The nonprofit sector has long been the domain of organizations and individuals interested in philanthropic activities and charitable work. However, this is changing, as Corporate America discovers that nonprofits and employee-volunteering programs can be legitimate and useful business tools to promote their brand value.
The latest trend for companies is to create corporate nonprofit foundations and employee-volunteer programs to demonstrate corporate social responsibility (CSR). Although having noble missions, the real intention of these corporate nonprofit foundations and inspired employee-volunteer efforts is to enhance brand value, increase overall company profitability, grow customer loyalty, and reflect company values in tangible ways.
Two for-profit corporations, Bank of America and Toyota, are both enhancing their brand name through their respective nonprofit foundations and employee-volunteer programs, each of which helps Bank of America and Toyota to build stronger relations with their communities and stakeholders.
In this article, Kevin Kalra, himself a 2004 Toyota “Community Scholar,” explores what “brand value” is and how CSR furthers it.