission of The Rotary Foundation is to promote goodwill and peace through efforts to improve health and education and alleviate poverty. In 1989, the Rotary club began to admit women worldwide and now has over 140,000 female members. As the world continued to change, the Club was involved on the front line of those changes including the fall of the Berlin Wall and the collapse of the Soviet Union. One of the most notable accomplishments of the Rotary Club was taking a leading role in the fight against polio. When the polio vaccines were developed by Jonas Salk and Albert Sabin, the club worked to support a global immunization effort (www.rotary.org, 2007).

The Kiwanis

The Kiwanis was founded in 1915 and remains a worldwide volunteer organization focused on changing the world one child and one community at a time.

The Kiwanis clubs have historically tackled humanitarian and community projects when and where local governments have not been capable of performing. The Kiwanis club is well known for actual hands-on projects as the members have taken to the field to accomplish missions such as helping the elderly, promoting literacy, or support youth sports. Kiwanis members put in about two hours per month on projects directed at children or persons in need. They have helped to shelter the homeless, feed the hungry, mentor the disadvantaged, and care for the sick. In addition, the club has launched programs to develop youth as leaders, construct playgrounds, and to support pediatric research.

In 1920, something important crystallized for Kiwanis; something that inspired Roe Fulkerson, the gifted editor of the Kiwanis magazine, to propose two simple words — "We Build" — as the Kiwanis motto. It was the coining of the Motto, after five years of painful and exhilarating growth that put Kiwanis into its stride. Then in 2005, during the 90th anniversary year of Kiwanis, delegates to the International Convention voted to adopt a new motto, "Serving the Children of the World," to emphasize the primary focus of Kiwanis service over those nine decades and make a commitment for the years to come.

The global emphasis of Kiwanis International has been centered on efforts to eliminate iodine deficiency disorders (IDD), done in partnership with UNICEF (www.kiwanis.org, 2007).

The Lions Club

The Lions Clubs International lays claim to being the largest service club in the world with over 1.3 million members that participate in 45,000 clubs located in more than 200 countries. The Lions club was founded in 1917 and maintains the motto, "We Serve." One of the most dramatic efforts of the club is to help develop services for blind and visually impaired people. This effort was launched when Helen Keller challenged Lions to become "knights of the blind in the crusade against darkness" in 1925. The Lions still pursue their commitment to sight conservation through the SightFirst Program. They also collect and recycle eyeglasses and sponsor the Lions Recycle for Sight Month during each October.

The Lions club was founded on the basis that it should focus on service and not act as a club that focused on the financial betterment of its members. On the international front, the Lions Clubs International has worked to help the UN in forming the Non-Governmental Organizations sections and still holds a consultative status with the UN.

The Lions Club also has a strong commitment to young people and supports numerous youth programs. Lions work on programs to improve the environment, build homes for the disabled, and support diabetes education through their foundation. When necessary, Lions also participate in supporting disaster relief around the world. The statistics on Lions Club contributions are impressive; worldwide the clubs donate over $400 million each year as well as provide over 70 million hours of volunteer time.

The Lions Clubs International Foundation (LCIF) supports the efforts of Lions clubs around the world by providing funding for local projects. The Lions Sight First program has provided over $200 million to fight the major causes of preventable and reversible blindness. The program has provided more than seven million cataract surgeries, supported upgrades to eye hospitals and clinics, and contributed funds to train over 300,000 eye care professionals. The LCIF has ranked best among non-governmental organizations (NGOs) worldwide (www.lionsclubs.org, 2007).

The Benevolent & Protective Order of Elks

The Benevolent and Protective Order of Elks (BPOE) of America is one of the oldest and largest fraternal organizations in the country. Since 1868, the Order of Elks has been committed to the ideals of charity and patriotism. The Elks have now disbursed more than $3.6 billion in cash, goods, and services to the nation's youth, its veterans, the disadvantaged and handicapped since it was founded. It has also supported patriotic and civic programs.

The BPO Elks national headquarters is located in Chicago, along with the Elks National Veterans Memorial building, the Elks National Foundation, the Elks National Veterans Service Commission and The Elks Magazine. All of the elected leaders of the Elks, regardless of rank, serve without salaries. The Elks have significantly changed millions of lives for the better. However, they remain rather low key in their approach and there is little public awareness of their impact. The Elks donated what was to become the first veteran's hospital to the United States government and they contribute to schools and police and fire departments on a regular basis.

After the great Chicago fire in 1871, the Elks organized a benefit to raise funds to assist residents most affected by the disaster. Since that time the Elks have responded to almost every major catastrophe (natural or man-made) by providing relief and recovery funds and support. These disasters have included the 1889 flooding in Johnstown, Pennsylvania and fires in Seattle, Washington, and earthquake in San Francisco in 1906. In the early 1890s the Elks started working with the American Red Cross in responding to people in need. The Elks have also formed partnerships with other relief agencies.

