demonstrating the business value of pro bono by pro bono lab and the taproot foundation

8/3/2019 Demonstrating the Business Value of Pro Bono by Pro Bono Lab and The Taproot Foundation

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DEMONSTRATINGTHE BUSINESS VALUE

OF PRO BONO SERVICEBy Yoann Kassi-Vivier, Jennifer Paloski, and Carol Guttery

with Dima Mostovoy


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TABLE OF CONTENTS

PRO BONO PROGRAMS: AN OPPORTUNITY FOR STRATEGIC

CORPORATE SOCIAL RESPONSIBILITY 4

Pro Bono Business Value Overview 5

THE MEASURABLE BUSINESS BENEFITS OF PRO BONO 6

Human Resources 7

Reputation 11

Innovation 14

CORPORATE SPOTLIGHT: BEST PRACTICES IN ACTION 17

GlaxoSmithKline 18

Deloitte 20

IBM 22The Nerdery 24

UPS 26

ACKNOwLEDGMENTS 28

2 | DMONSTRTING TH BUSINSS VU Of PRO BONO SRVI


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BOUT PRO BONO B

Pro Bono Lab is a French nonprot organization that envisions a daywhen nonprots, citizens and companies will act together to remedythe most pressing social challenges. To achieve this goal, we offermission-driven organizations capacity building services by partneringand engaging volunteers in pro bono projects.

BOUT TPROOT fOUNDTIONMost organizations tackling social problems dont have access to themarketing, design, technology, management or strategic planningresources they need to succeed. Without this talent, few are able tohave their intended impact on critical issues like the environment,health and education.

Taproot is a nonprot organization that makes business talentavailable to organizations working to improve society.

We engage the nations millions of business professionals in pro bono

services both through our award-winning programs and by partneringwith companies to develop their pro bono programs. One day, weenvision all organizations with promising solutions will be equipped tosuccessfully take on urgent social challenges.


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PRO BONO PROGRAMS:

N OPPORTUNIT fORSTRTGI ORPORT SOI

RSPONSIBIITCorporate Social Responsibility (CSR) strategies arein a state of evolution. To meet the demands of theiremployees and customers, many companies rushed todevelop CSR models, later realizing that their modelswere not aligned with key business goals. Recentlythough, the paradigm of corporate philanthropy hasstarted shifting from a giving back to a sharing valuemindset. This means that corporations increasingly viewCSR as an opportunity and not a cost.1 Companies oughtto look for programs that benet not only the bottom line,but also their employees, their customers and suppliers,

and their local or even global communities.

Pro bono programs are increasingly emerging as aneffective tool to support CSR programs and sharedvalue. Pro bono can support business objectives bysimultaneously bolstering employee morale, developingtalents, improving the companys reputation, and drivinginternal innovation. Volunteers who donate their skillsto organizations that work for the public good (i.e., probono publico), mostly within the nonprot community,derive a greater sense of purpose from their job and theiremployer, while developing their own career and skills.

At the same time, pro bono shares value with communitypartners by delivering capacity building services to helpnonprots grow and achieve their mission. In 2006,89 percent of surveyed nonprot leaders reportedthat volunteers workplace skills are extremely or veryvaluable to their organization.2 As a win-win tool, probono programs are indeed one of the most effectivemethods for sharing value among all involved parties.

Many U.S. companies see business value in theirEmployee Volunteering Programs (EVPs) and, in 2007,94 percent of Fortune 100 companies reported havingsome sort of domestic EVP.3 Although pro bono is

growing, only 14 percent of the corporate volunteeringwork is skills-based. Companies are not leveraging theiremployees skills as much as they could and should tomaximize shared value. Pro bono provides a uniquevalue to EVPs.

This whitepaper will help companies to:

f Build the business case for a pro bono program andobtain the leadership buy-in to start a program.

f Learn best practices from existing programs at othercorporations, offering practical examples and casestudies for how to consider designing a pro bonoprogram that will support the companys strategy andprogram expectations.

f Identify and adopt consistent metrics to trackprogress against business goals, showcase thebusiness value of pro bono to key managementstakeholders on an ongoing basis, and makestrategic, data-driven decisions.

We at Pro Bono Lab and the Taproot Foundation believestrongly that corporate pro bono programs can createbusiness value in many ways. We have identied multipleoutcomes which can improve the human resourcespractice, enhance corporate reputation and fosterinnovation.

The prevailing approaches to [orporateSocial Responsibility] are so disconnected rombusiness as to obscure many o the greatestopportunities or companies to benet society.

I, instead, corporations were to analyzetheir prospects or social responsibility usingthe same rameworks that guide their corebusiness choices, they would discover that SRcan be much more than a cost, a constraint,or a charitable deedit can be a source oopportunity, innovation, and competitiveadvantage.

MIH . PORTR & MRK R. KRMRHarvard Business Review

1 Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility, Harvard Business Review, Michael E. Porter,Mark R. Kramer, 2006.2 Volunteer IMPACT Survey, Deloitte & Touche USA LLP, 2006.3 The Corporate Volunteer Program as a Strategic Resource: The Link Grows Stronger, Points of Light Foundation, 1999.



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PRO BONO BUSINESS VALUE OVERVIEw

BUS INESS

DRIVERS

BUSINESS

IMPACTS

BUSINESS

OUTCOMES

HUMANRESOURCES

Innovativeprofessionaldevelopment

f Broaden range of training opportunities that efciently sharpen employeesskills that are directly applicable to the work environment

f Aid in transitioning employees to new jobs or across divisions within thecompany or to prepare for or ease into retirement

f Increase opportunities to measure employee performance, includingpotential to promote outstanding employees

Increasedemployeesatisfaction

f Boost employees pride in their own skills and in their companyf Enhance understanding and commitment to the companys culture and

valuesf Increase staff motivation, resulting in higher productivity and reduced

absenteeism

f

Strengthen employee loyalty and advocacy

Enhancedrecruitment

f Increase attractiveness of the rm to potential recruits, especially Gen Yprofessionals

f Create unique opportunities to engage non-employee participants in probono projects, creating recognition for the company

More inter-connectedworkplace

f Foster cross-functional communication across the companyf Strengthen teamwork and collaboration skillsf Improve relationships between employees and line or HR managersf Provide employees broader visibility within the company

REPUTATION Improved

publicrelations

f Increase visibility and brand recognition

f Enhance positive perceptions of companies with innovative and impactfulCorporate Social Responsibility strategy

f Empower employees and partners to be brand ambassadorsf Generate effective press recognition at minimal or incremental marketing

costs

Strongerrelationshipsand network

f Strengthen non-transactional relationships with priority stakeholders suchas clients, businesses, or community partners

f Increase visibility of the companys expertisef Generate business development opportunities

Sustained

license tooperate

f Reduce exposure to risks such as public criticism or negative government

decisionsf Foster stakeholder support for the company during possible periods of

controversy or negative PR

INNOVATION Fosteredclimate ofinnovation

f Stimulate employees creativity, productivity and commitmentf Foster new ways of thinking and an entrepreneurial culture

New orimprovedproducts

f Develop new services and products to meet social needs that canultimately be sold commercially

f Improve existing products that integrate the end-user innovationsgenerated on pro bono projects

New marketsor enhancedpenetration

f Improve understanding of the challenges, priorities, and large unmetneeds of new markets and niches to be served

f Broaden geographic presence or/and reach clients that are not currentlyserved by the company, such as nonprots or small companies



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THE MEASURABLE BUSINESSBENEFITS OF PRO BONO


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HUMAN RESOURCES:

INNOVTIV PROfSSIONDVOPMNT

Pro bono can be leveraged as an innovative, attractive,and cost-effective professional development program. Probono programs can sharpen specic hard skills that aredirectly applicable to the work environment and developa broad range of soft skills that improve an employeespersonal, management, and business effectiveness.While employees are given an opportunity to showcasetheir skills and get noticed by peers or senior executives,management may also seek to identify and promote highperformers or reassign highly skilled but poorly matchedemployees. Pro bono service also enables staff to betterdeal with changes in their employment situation, toprepare for or ease into retirement, and to maintain theirparticular skill sets, which they may not otherwise have achance to use in their day-to-day jobs.

