A holistic view makes good business

The 61 million inhabitants of the UK are a generous crew. Despite the worst recession since the 1930s, recently published Charity Commission statistics reveal that a staggering £51.74bn was donated to some 160,000 UK registered charities in 2009.

This represents a 6.9% increase on the £48.4bn received the year before, even though the absolute number of charitable organisations declined by 8,000 over this period.

We retailers are well placed to participate in a range of charitable and community support initiatives. Many of our stores are located at the heart of local neighbourhoods. Our staff usually are recruited from the surrounding vicinity. And local residents regularly frequent our premises.

At both local and national level, retailers consistently feature alongside some of the country’s most generous supporters of charities, and of social inclusion programmes. While some of these ventures do generate welcome and positive media for the individual charitable concern and for its sponsors, many more such activities proceed in low key, almost unseen, ways. Critics might challenge “why then do it?”

Well, surely there are practical and moral imperatives. In our highly interconnected world of the 21st century, sensible business leaders increasingly recognise the need to adopt a more holistic view of how resources are developed, sustained, and deployed across the planet.

Boundaries within and between political, commercial, sociological and technological spheres are being abruptly discarded as irrelevant or even dangerous. Co-operative effort has to be higher on everyone’s agenda.

As well as fundraising, a diverse array of opportunities exist to contribute towards making a real difference to the lives of the communities in which our businesses operate. For example, volunteering time and expertise to schools or colleges can give students practical insights into the world of work. Equally, equipment or office supplies that have low or zero book value in our inventory may prove to be treasured support materials in an educational establishment.

Fostering in-house awareness of the “greening debate”, with a view to reducing or eliminating any adverse environmental effect of business operations, can provide tangible financial gains.

Similarly, reaching out to spend time with key players within community agencies leads to a better understanding of their aspirations, priorities and concerns. Scope exists to share information and views. Nurturing such contacts can generate sources of truly dispassionate commentary or advice on the impact of your business in its community.

Working towards responsible corporate citizenship certainly can advance a retailer’s stature within the wider social context. However, further significant potential benefits relate to staff and customer perceptions. Employees enjoy working for businesses that have a clear vision and values around partnerships in the community. The company’s desire to “put something back” engenders loyalty and a sense of purpose. Moreover, the enthusiasm of employees who are “advocates” of the business can inspire potential new colleagues, and stimulate an abundance of customer loyalty too.

Leo McKee is chief executive of BrightHouse.