Corporate engagement in 2011

Simon Burne

July 2011

The definition of

corporate

responsibility has

broadened and

become decoupled

from philanthropy…

Leo Martin, Director GoodCorporation

Corporate

Corporate objectives

Brand-building

Advisors/Network

Staff involvement

Campaigning

Gifts of product or resource

Communication channels

Funding

Charity

Funding

Gifts in kind

Secondees

Strategic advice

Communication channels

Brand-building

Campaigning

Corporate objectives

Building long-term success

Preferences Match

Engagement Commitment Interest

Project visits

Networking

Conferences

Word of mouth

Mailing

Advice

Donation of

product

Donation of time

Low value

donations

High value donations

Recommendations

How Companies will Commit

Project visits

Networking

Conferences

Word of mouth

Mailing

Advice

Donation of

product

Donation of time

Low value

donations

High value donations

Recommendations

The components of Corporate Responsibility

We must change from

“What do we want from you”

to

“What can we do for each other?”

and

“What can we achieve together?”

What companies say…

• Inundated with requests

• Spoilt for choice

• CSR aligned to corporate strategy

• CSR must keep stakeholders happy

• CSR must bring about change

Most important factors in decision to sponsor

• Marketing – Brand fit – Fit in Overall Marketing Mix – Marketing impact – Audience Reach – Media exposure

• Corporate Social Responsibility – Fit in Corporate Responsibility Framework – Business need

• Social Outcomes – Specific Objectives – Community Outreach

The Perfect Partner for a Sponsor

• Knowledgeable – done their research

• Professional

• Listening to business needs

• Innovative

• Value for money

• Clear what they stand for

• Flexible about meeting halfway

• Open-minded and helpful

• Enthusiastic

• Responsive

• Easy to get on with

• Someone who recognises win-win situations

What companies want from us…

• Help deliver corporate objectives

• Infrastructure in place

– Dedicated account manager/team

– Model contracts

– Information packs

– Fundraising materials

– Co-branding agreements

• Local projects or clear projects that will benefit

• Excellent reporting on progress

What charities do corporates like?

• Well known and understood

• Readily recognised brand

• Motivating for their stakeholders – especially staff

• Good spread of projects across the UK or internationally

• People (children/cancer) or environment focused

• Good track record of corporate partnerships

What companies don’t like

• Amateurishness

• Over-promise, under-deliver

• Slow in response

• Narrow offering of ways to engage

• Lack of flexibility

• Consortiums

• Can’t or won’t acknowledge the work the company is doing

The Ten Commandments of Corporate Engagement Seven

Understand your market

THINK’s research

Global

desk research (source list is included)

interviews with charities

interviews with companies

interviews with institutions

analysis

engagement

employee benefits

engagement

business benefits

£$€¥

Reputation /

brand

Gov’t

relations

Deliver strategic business

goals

Employee

Geography

Supply chain

Profit

Customers /

clients

Funds

Morale

Skills Networking

Mentoring

Knowledge

Volunteer-

ing

Second-ments

employee benefits

Attract

Retain

Team

building

Pride

Loyalty

Diversity

Field trips

Expertise

Fundraising

Pride

Skills Awareness

Support

Knowledge

Environment

Service delivery

Education

Access

Employment

Behavioural

change

£££

Purpose /

morale societal benefits

Creating

community

investor or donor? Joint venture or begging bowl?

