Hartford Business Journal

www.HartfordBusiness.com • May 14, 2018 • Hartford Business Journal 25 OTHER VOICES Philanthropy is good business By Deborah Rothstein R unning a business today is all-consuming — especially due to the increasing pressure of employee and customer expectations. We know that talent is at the top of every business leader's list of con- cerns: attracting and retaining talent, increasing employee engagement, and meeting the expectations of being a solid community partner and positive steward of social capital. In my role, I find that business leaders are often in search of new and effective ways to increase their bottom line and address these pressing social concerns. The data continues to support this trend. The 2018 edition of the Deloitte Global Human Capital Trends study reports that 88 percent of Millennials think employers should play a role in ad- dressing social concerns (such as income inequality and the environ- ment); 86 percent think business success should be measured by more than profits; and 67 percent prefer to work for companies seen as socially responsible. And when it comes to employee retention, the study reported that Millennials who see their employer supporting the local community are 38 percent more likely to stay with that company for five years. So how can business owners build social capital and their reputation for giving back? Some businesses offer workplace giving and matching gifts. Paid vacation days for volunteer activi- ties are gaining popularity. Larger em- ployers may even create a corporate foundation, or may coordinate giving through a centralized unit within operations or human resources. I've observed that many small- to mid-sized employers are turning to more creative approaches, like busi- ness donor-advised funds, to meet their employees' need to make a lasting community impact. A donor- advised fund allows individuals and families to centralize their giving in one fund and make distributions to nonprofits on their own timetable. Business donor-advised funds operate in much the same way. Employees and employers make contributions to a fund and collectively decide where the grants go in the community. Employees become engaged when given the opportunity to select the nonprofit recipients, especially when an employee committee is ap- pointed to make the giving decisions. An example of a socially conscious business with a business donor-ad- vised fund is American Eagle Finan- cial Credit Union. In an effort to be strategic in their grant-making, they established a donor-advised fund in 2010 at the Hartford Foundation for Public Giving to foster charitable giv- ing and community outreach. The credit union focuses their con- tributions and volunteer resources on three general categories: education and youth, basic human needs and community development. They host fundraisers annually to raise money to support the fund. Their employees also engage by participating in volun- teer events with their grantees. For example, credit union employees have volunteered with Foodshare's Turkey Drive at Thanksgiving time, worked in the Salvation Army's holi- day store during Christmas time, and have spent the day teaching Junior Achievement's community curriculum in an elementary school in Newington. According to Dean Marchessault, president and CEO of American Eagle Financial Credit Union, "The structure of this fund allows the credit union to be actively involved with fundraising and charitable giving. It puts us in an excellent position to demonstrate our ongoing commitment to community outreach and development." According to the 2018 Business ROI of Social Investments report, when businesses actively search out ways to increase their social capital and com- munity partnerships the results are powerful. The report cited several posi- tive financial outcomes, including a 20 percent increase in sales, a 13 percent increase in productivity and a 50 per- cent decrease in employee turnover. By utilizing a creative approach to corporate giving, business leaders can help engage and retain talent, address community concerns and support the bottom line. The resulting increase in employee engagement and retention creates a lasting spirit of community that appeals to young talent. Deborah Rothstein is the vice president for development at the Hartford Foundation for Public Giving. HARTFORDBUSINESS.COM POLL LAST WEEK'S POLL RESULT: Should out-of-state companies be able to buy Connecticut water companies? NEXT WEEK'S POLL: Will higher gas prices make you travel less this summer? To vote, go online to hartfordbusiness.com BIZ BOOKS How to build a service business from the dirt up By Jim Pawlak "Blue-Collar Gold — How to Build a Service Business from the Dirt Up" by Mark Stoner (Next Century Publishing, $14.95). The service sec- tor of the economy isn't confined to retailing. People forget about the blue-collar trades until the plumbing leaks, the furnace dies, the washer won't wash, etc. Stoner, like many others with skills you can't learn in college, became a well-paid profes- sional in the B2C and B2B skilled-trades markets. In 2003, he was a one-man chimney-sweeping operation; he built the operation into a multimillion-dollar chimney-service company. Stoner touts the opportunity of blue- collar service businesses because, even in the worst of economic times, people need things fixed and preventive main- tenance done. Also, starting a blue-collar business doesn't require lots of money. In addition to the requisite skills and credentials, you'll need the tools of your trade and a vehicle — and you can work from home. While many trade businesses are prosperous one-person op- erations, they're also one misstep from going out of business. In 2003, Stoner learned that lesson when he fell off a roof while cleaning a chimney. He was "out of business" for months as the broken bones mended. During his recovery, he thought about building a bigger business by training/ employing others in his trade. Growing a business required a differ- ent mindset and skills from that of the sole proprietor focused on "staying busy." Instead of relying on himself to do every- thing, he had to lead, train and manage others. Stoner's new skills were acquired through reading, networking in trade associations and continuing education. Mastering those skills took time as he learned from trial and error, too. Key takeaway: Imagine what a success- ful business looks like from your view and the views of your employees. Refer- ence it often to guide your decisions. 70.5% No 29.5% Yes READER COMMENTS: "No, the water belongs to us and no one has a right to buy it. It is not for sale." "Private ownership is generally preferable to public ownership, especially when owners are small and local. But so long as the consumer protection regulatory bodies remain essentially ineffective, as they have been for years, we should not allow our water utilities to be acquired by large companies with big lobbying budgets." "As long as they create a local presence for maintenance and customer service." Deborah Rothstein Jim Pawlak Book Review

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