First Potomac Realty Trust is a self-managed real estate investment trust. They are one of the leading owners of commercial real estate in the Washington, D.C region. The company focuses on owning, operating, developing and redeveloping commercial real estate. The corporate headquarters of the company is located in Bethesda, Maryland (First Potomac Realty Trust, 2015). First Potomac Realty Trust strives to create lasting partnerships with their tenants, maintain their reputation as trustworthy landlords and to provide their shareholders with profitable returns on their investments. They are known to be an ethical and trustworthy organization and are committed to long-term partnerships with their tenants and brokers. They are also a publicly traded company and have a concentrated portfolio in the Washington, D.C. area (First Potomac Realty Trust, 2015). Energy and sustainability are the center of First Potomac Realty Trust’s corporate social responsibility initiatives. Their decisions are geared to meet social and environmental standards in a positive way (Tesia Vargason, personal communication, April 1, 2015). With the purchases of properties in the DC Metro area, they are frequently improving their buildings to meet LEED or Energy Star standards, which creates better efficiency for lighting and heat and the environment simultaneously. They believe that this approach creates the best value for tenants of the buildings and employees (Tesia Vargason, personal communication, April 1, 2015). Their sustainability efforts are focused on resource conservation and tenant health and productivity. Their resource conservation efforts include initiatives concerning energy, water, and materials. It is stated on their website that almost 60% of First Potomac’s multi-story office portfolio is Energy Star certified and that their efficiency efforts save approximately $2.5 million, 2 million gallons of water, and the equivalent to 90 railcars of coal each year (First Potomac Realty Trust, 2015). Due to the fact that one of First Potomac’s core values is building strong local relationships, they have designed a corporate giving program to give back to the local community through donations, sponsorships and other charitable events. The organizations selected to contribute to, must meet certain standards including aligning with the company’s values, supporting organizations whose work benefits community stakeholders and more. In addition, these organizations must raise funds that meet the immediate needs of the community, such as food, shelter, clothing, etc. They also must be dedicated to the enhancement of business and economic development in the community they serve (First Potomac Realty Trust, 2015). Although, First Potomac seems to be dedicated to improving their community, they could be using their own resources to make a greater impact on both the company and society. Donations and sponsored events have helped build a trustworthy and noble reputation, but there are other social issues they could tackle that would truly create a shared value. Creating sustainable real estate development is a big issue for the commercial real estate industry. There are laws stating that real estate companies must disclose energy performances. Also, since First Potomac focuses on the DC Metro area market, a lot of the tenants are government institutions that require a minimum of LEED standard for the building. Going “Green” has become increasingly popular and important and has become standard for most of the industry (Tesia Vargason, personal communication, April 1, 2015). In order for a company to stand out, it would need to focus its corporate social responsibility efforts towards another powerful social issue besides sustainability.
There are many problems that most urban areas have to face and one social issue that is both affected by this industry and affects this industry is homelessness.
On Janurary 2014, 578,424 people were homeless on a given night and 31 percent of those people were found in unsheltered locations. In Washington D.C. specifically, there was a 12.9 percent increase in the number of homeless people from 2013 to 2014 (Henry, Cortes, Shivji and Buck, 2014). Many of these homeless people are unaccompanied youth that tend to engage in criminal activities as a means to survive. They do not have a way to support themselves and fall back on delinquent survival strategies or become the victim of crime themselves.
This tendency of petty crime including vandalism by the homeless can cause an issue for commercial real estate agencies due to the abundance of people and visitors that go in and out of the buildings. Furthermore, homeless people surrounding a building can not only cause a possible decrease in the value of the building but also can create risks. This could create issues for tenants as well as potential investors. Unfortunately, the visibility of homeless persons on the streets can negatively impact individual businesses, and hurt the city’s finances (Parasto Hamed, personal communication, April 1, 2015). The homeless in return are also affected by this real estate industry. A portion of these homeless people has lost their homes due to foreclosure and evictions. They simply cannot find housing that they can afford (Parasto Hamed, personal communication, April 1, 2015). According to the U.S Department of Housing and Urban Development, an estimated 12 million renters and homeowner households now pay more then 50 percent of their annual incomes for housing, and this can prevent them from meeting their other basic needs such as nutrition and health (National Alliance to End Homelessness, 2015). This lack of affordable housing is what leads many to become homeless and depend on shelters for survival.