For over 100 years the Elks have provided aid for men, women, and children whose lives have been impacted by extraordinary circumstances (www.elks.org, 2007).

The Shriners

The Shriners have over 190 Shrine Temples, or chapters, located in the United States, Canada, Mexico and the Republic of Panama. There are also less formal Shrine Clubs located in many other parts of the world. To be a member of the Shriners, an individual must hold the title of Master Mason in Freemasonry. The Shriners are known the world over for the famous Shriners Hospitals for Children, a network of 22 pediatric hospitals in the U.S., Canada and Mexico. These hospitals provide very specialized care for orthopaedic conditions, burns, spinal cord injuries and cleft lip and palate. These services are provided at no charge and eligibility for care is not based on financial need or relationship to a Shriner. While provided with high-quality care, patients do not face the barriers of insurance industry processes and policies. Because Shriners Hospitals do not rely on third-party funding from insurance providers or government agencies, care can be delivered faster and based on medical need. In 2011, hit hard by the global financial crisis that began in 2008, Shriners Hospitals approved a move to start billing the insurance companies of patients who have insurance (Evans, 2011).

Shriners Hospitals for Children have been providing state-of-the-art care for more than 80 years. The purpose of all Shriners Hospitals is to provide care for our children so they can lead fuller, more productive lives. All children, from birth to 18 years of age, may be eligible for care at Shriners Hospitals if, in the opinion of their doctors, the child can benefit from the specialized care provided by the hospitals. Shriners Hospitals for Children have significantly improved the lives of more than 800,000 children.

The Shriners Hospital network established the first pediatric orthopaedic hospital in 1922, and since then has continued to specialize in addressing the special needs of children. Shriners Hospitals' also contribute to the overall knowledge for the care and treatment for pediatric and adult conditions. Shriners researchers have played key roles in developing cultured skin substitutes for burn victims, nutritional formulas that improves healing in pediatric burn patients, and the discovery of genetic causes of 10 inheritable bone diseases.

Over the last two decades Shriners hospitals have helped to train more than 8,000 physicians (www.shrinershq.org, 2007).

Issues

Measuring Return on Involvement

As many corporate managers and boards of directors still ponder the value of supporting volunteerism in their companies, many others have already come to conclusion that there are tangible rewards in volunteering. BP Canada is among those that have decided that volunteerism does have value. Once a month BP Canada employees prep and serve dinner at a homeless shelter in Calgary. The employees and the corporate managers view the volunteer program as a contribution to the community that will increase shareholder value, help to raise their company's community profile, and perhaps even boost productivity in the workplace.

Like many other managers in small and large companies around the world, BP managers feel strongly that company giving brings big gains. According to a one survey of about 700 corporations conducted by the U.K.'s Business in the Community, 40% of the respondents indicated that volunteerism benefits their bottom line. That could be why one-third of British companies have developed and implemented formal time-off policies for employee volunteers as do another one-third of companies in the United States. In Canada, 64% of companies surveyed by Ottawa-based Volunteer Canada and Imagine of Toronto, reported to have an annual budget for volunteer programs. In addition, about 44% of Canadian companies have actually used volunteer programs to keep up employees' spirits during mergers, acquisitions or downsizing. The strategy seems to work because workers who do good feel good, and they do better work as a result, showing competency gains of 14% to 17% as a direct result of volunteering (Traves, 2005).

Reduced Turnover & Increased Recruitment

The Security Benefit Group, an investment firm based in Topeka, Kansas, was delighted to find that after just three years of formalizing its volunteer program, staff turnover fell to 7%, from 22%. In fact almost 90% of companies in the United States surveyed in a 1998 Points of Light Foundation, reported that workplace volunteerism reduced employee turnover. This reaps savings in the replacement cost which is estimated to a be a quarter to five times an employee's annual salary.

Another human resource management benefit is that companies with volunteer programs can hire new personnel for less than the market price. This is demonstrated in part by the results of a survey conducted by Net Impact, a United States MBA network devoted to social change in 1997 which showed half of recent North American MBA grads reported that they would being willing to take less money to work for a company that had a reputation for social responsibility and giving back to the community (Traves, 2005).

Improved Image for Customers

Corporate image is also important to customers and potential customers. In a survey conducted by Environics in 1999, over 50% of Canadians thought social responsibility was a key differentiator for a company. This customer perspective may be especially important for companies that offer products where old style product distinction is less important than consumer cost for the product. When company employees are seen doing actual hands-on work in the community the public sees that as a concrete display of company values. In the past a company showed concern about the communities where it did business by sending a check to the local charity. However, a public-opinion study by GlobeScan in 2004 showed that 80% of Canadians hold companies responsible for encouraging employees to volunteer (Traves, 2005).

