Nov. 2008

Section: News

Study Examines Community Engagement and Competitiveness Factors

Contrary to what some commentators may say, businesses invest substantially in the competitiveness and quality of life of the local communities in which they operate. 

A 2007-2008 survey of business officials in the nation's 100-largest metro areas asked respondents which factors in their communities affect competitiveness. A later question asked what role the business sector has in influencing those factors.

Two aspects of competitiveness were examined: the ability of the company to recruit and retain quality employees, and the ability of the community to attract entrepreneurs and businesses.

To help local companies attract and retain talent, a community first must offer strong schools/educational opportunities, said the respondents (55 percent). Second-most important is affordability (52 percent), followed by a wide variety of job opportunities (41 percent).

To attract entrepreneurs and other businesses, respondents reported that communities need a strong local economy (53 percent), favorable tax rates (51 percent), and established business clusters (38 percent).

The survey also found that high taxes, the lack of a local qualified labor pool, and school quality are the top three factors that hinder community competitiveness (41 percent, 37 percent, and 31 percent, respectively).

Business respondents believed that companies have a role in addressing the lack of good jobs (44 percent), the lack of qualified employees (34 percent), and environmental conditions (30 percent).

Environmental conditions, however, was an answer seldom cited as hindering community competitiveness (5 percent), along with a lack of quality-of-life amenities (16 percent).

The study also explored how and why companies invest in the social and economic development of their communities. More than 80 percent of respondents reported that their companies have employees serving on nonprofit boards or committees, have memberships within community organizations, and support workplace giving or volunteerism programs.

Seventy-nine percent of company respondents said "doing the right thing and helping those in need" is a major goal of their community investment initiatives. Another 71 percent reported that "improving the quality of life in the community" is a major goal, and just over 50 percent said building "reputation and a loyal customer base" is a major focus.

Nine in 10 respondents said their companies support their communities by making cash donations, and 88 percent sponsor nonprofit organizations as part of their investment strategy. Almost 77 percent make in-kind donations, and 42 percent provide pro-bono services, such as legal or marketing services, to nonprofits.

More than half of the respondents said their employees are encouraged to volunteer while on company time. According to the results, employees are most likely to volunteer for educational organizations (28 percent) and community development organizations (25 percent).

The full findings from the study, funded by the U.S. Department of Commerce Economic Development Administration (EDA), will be unveiled on Dec. 11th during a live telecast discussion with BCLC Executive Director Stephen Jordan and Office Depot Foundation President Mary Wong. The discussion will take place as part of the EDA's telecast series, with the December segment focusing exclusively on the theme of corporate community investment.

Register here to participate in the telecast. The survey report will be made available on Dec. 11th in both print and online format. To request a copy in advance, please email me.

~ Kitty Taylor