Many proposals for supportive housing developments and shelters are also rejected or face opposition by the community because they believe the development itself will lower the property value of that region. However, there is no statistical evidence that proves that theory to be true. Homeless people wandering the streets or loitering could negatively impact property value, but creating a home or shelter for the homeless does the opposite (Parasto Hamed, personal communication, April 1, 2015). In some studies, it has been shown that shelters in the community actually raise property value. Getting people off the streets and into a safe place aids in stabilizing both the individuals and the community.
First Potomac can help make a true difference in their community by creating homeless shelters in designated areas of low risk. A part of their corporate social responsibility plan could include following the same concept as a pop up shop but for shelters and soup kitchens all around the city. They would identify excess capacity within the city and share that space with the community. In between buying and selling buildings or offices, the spaces are unused and go to waste. It could take a long time for buildings to be sold and until then, First Potomac could utilize this resource for the good of society and the company. They would not be losing any money by providing that space.
Pop up shops exist all over the world and are temporary retail space that sell about any type of merchandise. They usually last for short periods of time but have huge benefits. Launching a pop up shop is cheaper than traditional retail stores; they build awareness and connect with their customers in a more personal way. First Potomac could partner with other nonprofit organizations to create pop up shelters and kitchens all around the city. Nonprofit organizations are always looking for more space, resources and funding to run their business. If First Potomac supplies the space, the nonprofit can bring any other resources needed to run a shelter.
Although these pop up shelters would be temporary, they still provide a safe and warm place for the homeless for the given time until they can find new shelter. Since the company will have many locations that are vacated at a time, they can provide access to multiple shelters all over the city. The company could also encourage employees to spend their volunteer hours at the shelters and soup kitchens to further help the cause.
These homeless shelters and soup kitchens are giving the homeless an opportunity to build a life for themselves again. They will provide emergency shelter to stabilize the homeless and offer them a safe roof over their heads. They will also provide meals, a warm place to sleep and could also offer other services that the nonprofits will offer. This will make a difference by getting the homeless off the streets and on the right path to their future. The top two nonprofit organizations to partner up with would be the Covenant House in Washington, D.C. and the Coalition for the Homeless.
The Covenant House in Washington D.C. is one of the nations largest and leading nonprofits serving the homeless and disconnect young people in the region. They respond specifically to the needs of the homeless youth. In one year, the Covenant House Washington was able to provide 53,890 meals to hungry young people and their children in need of food, housing and sanctuary to 409 young people through their residential programs, and educational and employment support (Covenant House Washington, 2015). Creating this partnership with the Covenant House Washington could allow First Potomac to help many more of these young homeless people.
The Coalition for the Homeless in Washington D.C. is another nonprofit organization that provides shelter and supportive services to homeless individuals and families in the District of Columbia. Some of their goals include to increase homeless prevent services, transition individuals and families to affordable permanent housing and increase public awareness and support homeless issues (Coalition for the Homeless, 2015). Many foundations, government agencies, businesses, and individual donors support this huge nonprofit organization. They have many years of experience, support, and knowledge to share with First Potomac in setting up pop up homeless shelters.
Many government agencies will also be able to provide support as well including the U.S. Department of Housing and Urban Development and the D.C Department of Human Services. In order to see if this initiative is affective, they would have to wait a year until the U.S. Department of Housing and Urban Development conducted their annual homeless count. This could provide some insight as regard to if the shelters are making a difference in the city.
By adding this strategic initiative to their corporate social responsibility plan, First Potomac could gain many benefits. The involvement would show positive interactions with the community while creating a great reputation. Taking this initiative shows the local population how much First Potomac cares about the local people and the impact that they might have on the community. It helps gain the trust of the public and creates awareness of the company as well. This provides them with an opportunity to get their name out more and market themselves further than they already do. There are economic benefits as well with tax credit the government would provide.
Furthermore, First Potomac would keep their tenants and potential investors happy by lowering the number of homeless people surrounding their properties. A decrease in the visibility of the homeless persons would potentially increase the market value of the local properties in the long run. This approach also helps distinguish First Potomac from its competitors. Taking on a strategic approach for their corporate social responsibility, especially related to a social issue this large, would create a competitive advantage for them. This could potentially lead to other real estate companies in the industry to following their lead and helping make a bigger impact with their corporate social responsibility while benefiting the company as well. Together these companies would be creating a shared value and helping thousands of people while doing so.
