5% Club Seeks New Members
By Doris Rubenstein
CityBusiness, February 9, 2001
The Greater Minneapolis Chamber of Commerce Keystone
Program has set itself an ambitious goal for 2001: to achieve an increase of nearly 15
percent in membership. While to some this does not seem an unreasonable or particularly
daunting accomplish-ment, for the Keystone Program it is a tremendous challenge. Why?
Because for more than four years, the membership in this organization that has symbolized
Minnesota’s leadership in business philanthropy has been stuck at around 260 and all
their most recent efforts to expand the membership have been unsuccessful. What’s
wrong?
First, let’s look at a little history. The Keystone
Program was founded in 1976 with commitments from 23 Minnesota companies to commit at
least two percent of their pre-tax earnings to address community needs. In fact, the
program has become known world-wide as the "Two Percent Club" and the "Five
Percent Club" (for businesses donating that amount for the communal good) and has
been copied extensively.
So, in 1976, there were 23 companies, including H.G.
Fuller, Graco, the Carlson Companies, and the predecessors to the Target Corporation and
Wells Fargo Bank Minnesota. In 2000, there were 258 participants representing companies of
all sizes, ownerships, and industry sectors. In other words, the Keystone Program grew
more than ten-fold over a period of 24 years.
But numbers can be deceiving. In 1997, there were 253
members. And of the 23 founding companies, only 14 are still members. At the Keystone
Program’s annual celebration last November, partly sponsored by CityBusiness, only
five companies were honored for 15 years of consecutive membership; and another nine
received recognition for ten consecutive years of participation. A simple analysis says
that the program is good, but it’s stuck.
The leadership of the Minnesota Keystone Program, with B.J.
French of Dain Rauscher, Inc. as Chairperson, and Dave Jennings as Executive Director,
have set a goal of 300 members as the organization moves towards its Silver Anniversary.
Where can or should those members come from?
Right now, 23% of Keystone member companies have over 500
employees and over 50% represent just two industry sectors: Business/Professional Services
and Finance/Insurance. This is disproportionate to the role these kinds of companies play
in Minnesota’s current business economy.
The greatest potential for new members is in the mid-market
and small business groups. Why haven’t they joined Keystone? Perhaps it is that they
don’t understand the lesson that Keystone members have learned: Doing good for the
community is good for business. According to Brian O’Connell in his 1999 book Civil
Society: The Under-pinnings of American Democracy, companies that received the Ad
Council’s Public Service Award showed annual growth in profits of 11% compounded over
30 years. That is three times better than the growth of the Gross National Product during
the same period!
Who are some of the mid-market firms who have stepped up to
the plate and pledged two percent? Architects like Ellerbe Becket; manufacturers like
Faribault Woolen Mills, Foldcraft, and Homecrest Industries; and building supplier Lyman
Lumber. Who has taken the plunge to pledge five percent? Manufacturers like Lindsay
Windows and Doors; warehousers Newport-St. Paul Cold Storage; and wholesale grocers Mason
Brothers. These are not all household names, but they want to see their names listed as
good citizens on the Keystone roster.
Perhaps part of the reason that mid-market companies
don’t give and join the Keystone Program is that they don’t know how to give,
it’s not in the plan or the budget. There are, however, new and ample ways to learn
how to create a plan that is consistent with the Keystone Program. Hamline University and
Augsburg College each offer a course, the Minnesota Council for Quality provides guidance,
and the Center for Ethical Business Cultures has resources.
The Minnesota Keystone Program is something that our
business community can point to with pride. It deserves to grow, because as it grows so
does the quality of life for all Minnesotans. |
