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HOWCANWORKINGWITHCHARITIESHELP

BUSINESSESDOBETTER?

NatalieTucker 2017ChurchillFellowEnterprise

Copyright©April2018byNatalieTucker.Themoralrightoftheauthorhasbeenasserted.TheviewsandopinionsexpressedinthisreportanditscontentarethoseoftheauthorandnotoftheWinstonChurchillMemorialTrust,whichhasnoresponsibilityorliabilityforanypartofthereport.

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Supporters

TheWinstonChurchillMemorialTrustwasfoundedinmemoryofSirWinstonChurchill,andcarriesforwardhislegacybyfundingUKcitizensfromallbackgroundstotraveloverseasinpursuitofnewandbetterwaysoftacklingawiderangeofthecurrentchallengesfacingtheUK.

TheRankFoundationexiststoimprovethelivesofpeopleandtheircommunitiesacrosstheUK,inparticularthroughencouraginganddevelopingleadership,andpromotingenterpriseandinnovation.

ThisChurchillFellowshipinEnterprisewasjointlyfundedbytheWinstonChurchillMemorialTrustandTheRankFoundation.

ThreeHandsconnectsbusinesseswithcommunityorganisationstoworktogetherformutualbenefit.

ThisresearchwasinspiredinpartbyThreeHands’workon“SocialInsight”,andwasmadepossiblebythesupportofmycolleagues,theThreeHandsteam.

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Contents

Introduction 5

About the author 5

Executive summary 6

Background & context 8

Objectives 9

Approach 9

Key findings: Part 1 What do charities know and do well, that businesses can benefit from?

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Case Study 1 Center for Financial Services Innovation: A non-profit putting business at the centre of its approach to social impact

12 Key findings: Part 2 How can businesses access these skills and expertise?

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Focus point What are the benefits of employees engaging with non-profits?

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Case Study 2 Fidelity Investments: Developing skills through volunteering

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Key findings: Part 3 How can businesses benefit from working with charities?

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A model for businesses learning from charities 18

Case study 3 Microsoft: Working with non-profits is business as usual

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Key findings: Part 4 Keys to success

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Case study 4 Bogotá Chamber of Commerce: A systems approach

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Recommendations for implementation 27

Conclusion 28

Appendices: - Glossary - Further reading and useful resources - Acknowledgements

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Introduction Thisreporthighlightsfindingsfroma2017ChurchillFellowshipinEnterprise.Theresearchcomprisedmainlyofasix-weektriptotheUSA(NewYork,Boston,WashingtonDC,SanFranciscoandSeattle)andColombia(Bogotá),alongsidedesk-basedresearchandtelephoneinterviews.Thisresearchaddressesthequestionsofwhatbusinessescanlearnfromnon-profits,andhowthislearningcanbevaluabletotheirbusiness,beyondhavingasocialorreputationalimpact.Forthepurposesofthisreport,theconceptofbusinesses“doingbetter”ismeantintermsofbothmeetingtheirobjectivesasabusiness(e.g.incomegeneration,growth,innovation)aswellashavingamorepositiveimpactonsociety(e.g.caringforthewellbeingandhappinessoftheiremployees,creatingproductsandserviceswhichmeettheneedsofthemostvulnerable,contributingtothrivingcommunities). Thisreportisaimedat:

- Anyoneworkingwithinbusiness,forthereismuchyourorganisationcanlearnfromnon-profits;

- Peoplewithincharitieswhowanttoinfluenceorworkwithbusinessesincreativewaystofurthertheirorganisation’ssocialmission.