Increased Shareholder Investment

There is a business reason to promote volunteerism in a company other than the opportunity to feel good. In 2000, the Jantzi Social Index (which tracks 60 socially responsible companies) showed that those who helped others had a 5% better return on investment than the TSE 300. It is also important that socially responsible investing is on the increase and companies that do good things and maintain a profit margin are attracting investors at faster rates than other companies. The bottom line: Businesses that do good do well (Traves, 2005).

Conclusion

Corporate leaders have long been volunteers. In the past, they gave time, money, expertise, and perhaps most importantly influence and validation for efforts in the arts, education, community development, and social change. As post World War II business models emerged, so did new models of organized charity and executive volunteerism. The United Way, which dominated the urban landscape of corporate charitable involvement and giving for 40 plus years, was central to that new model. From the 1960s into the new millennium, the United Way campaigns in cities across America drew from the local pool of top executives and middle managers to staff, promote, and drive annual fund raising efforts.

According to Blackburn,

"For years, charities have struggled with the modern malaise of "compassion fatigue;" psychological exhaustion in the face of endless appeals for money or sympathy. The solution has been to draw on commercialism, glamour and entertainment to give caring a certain pizzazz. It is here that the conscience industry emerged — a meeting of the interests of charity and celebrity, business and media. This is a new twist to philanthropy, and involvement refracted through a lens of Barnum showmanship and commercial self-interest: Media sells celebrity sells charity sells business" (Blackburn, 2005, p. 24).

Corporate executives play two major roles in volunteerism.

  • They volunteer their own time and resources to support community efforts, local nonprofits, national initiatives, or global causes.
  • Secondly, they promote, support, and facilitate volunteerism in their companies through informal efforts as well as structured organization policies and procedures that encourage and motivate employees to become volunteers.

Lockheed Martin and other large companies have internally managed volunteer programs. Many organizations benefit from the efforts of corporate supported volunteer programs such as the Miami Metro Zoo, the Houston Zoo, Los Angeles County Zoo, the Idaho Botanical Gardens, and the Arkansas Children's Hospital.

One of the oldest organized forms of volunteerism is the service club. Many of these clubs were originally formed by businessmen and corporate executives seeking to build business contacts and organize local charitable efforts. These service clubs have undergone considerable changes and evolution over the last 100 years. Membership has grown for some and declined for others. Some have become global organizations. In spite of changes, many of the service clubs hold impressive records of contribution and have attracted members from the boardrooms and management teams of the largest companies in the world.

The one thing that has not changed for the executive volunteer is that volunteering can help to boost a career. This goes beyond the perks of a fundraising party or annual dinner. Volunteering can expand an individual's network of business contacts and help an individual develop skills that can be used at work. But volunteering can also enhance an individual's professional reputation by demonstrating involvement and dedication. This is seen as far more important than glamour giving (Traves, 2005).

Terms & Concepts

Benevolent and Protective Order of Elks: One of the oldest and largest fraternal organizations in the country committed to the ideals of charity and patriotism.

Charitable Donations: Contribution of money or time to support a nonprofit organization operated exclusively for the betterment of its members or service recipients.

Compassion Fatigue: Contributor burnout, or psychological exhaustion, in the face of endless appeals for money or sympathy.

Conscience Industry: The commercialized aspect of fund raising that exploits the psychology of giving and caring.

Corporate Volunteer Programs: The informal efforts as well as structured organization policies and procedures within a company that encourage and motivate employees to become volunteers.

Kiwanis: A global organization of volunteers dedicated to changing the world one child and one community at a time.

Lions Club: The world's largest service club organization that focuses efforts on sight programs, youth services, environmental improvement, home-building for the disabled, diabetes education support, hearing programs and disaster relief.

Philanthropy: Concern for human welfare and advancement, usually manifested by donations of money, property, or work to needy persons, by endowment of institutions of learning and hospitals, and by generosity to other socially useful purposes (Dictionary.com, 2007).

Rotary Club: Worldwide foundation supported solely by voluntary contributions with the aim to advance world understanding, goodwill, and peace through the improvement of health, the support of education, and the alleviation of poverty.

Service Club: An organization of business owners, corporate executives, and private citizens that has a goal of fund raising for charitable causes or providing volunteer support for community programs that improve quality of life of those in need.

Shriners: Club of men and their families who hold the title of Master Mason in Freemasonry. The Shriners have created a network of 22 pediatric hospitals in the U.S., Canada, and Mexico that provide complimentary specialized care for orthopedic conditions, burn injuries, spinal cord rehabilitation, and cleft lip and palate repair.