RESEARCH FINDINGS

f 91 percent of surveyed corporate human resourcesexecutives believe that pro bono service would addvalue to training and development programs, and 90percent agree that contributing business skills andexpertise to a nonprot can be an effective way todevelop leadership skills.4

f A third of employee respondents cite improvement

in multiple skills areas, including communication,networking, problem-solving, leadership, team-building, presentation skills, organization and timemanagement, negotiation, and decision-making. Thislist has also been corroborated by management, with75 percent reporting leadership development as aresult of pro bono service.5

f Pro bono service is an effective way to train anddevelop employees who want to be self-directing, totap into their previous experiences, and to completereal-life tasks and problems.6

f Using pro bono to develop the leadership skills

of high potential employees service can be lessexpensive than recruiting new executives or providingtraditional training.7

Our volunteers return with greater ocus on the patient; they return as leaders with greaterpassion, energy, condence, creativity, gratitude and practical knowledge o how to do more withless.

HSI POSNR MNINDirector, PUS Volunteer Partnership, GlaxoSmithKline

CORPORATE BEST PRACTICE

GlaxoSmithKlines PULSE Volunteer Partnershipis designed to develop three unique skills: thinkingexibly, building relationships and enabling/driving

change. The company views these three skillsas part of a critical set of skills required for itsfuture leaders. Prior to departure to the nonprotorganization site, the selected PULSE Volunteersand their line managers receive training and setspecic measurable development and servicegoals in conjunction with their nonprot supervisingmanagers. In addition, with the 50 to 100 volunteersdeparting for as long as six months to work on theirprojects overseas, their co-workers at home needto step up to cover the volunteers responsibilities a process that greatly expands the signicance

of PULSE to include many more GSK employees,who gain valuable skills in doing more with lesswhile enabling their co-workers to go abroad.Simultaneously, this helps build employee moraleand unity across the company.

METRICS

f Percentage of employee skill developmentrelevant to regular work (self-assessed andobserved by line management)

f Performance and cost of pro bono servicecompared to performance and cost of training

and development programs


4 Volunteer IMPACT Survey, Deloitte & Touche USA LLP, 2007.5 Pro Bono Volunteering Research Report, LBG Associates, 2009.6 Adult learning theory, Points of Light Institute, adapted from Adultlearning, The ASTD training and development handbook, M. Knowles,1996.7 Valuing Employee Community Involvement, Practical Guidance onMeasuring the Business Benets from Employee Involvement in theCommunity, The Corporate Citizenship Company, 1998.


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HUMAN RESOURCES:

IMPROVD MPOSTISfTION

Pro bono boosts employees pride and increases staffengagement and job satisfaction. Because pro bonoenables employees to use their skills to give back, theynot only feel better about their jobs, but also are proudknowing that their unique professional skills had adirect impact on their communities. They gain a betterunderstanding of their companys core values and howthose values play a critical role in making a difference,which make employees more likely to embrace thecorporate culture. Subsequent business benets includestronger employee loyalty and advocacy, improvedproductivity, and reduced turnover and absenteeismcosts.

RESEARCH FINDINGS

f A companys support of employee volunteering is akey driver in directly inuencing employees feelingsabout their jobs, more so than cash or in-kinddonations.8

f Hewitt Associates has identied six components ofemployees intellectual and emotional engagement.Of these, ve (people, work and value, opportunities,quality of life, total rewards) stand to benet from awell-supported pro bono program.9

f Losing an employee, especially a high performingone, can be incredibly expensive. A Cornell Universitystudy estimates that the nancial impact of losingan employee can be between 50-150 percent of theannual salary of the position.10

I now look at the company in a very dierent way. This is a company saying that its going to be agreat company...I didnt buy into it beore, and now I do.

I am so ortunate to work or a company that makes products that make such a dierence to ourcustomers they literally change the way they live.

BD ORPORT VOUNTRS


Helping all people live healthy lives is the missionof global medical technology company BD. Butwithout examples, such commitments can easily

become empty words, notices the CorporateCitizenship Company.11 Facing this challenge, BDdesigned a loaned employee pro bono program togive employees a way to participate in pursuing thecompanys raison dtre. By sending employeesaway to improve the quality of health care servicesin medically underserved regions, BD brought thecompanys values to life. Post-project researchshows employees are more likely to stay with thecompany and to recommend it to others. Theyreported a new sense of purpose in their positionsand for BD products, as well as a renewed pride

in the company. BD also observed an extremelyhigh level of awareness about the project within thecompany. I have worked for other companies withstrong corporate values, but I have not felt it theway you feel it at BD. This project has brought thepassion for caring down to a common level for BDassociates in a way that very few initiatives coulddo, claims a BD associate.

METRICS

f Percentage of employees aware of the programf Percentage of employees mentioning the

program among top factors for staying with thecompany

f Perception of work/life balance of participantscompared to non-participants

f Percentage of increased productivity (self-assessed and observed by line-management)

f Compared absenteeism and turnover rates ofemployees who are aware/participating to thosewho are not

f Compared cost of the program to cost of losingemployees that could have been retained

f Employees support of the program; for

example, testimonials regarding theirexperience

8 Walking the Talk, A Case Study of the BD Employee VolunteerPartnership Program in Zambia, The Corporate Citizenship Company,2006.9 Walker Information, Zadek & Weiser, Conversations with Disbelievers,2000 (2400 respondents from 50+ employees companies).10 The Pro Bono Business Case, Taproot Foundation, 2006.11 Walking the Talk, A Case Study of the BD Employee VolunteerPartnership Program in Zambia, The Corporate Citizenship Company,

2006.


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HUMAN RESOURCES:

NHND RRUITMNT

Job seekers, and especially Gen Y professionals, aresensitive to corporate citizenship and are more likely to

work for a corporation that allows them to donate theirtime and skills. And, they are more likely to recommendit to their peers. Pro bono promotes good corporatecitizenship through high community impact and theeffective leveraging of its employees unique skillswithin those very same communities. In addition, awell-designed pro bono program open to non-employeeparticipants can attract and engage talented, like-minded potential recruits. Leveraging these benetsduring recruitment, however, requires a well-thought outcommunication strategy for applicants and new recruits.

RESEARCH FINDINGS

f In a competitive labor market, core variables likecompensation tend to become commoditized, anddifferentiation often relies on more qualitative factorslike people and values.13

f 81 percent of Americans take into considerationa companys commitment to a social issue whendeciding where to work.14

f 62 percent of Gen Y volunteers would prefer towork for a company that provides opportunities toapply their skills to benet nonprots. 66 percentof respondents say their companys volunteering

program was not discussed at all during their hiringprocess.15

f 88 percent of Fidelity Investments volunteeringprogram participants said their pro bono experiencesmake them feel more inclined to recommend theircompany as a great place to work.16


The Nerderys Overnight Website Challenge is a24-hour Web development marathon. They engagetheir own employees but also proactively recruit

other Web developers from the local community.These outside developers constitute close to 50percent of total participants. The Nerdery seesthis external help as a boost to their internalrecruitment efforts by exposing the companysculture every year to new potential employees.They are friends, family, clients, ex-colleagues, orjust willing volunteers, who get a great opportunityto build unique relationships with employees at TheNerdery.

METRICS

f Percentage of job applicants mentioning the probono program during job interviews

f Percentage of pro bono projects resulting innew recruits or new recruiting leads

f Cost/performance of the program as comparedto cost/performance of traditional recruitmentefforts

f Percentage of new recruits aware of theprogram after a few weeks within the company

Monitor eels its relationship with [its nonprot partner] New Prot gives it a recruitment edge asa company with a real conscience and also a company that does things in innovative ways. 12

BI MMNTSPartner, Monitor Group


12 The Summit on Corporate Volunteerism: Toward a New Denition ofPro Bono, The Presidents Council on Service and Civic Participation,2008.13 The Pro Bono Business Case, The Taproot Foundation, 2006.14 Corporate Citizenship Study, Cone, 2004.15 Volunteer IMPACT Survey, Deloitte & Touche USA LLP, 2007.16 Fidelity Investments Employee Survey, Common Impact, 2011.


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HUMAN RESOURCES:MOR INTR-ONNTDWORKP

Pro bono is proven to foster internal communication and

enhance teamwork skills when projects are performed inteams. Employees can be staffed with colleagues whoare not normally in their working group, which allowsthem to tap into broader contacts within the company.As a result of these pro bono initiatives, employeesexperience increased networking opportunities, leadingto reports of increased collaboration across divisions andwider visibility within the company. Pro bono eventuallydeepens the strength of relationships laterally acrossbusiness units and vertically between employees and linemanagers or into senior leadership. Pro bono programscan particularly support the establishment of a newcorporate culture after a merger/acquisition by connectingpeople around common values.