About the author NatalieTuckerisaSeniorManageratThreeHandswheresheworkswithbusinessestodesignandruncommunityprogrammesthathavesocialandbusinessimpact;forexamplestrategicvolunteeringinitiativesthatenablepeoplefrombusinesstoapplyanddeveloptheirskillswhilstbuildingthecapacityandconfidenceofcharitystafforservice-users,atthesametimelearningaboutsocialissuesrelevanttotheirbusiness:Havinghadalifelonginterestandinvolvementincharitiesandsocialimpact,IbeganmycareerinthesectorattheCharitiesAidFoundation(CAF)in2010.Isoonbecameawareoftheunequalpowerdynamicbetweenbusinessesasdonors,andcharitiesasrecipients,andthestrongconnotationsthiscreates.ThroughmyroleatCAF,andlaterattheInstituteforPhilanthropy,whereIhelpeddevelopprogrammestoeducatephilanthropistsaboutstrategicgiving,Ispentthreeyearsbuildingmyunderstandingofthethirdsectorandsocialimpact.Ibecameincreasinglyuncomfortablewithperceptionsofthecharitysectorasinferiorandunprofessional.ParticularlywhenIwascontinuallymeetingincrediblytalentedandpassionateprofessionalsworkinghardtosecurethefinancialsustainabilityoftheirorganisationswhilstalsoachievingsocialimpact;anevenmorechallengingremitthanfocusingoncreatingshareholdervalueinmyview!JoiningThreeHandsin2015enabledmetocombinemypassionforsocialimpactwithagrowinginterestintheroleofbusinessinsociety,whichhasledtothisresearch.

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Executive summary AlthoughbusinesscharitypartnershipsarecommonplaceintheUK,theyhavetraditionallybeenbasedprimarilyaroundwhatthebusinesscangivetothecharity,andthepositiveside-effectswhichthismayhaveforthebusiness(suchasbenefitingtheirbrand),ratherthanthemorecorebusinessbenefitswhichworkingwiththecharitycanhave.Asbusinessesbecomemoreinterestedintheirwidersocialpurpose,andcharitiesdevelopmorecommercialmindsets,thisFellowshipconsidersthequestion:Whatroleisthereforcharitiesinhelpingbusinessesto“dobetter”?Thatistosay,howcanworkingwithacharityhelpabusinesstoimprovetheimpactithasonsocietyandcontributetoitsprofitability?

Key findings

1. Therearemanygoodreasonsforbusinessestoworkwithcharities;thisreporthighlightsfivekeyareasofstrengththatcharitiesarewidelyheldinhighregardfor:- Socialissueexpertise;knowledgeof,andclosenessto,theissuestheyexisttoaddress.- Relationshipsandnetworksofservice-users,supportersandpolicy-makers.- Credibilityandlegitimacyamongstthosenetworks,andconsumersmorebroadly.- Valuableskillsetssuchasempathy,creativethinkingandproblem-solving.- Clearsenseofpurposeandvalues-ledleadership.

2. Businessescanengagewithcharitiesindifferentwaystobenefitfromtheseassets.Fromlowestto

highestengagementlevel,approachesinclude:- Watchingandlearninge.g.readingmaterialsontheirwebsites.- Engaginginaconversatione.g.joiningathemednetwork.- Contractingcharitiese.g.toconductbespokeresearchorrunfocusgroups.- Employeeengagementwithcharitiese.g.skilledvolunteeringorprobono.- Tacklinganareaofsharedconcerne.g.developingcriticalemployabilityandindustryskills.- Co-creation;developingaproduct,serviceorbusinessmodelinpartnership.

3. Insightandconnectionsgainedthroughworkingwithacharitycanbenefitallareasofabusiness–

fromidentifyingtheirpurposeordesigningabusinessmodel,toattractinganddevelopingemployeesorgaininglicensetooperateinanewarea.ThisreportincludesamodelandtableofexamplestorepresentthefullrangeofexamplesencounteredthroughthisFellowship.

4. Therearesomeexcellentexamplesofcollaborationofthisnatureinpractice;thisreporthighlights

workof:- Microsoft;partneringwithnon-profitstoincreasediversityandinclusionintheirworkforce,

developmoreaccessibleproducts,andprotectcustomers’privacyrights.- CenterforFinancialServicesInnovation(CFSI);providinginsightandworkingwithbusinesses

todevelopfinancialproductsthatimprovethelivesofAmericans.- FidelityInvestments;developingemployees’skillsthroughprobonopartnershipswithnon-

profits.