This new corporate social responsibility plan for First Potomac would help solidify their core values to build strong relationships with the community. It fits right in with their corporate giving policy and meets the criteria they have set. Their partnership with the non-profit organizations also enhances the quality of life for the community stakeholders that they serve. The priority that they have set for giving is focused on programs where funds raised stay in the local community and meet the immediate needs of that community. As stated earlier, they have already identified those needs as food, shelter, clothing, and access to healthcare services and education for the youth. A pop up homeless shelter fits all of those needs into one package.
Instead of simply making a donation and hoping that the organization they donate to puts those priorities first and makes the biggest impact possible, they are doing something where they can see the results themselves. The giving committee they have set up in charge of these actions will personally be able to follow the progress and report it back to management. Being directly involved in the process can be a great source of motivation for the employees by enlivening morale and increasing their commitment to the company. This will help with employee retention and productivity. Helping to solve an important social issue such as homelessness through corporate social responsibility will also provide First Potomac with a useful marketing tool to promote the company. Besides developing a positive reputation, they could build brand trust and change consumer attitudes towards the company in a positive way. This trust could lead to an increase in sales, partnerships and contracts with future potential buyers. Additionally, this positive brand reputation could lead to the attraction of top quality employees in the future as well. As long as First Potomac stays committed to this social issue and proves to the community that its involvement is for the betterment of society, they will only receive positive outcomes in the short run and long term.
First Potomac could measure the impact of this initiative and the benefits to the company by looking at annual reports to see if there are any increases in sales, changes in consumer attitudes and the overall opinions of the staff. By conducting research through surveys, they could measure these attitudes to see if they are truly profiting the company or harming it in any way. They can adjust their level of involvement after a year, if necessary, to fit with the direction the company is going.
To promote their corporate social responsibility strategy, First Potomac could use social media platforms such as Facebook, Twitter, and Instagram. Both in their corporate social responsibility report and their online presence, they need to be completely transparent. They could use social media platforms to promote their work, share success stories and encourage consumers and other individuals to take part in the action to end homelessness. First Potomac could highlight their involvement, good work and their continued commitment through regular social media updates. This will help increase awareness of their brand as well. In the new age of technology that we live in, companies could harness the power of social media platforms to showcase their efforts and reach a larger mass audience.
Besides raising awareness, they could raise consumer engagement and loyalty to the company. First Potomac’s social media campaign will gain support for their philanthropic efforts and the company as whole. In the end, the goal is to create shared value by helping to end homelessness in the community while distinguishing the company from others in the industry. First Potomac will take their social responsibility to another level that will have the greatest impact for society and for the wellbeing of the company.

Appendices
Summary of Questions:
How do you feel about your company's corporate social responsibility efforts? * Positive CSR, decisions made based on social and environmental standards, monthly giving committee meetings
Do you think your company can do more for the community besides donation, sponsorships and volunteer work? * Room for improvement but meet her expectations, match up for contribution or volunteer hours, food drives, college savings plan for deceased employee’s daughter
What are some social issues that are affected by this industry or that may affect this industry? * Creating sustainable real estate
Do you think homelessness is one of those issues and should your company try to tackle this problem? * Yes, homeless surrounding buildings and creating issues for tenants
Do you have any ideas of how your company can help society while creating a shared value for itself as well? * Creating homeless shelter, employee and community involvement, positive interactions, economic benefits
Summary of Questions:
What are your thoughts on poverty and homelessness? * Serious issue, needs more support
What efforts have been done to tackle this problem? * Shelters, transitional housing, education and employment services
How do corporations/companies help make this problem worse? * Evictions, high property costs, etc.
How does homelessness affect businesses/economy? * Lowering value, loitering, affecting tenants and consumers, affecting tax payer dollars, health service fees, criminal justice fees, etc.
What can companies do to help with eliminating homelessness? * Support shelters, provide support services, help prevent evictions and offer immediate relief services, donations, etc.

References
Coalition for the Homeless. (2015, January 1). Retrieved April 1, 2015, from http://www.dccfh.org/ Covenant House Washington. (2015, January 1). Retrieved April 1, 2015, from http://www.covenanthousedc.org/

First Potomac Realty Trust. (2015, January 1). Retrieved April 1, 2015, from http://www.first-potomac.com/ Henry, M., Cortes, A., Shivji, A., & Buck, K. (2014, October 1). The 2014
Annual Homeless Assessment Report (AHAR) to Congress. Retrieved April 1, 2015.

National Alliance to End Homelessness. (2015, January 1). Retrieved April
1, 2015, from http://www.endhomelessness.org/pages/faqs#why