RESEARCH FINDINGS

f Pro bono projects and recognition events giveemployees the opportunity to get to know each otherin a positive way and instill a sense of pride in thecompany.17

f 82 percent of Fidelity Investments participants reportbetter teamwork skills.

f Employees are more connected to each other as aresult of pro bono projects. 90 percent of participants

say that they met new colleagues through theirCommon Impact pro bono experience.18


Microsofts unique Loaned Executive programenables employees from across all segments ofthe company to work in the Community Affairsdepartment full-time for a period of four months,

coordinating and running Microsofts annualgiving campaign for local charities. In 2010, thecampaign raised $49 million from employees aloneby engaging with Microsofts 50,000 U.S.-basedemployees. With Microsofts corporate dollar-for-dollar matching program, the company and itsemployees collectively raised $96 million for localcharities and nonprot organizations. Participatingemployees get unparalleled opportunities to meetwith thousands of their fellow employees, includingmany senior Microsoft executives. These meetingsand networking opportunities have led to enhancedcooperation among Microsofts employees andhas improved the overall ow of information acrossproduct teams.

METRICS

f Percentage of employees indicating anexpanded network or improved visibility withinthe company

f Percentage of managers who observedimproved teamwork as a result of pro bonoservice

[Through the program] I had one-on-one time with the OO o Microso, Kevin Turneranopportunity I would have never had without it. I also had a chance to work directly with ourIO. This opportunity removed the mystique around our most senior exec management. I havebeen able to approach senior executives with new business ideas much more comortably andcondently.With the incredible exposure to other teams across the company, it gave me a much moredetailed understanding o our overall business strategy. That in turn gave me a betterunderstanding o where our group ts in, how to communicate that to others in a meaningul way,and help drive an increasingly improved customer experience.

TOM MORNMicroso oaned xecutive

17 Making the Business Case for Pro Bono, The Pro Bono Institute, 200018 Common Impact, 2011


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REPUTATION:NHND BRND ND PUBIRTIONS

Pro bono is an effective way of generating positivepublic relations and showcasing the companys uniqueexpertise. While pro bono projects provide unique andcompelling stories that allow corporations to speakup and benet from free media coverage, they alsoleverage employees, partners, and opinion leadersas brand ambassadors. Companies running pro bonoprograms are able to maintain positive perceptionsand achieve recognition for having an innovative andimpactful community involvement strategy. Subsequentbenets include both an increase in the willingness ofcustomers to pay premium prices and enhanced power innegotiations.

RESEARCH FINDINGS

f Corporate responsibility is a leading driver ofpublic perception and reputation. CSR (31 percentof respondents) is second only to Products andServices (34 percent) in determining corporatereputation drivers, ahead of Business Operations (26percent).19

f Publicity garnered from pro bono activities is lesslikely to be viewed as self-serving than traditionaladvertising.20

f 64 percent of executives say that corporatecitizenship produces a tangible contribution to thebottom line. At large companies, 84 percent ofexecutives see direct bottom-line benets.21

f 86 percent of Americans say they are likely to switchfrom one brand to another that is about the same inprice and quality if the other brand is associated witha social/community cause.22


UPS garnered 6.1 million media impressionsfollowing its response to the Japanese earthquake(see press release excerpt below). By dedicating

its own resources and personnel, UPS built on itsexisting reputation as a global corporate citizenand enhanced its image among its customersand employees for going above and beyondtheir competitors and other large corporations inresponse to this tragic situation.

For smaller companies, pro bono can also prove tobe a crucial driver in garnering a positive reputation.In 2010, almost 20 percent of The Nerdery pressmentions focused on The Overnight Web Challenge the companys pro bono program and 100percent of press releases mentioned the event. Asthe CreateAthon pro bono marathon model spreadson a national level, the ad agency Riggs Partnershas gained the reputation as the founder andtrademark-owner of the concept. Recently, the smallagency was contacted by the Discovery Channel tohelp develop its own program.

METRICS

f Change in reputation rankings, recent awardsand recognition garnered

f Number of press mentions and media

impressions and the advertising value of thisfree media coverage (i.e., cost the companywould have had to pay to obtain the samevisibility)

f Number of press releases, blog entries, andsocial media posts mentioning the program

f Benchmark standing against competitors in theindustry

f Percentage of customers citing the program askey to satisfaction or loyalty

f Percentage of revenue generated by top 5customers with a philanthropic tie

following fridays 8.9 magnitude earthquake in Japan, The UPS foundation has pledged $1million in relie or earthquake victims there. The unds will be used or in-kind transportationo emergency supplies, trained humanitarian logistics personnel, and nancial support. UPS iscoordinating with its existing relie agency partners, including the Red ross and the Salvationrmy, to determine their needs.

UPS PRSS RSMarch 14, 2011

19 APCO meta-analysis of reputation models for 20 leading Fortune 100companies, How do you communicate on your Employee VolunteeringProgram workshop, NCVS, 2011.20 Making the Business Case for Pro Bono, The Pro Bono Institute,2000.21 Center for Corporate Citizenship at Boston College and BusinessCivic Leadership Center, 2005.22 The 2004 Cone Corporate Citizenship Study.



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REPUTATION:

STRONGR RTIONSHIPS NDNTWORK

Pro bono can broaden the companys network andhelp build relationships with strategic stakeholders thatindirectly impact the bottom line. A company can designa pro bono program in partnership with opinion-leadingcommunity partners or peer organizations that maypave the way for further business-related collaborations.A pro bono program that also involves the companysclients and prospects as volunteers can also strengthencustomer relationships and generate new clients.

RESEARCH FINDINGS

f Pro bono has the potential to be a powerful model for

building non-transactional relationships between acorporation and its clients, vendors, and partners. Itbuilds value-based relationships between employeesand their counterparts at other organizations, allowsthe company to gain insights into the challengesclients face to better meet their expectations, andenables vendors to better understand the companysneeds.24

f 84 percent of Deloittes pro bono projects resulted insignicant relationship or exposure gains materiallyrelated to new business efforts. 60 percent of Deloitteparticipants also reported a new level of client

interaction.f Pro bono gives companies extensive networking

opportunities. For instance, at the Ad CouncilsAnnual Public Service Award Dinner, pro bonopartners are recognized for their contributions in frontof 1,200 of their peers.25


For more than 15 years, the design rm Pentagramhas supported and maintained strong relationshipswith strategic community partners in New York. The

agencys large pro bono work portfolio includesnumerous marketing materials for the PublicTheater and the famous awareness campaignadvocating for the transformation of the HighLine from an unused railroad into an elevatedgreen park. Speaking about the business benetsof pro bono service, Pentagram senior partnerPaula Scher claims, I cant tell you how manyjobs Ive gotten through [pro bono work with] thePublic Theater. Were connected to virtually everycultural organization in the city. We are rewarded inrecommendations; were included in groups wherewe nd out information about thingsits all verygood business. In 2008, the agency received theCouncil on Service Civic Participation Pro BonoAward in front of 150 corporate, government, andnonprot leaders, convened for the Pro BonoSummit. Embracing a pro bono approach is goodfor employees, the community, and the bottomline, says Jean Case, council chair. PentagramDesign is setting a powerful example of corporatecitizenship that we hope other companies willfollow.

METRICS

f Number of partnerships bound with otherbusinesses or public organizations to supportthe program and percentage of thosepartnerships that have had an impact onbusiness activity

f Number and value of leads generated and newcustomers

f Surveys and testimonials from internalstakeholders on key relationships

We do it because its good business... lot o the work weve done is outside, public, its veryvisible, and so clients will call us because theyve seen the design. 23

PTT SHRPartner, Pentagram Design, N oce

23 The Summit on Corporate Volunteerism: Toward a New Denition of

Pro Bono, The Presidents Council on Service and Civic Participation.24 The Pro Bono Business Case, The Taproot Foundation, 200625 The Summit on Corporate Volunteerism: Toward a New Denition ofPro Bono, The Presidents Council on Service and Civic Participation.


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REPUTATION:

SUSTIND INS TOOPRT

Pro bono helps a company build and maintain itslicense to operate, dened as a rms public legitimacyto conduct its activities. A company that over-relies onlegal permits to pursue business projects without lookingfor community approval can be subject to negativegovernment decisions and public criticism or resistance.Conversely, a corporation that builds trust is then ableto mitigate such risks and benet from stakeholderadvocacy in a time of controversy.

