Month: April 2023

A few months ago, I was running a client workshop where we were defining new responsibilities for volunteer leaders at the company. After talking for a while about what volunteer leaders could do for “the community” someone piped up and said, “What do we even mean by community, though? Doesn’t that look different for different people?” And I thought that was a beautiful question, because community is complex – it is its own system. CSR practitioners are often focused so heavily on external communities that they can lose touch with the community right in front of them – their volunteer leaders.

Building volunteer leader networks is a core part of what we do at Realized Worth: we help practitioners find, recruit, and equip corporate volunteers to run Transformative social impact experiences for their peers. But our field is also at a point now where almost every company we work with already has a volunteer leader network. So, our work has in many cases become not just building volunteer leader networks but evolving them – improving them. And without a doubt the most common problem we encounter when doing this work is that practitioners aren’t viewing their network of volunteer leaders as a community. 

So, how can you nurture your network? How do you create and cultivate a community of volunteer leaders? What elements do you, as a practitioner, need to focus on when it comes to your volunteer leader network? Why does it even matter? We break it all down for you…

READ THE FULL BLOG.

BALTIMORE, April 12, 2023 /3BL Media/ – Baltimore-based global investment management firm T. Rowe Price (NASDAQ-GS: TROW) released its 2022 Community Snapshot, reinforcing the company’s commitment to community and demonstrating how corporate social responsibility and philanthropy are integral to the firm’s culture.

“Our commitment to our community is embedded in everything we do at T. Rowe Price. Our associates contribute to the community through the donation of their time, funds, and expertise,” said Raymone Jackson, global head of Corporate Social Responsibility. “We are proud of the culture of giving we have built at the firm and excited to share the effects of that culture in the 2022 Community Snapshot report.”

“We uplift our communities by supporting the causes our associates are passionate about and provide opportunities for them to make a community impact, as well as through the firm’s philanthropic giving in areas of financial well-being, youth empowerment, and creativity and innovation,” said John Brothers, president of the T. Rowe Price Foundation. “The T. Rowe Price Foundation is committed to pursuing the long-term success of the communities where T. Rowe Price associates live and work, just as the firm is committed to pursuing the long-term financial success of its clients.”

The report’s release during National Volunteer Month, a time to celebrate giving back, is intentional. T. Rowe Price associates have a long legacy of charitable involvement and nonprofit leadership. This year’s report highlights T. Rowe Price associates’ commitment to global serving, including efforts directed to support humanitarian aid. In response to the Russian invasion of Ukraine, T. Rowe Price donated to the United Nations Foundation’s Ukraine Humanitarian Fund.

Report highlights include: 

Giving 

$24.4 million total given by T. Rowe Price to communities, including direct grant, matching gifts, associate donations, sponsorships, and community and business memberships$500,000 donated to the United Nations Foundation’s Ukraine Humanitarian Fund

Service

28,700 hours volunteered by associates globally240 hours and over $46,000 donated in pro bono consulting services for area nonprofits through Business Volunteers Maryland skillCONNECT.

See the full 2022 Community Snapshot.

ABOUT T. ROWE PRICE 

Founded in 1937, Baltimore-based T. Rowe Price (troweprice.com) is a global investment management organization with U.S. $1.31 trillion in assets under management as of February 28, 2023. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. T. Rowe Price helps clients invest with confidence and can be found on Facebook, Instagram, LinkedIn, Twitter, and YouTube.

CONTACT T. ROWE PRICE, PUBLIC RELATIONS

Arminta Plater

T. Rowe Price

(240) 988-7418

arminta.plater@troweprice.com

If you pay attention to any news even vaguely related to corporate responsibility (news about sustainability, socially responsible investing, stakeholder capitalism, etc.) two acronyms will consistently pop up: CSR, which stands for corporate social responsibility, and ESG, which stands for environment, social, and governance.

It’s easy to conflate these two terms because, in truth, they’re different angles of measuring the same thing: a company’s impact on society. The main difference between CSR and ESG is that CSR is an internal initiative to fulfill a corporate purpose, while ESG reflects a company’s external impact. Social impact professionals must understand the difference between these two principles so they can help your organization live up to its values and make a positive impact on society.

What do CSR and ESG mean?

Put simply, CSR initiatives are determined and demonstrated in your organization’s internal culture and policies, while ESG is an external assessment of your organization’s impact on society. But, as with anything related to social impact, there’s a lot more nuance to take into account.

CSR focuses on an organization’s internally-defined social impact vision

Corporate social responsibility (CSR) refers to a company’s values, policies, and practices that address social, economic, and environmental issues. All of these facets are usually condensed into one corporate purpose statement. CSR is not externally mandated or regulated by outside bodies. Leadership, management, and employees develop these principles together and hold themselves internally accountable to them. Ideally, they’re embedded into the corporate culture and drive decisions regarding volunteering, community investment, and giving programs. 

