Companies step up community work, image matters

LOS ANGELES (Reuters) - Some U.S. companies are stepping up their involvement in social activities as research shows such issues are having an influence on what consumers buy and where they choose to work.

"The marketplace is demanding that companies share what they stand for, so companies are looking to align themselves around issues that are relevant to their business," said Jeff Terry, a vice president for Cone Inc, a Boston brand strategy and communications firm.

A survey of 330 business and private sector leaders released last month by the Business for Social Responsibility, a San Francisco nonprofit business association, found that 82 percent of respondents felt social responsibility would become a higher priority for companies in the next five years, driven by consumer behavior and concern about corporate reputations.

At a Habitat for Humanity project this week in Los Angeles, companies such as Home Depot Inc, Dow Chemical Co and Whirlpool Corp donated tools, insulation and other products to help build more than 30 homes.

"We believe that a part of our responsibility is to help society," said Brian Maynard, Whirlpool's director of corporate responsibility.

Whirlpool has donated $34 million to Habitat for Humanity globally in the last eight years. It gave 30 staffers time off with pay to participate in this week's Habitat build, an annual event hosted by former U.S. President Jimmy Carter to build homes for lower-income families.

The appliance maker also funds its own housing project called Building Blocks, a yearly event during which it works with Habitat affiliates to construct homes in various U.S. cities. Whirlpool built 10 homes in Nashville, Tennessee, in 2006, nine houses in Phoenix this year and will build in Dallas next year.

"If we help solve the issue of affordable housing..., ultimately you have healthier families, other homes get built, communities become stronger and self-sustaining and people buy appliances," Maynard said.

CHOICE OF WORKPLACE

This summer, Cone Inc published a survey of more than 1,000 U.S. residents that found that two-thirds of respondents considered a company's business practices or support for social issues when deciding what to buy.

The research found that 77 percent of Americans considered a company's commitment to social issues in choosing where to work, up from 48 percent in 2001. Sixty-six percent of respondents said social issues influenced decisions about which stocks or mutual funds to invest in, up from 40 percent six years ago.

"Multinational corporations are incorporating corporate citizenship into their business strategies and making it very much a part of how they serve their shareholders," said Bo Miller, corporate citizenship director for Dow Chemical, which contributed $500,000 in money and products to the Los Angeles Habitat project.

Terry, the Cone vice president, said companies with notable social responsibility activities included Avon Products Co, which sponsors walks to raise money for breast cancer, and McDonald's Corp, which aids under-served children through its global charities.