RESEARCH FINDINGS

f 90 percent of survey respondents dened sociallicense to operate as being intangible and anon-permanent measure of ongoing communityacceptance of a companys activities.27 Indeed, asocial license is not a piece of paper. It is hard toearn, easy to lose, and extremely difcult to recoveronce lost. Besides, it implies continuous renewalsince it is often granted per project and varies overtime and by stakeholder group.

f Four levels of social license to operate have beenidentied: rejection (withholding or withdrawal),acceptance (tolerance), approval (agreement), co-ownership (support and advocacy).28

f A well-designed pro bono program directly addressthe three pillars of a strong social license to operate,which are inclusiveness (listening and responding tocommunity needs), respect (considering and keepingpromises), and transparency (acting with principledactions and communicating persistently).29


The Global Fellows Initiative has enabled Pzer tomaintain its license to operate with respect to keystakeholders, including governments and opinion-

leading nonprots in locations where the companyoperates. Lisa Foster, Pzers Director of GlobalPhilanthropy observes, As fellow after fellowmeaningfully contributed their skills and partnerorganizations began to see their capabilities growdue to the contribution of the Pzer Global HealthFellow, many of our critics began to look at us withless cynicism and became direct beneciaries of theprogram. We could never have predicted the valueof this program at the outset or the degree to whichit would put a human face on our company. Weresponded to a critical need in a meaningful way,and it resonated with our employees and those whoinuence our operating environment.30

METRICS

f Key stakeholders, and especially the localcommunity, government, and opinion leadersawareness and support for the pro bonoprogram (e.g., letters of support, testimonialsregarding experiences with company, publiccommentary)

f Number of positive local decisions as a result ofthe program

f Percentage of pro bono recipients who arebased in locations where the company conductsbusiness

f Percentage of employees saying they improvedtheir knowledge of the community needs andenvironment

f Compared approval rates with and without probono programs to similar projects, or forecastedbenet of doubt in crisis situations

I cannot stress enough how much good this program has done and continues to do or our NGOpartners, our employees, and our business. This program helps us to secure our global license tooperate.

ROBRT MTTSenior Vice President, Pzer, and President, Pzer foundation

ou dont get your social license by going to a government ministry and making an application orsimply paying a ee... It requires ar more than money to truly become part o the communities inwhich you operate. 26

PIRR SSONDhairman, franco Nevada orporation

26 How to earn your social license to operate, Mining Review, PierreLassonde.27 Waldemar A. Nielsen, 2005.28 Measuring the Social License to Operate, ACCSR, R. Boutillier and I.Thomson, 2009.29 Ibid.30 Volunteering for Impact, FSG, 2007.



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INNOVATION:

IMT Of INNOVTION

For most businesses, innovation is critical to theirongoing success. It is easy, however, for employees to

get stuck in a rut as they face similar tasks and peopleevery day. By giving employees the opportunity to applytheir skills in a different environment for the greatergood, pro bono fosters employees creativity, productivity,and commitment. Pro bono also inspires new ways ofthinking, which are often more entrepreneurial.

RESEARCH FINDINGS

f Innovation has been described as the applicationof knowledge in a novel way. Pro bono can be acatalyst for nding innovative solutions. It requires

employees to apply their skills to a new environmentwith new people, for new clients and in a differentsector, which inevitably brings fresh perspectiveswithin the company.31

f Innovation in Silicon Valley has been partly attributedto the fact that employees in the region switchemployers more often than anywhere else. Thisprocess of switching jobs frequently prevents skillsand thought processes from going dormant and alsoforces people to constantly check their assumptions.Pro bono service is likely to have a similar effect onemployees.32

f 77 percent of Fidelity Investments pro bono

participants reported improved creative thinking dueto their pro bono consulting engagements.33


IBM values innovation that creates social impactwhile exploring new business opportunities. As aresult, employees are more inclined to be creative

and see pro bono engagement as a uniqueopportunity to learn new ideas, methods, andperspective [they] cannot imagine at the moment,as highlighted by a Corporate Service Corpsparticipant. This innovation model based on sharedvalue seems to be widely accepted by employeeswho are willing to bring back their knowledge tothe company. It is scratching the surface of someprevious unknown and guring out how to applythat knowledge back at IBM that will make me, thisprogram, and IBM successful. I plan not only tond ways to apply the things I learn to grow in mycareer, but also to nd ways to share what I learnwith my colleagues at IBM to help them grow, andhopefully, help us all serve our clients better, saysa former Peace Corps volunteer.34 IBM reports theyare now moving with the rapidity and creativity of amuch smaller enterprise.35

METRICS

f Percentage of participants reporting being morecreative

f Number of process innovations and new waysof thinking that have been brought back to the

company and changed the way employees areworking and interacting

Our ellows not only provide value or society at large, but also gain global perspectives, newideas, and skill sets that ultimately inorm business innovationone o Pzers core values.

ROBRT MTTSenior Vice President, Pzer and President, Pzer foundation

31 The Pro Bono Business Case, The Taproot Foundation, 2006.32 Regional Advantage: Culture and Competition in Silicon Valley andRoute 128, Anna Lee Saxenian,1994.33 Common Impact, 2011.34 IBMs Corporate Service Corps Heading to Six Emerging Countries toSpark Socio-Economic Growth While Developing Global Leaders, IBMpress release, March 28, 2008.35 SuperCor: How Vanguard Companies Create Innovation, Prots,Growth, and Social Good, Rosabeth Moss Kanter, 2009.


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INNOVATION:

NW OR IMPROVD PRODUTS

Through pro bono projects, employees gain valuablecustomer insight and may develop new services and

products to meet social needs that can be then addedto the companys commercial offering and brought toa broader market. Pro bono also gives an opportunityto improve current products by taking into accountvolunteers feedback and by integrating end-userinnovations observed on the eld.

RESEARCH FINDINGS

f Pro bono service allows employees to observe howthe companys products and services are used andthus ensure continuous improvement of products.

Indeed, many products and services are developedor at least rened, by users.37 Pro bono projectscan help collect and bring these ideas back into thesupply network.

f For companies who serve small businesses,nonprots, or emerging consumer groups, pro bonoservice can provide valuable customer insight.Employees are able to roll up their sleeves andwork side-by-side with strategic stakeholders,learning about the populations they service andgaining understanding into what it takes to run asmall operation.38 Employees are then more likely toimprove or develop products that meet market needs.


IBMs recent work in the areas of voice recognition,virtualization, data visualization, data analytics, andcloud computing have all increased their intellectual

property and have been embedded in productsand services. And what else do these all have incommon? These were all initially conceived duringpro bono community engagements. The companyswork in cloud computing and open source materialshave been used extensively during its disasterrelief and recovery engagements, including post-earthquake zones in Chile, Japan, and China, aswell as post-tsunami in Sri Lanka. Many areas ofwork from these community responses have beenintegrated into the companys commercial offerings.In Nigeria, Project Comfort focused on womenshealth care, in which new products were developedthat have now been made mainstream for IBMclients on the commercial end. To date, over adozen new patents have been applied as a resultof the companys community engagement and probono work.

METRICS

f Number and value of new products developedand sold

f Number and market value of new patentsdeveloped

Its not a question o just taking o-the-shel solutions or existing technology and turning themover to our partners; its a question o bringing the best minds and the best technology togetherto develop new services and new solutions to address critical needs and that can then be madeavailable to a broader range o customers outside o the not-or-prot sector. 36

NN RMRDirector o orporate ommunity Relations, IBM

36 Measurement Demystied, The Center for Corporate Citizenship atBoston College, 2001.37 The Sources of Innovation, Eric Von Hippel, 1988.38 The Pro Bono Business Case, The Taproot Foundation, 2006.



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INNOVATION:

NW MRKT OR NHNDMRKT PNTRTION

Pro bono projects allow a company to broaden its reachbeyond its existing markets and customer base. Forexample, pro bono service can help the company reachpotential customers such as nonprots, small companies,social entrepreneurs, or low-income customers and otherdemographic groups, locally or internationally. Througheld-based experience, employees are allowed to notonly raise their cross cultural awareness, but also learnto better understand the challenges, priorities, and largeunmet needs of new markets and niches to be served.

