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Brand Image-Prove Treating People Well Is Good Business

Social Responsibility Pays Off: Century Furniture's Governor's Award-and a Booming

Want to ensure that consumers seek out your brand? You must do everything in your power to be a socially responsible company. People really do care about such things these days. But don't assume you can just make a charitable donation or two and be done with it.

According to Robert J. Maricich, president and CEO of Hickory, North Carolina-based Century Furniture Industries, consumers expect more than token gestures. They want to do business with corporations that "walk the talk" and with those that understand that social responsibility is not an afterthought. It is an integral part of a company's culture-and it begins at home.

The company he leads comes to mind. Century, a manufacturer of fine home furnishings, has just received the prestigious "Governor's Award for Excellence in Workforce Development." This honor-which is awarded to two North Carolina companies each year by NC Governor Mike Easley-recognizes commitment to workforce development through training, development, and community service. Until now, it had never been won by a furniture manufacturer.

"Research proves over and over again that people prefer to spend their dollars on brands backed by socially responsible companies," says Maricich. "Surveys consistently find that most Americans consider both business practices and social issues when deciding which products and services to buy. And what's surprising is the way people define social responsibility. It has less to do with backing a 'cause' than it does with always doing the 'right thing' and treating employees well."

Indeed, a May 2007 opinion survey commissioned by the National Consumers League and Fleishman-Hillard International Communications shows that people have very definite ideas about what "social responsibility" means. In the introduction letter on the CSR survey website, Linda Golodner of the NCL and Dave Senay of Fleishman-Hillard write: "Established definitions of CSR, for the most part, have focused largely on environmental concerns and philanthropic giving as top priorities. However, our survey again found that average Americans have different priorities. For the second year in a row, Americans expressed that employee treatment and active community engagement are the most important aspects of corporate social responsibility..."

In other words, companies that are truly socially responsible may think globally, but they most assuredly act locally. Century is no exception. Receiving the Governor's Award proves the company has a level of commitment to employees that goes far beyond platitudes and hollow mission statements.

"When I became president of Century, I inherited a legacy of 50-plus years of social responsibility established by the Shuford family," says Maricich, referring to the family who founded the company. "True employee commitment doesn't 'just happen.' You have to build it into your brand and live it every day."

He can back up this statement with an amazing fact: unlike the vast majority of its competitors, Century has kept the bulk of its manufacturing at home. While the company does use overseas outsourcing when it makes sense strategically, some 90 percent of its furniture is still made right here in America.

"We differentiate ourselves through speed, quality, innovation, and customization, and that strategy lends itself to local manufacturing," Maricich reflects. "It keeps customers happy and, not incidentally, builds employee loyalty, too. I'm proud of the fact that we've never had to close a plant-it's a testament to the skills and dedication of our employees. We invest in our people and it's paying off."

Century currently employs more than 1,100 men and women in high-paying jobs. All of them are shareholders in the company. Average length of service is 18 years, with several employees having worked for Century for more than 30 years.

"This is a 'can do,' results-oriented culture," remarks Eric S. Schenk, senior vice president and COO for Century Furniture. "Century recognizes that our success depends on the quality and dedication of our people. We provide training and support in an environment that emphasizes challenge through team-driven initiatives and focuses on critical thinking and open communication. We are also a family-literally and figuratively. Many of our associates are related, and in a few instances we have three generations of family members working here."

Lori Shaffer, on-the-job-training account manager at the Catawba County JobLink Career Center, nominated Century for the Governor's Award. In her nomination write-up, she highlighted Century's excellent employee training programs, its support of the furniture technology program at Catawba Valley Community College, its exemplary hiring practices, its contributions (of both money and furniture) to charity events and organizations, and the outstanding benefits and bonuses it provides its staff. She worked closely with Jan Evans, a human resources manager with Century Furniture at the JobLink Career Center.

"Century is a great company, a great place to work, and a socially responsible corporation that is making a difference in the lives of others and the community at large," says Evans. "It just feels better to work for a company you believe in. And it's good for business, too. When people are engaged and inspired, it shows in the quality of their work."

"Century Furniture is quite deserving of this most prestigious award in recognition of their many accomplishments, their contributions to the community and to workforce development, their investment in the future of the furniture industry, and their encouragement of individuals in pursuit of success," she writes, noting that numerous Century employees dedicate time and energy to a wide variety of non-profit organizations. (NOTE TO EDITOR: Please see sidebar below for some of Century's contributions.)

Governor Mike Easley wrote in a letter to Century: "A highly skilled workforce is the key to success in a global economy. North Carolina's competitive edge depends on the continued commitment of dedicated employers like you that use innovative strategies in daily business."

The award was formalized October 18 in Greensboro, NC. Bob Maricich, president and CEO of Century Furniture, accepted it on behalf of the company. In his acceptance remarks, he thanked the many people who contributed to this achievement and related the connection between social responsibility and financial performance. "In 2007 we're celebrating 60 years of excellence, community service, and making products of impeccable quality and exceptional value," he said. "We have one standard: The Best-the best products, the best people, and a workplace where people can do their best work. Our business is strong and profitable at a time when others in our industry are closing factories. We are still actively recruiting and hiring. And that's the real proof that being a socially responsible company pays off."