The Power of Corporate <strong>Philanthropy</strong> c Dan Warmenhoven and NetApp weave generosity into company culture
Robert houser When <strong>Silicon</strong> <strong>Valley</strong> is booming, the region’s nonprofit organizations benefit. But when the boom ends, so does much of the largesse. Fortunately, not everyone turns off the philanthropic tap so abruptly. Dan Warmenhoven, chief executive officer of NetApp since October 1994 and chairman of its board since March 2008, has overseen the storage company’s transition from startup to upstanding corporate citizen. Recently ranked first on Fortune magazine’s list of 100 Best Companies to Work For, NetApp has earned a reputation as a caring member of every community in which it has offices. Employees around the globe discover charitable groups and nonprofits that fit with their individual passions. NetApp supports their philanthropic efforts with cash, donated equipment and a unique program that lets employees spend up to 40 hours of paid company time each year volunteering for the nonprofit or school of their choice. NetApp employees in <strong>Silicon</strong> <strong>Valley</strong> have forged close relationships with the Second Harvest Food Bank of Santa Clara and San Mateo Counties, the American Heart Association and the American Cancer Society. Simultaneously, Warmenhoven has served on numerous <strong>Silicon</strong> <strong>Valley</strong> nonprofit and charitable boards and operates the Warmenhoven Family Trust to provide more direct cash contributions to charity. Warmenhoven met recently with <strong>Silicon</strong> <strong>Valley</strong> <strong>Community</strong> Foundation CEO and President Emmett D. Carson and ONE contributor Janet Rae-Dupree at NetApp’s headquarters in Sunnyvale. Tell us about the role of corporate philanthropy in shaping NetApp’s philosophy. Early on, we identified five constituents in our corporate values statement whom we serve: employees, shareholders, customers, business partners and the communities in which we are located. We believe that we should be involved in the communities in which we have a presence. We would like the people in each of these communities to feel that we’re a good neighbor, that we contribute to the community and that they want us to be there. Why did NetApp make philanthropy such a critical part of its corporate philosophy There was a book published around the time NetApp went public called Built to Last [by James C. Collins and Jerry I. Porras]. After we went public, the executive team agreed that we were on the brink of a great opportunity. We wanted to build a really great company. Our goal became: When Built to Last Version 2 is written, we want to be a featured company. In addition, for whatever reason, we recruited a group of people who were particularly involved in the community. This included our executive team, who individually are very philanthropic in their personal lives. How do you decide where to focus your efforts This is not like the old days, where George Eastman decided how to donate the Kodak wealth. We let our employees drive the company’s focus. We believe that our employees should choose how they want to get involved in the community, and the company backs them. Typically, there is a high degree of employee participation in the organization before there are a lot of funds from NetApp going to the nonprofit. What type of philanthropy are you doing We’ve done a lot in three areas: cash, equipment and volunteer time. Our total contributions last year were just under $2.5 million. About half of that was in cash. The second component, which gets overlooked, is equipment. A lot of nonprofits have fairly antiquated IT systems, and we can really make a difference. Last year we donated almost $800,000 in NetApp systems and software. When our customers upgrade, we take their systems back and donate them to nonprofits, schools and universities. It’s a great program because the nonprofit is getting needed systems and software, we are supporting organizations that are important to our employees and we are reusing equipment that still has a useful life and market value. The third component is one we pioneered: the volunteer time-off program. An employee can take up to 40 hours per year, with full pay and benefits, to volunteer at the nonprofit or school of their choice. Employees love it. This is a terrific win-win-win. The employees feel like they’ve got time to get involved at their kids’ school or at any other nonprofit in the community and that NetApp is supporting them. You see NetApp volunteers everywhere you go. We don’t lose anything in terms of employee productivity, either. Our employees are professionals. They’re goal-oriented. They get their jobs done. What are the challenges to continuing philanthropy through the downturn It comes back to the value system. Anything we give comes off the earnings line. You can argue that we’re taking away from shareholders at a time when we’re www.siliconvalleycf.org innovation through philanthropy 13
Change language