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“Filling the Breech” (corporate philanthropy after 9-11),

Business New Haven, January 21, 2002

  Business New Haven is a regional business-to-business publication targeted toward and circulated to business owners and top managers at companies throughout south central Connecticut.

American corporations quickly responded to the terrible events of September 11 with unprecedented generosity and selflessness. Companies, from small mom-and-pop stores to corporate behemoths, gave abundantly - everything from food and clothing donations to grants aiding New York's small retailers to the establishment of scholarship funds to help pay for the education of children who lost parents in the attacks.

Since then, however, corporate giving has taken a steep plunge. In fact, many non-profit officials locally point to this unprecedented altruism in the wake of September 11 as a key driver of the troubling trend, while others blame it on the foundering economy.

Foundations, which have seen their endowments shrink along with stock values, are giving less, at the same time that profit-challenged corporations are cutting back on their philanthropy. As a result, many charitable agencies are being forced to slash budgets, cut staff and reduce non-essential services at a time when the neediest require more assistance than ever before.

Giving on the part of corporations is just as vulnerable to economic downturns as individual giving. During recessions, businesses, much like individuals, reduce expenditures, which includes scaling back on charitable donations.

But some companies are rising to the challenge despite the economic climate. True to their business mission, they're embracing an entrepreneurial approach to their corporate-giving programs emphasizing involvement through commitment.

The winners of this year's Corporate Citizen of the Year awards have inspired a deep generosity among their employees as a way of giving back to the communities where they live and work. All share a common interest in the well-being of the people who comprise these communities and are to be commended as exemplary corporate neighbors more interested in doing good than in just making dough. Like BNH's corporate citizens of the year: Anthem Blue Cross & Blue Shield of Connecticut, based in North Haven; Professional Products of Branford; and Crown High Foods of New Haven. Each exemplifies the largesse of spirit during these unsettling times, restoring both hope and encouragement to the region's disadvantaged - a pledge to community service and corporate philanthropy that strengthens us all.

America gives until it hurts, in good times and in bad, proportionally more in income and wealth than any other nation. With hundreds of thousands of people laid off over the past few months, they will continue to give, even if their charitable giving goes beyond what they can afford. Corporations possess the economic resources to do more even during recessions. And companies large and small must take the lead in setting the tone in philanthropic programs and give back, like our winners, to the communities they serve.

Large Company: Anthem Blue Cross & Blue Shield of Connecticut

Anthem Blue Cross & Blue Shield's diverse and sustained giving programs support initiatives directly related to its core business mission: healthy minds, healthy bodies and healthy communities. Anthem also wants to be a good corporate citizen and improve the overall well-being of the region and the communities it serves.

“We think that health goes beyond disease rates and hospital beds. There are events such as the arts and sports that can bring people together. These create a community's vitality,” explains Carol Pompano, Anthem's manager of public relations.

“Better health can be defined in many ways,” explains Pompano. “For example: fire safety. We do a lot with fire departments to help educate the public, help honor and promote fire and police personnel locally. It directly relates to building better communities.

“We also support school systems,” she adds. “Not only because we insure about 90 percent of the municipalities, but because those institutions provide and render important services and therefore are building healthier minds, healthier bodies and healthier communities.”

As one of the nation's largest health-care benefits companies, providing health, dental and vision benefit plans and life insurance and workers' compensation benefit management, Anthem's corporate giving policy focuses on three interwoven spheres: education, health/wellness and community. Its involvement in the community extends beyond money and physical health-education programs to support a wide range of community organizations both locally and statewide.

Anthem's healthy minds program (education), healthy bodies (health-oriented) and healthy communities (community projects and human services initiatives) assist the young and the old alike. And through the volunteer work of generous and caring associates (as Anthem calls its employees), it leads by example, too.

Cited as one of Fortune magazine's ten most admired health care companies last year, Anthem's history of social -initiatives stems from its inception as a mutual insurance company in the 1930s. Under Anthem's charter, it was required to dole out a certain amount of money each year for charitable causes.

The company has changed hands and names over the years, but today Anthem continues its long tradition of civic philanthropy with programs not only designed to do good deeds but to generate a healthier community.