Volunteerism: The policy or practice of volunteering one's time or talents for charitable, educational, or other worthwhile activities, esp. in one's community (Dictionary.com, 2007).

Bibliography

Allyene, S. (2007). Volunteering helps you, too. Black Enterprise, 37, 74. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=25269518&site=ehost-live

Barman, E. (2002). Asserting difference: The strategic response of nonprofit organizations to competition. Social Forces, 80, 1191. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=6767661&site=ehost-live

Bermudez, C. (2007). Companies and foundations give $1-billion for Katrina aid - Philanthropy.com. Chronicle of Philanthropy, 19, 9-9. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=26519416&site=ehost-live

Blackburn, J. (2005). The hot look everyone wants. New Statesman, 134(4753), 24-25. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=17875300&site=ehost-live

Funk, R. A. (2013). Building a company culture for community outreach. Franchising World, 45, 58-59. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=91731904&site=ehost-live

Kamenetz, A. (2013). We can make massive strides. Fast Company, , 88-91. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=86963339&site=ehost-live

Karp, A. (2013). Adlens' owner balances commerce with philanthropy. (cover story). Vision Monday, 27, 12-14. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=87806014&site=ehost-live

LACVC Opportunities. (2007). Los Angeles Corporate Volunteer Council (LACVC). Retrieved December 21, 2007 from Los Angeles Corporate Volunteer Council (LACVC). http://www.volunteers.org/opps/index.html

Lewis, N. (2003). 7.5% drop in United Way donations is worst in three decades. Chronicle of Philanthropy, 15, 25. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=11046630&site=ehost-live

McGirt, E. (2012). The league of extraordinary women. (cover story). Fast Company, , 72-83. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=76914585&site=ehost-live

Nasser, H. (2007, November 15). Not your granddad's service club. USA Today, 3a.

Traves, J. (2005). What goes around. Canadian Business, 78, 67-68. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=16108331&site=ehost-live

Wallace, N. (2007). Many donors go online to learn about charities — Philanthropy.com. Chronicle of Philanthropy, 19, 20-20. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=26519427&site=ehost-live

Wilhelm, I. (2003). Growth at United Ways lags behind many of its competitors, report says. Chronicle of Philanthropy, 15, 28. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=10537177&site=ehost-live

Wilhelm, I. (2007). Volunteering leads to longer and healthier life, report finds. Chronicle of Philanthropy, 19, 33-33. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=25366668&site=ehost-live

Wikle, T. (1999). International expansion of the American-Style service club. Journal of American Culture, 22, 45. Retrieved December 21, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=3343712&site=ehost-live

Woodard, J. (1998). Canada's vanishing service clubs. Alberta Report Newsmagazine, 25, 24. Retrieved December 21, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=341197&site=ehost-live

Suggested Reading

Egger, R. (2003). Offer donors more than a plea for gifts. Chronicle of Philanthropy, 16, 37-38. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=11903920&site=ehost-live

Grant, D. (2007). Artists and charity. American Artist, 71, 76-77. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=24999742&site=ehost-live

Greene, S. (2004). United Ways are spreading quickly around the globe. Chronicle of Philanthropy, 16, 7-12. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=13320411&site=ehost-live

Hogan, C. (2006). Around the fundraising campfire. Searcher, 14, 26-31. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=22299832&site=ehost-live

Howard, A. (2007). Former President's book encourages charity work. Chronicle of Philanthropy, 19, 30-30. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=26686543&site=ehost-live

Hoye, S. (2007). Community funds award record amount in grants, survey shows - Philanthropy.com. Chronicle of Philanthropy, 19, 8-8. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=26686521&site=ehost-live

Michaels, M. (2007). Midwestern cities fare best in luring volunteers. Chronicle of Philanthropy, 19, 21-21. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=25992145&site=ehost-live

O'Connor, J. (2006). Civic engagement in higher education. Change, 38, 52-58. Retrieved December 21, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=22484671&site=ehost-live

Timboe, H., & Holt, G. (2006). Project HOPE volunteers and the Navy hospital ship Mercy. Military Medicine, 171, 34-36. Retrieved December 21, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=22828544&site=ehost-live

Traves, J. (2005). How business can make a difference. Canadian Business, 78, 68-68. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=16108332&site=ehost-live

Wolverton, B. (2004). A new era for nation's United Ways. Chronicle of Philanthropy, 16, 6-10. Retrieved December 15, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=13320410&site=ehost-live

Essay by Michael Erbschloe, M.A.

Michael Erbschloe is an information technology consultant, educator, and author. He has taught graduate level courses and developed technology-related curriculum for several universities and speaks at conferences and industry events around the world. Michael holds a Masters Degree in Sociology from Kent State University. He has authored hundreds of articles and several books on technology.