How Allstate Insurance Company's Community Relations Help Business

It should be common sense that good community relations will help a company to grow. “More than three out of four consumers report that a company’s community relations activities affect whether or not they do business with the company.” (Boston College) In other words, consumers will do business with companies that they can like, and a corporation has to give to its community in order to receive back.

Allstate Insurance Company employees contribute millions to the United Way alone during its annual Giving Campaign. More than half of the Company’s employees regularly participate in the campaign. The company then adds an additional 20% to each employee’s contribution to the charity of their choice. Since so many US corporations do participate in the United Way Giving Campaigns, it is important to have something even more special, which distinguishes an organization in the way of community relations.

Allstate created its Helping Hands Program in 1976 to organize and encourage existing volunteer efforts of employees nationwide. Today, over 50% of Allstate employees volunteer in their local communities. Activities range from renovating and rehabilitating homes with Habitat for Humanity, working in community soup kitchens, and conducting food and clothing drives to tutoring children and adults and encouraging disaster preparedness.

Other companies recognize Helping Hands as a model volunteer program. The program has been nationally recognized, winning former President Regan’s Volunteer Action Award (1985), the Presidential Award for Private Sector Initiatives (1987), and the Points of Light Foundation’s Award for Excellence in Corporate Community Service (1995). This recognition is obviously very beneficial to Allstate’s community relations.

The Helping Hands program, while greatly helping communities, also actively promotes Allstate’s image as a caring organization. It builds interest in the company and can help thwart negativity directed towards the company. (This is especially helpful to insurance companies who are sometimes “target defendants” in bad faith lawsuits.) “80% of consumers do business with a company because of its community involvement; 75% choose not to do business with companies perceived as not acting with the best interests of the community in mind.” (Boston College)

Allstate sponsored the 2002 Olympics, as well as the 2002 and 2004 US Olympic teams. This sponsorship allowed Allstate to reach a global audience and gain credibility as a member of the elite group of respected companies that have been Olympic sponsors, contributing strongly to the Allstate brand value.

This article is approved for informational purposes and is not intended to take the place of competent local legal counsel.

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