December 2010
Feature Story



The Corporate Samaritan
Why corporate philanthropy and responsibility make good business sense
By Peter Mitchell


It’s not easy being a Good Samaritan in the 21st Century. The global economy has been incredibly volatile over the past ten years forcing us to tighten our belts as we do battle with rising costs and the fear of possible redundancy looming over the horizon. This instability appears to be mirrored in the planet itself as natural disasters grab the headlines with greater regularity and calls for help are broadcast with increasing desperation.  Locally, as we make the journey between our offices and homes, we are reminded daily of the poverty and pour souls that have been seemingly abandoned by loved ones and the world at large. We want to help; we want to do more; but even if we could, will our efforts really make a difference?

“I think people get overwhelmed with the size of a problem and the feeling that they don’t make a difference,” Jane Allison explains. “When in truth, everybody makes a difference. If you figure out that collective capital all together, that’s extraordinary.”

Allison is the Manager, Community Partnerships at the Hamilton Spectator. She is one of many Corporate Samaritans who have recognized that big problems require big solutions; solutions that big business can provide. Through SpecKids Unlimited, she works tirelessly to administer that collective capital to improve the lives of our youth. Those efforts, combined with the assistance of local partners and donors, have supported the Summer Camp Fund, The Jeff Dickins Memorial Award, Hess Kids Unlimited and other initiatives. They are investments that benefit the recipients, but like all investments they are made with an eye on the eventual return.

“Corporate Philanthropy is about making the community stronger,” she says. “And that includes making your business stronger. Corporate Philanthropy is not solely an altruistic intention. There is a lot of altruism in it, but it is also smart business.”

Grahame Browne, Vice President, Human Resources and General Administration at ArcelorMittal Dofasco agrees.

“You have to give the message of the altruistic side but businesses aren’t by their very nature altruistic. There is a reason for doing this,” he explains. “Sometimes it’s because it feels good, but for the most part there is a net benefit to the community or to the company itself. For example we invest in the arts. That’s the kind of investment that improves the quality of life in the community but also creates vibrancy that makes this an attractive place to come to. It brings talent into the community and it makes that potential talent much more interesting. That’s beneficial to us obviously because they become part of that pool of talent that we may draw on in the future. You want to make sure it’s a good social return on investment.”

ArcelorMittal Dofasco provides approximately $3 million a year to the community through employee donations, corporate donations and sponsorships. That money has filtered to a variety of causes including the St. Joseph’s Healthcare Foundation, the United Way, and neighbourhood food banks. Through sponsorships the company has supported the Bulldog, Theatre Aquarius, and HECFI among other organizations supporting local sports and culture.

Money talks obviously, but today’s socially responsible corporate philanthropists realizes there’s more than simply talking the talk; they have to walk the walk as well. They don’t just provide financial assistance, they offer much needed knowledge, expertise, services and volunteers to causes that simply don’t have those resources on their own.

“Typically we tend to take a more holistic view of our partnerships,” Browne explains. “We’ll contribute in a financial sense, but in many cases we also contribute volunteer time support. We have lots of folks here who volunteer. At the corporate level, we are active on a lot of Boards which allow us to help the governance of those organizations; allows us to provide insights in terms of financial and human resources, tax and legal issues, and all kinds of things. A lot of not for profits need that kind of support because they can’t afford to staff for it.”

That comprehensive approach is shared by Andrew Furgal at the Bank of Montreal. As Vice President, South Central Ontario District, he has seen hefty donations made to many organizations including the United Way, the Art Gallery of Hamilton, the Children’s Aid Society of Hamilton-Wentworth, the Dr. Bob Kemp Hospice, the Mohawk College Foundation, the YMCA and the  St. Joseph’s Healthcare Foundation. He also sits on the Board of Directors at the Art Gallery of Hamilton where he can provide valuable assistance in seeing how their money is spent.

“One of the things that banks in particular are good at are assessing business ventures,” Furgal says. “We can answer questions and provide suggestions as to how a particular charity might best either use the funds or do a better job in terms of applying for the funds. We will lend people to different organizations to volunteer with certain events or become part of certain causes. And it’s a two way street because we’ll get an opportunity to develop an employee by having them participate on a board. We can increase our employee skill base by giving them greater exposure to different things that are going on in the community, and by interacting with people from different companies through boards and other volunteer groups.”

That doesn’t necessarily mean the corporate cup runneth over. Requests for donations have increased dramatically in recent years, fueled in part by the downloading of funding from the federal, provincial and municipal governments. The money is no longer available through public coffers so charities are turning to the private sector in growing numbers. There simply isn’t enough supply to match the demand so businesses have to be more discerning in terms of who they are dealing with.

“Sometimes people will come to us with just get a letter: saying: We would like you to donate to our cause. There is no amount requested; and they’re not really telling us what they’re all about or what it is they’re trying to accomplish,” Furgal explains. “I can contrast that with the people who want to see us in person; who sit down and will tell us all about their organization; what it is they are trying to accomplish. And they will take it one step further by noting that we’re trying to accomplish the same thing. They’ll link it back to what they know our own corporate values to be, and present it almost as a partnership. It’s those proposals that catch our attention.”

“You take the time to really get to know the project you’re working on: what it really means, and the people who are running it,” Allison says. “And when you have to say no try to do it with as much respect as possible because it’s no this time, but not necessarily forever. In this community the circles are small and they intersect, so the likelihood that you will be working with people that you’ve turned down on another project is very high. Even if I say no, my goal is to have them walk away feeling okay about the exchange and happy to talk again at some future point.”


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