Employee Engagement Today: Defining and Declaring the Value Proposition PANELISTS

Employee Engagement Today: • Defining and Declaring the Value Proposition • PANELISTS • Bradley K. Googins, Ph.D. • Associate Professor Organizational Studies. • Former Executive Director Center for Corporate Citizenship Carroll School of Management at Boston College • Margaret Coady and MODERATOR • Director, Committee Encouraging Corporate Philanthropy • Kathleen Mayglothling • Program Manager, Employee Programs, GE Foundation

Ten years ago, who would have guessed? Cellular-telephone adoption increase from 738 million in 2000 to over 6 billion today Warren Buffet and Bill Gates lead the world in philanthropy Investments in renewable energy technologies overtake investments in fossil fuel technologies Greenpeace partners with multiple multi-national corporations SOURCE: United Nations Environment Programme (UNEP), Sustainable Energy Finance Initiative, International Telecommunication Union (ITU), US Chamber of Commerce, organization website

Unscientific look at changes in corporate giving: • Local, reactive, heartstrings-driven • Give if asked; “good neighbor” giving • Give to causes important to senior leaders • Intentionally NOT strategic or connected to the business for fear of a backlash • Visible, proactive • See other companies begin to get credit • Grants are proactive and “make sense” • Better measurement of inputs • Strategic, aligned, beyond cash • Accept very few unsolicited grantee proposals • Giving as a “portfolio” of expectations to manage • Co-design initiatives with nonprofit partners • Greater attention to employee engagement

Session Objectives In a fast-changing environment, let’s examine: • Trends in employee engagement • How corporations are defining the value proposition for employee engagement internally and externally • Pertinent data to help build and define value of employee engagement • How corporations and their employees identify success in employee engagement

Employee Engagement • Charities at Work Summit • Bradley Googins PhD • Professor Management and Organization • Former Executive Director Center for Corporate Citizenship • Boston College • April 2011

Engaging Employees Top Companies Typical Companies

Levels of Engagement: LOW and getting LOWER…. Source: Gallup Employee Engagement Index

What is the meaning of CSR? Source: Fleishman Hillard/National Consumers League study, “Rethinking Corporate Social Responsibility”

Corporate Citizenship US Consumers’ Perspective – What matters most • Values and treats employees well and fairly • Executives and business practices are ethical, honest, open and transparent • Authenticity • Goes beyond what is required to provide safe, healthy and reliable products and services • Listens to consumer, customer and community input when making business decisions • Active and involved in the communities where it does businessCommitted to corporate social responsibility, sustainability, economic opportunity, environmental stewardship, etc. • Donates or invests its fair share of profits, goods or services to benefit others Source: Golin Harris Corporate Citizenship Gets Down to Business 2006

Relevance of Corporate Citizenship:Employees in High versus Low CC Firms Sirota Survey Intelligence, 2007

The Corporate Handprint Philip Mirvis & Bradley Googins

CorporateFootprint Corporate Handprint Green--Environment Reduce/Minimize Do Less Harm Reactive Report Green is Gold! Social & Ecological Increase/Maximize Do More Good Pro-Active Reach Out Blue is too— for business & society!

Reducing the Corporate Footprint is Good, but…. Can’t Your Company do Better?

PROSPERITY PRODUCTS PURPOSE PLANET PEOPLE The Corporate Handprint

Relational Model: Engaging the ‘Whole Person’ Across Identity Spheres Self-in-Work Roles Self-in-Affinities Employee Engagement Who am I? Who am I to become? Self-in-Life Roles Self-in-the-World

Millennial Generation on Corporate Citizenship • Three of four young people want to work for a company that “cares about how it impacts and contributes to society.” Nearly seven-in-ten say that they are aware of their employer’s commitment to social/environmental causes and 65 percent say that their employer’s social/environmental activities make them feel loyal to their company. (Source: The Cone Millennial Cause Study). • How many students believe that business should work toward the betterment of society? Over 80 percent of the members (and 66% of nonmembers). How many agree business is currently working for the betterment of society? Some 18 percent of members (and 24% who are not members). Corporate citizenship matters to tomorrow’s business leaders. (Source: Net Impact)

Introduction to CECP “I helped to start CECP with the belief that corporate America could be a force for good in society.” - Paul Newman Who We Are • Nonprofit organization founded in 1999. • The only international forum of business CEOs and chairpersons with an agenda exclusively focused on corporate philanthropy. What We Believe • Philanthropy is a long-term investment • Executive leadership is essential • Corporations have unique resources Who is Engaged • Over 175 CEOs and Chairpersons • Companies from each industry sector • Companies represent over 40% of all corporate giving in the United States Our Strategic Focus • Represent the CEO voice. • Bring business discipline to corporate philanthropy. • Own the standard on philanthropy practice and measurement.

