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Allstate: the case for giving

I suppose it is my own cynicism fuelling my assumption that of all the things to die in this economy, charitable giving will be just another log on the funeral pyre. With companies laying off workers like that is, in fact, their job, how does any organization have the resources to focus on giving elsewhere?

Much to my surprise, some companies are still making it a priority, and not only in the industries for which a recession is generally a boon (think canned soup and discount clothiers).

Ironically enough, it was a major reorganization kicked into gear by a stagnant return on equity and a conservative reputation that gave Allstate Canada the assets for its latest charitable venture.

"What women basically said was ‘be where I shop’," says Karyn Toon, director of corporate relations for Allstate Insurance Company of Canada, which has provided property and casualty insurance products to Canadians since 1953. Allstate Canada took the advice of female focus groups and moved agencies to high-visibility, well-lit retail locations. The move is 85 percent complete.

"In the process of opening these agencies, we end up with a lot of redundant furniture," explains Christianne Dostie, executive vice president, Allstate Canada, "we had to find a way to give it a second life." They found Jim Reid, founder and CEO of Green Solutions North America, which offers a socially and environmentally responsible alternative to landfill for physical assets. "[He] came to do a presentation," says Dostie. "Immediately we felt a good synergy."

Synergy is key, says Toon, who advises companies seeking a charitable partnership to "know your core values, your culture. Then, reach out to organizations that you think might match ... In the end, it’s not about the money, it’s about relationships. If relationships are strong, resources of all kinds can be brought to the table."

The relationship between Allstate Canada and one of its longest-standing partners was tested in 2006, when MADD Canada came under scrutiny. Toon admits it was a challenge, but one they worked on together. "We were provided the necessary access and openness to have our questions answered ... it all comes down to good, regular communication. It sounds simple, but it’s very important. Along with good record-keeping, of course."

"[Allstate Canada] became involved in the late 1980s when MADD had no staff and no structure," says Andrew Murie, CEO of MADD Canada. Back in the 1980s, Allstate Canada employees were helping with MADD’s red ribbon sales, "even rolling up coins," says Murie, of the rudimentary tasks that help build relationships between parties with aligned goals — in this case, making roads safer.

Relationships are essential, but without results, all is for naught. Says Reid: "Companies tend to develop [corporate social responsibility] policies at board level, sometimes removed from the day-to-day business activities; those policies don’t always connect with the actual business process ... One of the things that sets Allstate apart is that it bought into this right from the board room down, everyone in between has been getting involved and they have as a result made an enormous difference to over 70 charities and schools." For example, Allstate Canada asked employees to nominate a charity or other cause that needed supplies.

Since partnering with Green Solutions, Allstate Canada has redirected almost 300 metric tonnes of office materials. Rather than a large sum of money, it was used office supplies and employee goodwill that made the difference. As for MADD, an Allstate-funded paper concluding that the zero-blood-alcohol requirement for young drivers should extend to age 21 is now law in four provinces.

In the end, Toon reminds me, "A company’s reputation is its stock in trade, just as much as the quality of its products and the convenience and responsiveness of its services." I tend to believe her. I’ve certainly gone out of my way to shop at a particular store because a friend told me a heart-warming story. ("The cashier literally ran out and saved Fido!" "I was sulking and they gave me a free muffin!")

Says Toon: "It’s easy to be the company of choice when things are going well and you might compete by discounting your product, but it’s far harder to do this when everyone is in a tough place and you can’t afford to give up any more margin so you look for savings elsewhere. Aligned giving that makes a real difference to the communities you serve is, in this respect, not just the right thing to do, it is the smart thing to do and can give you the edge in tough times." After all, says Dostie, "if we’re about building trust with customers, you cannot just ignore what’s happening around you."

For more information on Allstate Canada, visit www.allstate.ca.

Image courtesy of stock xchng.

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It's nice to find that

It's nice to find that companies like Allstate Insurance, are still making it a priority to give.

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