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Giving back in the business world

Corporate responsibility has several benefits for community-based businesses
Dougie Dog
Dougie Dog owner Dougie Luv is a regular at charity events across the Lower Mainland, such as this one that supported the 2014 Nite of Hope fundraiser for breast cancer research. File photo

Gregarious hot dog seller, and part showman, Dougie Luv is used to dealing with hungry customers as he pulls up to a location with his DougieDog Diner Truck.

But his business of selling all natural wieners to the masses doesn’t just end with filling bellies. Luv said he likes to send a message that reaching out to help those in need is also a big part of his business. That’s why he gets on board with numerous charity events such as the upcoming Mid-Autumn Charity Auction at Aberdeen Centre on Sept. 27 where his Dragon Dogs — certified in the Guinness Book of Records as the world’s most expensive hot dog at $100 each — will be one of the items on the charity auction block to help support the Richmond Food Bank.

“It’s just my way. I always like to give back to the community, no matter where it is,” said Luv. “And I meet a lot of people who approach me and tell me about fundraisers they have going on. And when I found out this one here involved the Richmond Food Bank, I love that because there’s nothing wrong with helping our own people.

“It’s just in my blood. I think it’s just my mission in life.”

While that may be the way it is for Luv, it would be naive to believe some companies take part in philanthropic ways without expecting some tangible benefits, said Andrea Niosi, a faculty member in the school of business at Kwantlen Polytechnic University, who teaches marketing. But even that is changing for some companies that see growing social good goes hand in hand with growing the bottom line.

Niosi said there’s often a few objectives companies have targeted when they sign on to help charities, and one of them is public relations, which allows them to be seen as having a closer connection to their immediate community.

“They look to gain goodwill from that. And another reason is it might give them a competitive advantage by having these connections, particularly if they’ve performed market research that indicates customers may have a strong affinity for companies and businesses that engage in philanthropy.”

Another aspect — one many don’t often address — involves projecting an image that would be viewed favourably by hiring prospects.

“Some companies will engage in these practices because they know people in the job market who are in a position where they have choice about which company to work for; they might prefer to work for a company that is more closely orientated with their community and engage in these (fundraising) activities,” Niosi said. “This could be a potential hiring strategy.”

While many firms are not that proactive, Niosi said, some are starting to go down that road.

“There’s a lot of research done these days that millennials (the generation reaching adulthood around the year 2000) are more likely to be drawn towards companies that build in some level of social good within their model,” Niosi said. “So, for companies looking to hire from this demographic, then this could be part of their value proposition for attracting talent.”

Some companies already employing that philosophy include shoe maker Toms which has a variety of philanthropic programs ranging from providing shoes to clean drinking water for people in needy countries.

Another is Regina-based TenTree Apparel which commits to plant 10 trees in developing communities around the globe for every product purchased.

“These are companies that actually build goodwill into their business,” Niosi said.

And that is changing in today’s world where generating social good, as well as a solid, profit-making enterprise, is changing the way some companies do business.

Called benefit corporations, Niosi said they are one of the best-kept secrets in business right now,” Niosi said. “These are companies that actually write into their articulation of incorporation that their stakeholders are not merely investors. They have to also provide benefit to the environment. They have to ensure safe working practices.

“They have built this level of giving, ensuring sustainability practices, philanthropy and whistle-blowing protection into corporate social responsibility. So, it’s not so much a marketing tactic, but a business strategy.”

One firm employing such a strategy is ice cream maker Ben & Jerry’s.

“Their benefit is not just a monetary one, it has social value for all of their stakeholders,” Niosi said. “They really take it to the next level and I think that’s where we’re going to see more development. So, companies are starting out with things like a charity auction, it’s a stepping stone. And hopefully we see a more authentic approach to engage with the community and not just purely for press reasons.”

Getting headlines is not the motivation behind Ashton Service Group’s charitable efforts, said Brian Williams, president of the Richmond-headquartered home repair firm that is also offering its services as a charity auction item.

“We don’t plan any of our events or gives,” he said. “Either I get a tap on the shoulder, or someone else in the business does, and the message is, hey, these people could use a hand. And if it feels right we go. We don’t look at it as revenue generating. We feel it’s just good business to give back.

“What we do for charity, it’s totally organic — from helping out the United Gospel Mission in Vancouver to the Richmond Christmas Fund — it just evolves,” William said.

It’s the same for Luv who said he never wears his business hat at charity events.

“The message is we can’t get caught up thinking about ourselves and our bottom line. I am sure we all look after staff. We all have families. We’re all in the same boat,” he said. “Helping out a charity, it’s something I can do, something I can raise. That’s all it is.”

For more about the Mid-Autumn Charity Auction at Aberdeen Centre, visit richmonddates.com.

 

Dougie Dogs owner Dougie Luv is a regular at charity events across the Lower Mainland, such as this one that supported the 2014 Nite of Hope fundraiser for breast cancer research. File photo