The global Corporate Social Responsibility Software Market is expected to grow to $1.4 million by 2028. The global CSR software market is dominated by key market players such as Tennaxia, Enablon, YourCause, Benevity, IPoint-systems, and CyberSWIFT. Companies that integrate CSR into their operations will see greater financial returns on investments and can improve attractiveness to investors. Based on type, the corporate social responsibility software market has been segmented into cloud-based and on-premise, and is segmented into Large Enterprises and SMEs. Key players in the global Corporate Social Responsibility (CSR) Software market are CyberSWIFT, IPoint-systems, YourCause, Givinga, FrontStream, GivePulse, CSRware, Inc., DonationXchange, Benevity, and Enablon.
How CSR Software Fits into Budgets of U.S. Enterprises
- An integrated CSR software platform helps companies manage their corporate giving and grants management programs, so they can be more agile and create more impact.
- The cost of alignment with CSR strategy involves assessing the corporation’s current CSR performance, explaining the CSR strategy to stakeholders for buy-in purposes, publishing the CSR commitments, and internal alignment of business units with the CSR strategy.
- Associated costs for operating a CSR program include cash and product expenses, employee time, training and hiring expenses (additional personnel to cover for the lost time and productivity due to volunteering), environmental activities, product transformations, operational costs, participation in global value chains, opportunity and other related activities costs such as matching employee donations.
U.S. Enterprise CSR Spending
- General Electric’s corporate matching program works as follows: If a worker at General Electric donates $50 to a nonprofit like the American Cancer Society, the company chips in $50 to the charity.
- Last year, U.S. companies that matched their workers’ donations contributed $2 to $3 billion in matched donations to nonprofits. CVS Health spent $100 million in charitable contributions, employee giving, in-store fundraising and in-kind donations.
- Larger corporations like Walmart, Amazon, and FedEx are among the companies that do not have matching gift programs for employees. In the U.S., Walmart associates volunteered more than 776,500 hours last year, and the company donated $7.6 million in volunteer grants of up to $250 each.
- Smaller companies with less than 5,000 employees like Airbnb are making a difference by being socially responsible and giving back to their communities. AirBnB (operating with 3,100 employees) runs Open Homes program that provides homes for free to those affected by conflict, disaster, or critical illness. The program has helped more than 25,000 people, and in 2019, the company invested $20 million to grow the platform. ***Note here- since AirBnB is a private company, the company does not break down its financial investments.
- In 2019, Trip Advisor (operating with 1,646 employees) spent $176 million for investing activities.
- TOMS Shoes Company, with 712 employees, has created a program called Toms Social Entrepreneurship Fund, investing from $25,000 to $250,000 in a dozen companies whose missions range from helping homeless and disabled artists to making organic food affordable.
- According to Business Today, in 2019, CSR spending increased to 18% with most companies investing up to 5% of profits in their communities and various charities.
Large US Enterprises CSR budgets and Proportions Dedicated to CSR Software and Employee Donation Matching
Although there are articles to support different organizations that are actively supporting CSR programs in their companies, the data in their annual reports does not separate active investment totals to single out CSR initiatives. Therefore, we have highlighted Walmart, General Electric, and CVS Health as three larger corporations that are participating in and encouraging employees to be active in their CSR campaigns. For most of the smaller companies, the information is not publicly available, as they are private companies who do not file annual reports, or limit what information is released. However, we have included three smaller companies, TOMS Shoes, Trip Advisor, and AirBnb to highlight their contributions investments for the 2019 period.
Using the above data, we can assume that criteria for CSR investment is at 5% of gross profits for U.S. Enterprises. Therefore, we can use this data to find the proportion of corporate spend that should apply to CSR donation matching using the 3 larger corporations:
- Walmart’s fiscal year 2019 revenue was $514.4 billion x 5%= $25.72 billion.
- As of 2019 the total revenue for General Electric was $95 billion.
- CVS Health finished 2019 with more than $256 billion in total revenues and an operating income of $12 billion.
Companies spend on average approximately $5.00 per employee for CSR software. With this information, we can use the approximate spend for CSR software to determine the proportion of revenues that should be spent by each company, using data on the number of employees for Walmart (2.2 million associates), CVS Health (300,000), and General Electric (205,000 employees):
- Walmart — $5.00 x 2.2 million= $11.0 million annually.
- CVS Health — $5.00 x 300,000= $1.5 million annually.
- General Electric — $5.00 x 205,000+ $1.025 million annually.