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Corporate Social Responsibility
Now Recognized as
One of 5 Key Components of
Best Run Companies
December 14, 2018
The Wall Street Journal’s recent report on leadership described the takeaways of the 2018 Management Top 250, a guide to the most effectively managed companies based on the principles of Peter Drucker, the father of modern business philosophy and practice. The researchers at the highly regarded Claremont Graduate University’s Drucker Institute conducted the study and compiled the results.
The five core principles of management on which companies were evaluated are:
- Financial strength, based on five years of shareholder returns
- Customer satisfaction
- Employee engagement and development
- Social responsibility
According to the WSJ, the listing provides a look inside how the best run companies address the competing demands on leadership today. Effective management is a series of positive practices, not a single policy or practice.
According to the list, the 10 companies that get the highest mark in 2018 based on Drucker’s five key areas of management are:
- Apple Inc.
- Amazon.com Inc.
- Microsoft Corp.
- Nvidia Corp.
- Intel Corp.
- Alphabet Inc.
- Accenture PLC
- Johnson & Johnson
- Procter & Gamble
- International Business Machines Corp.
This study is further confirmation that Corporate Social Responsibility (CSR) is a key factor in today’s business success. From building better communities to attracting and retaining top talent, CSR is seen as an essential element of success for companies of all sizes. One efficient and effective way for companies to accomplish this goal is by improving the community they are part of (as they define it). This can be done by partnering with and financially supporting the missions of nonprofits aligned with a company’s interests or passions which add value to the community.
As the leading Think and Do Tank advancing the greater good through recognition of the substantial business value of CSR, the Satell Institute recognizes that companies are the biggest, but not the only, beneficiary of CSR. When cities have more people of talent moving in, that’s good for business. Strong nonprofit services that add to the quality of life in communities attract more top talent and that’s good for business. Studies also show that people prefer to work for and shop with companies that care about the community because it improves their lives and those of their children and grandchildren.
Investing in the greater good through strong, supportive partnerships with community nonprofits has been shown to yield both improved social impact and greater business returns. The mounting evidence on CSR – including this most recent WSJ ranking – is another set of data points to show that CSR is increasingly essential to business success.
Recent New Member Growth and Recognition
The Institute’s membership continues to expand with great companies and private foundations choosing to support Corporate Social Responsibility (CSR) by becoming part of The Collective Force of Businesses and Foundations Working for the Greater Good. They recognize a collective force can do more for communities than any organization can do on its own. Still, each member’s contributions go directly to the nonprofits of their choice. We welcome the following new members, listed in random order, among the several dozen who have recently joined. More will be listed next week.
“Founded in 1985, Main Line Health® is a not-for-profit health system serving portions of Philadelphia and its western suburbs. At its core are four of the region’s most respected acute care hospitals—Lankenau Medical Center, Bryn Mawr Hospital, Paoli Hospital and Riddle Hospital—as well as one of the nation’s premier facilities for rehabilitative medicine, Bryn Mawr Rehabilitation Hospital.”
Conservest Capital Advisors, Inc.
“Conservest Capital Advisors, Inc. is a boutique client focused investment advisory and financial planning firm providing services on a fee-only basis…Our client portfolios are unique and individually managed. We do not use a “cookie-cutter” approach to managing portfolios.”
Founded in 1938 by the Gushner brothers, Boyds became a landmark of Philadelphia’s retail scene with elegant décor and classic, stylish apparel for men and women. Boyds quickly gained a reputation as “the” place to shop, building a family tradition of quality and exceptional customer service that continues today. With each new generation of Gushners, Boyds continues to evolve to meet the product and service needs of customers.
The Alike Foundation
The Alike Foundation was created by Brad Aronson the founder of the interactive advertising agency, i-FRONTIER. The company started in Aronson’s bedroom and grew to be one of the top-rated interactive agencies in the U.S., eventually selling to Microsoft. In addition to advising and investing in startups, Aronson focuses his time and board service on multiple nonprofits that serve youth.
Morgan Stanley (Philadelphia)
Morgan Stanley financial advisors “strive to earn the trust and help achieve the goals of many individuals, families, and institutions.” With a full suite of services, this national organization looks to deliver the resources that can best accomplish each client’s unique goals.
How Organizations Gain the Benefits of Members
To receive the benefits of membership, organizations agree it’s of business value to support CSR by contributing a minimum of $25,000 a year for four years (minimum of $100,000 total) to a nonprofit of their choice. Some members proudly choose to contribute to multiple nonprofits (two, three, four or more). The unique four-year commitment requirement allows nonprofits the stable funding needed to support multi-year programs vital to their mission.
The Satell Institute is supported by its own endowment and charges no fees or dues to members or the nonprofits supported.
For more information, www.satellinstitute.org.