SAN DIEGO -- National Credit Union Foundation Executive Director Steve Delfin and DE Program Director Tom Decker debuted some new material during a breakout session at the California and Nevada Credit Union Leagues annual meeting last week.

The two educated about 30 audience members about Cooperative Social Responsibility and its use as a business development tool, despite unseasonably warm weather in San Diego that thinned crowds for afternoon sessions.

The NCUF reps said they believe credit unions, which are already philosophically positioned to benefit from "the halo effect", can employ CSR techniques to increase community outreach visibility and create new business opportunities.

"CSR goes beyond traditional community relations activities," Delfin said.

Simple donations and charity drives don't count as CSR; instead, it's a business strategy that affects everyday business decisions, and the way organizations engage with society.

"It's not an either/or proposition," Decker said. "CSR benefits society and the organization. It's not an obligation or a burden, but an opportunity to create value."

Four core principles further define the practice: minimize harm, maximize benefit, be accountable and responsive to stakeholder expectations, and meet financial goals while doing so.

The $143 million Prospera Credit Union, based in Appleton, Wis., was named as an example of CSR done right, partnering with Goodwill Industries to form GoodMoney Stores with the thrift store and job training organization.

"They noticed a payday lender next door to Goodwill, where people would cash checks or get payday loans, then go next door to shop at Goodwill," Delfin said.

"They located the GoodMoney store inside the Goodwill, providing a low-cost alternative to the payday lender, as well as financial counseling. Not only did they benefit the community, they gained new members, too."

The two predicted that credit unions will be expected to engage in CSR strategies in the future.

"Credit unions have been able to coast by for awhile under the guise of people helping people, but times have changed," Delfin said. "We have a friendly Congress now, but the questions the GAO raised aren't going to go away."

Delfin added that the NCUA gives mixed messages when asking credit unions to engage in CSR strategies.

"They say do more, yet regulators frown on credit unions spending that capital," he said.

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