The CEO Perspective “When considering a change in your company’s contributions, which constituency most influences your decision?”

Measuring the Value of Corporate Philanthropy Between Grant Recipients and Giving Officers How to assess whether grantees are achieving the intended results How to estimate a "return on investment" (ROI) numeric for comparing and/or aggregating the effectiveness across different grants in achieving social results. Between the Giving Officers and the CEO "business case" and demonstrate how supporting the philanthropic initiative will be valuable to business. Between the CEO and the Investor Community Investors want assurance that spending on corporate philanthropy enhances (or at least does not diminish) shareholder value. Concurrently, a number of investors ask that the companies in which they invest demonstrate greater philanthropic leadership and social responsibility.

Measuring the Value of Corporate Philanthropy Enhance employee engagement. Companies engage employees through group volunteer programs and awareness of their philanthropic initiatives, which raise employee motivation, productivity, and a sense of identification with the organization. Build customer loyalty. Especially in consumer-oriented industries, a company’s commitment to communities and certain philanthropic causes enhances brand perception, customer loyalty, repeat business, and word-of-mouth promotion. Manage downside risks to the company’s reputation. Philanthropic initiatives provide companies with a fresh opportunity to prioritize and address stakeholder risks, i.e., ways in which the company may not be meeting public expectations. Contribute to business innovation and growth opportunities. Philanthropy also provides access to new relationships and opportunities whereby the company can find, test, and demonstrate new ideas, technologies, and products.

Measuring the Value of Corporate Philanthropy CORPORATE PHILANTHROPY ACTIVITIES e.g.: grants and employee volunteer programs • BUSINESS IMPACT • Increased output, sales, and productivity • JOB-RELATED BEHAVIORS • Reduced absenteeism • Retention • Efficiency • Cooperative behaviors • Work effort • Advocacy • EMLOYEE NEEDS FULFILLED • Self-enhancement • Work-life integration • Reputational shield • Bridge to company • Collective self-esteem • INTERMEDIATE OUTCOME TO BE TARGETED AND MEASURED • EMPLOYEE ATTITUDES • Sense of organizational identification • OTHER MODERATING FACTORS • Extrinsic incentives, e.g. compensation and performance-linked rewards • Employee characteristics, e.g. tenure and training • Employee perception of HR practices, work environment, management, and company capabilities Source: Adapted from Bhattacharya, C. B., Sen, S. & Korschun, D. (2008) and Bartel, C. (2001).

Measuring the Value of Corporate Philanthropy METRICS & SURVEY INSTRUMENTS IN THE REPORT

Overview of Matching Gifts

Matching Gift Allocations Matching Gifts as Percentage of Cash Giving, Medians, 2010 Note: Telecom. Services industry not detailed due to small sample size

Volunteer Programs, 2010 Paid-Release Time and Outside-Company-Time

Employee Volunteer Program Offerings, 2010

Examples of Paid-Release Time Program Policies • SPECIALIZED Policy: • Manager approval for paid-release time requests • Offering different opportunities by division or region • Restricting paid-time off to company-wide days of service • Restricting paid-time off to employees participating in team grant activities • Restricting paid-time off to employee volunteer programs specifically run by the company. • Offering fellowship or sabbatical options. • HOURLY Policy: • Hours per year: 8 hours, 10 hours, 12 hours, 16 hours, 20 hours, 24 hours, 40 hours • Hours per month: 4 hours, 5 hours, 6 hours • DAY Policy: • Days per year: 1 day per year, 2 days per year, 3 days per year, 5 days per year, 6 days per year, and 3-6 month sabbaticals.

Data Collection Happening Now! Giving in Numbers Since 2001, the Giving in Numbers report has provided thorough analysis and comprehensive benchmarking data for corporate philanthropy professionals seeking to assess the scope of their contributions initiatives. Free download: CorporatePhilanthropy.org • Includes findings on: • Giving and the Economy • Benchmarking Tables • Giving by Program Area • Giving by Motivation • Employee Volunteerism • Matching Gifts • International Giving • Corporate Foundations • Giving by Gender and Ethnicity • Management & Program Structures

GE Employee Engagement: GE Foundation Matching Gifts Kathleen Mayglothling Program Manager Charities at Work Summit April 3, 2012

“I find out what the world needs, • then I proceed to invent it.” • Thomas Edison

GE Today GE works on things that matter. The best people & the best technologies taking on the toughest challenges. Finding solutions in energy, health & home, transportation & finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works.

