11/3/00

Contacts:
Terry Besser, Sociology, (515) 294-6508
Melea Reicks Licht, Agriculture Communications, (515) 294-2957

LOCAL OWNERSHIP NOT THE KEY TO BUSINESSES' INVOLVEMENT IN COMMUNITIES

AMES, Iowa -- Corporate or local, it's not the location of top management that affects businesses' involvement in communities -- it's the location of the managements' homes and their personal values, according to a study by Terry Besser, associate professor of rural sociology.

"The values of the owner or manager and the location of his or her home play important roles in community support and involvement. If the owner or manager is committed to the community and/or lives in the community, he or she is more likely to be involved and supportive of the community -- even if ownership isn't local," Besser says.

The study, which consisted of interviews with more than 1,000 business owners and managers in 30 small Iowa towns, also showed the level of community involvement is not solely dependent on the business owner or manager. The community plays a big part in encouraging business's involvement through increased patronage and increased networking with involved business people.

Besser found that when private volunteerism and social involvement in a community are high, businesses are more likely to be involved in community affairs. Businesses that don't support such communities often lose customers and business relationships. Her findings show that businesses who support their communities are generally more successful than those who do not.

Financial institutions, such as banks or insurance companies, and retail businesses were found to be the most involved in or supportive of their communities. Agricultural businesses ranked third.

Besser compiled the results, conclusions and suggestions from her study into a book titled The Conscience of Capitalism: Business' Social Responsibility to Communities.

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