Are ERGs Leading The Next Era Of Corporate Giving?

In today’s corporate social impact landscape, Employee Resource Groups (ERGs) have emerged as a way to foster a sense of belonging and, increasingly, a powerful engine for promoting social impact.


ERGs are voluntary, employee-led groups that primarily provide support, increase access to resources, promote professional development, and enhance overall satisfaction for fellow employees with shared identities or interests. Unifying employees by creating connections through ERGs can be a powerful recruitment and retention tool and is increasingly important as companies struggle to create meaningful workplace culture in an ever-evolving hybrid or remote environment.

Beyond engaging and retaining top talent, leveraging employee participation through ERGs can provide additional benefits and support broader corporate citizenship strategy as overall headcount remains stagnant and professionals face increased demands to achieve greater and more impactful corporate citizenship goals.

In addition to fostering a sense of inclusion and deepening engagement, when well equipped, ERGs play a powerful role in corporate social responsibility efforts as catalysts for social change within their communities. Here are a few ways ERGs can support corporate social responsibility activities.

    1. Connect with nonprofit partners.

    ERGs can serve as a bridge between companies and nonprofit organizations that align with their mission and values. Through their networks and connections, ERGs can identify and establish relationships with nonprofits working on social issues relevant to their communities aligned with their corporate citizenship goals. This collaboration enables companies to make informed decisions about strategic partnerships and channel their resources to address critical social challenges effectively.

    2. Identify corporate grant recipients.

    Members of an ERG possess a collective understanding of the needs and challenges faced by others who hold their identities. By leveraging their unique perspectives, ERGs can lead your company in selecting potential grant recipients whose work aligns with your company-wide social impact goals. Their insight into specific issues can be invaluable in ensuring that grant funding is directed to deserving initiatives that are meaningful to these employees.

    3. Respond in times of disaster.

    In the wake of a disaster, it’s critical to understand the needs of the local community to inform a rapid and impactful response. Members of ERGs can tap into local networks, provide real-time updates about conditions on the ground, and share diverse perspectives to support timely mobilization of resources.

    PayPal is one company that established an ERG dedicated to disaster response. When a disaster strikes, the employees of this group are able to reach out to other ERG members, make donations, and/or support impacted employees. As the frequency and severity of disasters increase because of the climate crisis, ERGs provide a meaningful way to ensure employees and the communities where they live and work have the resources they need to thrive.

    4. Lead volunteering initiatives.

    ERGs have the power to mobilize employees and lead volunteer efforts both internally and externally in communities where employees live and work. By organizing volunteer events, ERGs create opportunities for employees to engage directly with causes that matter to them, resulting in a deeper sense of purpose and satisfaction. Additionally, ERGs focused on specific identities or communities can champion initiatives that address unique challenges faced by those groups, fostering a more inclusive and supportive environment.

Identifying group representatives who are familiar with the social sector and have a strong understanding of community needs is critical to maximizing the social impact of ERGs. These individuals can provide guidance, ensure strategic alignment with the company’s objectives, and drive initiatives that create tangible change. To unleash the power of ERGs, corporate leaders should clearly define and develop an understanding of each ERG’s purpose and goals, ensure activities are well aligned with broader social impact strategy, and provide leadership involvement and support.

ERGs have emerged as an influential force for social impact within companies. These employee leaders can help identify potential grant recipients, connect with nonprofit partners, support rapid disaster response, and lead volunteering efforts as agents of change within their communities. By fostering diverse and inclusive environments, companies can harness the collective power of ERGs to create authentic, community-led impact.

Interested in exploring new ways for your ERGs to influence your corporate philanthropy decisions?


Featured Photo: Microfinance for Low-Income Entrepreneurs in U.S. by Lending for Evanston and Northwestern Development

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