RESEARCH FINDINGS

f The old model of innovation can be ineffectivewhen trying to serve customers from the middle andthe bottom of the pyramid. David Etzwiler, formerExecutive Director of Medtronic Foundation, advisesto go into a community and start from scratch byasking the question, Whats not happening here thatcould happen, and how do we address it? Pro bonoservice can help answer this question by leveragingthe companys expertise to solve social issues.40

f Through pro bono, employees are able to roll up theirsleeves and work side-by-side with nonprot leadersand understand what it takes to run a small operation

(nonprot or for-prot) as well as learn about thepopulations they serve.41

f The need for greater cross-cultural awareness isheightened in our global economies. Cross-culturaldifferences in matters such as language, etiquette,non-verbal communication, norms, and values can,do, and will lead to cross-cultural blunders.42


IBMs community programs have helped thecompany broaden its geographic scope bypenetrating into new markets in multiple continents,

serving countries as diverse as Ghana, Romania,and Indonesia. By supporting the development ofsmall and medium enterprises across the globe,Corporate Service Corps (CSC) members contributeto growing IBMs knowledge of the socio-economicconditions and business practices in emergingmarkets. Employees are sent to the same countrieseach year, which allow for both greater social impactand consistent business insights. Now, hundredsof IBMers from anywhere in the world can takedirect action on the worlds most pressing problems,experiencing the satisfaction [of their CSC project].Service Corps members will take that learningback to their countries and translate it how theydo business and how they think about the world,observes Rosabeth M. Kanter, professor at HarvardBusiness School. Imagine the cumulative impact,as it ripples through and beyond IBMs 386,000people and their work in 170 countries.43

METRICS

f Percentage of volunteers reporting a betterunderstanding of their communitys needs

f Number and value of new markets entered

f Amount of additional revenues generated

In addition, the IBM volunteers will learn an enormous amount about how business is done inthese countries and the cultural aspects, they also will learn a lot about themselves and how tochallenge themselves. 39

MIH VTTitizens Development orps, President, IBM

39 IBMs Corporate Service Corps Heading to Six Emerging Countries toSpark Socio-Economic Growth While Developing Global Leaders, IBMpress release, March 28, 2008.40 Q&A Roundtable on Shared Value, moderated by J. Kania and M.Kramer, Stanford Social Innovation Review, 2011.41 The Pro Bono Business Case, The Taproot Foundation, 2006.42 Cross Cultural Business Blunders, Kwintessential Ltd., 2011.43 SuperCor: How Vanguard Companies Create Innovation, Prots,Growth, and Social Good, Rosabeth Moss Kanter, 2009.



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CORPORATE SPOTLIGHT:BEST PRACTICES IN ACTION


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GLAXOSMITHKLINE -

THE PULSE VOLUNTEER

PARTNERSHIP PROGRAMImproving healthcare systems around the world and

developing uture GSK leaders in the process.

COMPANY OVERVIEW

GlaxoSmithKline (GSK), a global pharmaceutical,vaccines, and consumer healthcare companyheadquartered in London, United Kingdom, has a richhistory that dates back to the early eighteenth centuryand today employs over 90,000 people in 114 countries.It has a portfolio of products for major diseases and hasa large consumer healthcare division that produces andmarkets oral healthcare products, nutritional drinks, and

over-the-counter medicines.

GSK is known for investing in community partnershipprograms that seek to improve access to medicineand healthcare. In the developing world, the companyprovides certain medicines at preferential prices,ensuring the poorest can still benet from its vaccinesand health products. GSKs vaccines have been includedin immunization campaigns in 182 countries worldwide,and 1.4 billion vaccine doses were delivered to 179countries in 2010. GSK believes that business has animportant role to play in society and strives to leverageits resources in a way that delivers shared value tocommunities around the world and business.

PROGRAM OVERVIEW

GlaxoSmithKlinesmission of helpingpeople to domore, feel better

and live longer isachieved not justthrough medicines,vaccines, and consumer products, but also throughemployee involvement. In 2009, GSK developed thePULSE Volunteer Partnership, a two-year-old leadershipdevelopment and service program. Since 2009, morethan 200 high-performing employees have been sentaround the world to volunteer their professional skillsand expertise to nonprot organizations, buildingsolutions and improvements across sectors in healthcare,education and the environment. Employees are given an

opportunity to use their professional skills and knowledgeduring a three- or six-month immersion experience withina non-prot or non-governmental organization (PULSEPartner).

So far PULSE has successfully placed 201 volunteers in39 different countries with 56 NGOs (PULSE Partners).From the Canada to Bolivia, Kenya to China, Haiti toIndia, PULSE has a global focus contributing to nonprotsand NGOs worldwide. In addition to empoweringemployees to make a signicant impact on communitiesin need, the immersion assignments support theemployees professional development though leadership

growth and skill development.

Pulse Volunteer rom Pharmaceuticals, UKworked with a non-prot in Sri anka or six monthsto develop a 5-year strategic plan or three o thenon-prots disability resource centers that providescommunity-based care or people with disabilities inareas hit by the Tsunami in 2004.

PUS IMPT SUMMR

We work as a partner with under-servedcommunities in the developed and developingworld supporting programs that are innovative,sustainable and bring real benet to thesecommunities. We encourage our employeesto become involved with deserving causesin their local communities around the globe.

We support their time and dedication withvarious internal programs and opportunities toencourage active employee involvement.

GOSMITHKIN WB SIT



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BUSINSS BNfITS

HUMAN RESOURCES BENEFITS

GlaxoSmithKlines employment practices are designedto help the company create the right workplace culturein which all GSK employees feel valued, respected,empowered, and inspired. The PULSE program playsan important role in providing employees an opportunityto enhance their leadership and development skills. Theyare inspired and motivated to bring back what they learnin the eld and apply these learnings to the businesschallenges they face in their jobs back at GSK.

FOSTERING INNOVATIVE TRAINING SERVICES

The program is designed to develop three unique skills:exible thinking, building relationships and enabling/driving change, which GlaxoSmithKline views as three of

the six core competencies critical for its future leaders.Prior to departure, the selected PULSE Volunteersand their line managers receive training and setspecic, measurable development and service goals inconjunction with their nonprot supervising managers.

In addition, because there is no back-ll for theemployees who leave GSK for a three- or six-monthfull-time engagement, the PULSE Volunteer Partnershipoffers a development opportunity for the home team,which must step up and cover the role and responsibilitiesof the PULSE Volunteer. In this way, PULSE offersa development opportunity for a greater number of

employees than just the 50 to 100 Volunteers who goout on a PULSE assignment each year. As one PULSEVolunteer said of her home teams learning experiencewhile she was out of the business for six months, It wasnice for my team not to have the big boss around for awhile. They surprised themselves with what they could doand what they could handle on their own.

INCREASING EMPlOYEE MOTIVATION

GlaxoSmithKline maintains employee motivation for boththe PULSE Volunteers and their Home Teams throughoutthe program by encouraging regular communicationsbetween the Volunteer and his/her home team. In this

way, line managers and home teams are brought alongthe development journey of their PULSE Volunteer andalso, hearing about the good work and service that theVolunteer is doing for people and communities in needhelps to keep them motivated to cover that Volunteersworkload for the duration of the assignment. During thePULSE Volunteers re-entry process, employees are alsoexpected to present their experiences to their co-workersby discussing not only the impact the Volunteer had onthe nonprot partner, but also the impact the experiencehad on them personally and professionally, as well as theimpact and change that they hope to bring back to GSK.

BROADER VISIBIlITY WITHIN GSK

The PULSE program sits within the Center of Excellencefor Global Talent, Leadership and OrganizationalDevelopment, which is housed with GlaxoSmithKlinesHuman Resources department. It is very clear whatthe PULSE program offers externally, but GSK alsowanted the programs internal benets to be clear to linemanagers and senior leadership. Therefore, they havehoused PULSE within the HR department, demonstratingthat the program raises the bar for talent developmentfor future leaders within the company a clear form ofROI for all. This is considered to be a powerful wayto train future global leaders; to improve employeemorale, motivation, and retention; and to recruit the nextgeneration of talent all while doing some good forcommunities and societies around the world.

I am delighted to have an engaged manager[PUS Volunteer] who has transormed intoan eective leaders a transormation so rapidand wide-ranging that even the best o traininginterventions may not be able to match!

SHUBHJIT SNDirector o Marketing , GlaxoSmithKline, H India


It is not an exaggeration to say that many oour PUS Volunteers return to GSK armingthat their PUS ssignment was a lie-changing experience...New recruits tell us thatit is the No. 1 reason why they joined GSK,and current employeestell us that they justeel good about working or a company thatsupports a program like PUS. Our Volunteersreturn with greater ocus on the patient; they

return as leaders with greater passion, energy,condence, creativity, gratitude and practicalknowledge o how to do more with less. In itsshort lie in the company, PUS has alreadybecome a big part o what GSK stands or.

