Corporate social responsibility (which is also known as CSR) has evolved as an essential business trend, becoming a fundamental aspect of companies’ social, environmental, and philanthropic practices. Today, companies are increasingly expected to demonstrate their commitment to doing good as a way to appeal to employees and customers alike—all while supporting communities and driving mission impact.
But in order to reap the maximum benefits, you’ll need to do more than simply participate in CSR activities. You’ll want to establish a plan for tracking, measuring, and reporting on the activities in which you—and your employees—participate.
So, how can you do this effectively? It’s all about tracking the right data. In this guide, we’ll walk you through six essential metrics your company should monitor and how you can use the insights gleaned to identify areas for improvement and demonstrate impact to stakeholders.
- Total corporate giving
- Matching gifts paid out
- Volunteer grants contributed
- Employee participation rate
- Nonprofits supported
- Staff turnover rate
In order to calculate the success of your CSR and philanthropy efforts, you’ll need to know what information to measure. We recommend beginning with these core metrics.
Let’s dive in!
1. Total corporate giving
Starting off, total corporate giving refers to the sum of all monetary contributions a company makes to charitable initiatives. This should include all cash donations, grants, matching gifts, event sponsorships, and more.
For companies engaged in CSR, the metric signifies their commitment to overall social responsibility and their impact on the communities in which they operate. Knowing this figure is crucial for boosting charitability efforts as it reflects the company’s generosity and dedication to making a difference by collaborating with mission-focused organizations.
To calculate the sum of your company’s corporate giving efforts, simply total the donations made within a specific time frame (e.g., a single fiscal year).
2. Matching gifts paid out
One of the best ways to boost your company’s CSR is by offering matching gifts. In order to measure the impact of your donation-matching initiatives, however, it’s important to have a mechanism in place for fulfilling and tracking your matches.
That’s where our second metric comes in! Matching gifts paid out refers to the total funds or number of completed matches provided by your company to match existing donations made by employees. This metric demonstrates the company’s support for employee giving and showcases the success of the philanthropy program.
To calculate total matching gifts, track and match employee donations according to your company’s matching gift program guidelines. Then, add the sum of all matching gift requests paid out.
3. Volunteer grants contributed
The number of volunteer grants contributed to qualifying nonprofits is an essential metric to track, too. This figure represents the total amount of revenue contributed through “Dollars for Doers” programs where your company supplies generous grant funding to nonprofit organizations where its staff volunteer.
Overall, this metric showcases your company’s support for employee volunteerism and its dedication to investing in community service.
To calculate the total number of volunteer grants contributed, multiply the funding amount your company has allocated per hour by the total number of volunteer hours logged by employees.
4. Employee participation rate
Corporate giving programs benefit not only your company and your community but also its employees and other essential stakeholders, too. And when your company invests its time and resources in organizing team-wide philanthropy initiatives, you want your employees to get involved!
Fortunately, calculating the percentage of your employee base that participates in philanthropic programming allows your team to establish a level of engagement across your business. Understanding your participation rate is essential for boosting CSR efforts by uncovering wins and identifying gaps in communication.
To calculate your company’s employee participation rate, divide the number of employees who participate in existing workplace giving programs by the total number of employees. Then, multiply the total by 100.
5. Nonprofits supported
Between matching gifts, volunteer grants, and other existing corporate giving initiatives (especially those guided by employee involvement), your company likely supports a wide range of nonprofit causes. Calculating the total number of organizations you contribute funding (or in-kind goods and services) through your CSR programs allows you to demonstrate the extent of your impact on various social causes.
To calculate the number of nonprofits supported, a company would compile a list of all organizations to which it has contributed in a specific period and then add the sum.
6. Staff turnover rate
Finally, your staff turnover rate represents the percentage of employees who leave the company within a given time frame. In the context of CSR, this metric indirectly reflects employee satisfaction, engagement, and commitment to social values. Understanding the impact of your social responsibility efforts on your staff turnover rate allows you to highlight the correlation between a positive workplace culture and increased employee retention.
According to CSR statistics from Double the Donation, individuals who participate in workplace giving have, on average, 75% longer tenure with their companies. Research from Project ROI even reports that philanthropy programs can reduce staff turnover by up to 50%—ultimately saving companies an average of 90-200% of each retained employee’s salary.
While you likely can’t attribute a low turnover rate to your social responsibility in its entirety, a sudden drop in employee attrition after rolling out a new giving program can certainly indicate a positive correlation.
To calculate the staff turnover rate, a company would divide the number of employees who left during the period by the average number of employees and multiply by 100.
Metric-tracking is a numbers game—and it’s essential for gaining valuable insights into your overall impact and progress toward your goals. But it doesn’t have to be difficult!
Embracing meaningful metrics like these can empower your company to boost its social impact through programs like corporate matching gifts, volunteer grants, and more. And, when you organize your efforts through an innovative CSR platform, reporting is easier than ever.
Good luck!
