Inc. staff

The Inc. Network

 
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Kinder, Gentler
Are there federal and state tax advantages for socially responsible companies? What are the benefits of being socially responsible?

Eugene B. Crowe

Tampa

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Steven Kaplan, director of taxation and a partner at Sax, Macy, Fromm & Co. in Clifton, N.J., says that aside from the breaks you might get by making charitable contributions to Internal Revenue Code Section 170(c) nonprofits or writing off socially responsible deeds as marketing or promotional expenses, there are currently no tax breaks designed specifically for socially responsible businesses.

For many CEOs of socially responsible companies, doing business in a good way is simply good business. "If you're running a company in a respectable way -- respectful of your employees, customers, community, and environment -- then that will come back and create an economic benefit for you in the long haul," says David Berge, director of the socially responsible banking fund at Vermont National Bank in Brattleboro. "There's a link between company profitability and responsible corporate practices."

Proactive businesspeople develop and bolster relationships with customers and suppliers through their positive work attitudes. "When people see us out there 'doing good,' they want to be a part of it," says Bill Seretta, president of Connecting Point Information Technologies in Portland, Maine. Fully 20% of Connecting Point's customers discover the company through its ties to community projects (such as auctions and benefits for educational and art programs).

Name recognition has also helped Widget Factory Cards, in Concord, Mass. President Suzy Becker says buyers associate her company with events like bike-a-thons for AIDS resources and other national social causes. "Recognition improves our account-retention rate and helps set us apart in a marketplace of more than 1,200 greeting-card companies," says Becker.

For more thoughts on social responsibility, Becker suggests Paul Hawken's Growing a Business (Simon & Schuster, 1987, $9.95). And to learn about the latest initiatives, contact Businesses for Social Responsibility (202-872-5206).

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Tracking Trade Tips
How should I go about tracking down foreign companies willing to do business with me? Are there consulting firms that distribute leads?

Eric Norris

Chicago

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If you've done your homework and you've found that leads in the Journal of Commerce, World Trade Center Network, and the National Trade Data Bank's Trade Opportunities Program are either too competitive or not to your liking, call the Export Opportunity Hotline (800-243-7232) or the Trade Information Center (800-872-8723). Both of them are user-friendly hot lines that can direct you to the sources that will best fulfill your lead-generation needs. If you have a bright idea but no company, advice from a small-business-development center may be needed first. Your next step depends on what your product or service is, which foreign markets interest you, and how committed you are to follow-up, says Regina Tracy, executive director of the Small Business Foundation of America, in Washington, D.C.

Do whatever homework is necessary to figure out if, where, when, and how you should position yourself. Tracy recommends Exporting from Start to Finance (Tab Books, 800-233-1128, 1991, $39.95) as a desk reference. Use a consultant if you have specific questions your banker, lawyer, trade-information providers, or peers can't answer. Bear in mind that though consultants are plentiful, they usually require up-front fees, so you never know if what they'll deliver is what you really need. Also, "hiring someone to come in and tell you how and where to export is unsettling," says Tracy.

Assuming you're beyond the start-up phase and can readily fulfill foreign orders, contact your local trade-promotion agency or department of commerce to look into matchmaking programs. Eric Thorgren, international sales manager at Electronic Liquid Fillers (ELF), a liquid-packaging-equipment maker in LaPorte, Ind., likes his state's trade missions, which offer face-to-face contact with qualified leads. When Thorgren can't travel, reps from the Indiana Department of Commerce distribute ELF's literature at trade shows abroad (cost: roughly $300). For more on ELF's "just-do-it" approach to making global contacts, see "Easier Done Than Said" (February, [Article link]).

Since 50% of all trade leads are "dead on arrival," one of the best ways to find the hot ones is by asking people in your industry. Also contact the Department of Commerce's country-desk officers, or place an ad in its monthly magazine, Commercial News USA. Alternatively, if you want a full-service nonprofit that offers fresh leads from many sources, Tracy endorses the Phoenix Institute for Global Entrepreneurship (314-567-6527; free one-month trial membership). Surf its databases by modem for anything trade related. And if you're targeting Japan, VentureLink USA (310-822-5628) helps U.S. companies that plan to enter Japan in areas such as product analysis, market research, advertising, and deal negotiation.

A sales lead can be torpedoed by a poor response, so be sure to answer queries from abroad quickly, and "keep the paper chain flowing," says Thorgren. Buy a fax machine, don't scrimp on travel, and do credit checks on foreign companies. And don't ignore foreign customs and protocol; brush up on those cultural nuances with Roger Axtell's Do's and Taboos Around the World (John Wiley & Sons, 1993, $12.95). n

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Reported by Karen E. Carney and Vera Gibbons

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