HSI POSNR MNINDirector, PUS Volunteer Partnership, GlaxoSmithKline


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DELOITTES PRO BONO

PROGRAMDeloittes ormal pro bono program delivers highvalue services to the nonprot sector while also

oering high value business benets back to thecompany.

COMPANY OVERVIEW

Deloitte & Touche USA LLP (Deloitte)44 is one of theleading professional services organizations in the U.S.,providing audit, tax, nancial advisory, and consultingservices and employing nearly 50,000 people.

Deloittes personnel leverage their skills to benet thecommunity in several ways:

f Deloittes overarching community involvementstrategy is focused on using its innovative thinking tohelp people and communities thrive.

f Employees can be assigned to pro bonoengagements, which are staffed and managed in thesame way as commercial engagements.

f Personnel are encouraged to serve on non-protboards; to date approximately 2,000 non-prot boardseats are held by Deloitte personnel.

PROGRAM OVERVIEW

Deloitte has done pro bono work for decades, but prior to2008, it was not tracked as part of a formal organization-wide program, nor was it linked to a formal organizationalgoal. In February 2008, when the Corporation for National

and Community Service announced Billion + Change,a federal initiative to encourage American businessesto champion pro bono work, Deloitte responded witha pledge to deliver $50 million in pro bono services by2011.

One initial challenge in developing the formal pro bonoprogram was to get all the companys business units(tax, audit, nancial advisory, and consulting) to buy into the idea that contributing pro bono service is not onlygood for the community, but also good for employees andbusiness. Prior to its launch, dozens of meetings were

held with stakeholders at every level to gain insight onhow the program could and should be structured, and togenerate consensus on key decisions.

The itizens ommittee o New ork ity, whichmobilizes community resources to improve localquality o lie, elds hundreds o project proposalsa year. Deloitte helped the organizations leadershipbuild a dynamic dashboard using metrics andscoring criteria to inorm the organizationsdecision-making process so that resources are

allocated most eectively. OMMUNIT ITS OUR BUSINSS: INSIGHTS ND RfTIONS ONDOING PRO BONO WORKDeloitte P, 2011

PROGRAM DETAIlS

In June 2011, Deloitte had delivered nearly 300 projectssince the program launched and met its $50 million goal.Each of Deloittes business units commits a percentageof their budget to create an annual pro bono fund. Thefunds are allocated across six pro bono committees

(one national, ve regional) responsible for managingthe investment at the national and regional levels. Theprogram leverages Deloittes existing client service modeland provides supplemental tools to guide strategic projectselection.

To be eligible for pro bono support, nonprots must havean existing relationship with Deloitte through nancialsupport; volunteerism; Deloitte personnel serving on itsBoard of Directors or Trustees; or a partner, principal ordirector (PPD) sponsor (advocate for the duration of theengagement). Project applications must be submittedby Deloitte personnel and are vetted by the pro bono

committees. The committees assess applications basedon key criteria that take into account potential socialimpact as well as business value.

Skills-based volunteerism is transormingcommunity involvement in corporate mericaand opening the door to the idea that corporatecommunity outreach is not just an importantdriver o social change, but an innovative andeective business strategy.

VN HOHBRGNational Director o ommunity Involvement, Deloitte Services P


44 As used in this document, Deloitte means Deloitte LLP and itssubsidiaries. Please see www.deloitte.com/us/about about for a detaileddescription of the legal structure of Deloitte LLP and its subsidiaries.Certain services may not be available to attest clients under the rulesand regulations of public accounting.


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BUSINSS BNfITS

Deloitte appreciates the connection between achievingsocial and business outcomes. The business valueopportunity of a pro bono application is estimated upfront.Both during the engagement and afterward, businessbenets are measured through online surveys that areadministered to three different stakeholders: projectmanagers, the Deloitte professionals staffed on theengagements and the pro bono clients.

Deloittes pro bono program has impacted three mainbusiness drivers.

FOSTERING INNOVATIVE PROFESSIONAl

DEVElOPMENT

The program provides valuable professional developmentand networking opportunities for personnel. For manyDeloitte professionals, pro bono provides a uniqueopportunity to demonstrate interpersonal, leadership,teamwork and business skills. The program assists inongoing recruitment and retention efforts. 70 percent ofparticipants stated that pro bono is a core component oftheir job satisfaction, which directly relates to employeeloyalty. The program is also a central part of Deloittesrecruiting efforts and has been included in recruitmentyers, student leadership conferences, on-campuspresentations, and other similar materials and events.

f 72 percent of Deloitte professionals who worked onpro bono projects gained new skills or experience;key areas of skill development included clientinteraction, communication, project management,and problem solving.45

STRENGTHENING RElATIONSHIPS AND NETWORK

Pro bono work enables Deloitte to showcase both itsvalues and capabilities to senior business executives,who serve on the boards of the nonprots Deloitte issupporting. Pro bono work also provides the personnel

doing the work with a unique opportunity to build strongerclient relationships. According to an employee survey:

f 84% of pro bono projects resulted in signicantrelationship or exposure gains materially related tonew business efforts.46

ENHANCED BRAND AND PUBlIC RElATIONS

Deloitte is well known for taking a leadership positionon the issue of contributing pro bono, and its programdemonstrates both the organizations core competenciesand its commitment to corporate citizenship. Thepro bono program supports the organizations brand

promise and enhances its reputation for being sociallyresponsible. Examples of this effort include its MakingA DifferenceDifferentlydocumentary series, itspublication ofCommunity its our business: Insightsand reections on doing pro bono work, and the manyrecognitions it has received including those from TheWhite House, Points of Light Foundation, and U.S.Chamber of Commerce. These efforts and others havecontributed signicantly to building Deloittes reputationas a leading corporate citizen and leader in the pro bonomovement.

s well as building a healthy businessenvironment in the long term, the benets canbe more immediate. It helps communicate whata company stands or; it helps attract, developand retain talent; and it helps us showcase ourvalues and talents in the marketplace.

BRR SBRGO, Deloitte P


Deloittes pro bono program strengthensrelationships with employees outside thenormal scope o the job.

MRDITH fONTHIO

National ommunity Involvement Manager, Deloitte P

When presenting their pro bono work in ronto nonprot boards, which are oen comprisedo leaders o other companies, our teamsare able to impress with their expertise and

sometimes get hired or paid engagements. MRDITH fONTHIONational ommunity Involvement Manager, Deloitte P

45 Community its our business, insights and reections on doing probono work, Deloitte LLP, 2011.44 Ibid.


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IBM - CORPORATE SERVICE

CORPS & TRAILBLAzER

GRANTSBig Blues giant commitment to sustained corporate

philanthropy and innovation that matters, or thecompany and or the world.

COMPANY OVERVIEW

International Business Machines (IBM) is a multinationaltechnology and consulting rm headquartered in Armonk,New York. IBM manufactures and sells computerhardware and software, and it offers infrastructure,hosting, and consulting services in areas rangingfrom mainframe computers to nanotechnology. Thecompany was founded in 1911 and, in 1924, adopted

the name International Business Machines. Today IBMemploys more than 425,000 employees, often referredto as IBMers, in over 200 countries with occupationsincluding scientists, engineers, consultants, and salesprofessionals.

IBMs distinctive culture and product branding has given itthe nickname Big Blue. In 2010, Interbrand ranked IBMas one of the worlds most valuable brands, second onlyto Coca Cola. Additionally, Ceres and Covalence, twoprestigious independent Corporate Social Responsibility(CSR) rating organizations, ranked IBM No. 1 for its work

around corporate philanthropy and citizenship.

PROGRAM OVERVIEW

In celebration of its centennial, IBM has deemed 2011 theCelebration of Service, honoring its employees in theircommitment to volunteer service. Through the exemplaryOn Demand Community (ODC) program launched in

2003, more than 170,000 employees and retirees haveaccess to a large volume of volunteer resources andopportunities and have logged more than 11.9 millionhours of volunteer service. Recently, IBM launched twopro bono programs as part of the companys communityinvolvement strategy.

