By John McManus BBC News Online

Dixons markets its charity work through word of mouth

British companies have unveiled their latest weapon in the fight to attract and maintain quality staff: charity work.

Charity giving is usually seen as the preserve of organisations who want to impress their customers with their caring credentials.

But rattling tins, donating money and generally "getting your hands dirty" are all weapons that are now being increasingly deployed on the recruitment front.

And business specialists are claiming that helping the local community is now an invaluable part of running a business.

During the annual BBC Children In Need appeal, many employees were roped into fundraising stunts.

But there is also a benefit for the company as a whole, according to Stephen Farrell from the charity Business in the Community.

Good capitalists

Their research indicates that job hunters are more likely to want to work for a company which looks after, values and stimulates its employees, and that these were important factors when applying for jobs.

"There are three main issues for businesses," says Stephen Farrell.

"Recruitment and retention of staff; encouraging those staff to think creatively; and promoting a positive image and reputation".

The idea is that motivated and contented staff are more likely to work harder and are less likely to leave for other companies.

But it's not just the lure of satisfied staff that's waking companies up to the benefits of good community relations.

Business facts 81% of employees felt responsible organisations were likely to be creative and innovative 49% felt it was very important for organisations to take their responsibilities towards communities seriously source: Fast Forward Research

Like all good capitalists, they also want to ensure that the customers they are wooing benefit from a stable environment where they can make some hard-earned cash, and then spend it.

Business in the Community was founded in the wake of the riots and disturbances that exploded across British cities in the early 1980's.

Inner cities were being hit both by recession and social unrest.

Business people became worried that their profits would go into freefall.

Trying to influence the social environment has been the aim of Business in the Community's 700 corporate members ever since.

And peaceful cities are good for business.

Learning new skills

Apart from promoting the company's image, employees who reach out into the community tend to develop their skill base as well.

An example of this is the Yew Tree Project, which involves workers from BAE Systems.

A group of former graduate trainees got together to help overhaul a garden used by children with learning difficulties.

Project Coordinator Helen Sharples told BBC News Online that fixing a water feature, constructing a trellis and fashioning wind chimes not only benefited the children, but also helped communication within BAE Systems itself.

"Sharing the experience helped to cement a stronger network between the employees who came from different parts of the company.

"As a result they've felt more able to problem-solve across bases and share insights they've gained with each other."

Caring or cynical?

The group improved their negotiation skills by seeking donations for most of the materials they used to revamp the garden, and also had to be realistic when advising the Garden's owners about what they could achieve through their own efforts.

So are retailers really committed to helping the community, or is it just another cynical marketing ploy to help open our wallets?

Dixons' press officer Hamish Thomson says his company does benefit from positive feedback from its �1m a year charitable giving scheme.

Some companies are getting involved in local schools

But the reasons for pursuing it are more subtle than just pulling in the customers.

"Although we haven't done a great deal to market our charitable work, we do shy away from calling it straight-forward altruism".

Instead of overt advertising using everything from TV to shopping bags, Dixons rely heavily on word of mouth.

Sponsoring Bradford City Technology College is one way the company hopes to raise its profile.

And operating a schools-only money back scheme for ink cartridges is another.

Shareholder power

Hamish Thomson is hoping that all those satisfied schoolchildren and parents will return to Dixons for their own shopping.

But there's also one other reason why companies are opening their eyes to the communities around them.

With profit margins tight, shareholders are waking up to the way community involvement can drive up profits.

"They want to know, through the Annual Report, what their company is giving back to the community", says Hamish Thomson.

Community involvement can help companies fill their own coffers

Companies like Dixons also need to be realistic.

They are competing in a vigorous marketplace, attempting to offer that extra something to pull customers in, and then keep them.

It's difficult for an electrical retailer to influence shoppers who walk through their doors on average once a year, while strolling down the aisles of their supermarket three times a week.

In that environment it's not surprising that every form of marketing, not just advertising, will be employed in the fight to retain customers.