“Anthem believes that the quality of our communities as a whole is directly related to the quality of educational projects that focus on healthy minds, bodies and communities,” explains Pampano.

“Education helps us open our minds to new possibilities, experience the world in new ways and meet the challenges that face us in our day-to-day lives,” she says. “That's why our 'Healthy Minds' initiative is such an important part of our overall community support mission. It provides support for special programs at public and private schools and universities, as well as to independent educational groups and associations, such as Americare.”

Anthem recognizes the need to stimulate a community through neighborhood revitalization programs that strengthens its residents. It actively encourages associates to directly support organizations and volunteer for a variety of organizations. Led by “power teams,” Anthem employees initiate a diverse range of community service projects from sponsoring programs such as Big Brothers & Big Sisters to such mundane chores as raking leaves for the elderly in our neighborhoods.

In New Haven, Anthem is also a strong supporter of arts, music, theater, sports and special community events ranging from support of local theaters such as the Shubert and Long Wharf to the Pilot Pen Tennis Tournament.

“Last year, we were approached by the Regional Cultural Planning Committee of Greater New Haven to make a long-term grant that would help stabilize the arts in New Haven,” Pompano says. “We donated $100,000 over a five-year period. We thought it was a good idea because it helps multiple organizations over a long-term period. It's not just a one-shot sum of money.“

It identifies causes from just about everywhere, but its charity of choice is the United Way. The company donates funds to United Way member agencies primarily through their annual associate and corporate campaigns, rather than directly to member agencies. In addition, Anthem gives hundreds of thousands of dollars annually to numerous non-profit organizations.

“Not only do we donate money to worthy causes, but we also donate resources,” says Pompano. “Our associates were recently at CPTV taking pledges. They took it on in their own free time and really enjoyed themselves. Our associates are very caring and generous people. And when we ask for their help, they are always willing, able and ready.”

Mid-Sized Company: Professional Products of North Branford

Professional Products, a wholesale distributor of professional beauty products to salons, defies the conventional philanthropic wisdom by raising money and donating products to worthy causes as if the economy weren't in a downturn. The company, acquired in June by beauty giant Alberto Culver Inc., invests hundreds of person-hours on its annual event developed specifically for the Hole in the Wall Gang, raising nearly $270,000 since 1997.

“Our event was inspired by Ellen Bobrow, a regional vice president who works for Paul Mitchell and lives in Connecticut,” explains David Dolan, the company's vice president of operations. “She had visited the camp back in 1997 with one of our district salon consultants and talked to us quite extensively about the camp.”

The Hole in the Wall Gang Camp, founded by actor Paul Newman in 1988, is a non-profit residential summer camp. An awe-inspiring Wild West hideout in northeastern Connecticut, it provides year-round activities for children with cancer or other serious blood diseases.

Bobrow “invited us collectively to join in her efforts to raise money,” says Dolan. “Because we don't touch the public directly, we decided to put together 'Hope Kits' that our customers, the salons, would sell to their customers.”

With the help of John Paul Mitchell Systems, the staff filled the Hope Kits with two of Mitchell's best-selling products. Local suppliers of Professional Products contributed free of charge their time and efforts creating posters, stickers and tags for the kits and for the salon-recognition program. For a donation of $10, a consumer would receive the kit and a sticker placed on the poster in the salon. $7.50 from each sale goes directly to the Hole in the Wall Camp, with the remaining $2.50 going to Paul Mitchell to cover the cost of the product.

“Our salon consultants go out into the salons and ask for pre-commitments,” Dolan explains. “ They do that entirely on their own time. The response from salon owners has been outstanding.”

Sales in recent months, however, were down from last year due in part to individual salons that sponsored “cut-a-thons” to raise money for the September 11 attacks in Washington and New York.

As Dolan explains: “118 salons across Connecticut participated this year, which was off from the previous two years. We had a 15-percent dropout rate, primarily because of the events of September 11, which had diverted their attention. Frankly, it was somewhat disappointing. You always want to do more than you did last year.”

Following the two-week campaign, Professional Products sponsors a reception at the camp as a way of thanking the salons for their fundraising efforts.