WCI table

The combined gifts of the top 20 = 88% of the overall total of the top 300

Company Fiscal year WCI

AstraZeneca Dec 09 £481m

GlaxoSmithKline Dec 09 £467m

BHP Billiton Jun 09 £119.3m

Tesco Feb 09 £85.4m

Rio Tinto Dec 09 £73.3m

BP Dec 09 £65.8m

Royal Bank of Scotland Dec 09 £63.9m

HSBC Dec 09 £61.6m

Barclays Dec 09 £54.9m

Anglo American Plc Dec 09 £50.8m

anomalies...

figures skewed:

inclusion of a value for in kind gifts

e.g. both GlaxoSmithKline and AstraZeneca

have implemented a policy of reporting the

value of product donations at cost as well

as market value

mechanisms

donations

collections

employee fundraising

cause related marketing

GiK

events

sponsorship

foundations

the future?

donations

collections

employee fundraising

cause related marketing

GiK

events

sponsorship

foundations

the future?

donations

collections

employee fundraising

cause related marketing

GiK

events

sponsorship

foundations

static

/ static

/ static

/ static

CECP

summary

do your research on potential corporate partners understand their issues

think creatively about what benefits you could offer corporate partners develop bespoke packages

be realistic – don’t expect to be a perfect match!

Under-promise, over-deliver

Understand how companies make

decisions

corporate toolkits

here’s a few...

1. IPSOS Mori 2. London Benchmarking Group 3. Cone 4. The Partnership Initiative 5. SROI 6. The Institute for Social and Ethical Accountability

‘Accountability’ AA1000 7. Global reporting initiative

This list is not exhaustive however demonstrates the common themes...

what does this mean for you?

companies are becoming increasingly sophisticated in their approach to partnerships with the voluntary sector and in many cases being more proactive and

targeting partners

many have adopted a systematic modelling approach to enable them to evaluate impact across their interests

what does this mean for you?

there is a continued reduction in financial gifts and increase in non-financial

there is a growing a commitment by business to measure and report on outcomes

if you are not ready to respond and not able to evidence measureable outcomes you will be at a disadvantage – if not now, then later.

corporate toolkits

‘be known for what you accomplish, not just for what you give’

London Benchmarking Group

corporate toolkits

• a group of over 100 companies working together to measure Corporate Community Investment (CCI).

• a member-driven organisation

• been in existence since 1994

London Benchmarking Group

• developed a global measurement standard

• benchmark and share best practice

• develop and refine measurement tools

• improve management & implementation of CCI projects

• communicate CCI results to stakeholders

corporate toolkits

corporate toolkits

KPMG’s Ready to Work Programme

corporate toolkits

issue ripeness grid

Ref: McKinsey

Global Reporting Initiative

US based organisation that has pioneered development of a sustainability reporting framework

sustainability reporting guidelines set out principles and indicators that can be used to measure and report on economic, environmental and social performance

applicable to any size or type of

organisation

any geographic region

used by thousands of organisations

Global Reporting Initiative facilitates transparency and accountability

provides stakeholders a universally applicable comparable framework

developed with input from over 60 countries

80% of the top 15 Global Brands as ranked by Interbrand and Business week produce

reports based on these metrics

sustainability reporting is becoming a more utilised tool in maintaining and building a brand

Global Reporting Initiative

some more reading...

The Partnering Initiative is a global programme of

the International Business Leaders Forum (IBLF).

corporate toolkits

work with all sectors

strategic and operational

promote and support cross-sector partnerships

appropriate, effective and innovative

publish a series of free toolbooks:

corporate toolkits

Marketing agency that specialises in brand

building for organisations that are focussed on

using business for the greater good.

corporate toolkits

corporate toolkits

P&G and Pampers – News and Recognition

We know we’re on a journey and we’re proud of the

steps we’re taking. Here are some recent awards and

achievements:

•P&G honored in 2008 with a European Business Award for Corporate

Sustainability •Working Mother Magazine voted Procter

& Gamble including Pampers as one of 2007’s 20 Best Green Companies

•P&G’s Global Headquarters Offices were

awarded the Energy Star for Energy Efficiency

Internal alignment

stakeholder map

influence

inform

Typical stakeholder map?

summary

realise to deliver corporate engagement your

stakeholders will be beyond the fundraising

team

expect this to take time

your role is that of a broker / coordinator /

negotiator

you will need a diverse skill set

once you have got your organisation to the

point of being ready for corporate

engagement, and you win a partnership, the

stakeholder dialogue will start all over again

Ethical policies

• Often a bureaucratic way of saying “no”

• Often no more than a listing of sectors “we feel uncomfortable with”

• Often reflects the biases of the most vocal

• Inflexible and restrictive

Why don’t we talk about the ethics of refusing a donation?

