“Corporate Social Responsibility” is a popular business buzz phrase, even though it’s far from a new concept.
It used to not have a name; it was just something a lot of companies did out of their own desire and sense of responsibility to do some good in their own communities. Now it’s got a name, and frequently a specific purpose, as well: Improve your company’s bottom line while contributing to society.
A good Corporate Social Responsibility (CSR) program can positively impact a business by improving its company image, building its brand and motivating the business owner as well as employees.
CSR was the topic of a free webcast hosted by the National Association of Plan Advisors (NAPA) and sponsored by Nuveen on June 24.
The hour-long event, “Creating a Practice with a Purpose: 3 ways Corporate Social Responsibility may improve your bottom line,” featured speakers Jason Chepenik of Chepenik Financial and Kathleen Kelly of Compass Financial Partners, as well as Brendan McCarthy of Nuveen and moderator Nevin Adams of the American Retirement Association.
“Historically, advisors are very engaged in their communities. Now we are applying terminology to what we’ve been doing,” Kelly said during the webcast.
The panelists took turns sharing their viewpoints on how 401k advisors can successfully develop a CSR policy, as well ways to align it with your brand, why it makes sense (cents?) and some of the challenges they can present.
Kelly and Chepenik also shared examples of successful CSR initiatives within their own companies, and how they have made a difference in areas such as client retention, prospecting and even recruiting new talent to their organizations.
Good for brand image
As financial advisors tend to get a bad rap in the media as the result of a few bad actors, CSR programs are just the kind of tonic that can counter that opinion by showing citizens in your community how you are making a positive impact.
This is something that is not lost on clients and potential clients.
“It matters to clients not just in a small way but in a huge way,” Chepenik said, noting that when prospective clients are looking for an advisory firm, they increasingly look for a cultural fit; an advisor who shares common interests and views that increase the likelihood they will be a good partner.
CSR can indeed be a valuable tool in demonstrating to potential clients that you have something in common that can extend a relationship well beyond simply providing a service. With a little research, you can often identify some common interests that can be useful as you navigate an RFP process.
Chepenik advises directly asking prospects about their CSR initiatives: “They like to hear that question,” he says, noting people are naturally proud of their efforts and will usually jump at the chance to talk about them.
McCarthy noted that virtually every college graduate these days has taken coursework relating to CSR, and every Fortune 500 company has incorporated CSR into their business model. Millennials who have grown up with a sense of CSR’s significance are now being promoted into leadership positions at potential client companies.
“Leading advisors understand that and are getting out in front of this trend,” McCarthy said, adding that it helps them to better connect with clients that are prioritizing CSR.
One way advisory firms are making that connection, Chepenik said, is with Millennial employees who already have that CSR mindset. “When we showcase those individuals to our prospects or our clients, they typically have someone just like them working in their company.”
Chepenik said the light bulb really went off for him when he hired someone who was motivated by the opportunity to work for more than just a paycheck and has backed it up.
“They all want to be part of something with purpose. They want to be part of an organization that does more than just pay them with dollars,” Chepenik said. “They’re all wanting to join organizations that have an active and engaged community-based program. Their purpose is more than just coming to work every day for a paycheck. They come with this already sort of built-in mission to make a difference.”
Kelly was quick to agree. “They want a purpose-driven experience at work. It certainly improves employee engagement,” she said, adding that she is really excited about the direction of her own company’s CSR program thanks to the efforts of a newer team member.
“The project work that we’re evaluating now are ideas that honestly would not have necessarily been what I would have come up with, Kelly said.
Case studies
In providing some examples of successful CSR initiatives within their advisory firms, Chepenik talked about his company’s popular “4.01K Race for Financial Fitness,” which has generated hundreds of thousands of dollars for Junior Achievement’s financial literacy efforts, while Kelly detailed her company’s annual Toys for Tots holiday luncheon.
“It has been just a fabulous partnership,” Kelly said of the luncheon, which doubles as a thank-you event for around 200 clients and friends who in turn bring toys to the luncheon on top of the toys donated by her company and its employees.
“It really is very heartwarming as we see the commitment of our clients to an organization that means so much to us,” Kelly said. “It really has been a win-win for us. Our clients are very engaged and the event keeps growing every year. We’ve been really delighted with how this has evolved over time.”
NAPA said the complete June 24 webcast will be available for replay in early July on its website.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