“We bring in speakers, food and generally have a great time,” Dolan says. “It also brings us that much closer to our cause.”

In addition, the company donates products and merchandise to many salons for causes such as American Cancer Society, women's shelters and families in distress. The company generates thousands of dollars every month to help the communities where the salons operate.

“It's a way for us to give back to the community because we don't touch individual consumers directly,” Dolan says. “We really wanted the salons to get the recognition, which is why we structured this event as such. But it's really about the children. There are hundreds of worthy causes out there, but we felt by touching the lives of children, we could really make a difference.”

Small Company: Crown High Foods

New Haven-based Crown High Foods dedicates itself to working with local shelters in need and training the kitchen staffs of tomorrow through the magic world of culinary arts.

A family-owned business - owners Claire and Paul Bauknecht are assisted by their sons, Kurt, Dean and Marc - help shelters provide a little ray of light during the holiday season in addition to helping children with special needs realize their dormant cooking potential by offering them an opportunity to work in their kitchen.

“Our involvement in charitable events all started at the request of Vincent Saracelli,” says Claire Bauknecht. “He invited us to cater cocktails and hors d'oeuvres for Juvenile Diabetes fundraising events. We started doing small jobs at the Shubert and before you knew it, we were doing more and more.”

Since that day, Crown High has crafted a philanthropic agenda and currently employs high school kids with special needs and teaches them food preparation while instilling cooperation, organization and good work habits. Ample kitchen time enables students to achieve the skills and competencies sought by culinary employers.

The Bauknecht family serves as mentors to the students and during summer vacation employs several full-time. Student workers in the kitchen at Crown High do more than just provide cheap labor, they are an integral part of the business's philosophy.

“We need to be conscious of the needy not only at Christmas but throughout the year,” says Claire Bauknecht. “ The smallest, simplest gesture can really make a difference in someone's life.”

Crown High's philanthropic efforts have borne fruit in more ways than one. Several years ago, the Bauknecht sons heard about a shelter in New Haven that didn't have money to buy Christmas gifts for its residents. The family decided to put up a tree in their store decorated with tags listing items needed by the residents of Women in Crisis, a local women's shelter. Customers donated items and the presents were wrapped, tagged with their name and given to the women.

“It was a very touching moment,” she recalls. “To our amazement, we received a truckload of gifts. [For some recipients] it was the first wrapped gifts they ever received for Christmas. All the gifts had the women's names on it. They were more than shocked. We had such an outpouring of support that we decided to continue it the next year.”

That caring gesture generated new trees, as the business expanded. (Crown High now prepares food for the cafeterias of several companies, including SNET and Yale.) Working with five local shelters, they set up Christmas trees at each of the five sites. Each tree is covered with tags listing items needed by the residents of the shelters, such as gloves and hats. Employees are encouraged to purchase items listed on the tags, which Crown High then delivers to the shelters. In its sixth year, the initiative resulted in 750 items being delivered to the shelters in 2001. The effort took more than three hours.

“It was exhausting,” Bauknecht says, “but a good exhaustion. Each shelter had given us specific Christmas tags with items that were needed. We just put the tags up and the trees. And through the generosity of our customers we are distributing much-needed gifts. Without the caring and generosity of the employees at our cafeterias, our efforts would not be successful.

“Our customers have always been very receptive to the idea,” Bauknecht says. “ They want to give back to the city, and this is their way of helping. Although people are concerned right now about the economy, there are many children and families in dire need of help and our donations, no matter how large or small - we can have a major impact on their lives.”

In addition to these philanthropic gestures, the Bauknecht family over the past three years has provided lunch for the 300 to 400 people who participate in the Domestic Violence Service of Greater New Haven's annual Walkathon, that organization's largest annual fundraiser. Crown High cooks the food on the premises and provides the setup and the personnel to serve the volunteers.

And 2002 may bring yet another activity for the family-owned operation. Crown High has been asked to participate in a culinary art program in the New Haven public-schools system. Paul, Claire's husband and partner, a graduate of the Culinary Institute and the University of New Haven, has the desire and ability to teach students his secrets. Native Elm City residents, they are just happy they can reach people who need help.