In 2008, IBM launchedthe Corporate ServiceCorps (CSC) to helpIBMers enhance theskills needed to leadin a globally integrated

enterprise while allowing them to deliver expertise-basedservice for communities and nonprots in emergingmarkets. Teams of IBMers are sent to emerging marketsfor one month community-based assignments, wherethey perform community-driven economic developmentprojects that bring together business, technology,and society. The program is a leadership and skillsdevelopment program that helps to increase participantscultural awareness and understanding of growth marketswhile further instilling a sense of social responsibility.CSC has experienced remarkable growth over thelast three years with more than 1,200 employees and

executives from over 50 countries. They have served onover 110 team assignments in more than 25 countriesacross Africa, Asia, Latin America, and the former SovietRepublics. With each teams efforts valued at $250,000,more than $25 million in support has been providedthrough CSC assignments to date. In fact, the CSCmodel has proven so successful that other companiesincluding Dow, Federal Express, and PepsiCo haveadopted similar models.

IBM also provides signicant support to nonprotsthrough its Trailblazer Grants. Introduced in 2010, thesegrants mirror the type of assistance IBM provides to its

business clients and allow local nonprots to tap intoIBMs innovation technology and the deep expertise of itsemployees. Through consulting and technology tools inareas such as project management, strategic planning,social networking, leadership and collaboration, andoperational risk assessments, IBMs Trailblazer Grantsoffer customized assistance to nonprots that help themreach deeper into their communities and more effectivelyconnect with populations in need. The grants also allowthe nonprots to more efciently and effectively managetheir own organizations. In a pilot phase, the Trailblazergrants were distributed to 30 nonprot organizations and

schools across the U.S. In 2010, 150 groups around theworld received grants, and 165 groups are expected to beTrailblazer grant recipients in 2011.

Now, many hundreds o IBMers rom anywhere inthe world can take direct action on the worlds mostpressing problems, experiencing the satisaction [otheir S project]. Service orps members will takethat learning back to their countries and translate itinto how they do business and how they think aboutthe world.

ROSBTH MOSS KNTRProessor, Harvard Business School and Strategist and uthor

The IBM technology enabled us to implementour program in 68 countries around the worldin only seven months. Were getting valuablevisibility rom On Demand ommunity that wecan reerence with our clients. It demonstratesour companys values, the skills o our people,and the power o our technology, all in a waythat is easy or our clients to relate to their own

businesses. DIN Morporate itizenship Director, IBM



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BUSINSS BNfITS

NEW AND IMPROVED PRODUCTS

Innovation is at the heart of what IBM does. IBM commits$6 billion each year for research in over 100 researchlabs around the world and holds more patents than anyother U.S.-based technology company. IBMs recentwork in the areas of voice recognition, virtualization,data visualization, data analytics, and cloud computinghave all increased IBMs intellectual property and havebeen embedded in products and services. And what elsedo these all have in common? These were all initiallyconceived during pro bono community engagements.

The companys work in cloud computing and open

source materials have been used extensively during itsdisaster relief and recovery engagements, including post-earthquake zones in Chile, Japan, and China, as well aspost-tsunami in Sri Lanka. Many areas of work from thesecommunity responses have been integrated into thecompanys commercial offerings. Another example is fromNigeria-based CSC team engagements called ProjectHope and Project Comfort that focused on womenshealth care, in which new products were developed thathave now been made mainstream for IBM clients on thecommercial end.

NEW AND ENHANCED MARKET PENETRATION

To date, over a dozen new patents have been grantedas a result of the companys community engagement

and pro bono work. IBMs community programs havehelped the company broaden its geographic scopeby penetrating into new markets in Africa (especiallyNigeria, Ghana, Kenya, and Tanzania), Eastern Europe(especially Romania), and countries in Asia includingCambodia, Vietnam, and Indonesia.

ADDITIONAl INVESTORS

IBMs community engagement programs have also

impacted the companys social investment ratings. Overthe last several years, IBMs No. 1 rating on both Ceresand Covalence has resulted in buy recommendationsfrom many additional socially responsible investors, whohave increased in their IBM holdings. The companyscommunity involvement is not the only factor that hasimproved its social investment ratings but is certainly animportant component of that ratings outcome.

The IBM volunteers will learn an enormousamount about how business is done in thesecountries and the cultural aspects, they alsowill learn a lot about themselves and how tochallenge themselves.

MIH VTTPresident, itizens Development orps, IBM


IBM S is a triple benet program producingquantiable returns or the individual, or thecommunity and or the company measuredin its eect on recruitment and retention

o top talent, skill enhancement in culturaladaptability and teaming, brand value, theopening o business opportunities in emergingmarkets and enhanced media coverage.

STN S. ITOWVice President o orporate itizenship & orporate airs, IBM


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THE NERDERY OVERNIGHT

wEBSITE CHALLENGEWeb developers requently stay up all night butwhen they do so in the service o nonprots, all sort

o interesting impact happens.COMPANY OVERVIEW

In 2003, three Web developers founded the Sierra BravoCorporation, later renamed to The Nerdery. With growingdemand for online solutions, the company grew quickly,expanding to $16.8 million in revenues and almost 200employees in two locations by 2010. Beginning in 2007,the company expanded beyond its initial core group ofclients to partner with advertising agencies to developtheir clients interactive projects, including Web sites,social media, and mobile apps.

The expanding ranks of Nerds employed by TheNerdery has allowed the company to prioritize recruitmentand cultivation of its culture. In 2008, the companylaunched a dedicated Web site to attract Web developers.Simultaneously, the company increased resources toimplement and promote the Nerdery Overnight WebsiteChallenge (The Challenge). With its rapid success andthe realization of The Challenge, The Nerdery has beenfeatured frequently in the local Minneapolis press andis well-known in the community. Beginning in 2008, thecompany also appeared in national magazine rankings,

such as the Inc. 5000 and Business Journal Fast 50 listsof fastest growing companies.

PROGRAM OVERVIEW

In 2008, Nerdery Vice President of Marketing MarkHulburt drew upon on his previous experience in the

nonprot sector and proposed that The Nerdery engagein a pro bono program. So, with full backing frommanagement, The Nerdery launched its rst annual probono marathon in 2008. The inaugural Challenge broughttogether 88 volunteers drawn from company employees

and other local Webdevelopers. They formed11 teams and builtWeb sites for 11 localnonprots, resulting ina huge success. The

Challenge has growninto an annual event,and by 2011, therewere 175 volunteerdevelopers, 45 from TheNerdery, who created Web sites for 18 nonprots.

Organizing such an event is no easy feat as it takes thefour-person marketing team approximately four monthsto prepare for The Challenge. Even Nerdery employeeswho are not developers get involved by helping organizeand promote the event. On the whole, 75 percent of the

employees committed themselves to The Challenge in2011. In order to participate, Web developers (employeeor not) must apply in teams of nine to 10 with adesignated captain. Selected nonprots and teams get toknow each other through a speed dating event and arenally paired by judges based on each teams unique skillset and the nonprots needs. Teams, however, do notknow their selected nonprot until D-Day.

Over the course of the 24-hour marathon, the teamsrelentlessly strategize, delegate, plan, write code, revise,and nalize their deliverables, all the while fueled bydonated food and coffee. At the end of the 24 hour

period, four teams are selected by the judges to brieypresent their work. A nal winning team is awarded tophonors and the rights to brag of their achievement untilnext years Challenge.

The Nerdery encourages ongoing support for thenonprots so that they may experience a successfullaunch and marketing effort for their new Web site. Teamsmay offer services such as:

f Education in design and web applications, businessanalysis, or project management

f Free Web hostingf Digital communications advice

Were challenging other designers andprogrammers to join us in donating a little timeto help some worthy Minnesota non-prots buildwebsites that work better and smarter or theircauses.

UK BUKINPresident, The Nerdery

Whatever clients want their website to do, wemake it work but this spikes demand or ourweb development services. With over a hundredprogrammers on sta, were as well-stockedas they come yet we constantly need moretech talent. We wanted to build our Nerderybrand around what agencies see in us an

unstumpable web partner, ready to managecomplex interactive projects on time and onbudget.

MRK HURBURTVice President o Marketing, The Nerdery



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BUSINSS BNfITS

INCREASING EMPlOYEE MOTIVATION

One of The Nerderys main goals is to cultivate aworkplace where talented Web developers can feel goodabout their work and where they are allowed to blendwork and fun. The nonprots assisted by The Nerdery arelocal organizations that directly help people in the verycommunities where the employees live and work.

