The Centre for Corporate Public Affairs was recently commissioned by the Department of Families, Housing, Community Services and Indigenous Affairs (FAHCSIA) to research the impact of the global economic downturn on corporate community investment.
Key findings of the Centre's research are that while many companies in Australia are experiencing significant pressure on budgets, overall, companies are maintaining their commitments to corporate community investment.
For many of the largest companies in Australia, there continues to be a focus on strategic, long-term community investment. An important context to note is that large publicly owned companies in Australia are going through the transformation to a more strategic approach to community investment.
There is also a trend in major companies to expand long-term community investment to meet employee and community expectations and enhance reputation. A number of companies have cited relatively new and high-level corporate commitment to longer-term community investment as a protection against deep cuts in the current economic downturn.
In general, companies are anxious to avoid reputation damage and risks to trust with partners and communities by reducing community investment support in an environment of greater community need. Nevertheless, while there is an increase in demand for support from community organisations, we found that most companies are reluctant to engage in new relationships or expand existing activities.