Since launching Salesforce.com (NYSE: CRM) in the late 1990s, Marc Benioff has built a multi-billion dollar operation, which is still growing at a break-neck pace. Interestingly enough, Benioff thinks that a big key to success has been his company's philanthropic efforts – that has helped with employee morale, community involvement and even customer loyalty.
To this end, Benioff used the 1-1-1 model. When Salesforce.com was founded, 1% of the stock went into a foundation. After that, 1% of the profits were put into the foundation and employees have spent 1% of their time on philanthropic activities.
Last year, Benioff wrote a book on the topic, called The Business of Changing the World
So what can your business do?
"When we started our company," said Kristen Marie Schuerlein, who is the founder of Affirmagy, "we asked ourselves 'what qualities do we want more of in our lives?' And then we imagined wrapping ourselves, and those we love in those very qualities. Our entire R&D program was based on a donation of our Abundance blankets to group of ministers at a convention in San Diego. This was how we discovered how much our products resonated with people. We still get calls from that donation, asking how to buy our blankets."
Yet, she warns that such efforts take lots of time. What's more, you need to find a cause where your product, audience and charity are aligned. "People will not support a company that seems to be jumping on a bandwagon," said Schuerlein. "And people deserve to know why giving to a certain non-profit or certain cause is meaningful to the company no matter how big or small."
Partner Up
Brenda Novak has been writing books since 1993, such as romantic suspense novels. It's turned out to be a full-time business for her.
She also runs an online auction for diabetes research. On the first auction three years ago, there were more than 70,000 hits and 9,542 unique visitors.
Her advice:
1. "Look for something unique you have to offer and join forces with others who are in a similar or sideline business. What makes Brenda Novak's On-line Auction for Diabetes Research so successful is the fact that I bring major publishing professionals and fellow authors (many of whom are very famous) together to offer items and opportunities that can't be found anywhere else."
2. "Make sure there's a pay-off in it for everyone. Those who donate get significant publicity value for participating, which helps them build their business. Those who shop get unique, one-of-a-kind items and opportunities. The charity gets the research dollars. Even in philanthropy, people act according to self-interest much more often than public virtue, so don't fight that. You'll only get discouraged. Instead, use it to your advantage. Give everyone a reason to support your efforts and they will."
Tom Taulli operates SmallBizMix.com.
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Reader Comments (Page 1 of 1)
1-07-2008 @ 12:25PM
Mr nobody said...
This is an interesting article. There is a future and it can be better. Businesses are running america and the american life, so it seems that businesses can drastically effect laws, rights, and the lives of the american public and the world due to our businesses overseas. Business is not just a business, it is a work that someone builds up, and then touches or influences the public, with their advertising and labeling of the public, they make the public aware or who they are after they studied them to advertise to them. Advertisers are teaching the people who they are or should be. This is just one way that businesses knowingly are abusing their power.....
1-07-2008 @ 3:43PM
Bob Collins said...
The cost of college NEED NOT BANKRUPT your family ...
The COST of college continues to rise simply because it can. Americans have been taught to believe that, the more you spend on education, the better the education is. Yet, colleges have huge piles of cash (endowments) that grow every year.
Princeton, for example, has enough cash so that it could afford to stop charging tuition today and continue to operate on the interest earned by its endowment. But, of course, Princeton has no intention of doing anything but increasing its fees, by about 10% every year. A child born today will pay over $400,000 to attend Princeton.
Meanwhile, the NEED for a college education continues to grow, because of the increasing complexity of life in our society. Families with two or three kids are caught in the trap ... meaning that the parents or the kids or both, will graduate into debt.
In 1991 we discovered a way to get the kids to college and do so for virtually nothing! We discovered that all colleges love competitive sports and love to win. Our two kids were paid $250,000 to play soccer at SMU ... alma mater of First lady Laura Bush.
The "Cliff Notes" version of how our system works is ... begin early, then target schools with a good education and a weak team in your sport. Bring good grades and think "packaging, advertising, marketing and sales" all the way to a free education.
Our SYSTEM of publications has helped over a million families. Selected articles from the SYSTEM of publications are published weekly on the BLOG created and maintained by our partner, EUROSPORT, world's largest catalog retailer of soccer, lacrosse and rugby equipment. Read and subscribe to free Emailed posts at: http://www.soccer.com/studentathlete/index.blog
Let us know if we can help.
Bob Collins, Editor
www.student-athlete.net
1-07-2008 @ 5:18PM
David said...
I think that it is a great idea to do that kind of thing where multiple sources benefit from selling goods. It really makes it more worth while especially since it would go towards research for cures.
http://www.BeYourOwnBossPro.com
1-07-2008 @ 6:04PM
AAmerican said...
This is and has been a great idea. The act of "giving." The major takers have extra money in the bank. Money given for Katrina sits and has not been spent. Those who give have found that their money is better used by giving to smaller one to one dynamic organizations. If not for help small groups like focusas.com and hundrds more could not save lives in our country. Keep the thought going.
1-07-2008 @ 6:18PM
Laura said...
This has me thinking a bit more on a plan I had a few years back. Though I do enjoy being a sole prop I also know with growth we can offer so much more.
Much of what we have done over the years had not much to do with bringing in donation funds to help others. We just worked with what we had to give back to others if hopes that would spread to ohers. Our HUHO (Help Us Help Others) program brings people together, my hope is to make that side of my business a non-profit.
www.countrymoosekids.com/HUHO.html
1-07-2008 @ 10:41PM
Tony Vincent said...
This is what life is all about - giving and not taking. In todays world and fast paced environment, I do believe that at times, people do tend to forget what is truly important and/or lose their way as to what initially they intended to do or be. In the end, materialistic items are not important, but people are. It truly takes only one person to make a difference. It's only a matter of wanting to. The smallest thing, the smallest gesture, can mean the world to a person. "...want to change the world, there's nothing to it..." (As Gene Wilder sang).
Tony Vincent, Executive Security Agency
www.TheESA.us
1-10-2008 @ 8:48PM
MARY FIRESTONE said...
I LIKE THIS...PEOPLE REACHING OUT TO TEADH ME, INFORM, AND REMIND ME ...I WOULD LIKE MORE WORDS...ABOUT DEFINING TODAYS PUBLIC, TRENDS, WHAT MAKES THE EYE , TURN,
FOR A SECOND LOOK.THANK YOU.....VERY MUCH..
I AM AN ARTIST AND WORKED 30 YEARS IN RETAIL...HOW...CAN I COMBINE THE TWO AND MAKE MONEY...AND HAVE A PARTNER, ONE WHO
WILL BELIEVE IN ME...MY WORK...ARTWORK....
I CAN GO IN MANY DIRECTIONS WITH MY ART....THANK YOU