Since the marathon suits the way developers do theirpaid work, which is in the middle of the night and on atight deadline, The Challenge inspires a culture of givingback that supports the business too. And, perhapsabove all, The Challenge is a contest, and the winner isbestowed with valid bragging rights a challenge Webdevelopers cherish.

SUPPORTING RECRUITMENT AND TRAINING

By attracting so many non-employee Web developers close to 50 percent of total participants The Challengeis a great way to boost to the companys recruitmentefforts. Non-employee participants are friends, familymembers, clients, ex-colleagues, or just willingvolunteers, who get a great opportunity to build uniquerelationships with The Nerderys employees in an intense

24-hour period.

Although the data is not tracked, the company afrmsthat a signicant number of recruits have been introducedduring these Challenges. Additionally, when jobapplicants are asked how they discovered The Nerdery,numerous applicants mention The Challenge, and aparagraph on The Challenge is included in all recruitingmaterials.

The Challenge also helps to develop soft skills. Teamdevelopment is very organic in that people self-select into

certain roles, offering opportunities for some participantsto step up and lead teams even though they are morejunior or in a role that usually doesnt hold a managementposition.

ENHANCING PUBlIC RElATIONS AND NETWORK

The Challenge is a powerful way to promote TheNerderys corporate culture externally. In 2010, nearly 20percent of press writing about the Nerdery focused onThe Challenge, and 100 percent of the Nerderys pressreleases mentioned the event. Blog entries, Tweets, andFacebook postings also often refer to The Challenge.

The Challenge also highlights the companys corporatestrategic goals to be considered by business partnersas a creative enterprise, one that can do more withfewer resources. Since teams often have clients asteam members, The Challenge can strengthen clientrelationships and/or generate additional leads.

The Nerdery has also won accolades from the localbusiness community. Numerous local businessespartnered with The Nerdery to provide additionalresources to the event, creating new relationships

between The Nerdery, local businesses, and thenonprots. From coffee and food to ofce supplies to theirown employees time, local businesses played a key rolein the success of the event.

The Nerderys advice: consider involving your clients,suppliers or potential recruits in your programs.

This mentality has helped us to spreadleadership and responsibility across theorganization, exercising the strengths andpassions o the individuals that are bestequipped to serve the needs o the company.This mentality also spurred us to create theWeb hallenge.

UK BUKINPresident, The Nerdery


This is my second year participating and Iknew the competition would be the best web-dev talent in Minneapolis. I had to recruit thebest.

JSON STRIGTeam captain, invited six agency colleagues and three o his mosttrusted Web nerd associates, two o them rom The Nerdery


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UPS HUMANITARIAN RELIEF

EFFORTS

COMPANY OVERVIEW

UPS is the global leader in logistics, offering a broadrange of solutions including the transportation ofpackages and freight. Founded in 1907 as a privatemessenger and delivery service in Seattle, WA, UPStoday delivers packages each business day for 8.5 millioncustomers and delivers an average of 15.6 million piecesper day worldwide, or a total of 3.94 billion packages in2010.

Its expertise in delivery and logistics has drawn UPStoward taking the initiative in major disaster relief efforts,such as the earthquakes in Japan and Haiti and the

tsunami in Southeast Asia. In collaboration with TheUPS Foundation, UPS has dedicated its resources(both nancial and in-kind) and its employees to institutedisaster-relief programs, among many other UPSphilanthropic programs, that directly benet disaster reliefefforts and nonprots that focus on disaster relief, suchas The American Red Cross and CARE.

PROGRAM OVERVIEW

In partnership with other global logistics providers, Agility,Maersk, and TNT, UPS works with The World FoodProgram to provide much needed assistance in timesof disaster. These logistics competitors have formed

a unique collaboration, creating Logistics EmergencyTeams (LETs) that consist of teams of skilled employeevolunteers, who plan and respond when disaster strikes,as in the case of the earthquakes in Haiti or Japan. TheUPS Foundation also contributes additional funding forthe transportation (in-kind distribution) and goods neededfor relief efforts with some of the worlds leading relieforganizations, such as UNICEF, CARE and the AmericanRed Cross.

In addition, UPS leverages its engineering talent andlogistics expertise to help nonprots to design better

global supply chains that can more efciently respondto natural disasters. Currently, UPS has dedicated twofull-time senior logistics engineers (one in the U.S. andone in Europe) who work with the American Red Cross,CARE, and UNICEF on a pro bono basis to improve theirlogistics capabilities. UPS has also contributed in-kindresources and nancial grants as-needed to continue tosupport these initiatives.

In its review o R operations, UPS oundthat the organization lacked visibility o where itssupplies are located worldwide. In response, UPS

has helped R implement an ecient and lowcost tracking soware system

Its something that you would think would be normalbut its not available right now. Not very manynongovernmental organizations have that.

We believe we have a tremendous amount ointellectual capital that can be put to use. We wantto be a driving orce to help motivate companies

and other oundations to look beyond what youvealways been doing.

D HROGSolutions Manager, UPS

The Ts [ogistics ctions Teams] programwith the merican Red ross in the U.S.is another component in UPSs continued

commitment to leveraging its people, logisticsexpertise and global network to provide urgenthumanitarian relie all around the world.

MRON GRSenior Vice President o U.S. Operations, UPS



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BUSINSS BNfITS

IMPROVING PUBlIC RElATIONS

The press release below was picked up by 31 outlets,resulting in 6.1 million impressions on online sites,according to a follow-on third party report. While othercompanies pledged nancial support to the relief of theearthquake in Japan, UPS was unique in its pro bonoapproach by dedicating its own resources and personnelthere by promoting its global logistics capabilities. Byresponding quickly and generating wide-spread publicity,UPS was thus able to build on its existing reputation as aglobal corporate citizen and enhance its image among itscustomers and employees for going above and beyondwhat other companies were able to do.

INCREASING EMPlOYEE SATISFACTION AND

ENHANCED RECRUITMENT

UPS actively showcases its various employer-of-choiceawards on the UPS career Web site, including as one ofthe Top 10 Most Socially Responsible Companies. UPScommitment to sponsoring disaster relief efforts ts withinthat vein of Corporate Social Responsibility that UPS triesto promote to future recruits and existing employees.

UPS decision to pursue humanitarian relief efforts as aphilanthropic initiative also demonstrates the companysdesire to have the greatest impact for its volunteerstime and money. According to a 2008 internal UPSsurvey, employees picked I do what I feel will have themost impact more frequently (36 percent of the time)than any other motivation for participating in volunteeropportunities. In promoting disaster relief as a keyvolunteer activity, UPS contributes to building a corporateculture that is consistent with employee ideals by allowingemployees to do the most good with the skills they

already have (i.e., logistics, delivery).

following fridays 8.9 magnitude earthquakein Japan, The UPS foundation has pledged$1 million in relie or earthquake victimsthere. The unds will be used or in-kindtransportation o emergency supplies, trainedhumanitarian logistics personnel, and nancialsupport. UPS is coordinating with its existingrelie agency partners, including the Red rossand the Salvation rmy, to determine theirneeds.

UPS PRSS RSMarch 14, 2011



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fUNDING PRTNRS

OMMUNIT PRTNRS

Meredith Hahn American ExpressBradey Yates AT&TMeredith Fontecchio Deloittelori Grey DeloittePau Buecker GEDonna Svendsen General MillsAshiya Mencin GlaxoSmithKlineStaney S. litow IBMDiane Meey IBMBrian Wash LiquidnetKatherine Tayor Hurey MicrosoftTom Moran Microsoft

Nichoas Covey NielsenTeresa Coes Riggs Advertising PartnerStephanie Ghertner SalesforceAtanta McIwraith TimberlandMark Mamberg The NerderyGiian Reynods The NerderyDae Herzog UPSRonna Chares Branch UPSRobert Grasso UPSErin Bodde Wells FargoMeissa Buchanan Wells Fargo

STUD PRTIIPNTS

ACKNOwLEDGMENTS



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BOUT TH UTHORS

Yoann Kassi-Vivier([email protected]) is the President and Co-founder of Pro Bono Lab. Jennifer Pawowski

([email protected]) and Caro Guttery ([email protected]) are consultants with theTaproot Foundations Advisory Services practice.

The authors wish to sincerely thank Dima Mostovoy for his contributions and support, which have been extremelyvaluable to this study.

Design and layout by Joshua Winata, Taproot Foundation External Affairs Fellow.

demonstrating the business value of pro bono by pro bono lab and the taproot foundation

Documents