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5. Variousfactorsinfluencethelikelihoodthatbusinessesandcharitieswillpartnerexplicitlyforbusinessbenefit,andwhetherthiswillbesuccessful.Thisreportidentifiesfourkeystosuccess:i. Motivationsandobjectives

Eachpartnermustbeclearandgenuineintheirintentions.Impactonbothsides,butinparticularbusinessbenefit,ismorelikelywhenexplicitlysetoutasagoalofthecollaboration.

ii. MindsetandpositioningofeachpartnerThecharityisnotabeneficiary,itisanexpertadvisor,orasuppliereven,andshouldbecompensatedassuch.Forthebusiness,thisisnotCSR,itispartoftheircoreactivity.

iii. CultureandpeopleChampionswithineachorganisationarekeytodrivingthiskindofcollaboration,andtheyneedtofeelempoweredtodoso.ThiscouldbeanyonefromaCEOtoanearlycareer“intrapreneur”.

iv. BusinessecosystemandregulatoryframeworkFactorssuchasthelocalcontext(i.e.socialproblemswhichneedaddressing,connectednessofbusinessesandcharities),andregulatoryrequirements,canbothencourageanddiscouragebusinesscharitypartneringforbusinessbenefit.BogotáChamberofCommerceisprofiledinthisreportforitsworkcreatinganecosystemofcross-sectorcollaborationforeconomicandsocialdevelopment.

Recommendations

Basedontheexamplesstudiedforthisresearch,thefollowingrecommendationsareputforwardfor“champions”withinbusinessesorcharitieswhoarekeentopursuethistypeofcollaboration:Forbusinesses

1. Network:Identifytheissuesthataffectyourbusinessorcommunity,andtheorganisationsthatareworkingonthem,jointheconversationandlearnasmuchasyoucan.

2. Developabusinesscase:Whydoesitmakebusinesssensetoaddressthissocialissue?Whyisworkingwithacharitythebestapproachtoachievingthebusinessobjectives?

3. Buildasupportnetwork:Useyourpassionforthecauseandthebusinesscaseyou’vedeveloped

toinspireinternalallieswhowillsupportyou.Forcharities

1. Identifyyourexpertiseandresources:Whatdoesyourorganisationhavethatothersdon’t?Whatobjectivescanthishelpabusinesstomeet?

2. Lookbeyondmoney:Besidesfunding,howcanpartneringwithabusinesshelpyourorganisationaddressitsmission?Whatisthecaseforyoutopartnerwithabusiness?

3. Knowyourvalue:Recognisethevalueofyourknowledgeandnetworks.Positionyour

organisationasanexpert,notarecipient;approachbusinesseswithanoffernotanask.Forcollaborators:Setobjectivesandmeasureprogress;learn,improve,andbuildthebusinesscase.

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Background & Context

Why this topic?

Thebiggestproblemsfacingtheworldtoday–climatechange,wideninginequalities,massmigration–

areincrediblycomplex.Theycannotbesolvedbyasingleorganisationorsector;theyrequire

collaborationandthesharingofknowledge,skillsandnetworksacrossallsectionsofsociety.

Inthebusinessworldthereisgrowinginterestin“purpose”;therolethatcorporationsplayinsociety,

beyondgeneratingshareholderprofit.Meanwhilecharitiesaretheultimateinpurpose-driven

organisationsandholdvastexpertiseandconnectionsinrelationtosocialissues.

Althoughbusinessesandcharitieshavebeenpartneringformanyyears,bothhavetraditionallyseen

thebusinessasadonor,andthecharityasarecipient.Todayhowever,thereseemstobeagrowing

shifttowardsbusinessesexpectinga“returnoninvestment”fromtheircharitablefunding.Atthesame

time,charitiesarebecomingincreasinglycommerciallyminded,andplacingfinancialvalueonwhat

theycanofferbusinesses.

