Speaking at the Hand in Hand forum organised by Three Hands, Legal and General's head of CSR, Graham Precey, said: "Employers can stop spending money with research and development projects and engage with the local community.
"We always look for charity partners that help us organise our community. Our managers can help the local community and identify development needs for our business. CSR can be used to identify strategic issues."
Legal & General's work with Macmillan nurses has helped it reconsider its critical illness cover product while its partnership with disabled children's charity Whizz Kidz is helping identify insurance issues in shopping centres.
Speaking in the same session, Sarah Myers, director of talent management at Sky, said: "Employers need to work with charity organisations with shared values and ascertain the clear benefits for both organisations. It takes time to get to know each other and there will never be 100% consensus from staff, but don't let that derail you. Let the charity partner really become part of your learning and development process."
And Tim Brooks, managing director of Guardian News & Media, which allows staff two days' additional holiday each year to take part in voluntary work, added: "I passionately believe the benefits of doing this work are substantial."
Three Hands specialises in connecting business with community organisations and social issues.