Executive Summary

Sustaining Community Support In Tough Times

John G. Turner
President & CEO of the NWNL Companies

April 1992

Minnesota businesses have a long and proud tradition of supporting their communities, but the strength of that commitment is challenged when the economy is weak.

A company that sees hard times reflected in its own bottom line faces some hard questions about its social obligations: Exactly what is a company's responsibility to its community? Should its level of commitment to the community be tied to its own prosperity? What other options are available if the company must cut its charitable contributions?

No company operates in a vacuum. In its recent "Declaration of Interdependence," the life and health insurance industry formally recognized this fact: "Resolving social and economic problems enhances, directly and indirectly, the strength and stability of our business. Our industry cannot prosper if society fails."

I believe that a company's first obligation to itself and the community is to manage itself responsibly. In a tough economy, this may mean taking difficult steps that affect the community and its residents--cutting operations, reducing staff, decreasing contributions. No management enjoys taking such measures, especially if it prides itself on a strong role in the community. But a management group that does not take care of its business first cannot take care of the needs of others.

Yet, a company that is truly committed to its community need not forego that commitment, even in hard times. The key is a change in perspective. The question is not, "How much money can we afford to give?" but rather, "What resources do we have that the community needs?"

The most obvious answer to that question is the time, skill, and energy of employees. At NWNL, we give employees several opportunities to serve the community. First, we encourage people to volunteer their personal time by providing them with information about volunteer activities and recognition for their volunteer work. NWNL employees have put a tremendous amount of their own time and effort into the community over the years.

However, NWNL recognizes that employees have limited personal time for volunteer activities, particularly since some community work must be done during the business day. "Therefore, we make it possible for employees to volunteer up to 42 hours per year on "company time." As further encouragement, employees' volunteer time is matched by NWNL with small monetary grants to the organizations for which they volunteer.

In addition to their people, businesses have other resources to offer the community. In a service business, a wide variety of resources used to run the business may also be needed by community organizations.

No company can be expected to maintain a level of community support beyond its capability, but at the same time, a difficult economy is no excuse for abdicating responsibility. A wide variety of our resources may be of use. If we all do what is in our power, the fine reputation of our area remains assured.

Center for Ethical Business Cultures

1000 LaSalle Avenue, TMH 331 ▪ Minneapolis, MN 55403-2005 ▪ USA

Phone: 651 962 4120 or 800 328 6819 Ext. 2-4120 ▪ Facsimile: 651 962 4042

Email: mail@cebcglobal.org

© 1978-2008 Center for Ethical Business Cultures. All Rights Reserved.

Business Partnering with the University of St. Thomas - Minnesota