TherearesomeexcellentexamplesofcharitiessharingtheirexpertisewithbusinessesintheUK,such

as:

- MindandtheBankWorkersCharityprovidingmentalhealthtraining1forlinemanagersatbanks

includingBarclays,LloydsBankingGroupandTSB,sothattheycansafeguardemployees’

wellbeing.

- Alzheimer’sSocietyworkingwithbusinessessuchasSainsbury’sandCo-Optohelpthembecome

“DementiaFriendlyRetailers”2whichbetterservepeoplewithdementia.

- Kitchen-makerHowdensdevelopedarangeofinclusivekitchens3throughtheirpartnershipwith

LeonardCheshireDisability.

- InsurerLegal&GeneralworkwithpartnerssuchasSamaritanstoensurethattheirfront-linestaff4

arewell-equippedtosupportcustomerscallingattheirtimesofgreatestneed.

Suchexamplesarestillrelativelyfewthough,andonthewholetheknowledge,skillsandnetworksof

thecharitysectorremainlargelyuntappedbybusinesses,whothemselveshavealongwaytogoto

achieveanetpositiveimpactonsociety.

Why the USA and Colombia? AswellashavingacorporatecontextrelativelysimilartotheUK,theUSAhasastronghistoryand

cultureofcorporatephilanthropyandishometopurposefulbusinessmovementsincludingthe

SharedValueInitiativeandBCorps.

1 https://www.bwcharity.org.uk/line-manager-training-evaluation (accessed on 28th January 2018) 2 https://www.alzheimers.org.uk/news/article/89/retailers_set_to_become_more_dementia_friendly (accessed on 28th January 2018) 3 https://www.howdens.com/kitchen-collection/inclusive-kitchens/ (accessed on 28th January 2018) 4 http://reports.legalandgeneralgroup.com/2014/responsibility/doing-business-better/improving-our-workplace/vulnerable-customers.html (accessed on 28th January 2018)

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TheUSAwaschoseninordertoexplorewhetherandhowthesemovementsareinfluencingthewaysinwhichbusinessesandnon-profitsworktogether,andparticularlywhetherthereisagreaterflowofknowledgefromnon-profitsintobusinesses.Colombiaoffersacompletelydifferentsetting,witharapidlygrowingeconomyandavibrantNGOsector.Itwasincludedinthisresearchforthepurposesofexploringhowthelessonslearntcanbeappliedindifferentcontexts.OfparticularinterestwasBogotáChamberofCommerce’sfocusonSharedValue.RatherthanholdinguptheUSAandColombiaasleadersinthisfield,theintentionwastofocusonthetopicindifferentcontextstoexploresimilaritiesanddifferencesandidentifygoodpracticethatistransferableacrossvaryinginternationalcontexts.Objectives Theobjectivesofthisresearchwereto:

1. Identifythetypesofknowledge,skillsandotherassetscharitieshavethatcanbeofvaluetobusinesses.

2. Shinealightonexamplesofbusinessesgainingvaluefromworkingwithcharities.3. Highlightthefactorswhichhelptomakesuchcollaborationmorelikelyandsuccessful.4. Inspiremorebusinessesandcharitiestoconsidercollaboratinginwaysthatseeexpertisefrom

thecharitysectorinformandimprovebusiness.

Approach TheapproachtakentothisFellowshiphasbeentolearnfromthecollectiveexperiencesandperspectivesofawiderangeofbusinessesandnon-profitsacrosstheUSA,Colombiaandotherpartsoftheworld.Thisisnotintendedtobeanacademicresearchreport.Contributorswereidentifiedandinvitedtoparticipateinthisresearchbasedoninternetresearchandpeerrecommendations.Inordertoincorporatediverseexperiencesandopinions,thefollowingtypesoforganisationwereincludedintheresearch: Businesses Charities - Mainly(butnotexclusively)large

corporations- Organisationsofallsizes,fromcommunity-

basedtoglobal

- Representativesfromdifferentbusinessareas(notjustCorporateSocialResponsibility)

- Non-profits/NGOsworkingondifferentsocialthemes(fromenvironmentalconservationorhumanrights,toaccessibilityandfinancialinclusion)

