LBG: Defining Corporate Community Investment
28 August 2014 by Rida Daher
LBG or London Benchmarking Group is a corporate community investment model created to measure a company’s overall contribution to the community. The process involves the amounts of cash circulated, time, in-kind donations and also management costs. The model can further record a long term impact output of the contributions to the community.
The mission of LBG is then to ensure a benchmarking and measurement approach of corporate community investment (CCI) is in place. LBG is now considered the international standard to track CCI.
The model can also be used to:
- Predict trends about future directions of community activities which will help in better decision making
- Benchmark your company’s CCI performance against peers and similar organisations
- Communicate results and findings externally and internally
To understand the model we need to define three areas: INPUT, OUTPUT and IMPACT
INPUT: These includes cash we use for CCI, time we allocate for these activities, In-kind (including pro bono work) and management costs. The input is driven by charitable gifts, community investment, and commercial initiative in the community. Usually the issues addressed are education, health, economic development, environment, arts and culture, social welfare.
OUTPUT: Outputs are what happens as a result of the investment or time allocated to the input. The outputs can be categorised in two areas. Community outputs (individuals reached, organisations supported) and Business outputs (employees involved in the activities, media coverage achieved, customers reached, suppliers reached, and other influential stakeholders reached).
After the input and outputs are defined we then need to measure our IMPACT. Usually it is the change that results from a certain activity and the effect it has on individuals, organisations and the company itself. Impacts can be community related (on people, behaviour, attitude change, skills, quality of life etc.) organisation related (improved services, more clients, increased business profile, better volunteering etc.) or finally environmental related (impact on environment and on environmental behaviour).
It has also been noted that there may be business impacts related to employee volunteering time, personal well-being, behaviour change, human resource benefits, business generated and stakeholder perceptions.
When this is completed we add them all up and create a matrix in which we benchmark ourselves across the year, market and competitors. It is definitely not a simple process but worth the time and effort.
For more detailed approach on how to tackle the LBG model check this manual.