Rather than the ethics of accepting a donation

A beneficiary-focused ethical policy

Four questions:

– What impact would refusing a donation have on the charity’s ability to deliver to beneficiaries?

– What would our beneficiaries say?

– Have we asked them?

– Would they accept a poorer service on ethical grounds?

No dialogue

Dialogue

Transaction

•Advice

•Monitor

•Verification

•No publicity

•Challenges

•Donations

•Consulting

•Emp. FR

•No publicity

Profile •COTY

•Sponsorship

•CRM <£50k

Partnership

•CRM >£50k

•Long-term

Alignment Shared

brand

values

brand

YOU offer companies credibility THEY offer the voluntary sector exposure

rational and emotional

RATIONAL

Product quality

Service quality

Price

EMOTIONAL

Differentiation

Promise

Trust + credibility

Customer/brand

relationship

Find convergence

of motivators that

creates unique

value

importance of brand

almost 1 in 2 consumers changed their purchase behaviour to participate in a CRM programme

30% consumers switched brands as a result of a CRM partnership

7 out of 10 reported a positive impact on their behaviour or perceptions when they participated

80% of participants will continue to feel positive about the company

more than 2 in 3 people think companies should be involved in cause-related marketing

Understand the pot you’re dipping your hand in

• Charity Committee, Corporate trust

• Grant application

• COTY pitch

• Corporate Social Responsibility

• Strategic partnership

• Brand fit

• Marketing Department

• Sponsorship

• CRM

• Sales Department

• List swaps

Gifts in kind

past 10 year – increase in companies

delivering non-financial benefits

‘Doing good in good times takes

vision.

Sticking with it in the tough times

takes vision and determination’. David Grayson

Professor of Corporate Responsibility

Director of the Doughty Centre for Corporate Responsibility

Cranfield School of Management

Gifts in kind

try and introduce a non-financial target

develop a way to measure this

if possible, use a scoring model that is

aligned to the corporate one

know what the companies you are targeting do

in terms of their non-financial contributions.

LBG suggest GIK donations are valued in two ways:

1. The value of product/service is at the cost to the company rather than the notional fee the beneficiary would pay. Enables to be assessed as a cash donation

2. The market price may be used to denote an approximate value to the GIK

creates a distinction between cost and value.

e.g recipient may not have purchased so the true value would be calculated as a cost savings such as pro bono consultancy services where you would save money on a permanent member of staff to deliver a programme

Gifts in kind

Reactive or proactive?

Proactive

know your geographical reach

research the active and engaged companies

frame your offerings around the respective

company’s timeframes

Look for strategic and brand fit

manage expectations

DELIVER, MEASURE and REPORT

develop exit strategies

Long-term, steady income

Reactive

Research charity committees/corporate trusts

for matching criteria

Research COTY opportunities

Pitch for everything you can

Very limited success rate

Enormous energy expended

When you win, expectations raised, difficult to

repeat

DELIVER, MEASURE and REPORT

High energy, unpredictable, lumpy, short-term

People give to people

Build rapport

time and energy

Sound boards

knowledge, insight

Develop connections

sensitivity, judgement

Touchpoints

the receptionist

saving a mobile number

CORPORATE BOARDS

Avoid drainage

know and respect the limits

People like to talk with equals – or above!

Don’t be precious – build on chemistry

Get to know the second tier – tomorrow’s leaders

Spread as widely across the organisation as you can

Look for shared interests

Give them the little extra something

CORPORATE BOARDS

1. Understand your market

2. Understand how companies make decisions

3. Get aligned internally

4. Target companies with brand fit

5. Know the pots you’re dipping into

6. Be proactive

7. Remember that people give to people

corporate toolkits