- Businessesfromdiverseindustries(frombankingtotechnologyandfood)

- Organisationswithvaryingapproaches(fromthinktankstocampaigningorservicedeliveryorganisations)

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AfulllistofcontributorscanbefoundinAppendix3(p.31).Mostparticipantshadsomepreviousexperienceofcollaborationbetweenbusinessesandnon-profits.Participantswereinvitedtocontributethroughbrief,informalmeetingsduringwhichtheywereaskedquestionsaboutthetopicthatvariedbasedoneachindividual’sparticularareasofexperienceandknowledge.Areasofquestioningincluded:

- Experiencesofcollaborationbetweenbusinessesandnon-profits- Motivationsofbusinessesandnon-profitsforworkingtogether- Perceptionsofbusinessestowardsnon-profitsandviceversa- Specificexamplesofcollaborationthroughwhichabusinesslearntfromanon-profit- Whatbusinessesandnon-profitscaneachbringtoandgainfromworkingtogether- Factorsthatfacilitatesuccessfulcollaborationbetweenbusinessesandnon-profits,and

potentialbarrierstosuccess.Thisresearchhasalsobeenshapedandinformedbyotherresearch,articlesandcasesstudies–manyofwhichwererecommendedbyparticipants.AlistofrelevantresourcescanbefoundinAppendix2(p.30).Fourcasestudiesareincludedinthisreporttobringtolifesomeofthekeyfindings,andillustratewaysinwhichbusinessesandcharitiescansetthemselvesuptocollaborateeffectivelyforbusinessbenefit.ThepurposeofthisreportistosummarisethemainthemesthatemergedthroughthisFellowship,highlightexamplesofgoodpractice,andsharerecommendationsforimplementationintheUKorelsewhere.MostexamplescitedinthesefindingsareoforganisationsvisitedorrecommendedaspartofthisFellowship,however,inordertorepresentthetopicmorefully,selectedexamplesfromtheUKandelsewhereintheworldhavealsobeenincluded.

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Key findings: Part 1 What do charities know and do well, that businesses can benefit from? AcrosstheUK,USAandColombia,therearewelloveramillioncharitiesthatvaryenormouslyinsize,

scale,focusandactivities.Eachhasdifferentwaysofdoingthings,andtheirownstrengthsand

weaknesses.Despitethisdiversity,throughmanyconversationswithnon-profitsandbusinesses,five

keyqualitiesconsistentlyrecurredasareasofstrengththatdistinguishcharitiesfrombusinesses:

1. SocialissueexpertiseCharitiesexisttotacklesocialissues;thefoundationofthisisbuildingasolidunderstandingoftheir

particularareaoffocus.Fortopicsrangingfromhumanrightstocarbonemissionsorcancer,charities

areoftenamongstthetopsourcesofwell-researchedandreliabledata–insightthatisrelevanttobusinesses’supplychains,energyuse,andcustomers.Similarly,charitiesworkingdirectlywith

serviceusersbuildupauniqueunderstandingoftheircircumstancesandneeds.2. AccesstonetworksAsanextensionoftheabove,charitiesthatexisttosupportpeopleaffectedbysuchissues–whether

theycampaignonbehalfofunpaidcarersorprovideservicesforpeoplewithdisabilities–arelikelyto

beinregularcontactwithpeopleaffectedbythoseissues;peoplewhoarepotentialemployeesorcustomersofbusinesses.Othercharitiesdevelopcloserelationshipswithinfluencerssuchascelebritypatronsorgovernmentofficials,whobusinessesmaybeinterestedinconnectingwith.

3. CredibilityandlegitimacyWhilstbusinessesinvestagreatdealincreatingrecognisableandtrustedbrands,partneringwithnon-

profitsofferstheopportunitytoalignandcomplementtheirbrandwithamoresocially-orientedone.

Consumersareincreasinglyconcernedaboutbusinessethics;87%ofAmericanswillpurchasea

productbecauseacompanyadvocatedforanissuetheycaredaboutand76%willrefusetopurchasea

company’sproductsorservicesuponlearningitsupportedanissuecontrarytotheirbeliefs5.

