What is “Community Investment?”

When it comes to defining community investment, you can search the term and find something akin to, "Community investment refers to the practice of companies or individuals allocating resources, like money or time, to support initiatives that improve the quality of life within a local community, often focusing on addressing social, environmental, or economic needs, and can include activities like donating to charities, volunteering, or funding community projects1.” While accurate, this is just the starting point for a more nuanced conversation. 

Among the LBG Canada Network, there is a more compelling question that covers the widest range of actions with social impact. “Across these actions, which can be reported as community investment?”  

For 20 years now, companies involved in the LBG Canada network have advanced a reporting framework to enable consistent and credible reporting of investment in community. They care about the impact they are making in the communities they serve, so transparent and verified data is important to ensuring they accurately report their efforts to stakeholders and key audiences. 

Community Investment as a Core Corporate Value 

For some corporate leaders, community investment is central to their organization’s culture and vision. It’s about more than philanthropy—it’s a deliberate commitment to invest in the communities where they operate. However, recognition of these efforts remains a challenge when every company reports differently. 

The journey toward standardization is not new. Since 2005, companies within the LBG Canada network have demonstrated that consistent reporting of community and social impact is not only achievable but essential. These companies take pride in their investments and are prepared to be publicly accountable for them as part of their corporate performance. 

Corporate community investment takes many forms—some voluntary, some involuntary, and some strategic. By adhering to reporting standards, LBG Canada members ensure their investments are not just impactful but also their commitment to the practice is recognized and respected. 

The Power of Going Beyond 

Over the years, some have dismissed community investment and philanthropy as insignificant compared to broader sustainability efforts. While it’s true that Community Investment alone cannot solve local, national, or global challenges, it does have a unique and essential role. 

The realities that lie just beyond corporate boundaries influence the well-being of employees, customers, and suppliers. Companies operate in, hire from, and sell to communities across Canada and around the world.  Given this, it is clear common sense that every company would actively be seeking to strengthen the communities around them – physical communities and communities of interest.   

Since its inception, the LBG Canada Network has collectively invested $7.2 billion in initiatives designed to create meaningful social and environmental outcomes. Community investment and philanthropy, while not standalone solutions, are critical contributors to the collective efforts required to achieve sustainable social and environmental progress. 

Community Investment: A Defined Practice 

Community investment is a term so familiar that it’s easy to assume everyone is aligned on its meaning. However, actions that lead to social impact do not always qualify as community investment. Some activities can be reported as community investment, while others fall into different categories, such as procurement, HR initiatives, or product innovation. 

The companies within the LBG Canada network understand the importance of clear boundaries and consistent reporting. Community investment is versatile and fluid, but its definition and application must remain structured to maintain confidence and credibility in reporting. By distinguishing between different types of corporate initiatives, companies can better communicate their impact and contributions to society. 

The Path Forward 

Community investment is not just a “feel-good” initiative—it’s a strategic and measurable component of corporate performance. It allows businesses to contribute meaningfully to society while fostering trust and accountability with stakeholders. Through clear consistent reporting standards, companies can ensure their commitment to go beyond, and to invest to strengthen communities, is reported in a credible manner to key audiences and influencers.  

In a world that increasingly demands action on social and environmental issues, community investment provides an opportunity for companies to lead with purpose and inspire change. It’s more than a “thing”—it’s a commitment to go beyond.