GE’s Citizenship Framework Making an Impact in Communities Around the World Make money Strong, sustained economic performance Rigorous compliance - financial & legal rules Ethical actions, beyond formal requirements Make it ethically Make a difference Citizenship for GE is not just about “giving back” but about enabling positive changes around the world… a full-time commitment with the same goals, strategies & accountabilities that drive business.

Community Engagement The Goal: To build deep and positive relationships where GE people live and work Communities Town Neighbors Local Infrastructure Education Health GE Company/Foundation Matching Gifts United Way GE Volunteers GE People Contributions Time Expertise The Opportunity: GE and its employees & retirees help meet community needs through a variety of resources & skills. Environment Humanitarian Relief

Time, Talent, Treasure • Matching Gifts • 1:1 match of employee & retiree contributions to eligible charities • Includes broad variety of areas; available year-round • 2011 Total: $70M GE Volunteers • Employees & retirees donate time & effort towards initiatives in their local communities. • 80 year+ tradition • 220+ Volunteers Councils in 51 countries organize over 6,200 projects annually • 1.3M volunteer hours per year Supporting GE employees and retirees in their personal philanthropy and volunteerism • United Way Giving Campaigns • Supports UW & other charities with pledges, volunteers, & supplies • Additional 50% contribution from GE Foundation to local UWs • 2011 Total: $26M

Matching Gifts Created by GE “The employer matching gift program was the brainchild of Philip Reed, chair of the General Electric Board of Directors, who wanted to encourage GE employees to contribute to their alma maters. Reed believed the incentive to contribute was greater if the company matched the employee’s gift.” Since the launch in 1954, many others have followed suit and $2B has been contributed by individuals and their employers to education alone. * Source: HEP Data

FSG Analysis Are these the results we seek? • Retirees claim a large portion of matching funds, primarily for Higher Education institutions • Cumbersome process on community side deters employees and broader participation • High matching limits favor officers, directors, retirees “The only value in employee engagement efforts lies in the actions taken once the data has been collected and analyzed.” Bersin & Associates Research ReportEmployee Engagement: A changing marketplace (Sept. 2010)

Matching Gifts – Then & Now 1954 5,234 $200K 359 4,928 $1,000 2004 32,941 $18M 1,781 13,927 $50,000 2011 109,948 $35M 13,360 30,194 $50,000 Gifts Registered (#) Total Matched ($) Charity Participants (#) GE Participants (#) Annual Max per person ($) Substantial increases across the board, particularly following the 2005 Program enhancements

The Value Proposition • Encourages giving to many organizations and causes • Empowers employees & retirees to direct GE’s charitable giving • Helps strengthen recipient charities and institutions • Builds internal reputation and goodwill • Demonstrates Company support of employee & retiree interests Matching Gifts EmployeeConcerns GE Fdn. $$ GE Foundation has matched more than $460M

Impact Examples Special Food & Shelter 2:1 Matching Gifts Partnerships–More than Just $$ Employee Responses • GE Aviation & the Lynn Shelter Association (Mass.): 250 volunteers donated 1,500 hours to rehab 10 apartments, build a library & computer center, & redo the lighting. Others have donated professional skills, such as IT employees providing computer support. President Bill Hayes said, "Since GE has gotten involved, the Association has been on an upswing. It has become highly respected in the community." • African American Forum (AAF) at GE Healthcare: conducted a food drive across the country, collecting more than 2,000 pounds of food for multiple charities. • “It is great to know that GE is still capable to support and help needed families during challenging times (financial crises all over the world).” • “The 2:1 is a great program and I am proud to be associated with a Company that believes in taking the extra step to support those of us who engage in philanthropic activities.” • “I was so pleased to tell my local shelter that GE would double my donation. This encouraged me to give more.”

Discussion Questions: • What does successful engagement look like to you? • What challenges have you overcome or continue to face in engaging employees? • What are your learning objectives for this conference?

Employee Engagement Today: Defining and Declaring the Value Proposition PANELISTS