Charities,withtheirfocusonsocialbenefit,canbeseentobringintegritytoabusiness’initiativesinasocialfield.Thisisnottosaythatallcharitieshavecleanreputations,butinthevastmajorityofcases

theyprovokeadifferentreactionfromconsumersthanthebusinesscanalone.

4. DifferentskillsetsCharitiesoperateindifferentwaystobusinesses;theyareoftenstrappedforresources,andneedto

connectwithsupportersandservice-usersonanemotionallevel,dealingwithsensitivetopicsand

generatingengagementwiththeircause.Theirstaffareskilledatshowingempathyandbuildingrelationshipsoftrust,aswellasbeingresourcefulandexcellentproblem-solvers;allskillswhichareofgreatvalueinbusiness.

Theaboveisofcourseageneralisation–it’sworthbearinginmindinparticularthattheUKcharity

sectorhasexperiencedadeclineinpublictrustoverthepastfiveyears6.Onthewholethough,these

qualitiesofferagoodbasisforunderstandingsomeofthevaluethatawell-chosencharitypartnercan

bringtoabusinesscollaboration.

5 http://www.conecomm.com/research-blog/2017-csr-study (accessed 27th January 2018) 6https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/532104/Public_trust_and_confidence_in_charities_2016.pdf (accessed 27th January 2018)

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5. ClearsenseofpurposeCharitiesengagetheirsupporterstospendmoneyortimeonproductsandservicesthatwon’tbenefitthempersonally.Theymotivatetheiremployeesnotwithhighfinancialreward,butthroughtheirpassionforacause.Suchemployeeengagementisofrealconcerntobusinesses,notleastbecauseofitsstrongconnectiontoproductivity,andbecausehigherstaffretentionreducesthecostsofrecruitinganddevelopingnewemployees.Asbusinessesplaceincreasingemphasisontheirvalues,

whatcantheirleaderslearnfromcharityCEOsabouttruevalues-ledleadership?

CASE STUDY 1 Center for Financial Services Innovation: A non-profit putting business at the centre of its approach to social impact TheCenterforFinancialServicesInnovation(CFSI)wasfoundedin2004withthe

missionto:“ImprovethefinancialhealthofAmericans,especiallytheunderserved,byshapingarobustandinnovativefinancialservicesmarketplacewithincreasedaccesstohigherqualityproducts

andpractices.”

Theorganisation’sactivitiesinclude:

• Research(accessibletoeveryone);tounderstandthemarket,identifybarrierstofinancialhealthandgapsinmarketaccess:Whoarethecustomersthecurrentmarketdoesn’tworkfor?

Whataretheystrugglingwith?Whatisthevalueoftheunderservedcustomermarket?

• Consultingservices;leveragingtheorganisation’sunderstandingofconsumerneedsandinnovationprocessestohelpbusinessesdesignandbringtomarketnewproducts.

• TheFinancialSolutionsLab;aprogrammethatseekstoidentify,testandbringtoscalepromisinginnovationsthatcanhelptoimprovefinancialhealthinAmerica.Entrepreneurs,

companies,andnon-profitsareallinvitedtoparticipate,withtheultimategoalof“growingan

ecosystemoffintechinnovatorsthatwillcatalyzeimpactonthelivesofeverydaypeople”.

Keyfeatures:

• CFSI’smissionsetsoutaclearlydefinedfocusandapproach;it’seasyforbusinessestofindthem,tounderstandwhattheydoandwhy,andwheretheirorganisationmightfitin.

• EachofCFSI’sactivitiesaremutuallyreinforcing;researchprovidesdatatoinformconsultancyandinnovation,theirnetworkhelpsidentifythenextareatoresearchetc.,so

partnerswhoengageinanygivenareaofCFSI’sworkbenefitfromtheirbroaderapproach.

• CFSIhasstaffwithdiverseskillsandbackgrounds(fromfinancialinstitutions,regulation,communitybasednon-profits);togethertheybringanunderstandingofallfacetsofthe

financialindustryandfinancialhealth.