ESG is a set of criteria for evaluating a company’s impact

Environmental, social, and governance (ESG) is an umbrella term that refers to criteria used by stakeholders (primarily investors) to assess a company’s impact on society. When evaluating investments, many investors look not only at a company’s traditional financial metrics but also at its ESG rating. 

A company will typically create an annual impact report to showcase (here’s an example from Nike) their ESG ratings. They help a company’s leaders, employees, investors, and consumers understand whether corporate decisions are having a positive impact.

How do CSR and ESG work together?

CSR, for the most part, makes up the “S” (or, social) part of ESG. The social aspect of ESG measures a company’s impact on society, including DEI initiatives, donations, volunteering, grantmaking, and more. These are much the same initiatives that make up a company’s CSR strategy which, again, the company defines internally. When putting together a report that external stakeholders can use to evaluate ESG criteria, a company will summarize its CSR efforts alongside its environment and governance efforts. 

Typically, CSR is qualitative due to the many nuances of measuring social impact, while ESG criteria tend to be quantitative. This dichotomy can lead to tension, as there is no solid agreed-upon way to quantify the impact of “S.” For example, a company’s volunteer program might aim to feed hungry kids in the community. “Meals distributed” doesn’t quite capture the full story, especially when studies show full bellies lead to higher grades over time.

This pressure to quantify the “S” in ESG stems from how much work that’s gone into quantifying the “E” in ESG. It’s easier to measure environmental impact through direct results, like C02 reduction and sustainable materials. There’s a clear before and after. Whereas the before and after of CSR efforts are much fuzzier. In fact, an ESG survey from 2021 found that 51% of investors consider “social” the most difficult element to analyze and embed in investment strategies. 

That said, a movement is building to demand companies and ratings agencies better define and measure social outcomes, so the “S” in ESG gets as much focus as the “E” and “G.” If companies better define how they measure their commitment to CSR, they’ll be more prepared to provide data demonstrating the social outcomes of their operations.  

ESG elevates what CSR started

The principles of CSR can be seen in the actions of early industrialists of the 20th century, like Andrew Carnegie and John D. Rockefeller, who spent billions on philanthropic causes. In 1953, the “father of CSR,” Howard Bowen, published Social Responsibilities of the Businessman, which condensed these attitudes into a manifesto of sorts that advocates for corporate ethics and social responsibility. From there, research and development of CSR principles continued through the late 20th century to today. 

The roots of ESG started with the anti-apartheid movement, which advocated for a ban on new investment in South Africa. The anti-apartheid movement was one of the first instances of a social issue becoming a shareholder issue. ESG came into the spotlight in 2006 when the United Nations launched the Principles for Responsible Investment. Sixty-three investment companies agreed to incorporate these ESG criteria into their financial evaluations.

Now, major institutional investors expect companies to commit to and report on ESG metrics. S&P and other ratings agencies collect and index ESG performance scores to provide these insights. Recently, there has been a new emphasis on the “S” in ESG, according to the 100 Best Corporate Citizens ranking, which recognizes ESG transparency and performance among the 1,000 largest U.S. public companies. The largest portion of that ranking, 45% of the overall weight, measures the social impact of companies.  

Why is it important for a social impact professional to know the difference between ESG and CSR?

CSR and ESG make good business sense. Companies with cultures that value and implement CSR principles enjoy increased employee morale and productivity, plus consumer loyalty, particularly in younger generations. Businesses that commit to both CSR and ESG have a competitive advantage. 

Put simply, investors aren’t the only ones interested in a company’s ESG ratings. Customers increasingly care about a brand’s impact on society. Younger generations would rather support companies that share their values, including a concern about issues like climate change and social inclusivity.

Some people fear the ESG movement is being compromised by investors and is losing its connection to the spirit of social impact. The term “ESG washing” targets companies that focus on reporting ESG metrics but not driving the internal transformation that results in creating environmental and social value for society. 

If CSR principles are not a foundational part of their culture, ethos, strategy, and operations, companies will find it challenging to achieve ESG goals and attract the right type of investors and employees who will demand and drive that change. 

Social impact professionals have a foot in both the philanthropic and corporate worlds. Understanding how CSR and ESG work together can help you bridge the gap between those two worlds. 

Take the next step: Get a comprehensive guide for launching and scaling your CSR program:

Learn how to launch and manage a corporate social responsibility (CSR) program to make a meaningful impact and build trust. Get the guide: “Launch and Scale Your Corporate Social Responsibility (CSR) Program“ to learn how to gauge the full impact of your efforts.

ESG gets the headlines, but CSR is the heartbeat. By keeping your company committed to the spirit and practices of CSR and ESG, you can help ensure a sustainable future for its employees, investors, and society. And a technology partner that can help you execute your CSR strategy can make all the difference in building that future.