• CFSIiscollaborative,notconfrontational,initsapproachtobusinesses;thegoalistocreateafinancialsystemthatworksforall–whichincludesprofitablebusiness.

• CFSIclearlyarticulates,andseekstoquantifythepotentialbusinessvalueofworkingwiththem;it’snotaboutbeingnice.

• GrantsupportfromphilanthropicinstitutionsgiveslegitimacytothesocialvalueandindependenceofCFSIresearch,whilstincomegenerationfromfeeshelpstoensuretheorganisation’ssustainability.

• AlloftheabovecontributetoCFSI’scredibilityastheauthorityonfinancialhealthandfinancialservicesinnovation.

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Key findings: Part 2 How can businesses access these skills and expertise? ThisFellowshipfoundalargeamountofevidencethatbusinessescananddolearnfromnon-profits–

sometimesintentionally,butoftenasaside-effectofapartnershipbasedoncorporatephilanthropy.

Someofthekeywaysinwhichbusinessescanlearnfromnon-profitscanbeclassifiedasfollows: No engagement

Low engagement

Medium engagement

1. WatchandlearnAtabasiclevel,peopleinbusinesswishingtolearnmoreaboutaparticularissue

canreadandlearnfromcharities’resources;charitywebsitesincreasinglyincludestoriesandvideosgivingclearinformationandguidanceonsocialissues,

some(suchasMencap)evenhaveresourcesaimedspecificallyatemployers.

Manycharities–thinktanksinparticular–conductin-depthresearchandmaketheirreportsopenlyavailable(asCFSIdo).

2. EngageinaconversationTobuildadeeperunderstandingofanissue,speakinginformallywithacharity,

orjoininganetwork,canbeanexcellentwaytolearnmoreandbegintonavigatetheworkthatcharitiesandotherbusinessarealreadydoingonit.

Suchnetworksareoftenconvenedbycharities,andopentomembersfrom

acrosssectors;forexampletheMassachusettsCommunity&BankingCouncil(aBostonbasednon-profitthatbringstogethercommunityorganisationsandbanks

toshareinformationanddevelopbetterfinancialservicesforlowincome

groups),andtheFairLaborAssociation(acollaborativeeffortofsocially

responsiblecompanies,collegesanduniversities,andcivilsocietyorganisations,

workingtoendabusivelabourpractices).

3. ContractacharityBusinesseslookingfordetailedorfocusedinsightintoanissuefromanindependentexpertsourcewilloftencommissionacharitytoconductresearch.

TheWorldResourcesInstituteforexampleisanon-profitthatproducesresearch

to“traditionalacademicstandardsofexcellence”(peer-reviewed,objective);Mars

commissionedtheInstitutetoanalysetheenvironmentalfootprintoftheir

businessanddevelopscience-basedtargets7forareasincludingcarbonemissions

andwaterusage.

Non-profitsthatworkdirectlywithserviceusersmayalsobeabletobring

togetherparticulartypesofcustomertoformfocusgroupsortotestproducts,asLighthousefortheBlindandVisuallyImpairedinSanFranciscooffers.

7 http://www.wri.org/blog/2016/10/how-mars-and-wri-developed-science-based-sustainability-targets-climate-land-water (accessed 28th July 2017)

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Medium

engagement

High engagement

4. EmployeeengagementwithcharitiesAnotherkeywayinwhichbusinessesandcharitiesreportedlearningfromeachother,wasthroughskilledvolunteeringandprobonoprojectsthatseeindividualsorteamsfrombusinesssupportinganon-profitpartnertotackleadefinedchallenge.Steppingintoaneworganisationcanopenemployees’eyesnotonlytothetopicsthenon-profitisworkingon,butalsotointernaloperationalissuesthatmayberelevantwithintheirownorganisation(see“FocusPoint”andcasestudythatfollow).5. PartnershipstotackleanareaofsharedconcernSomesocialissuesare(orshouldbe)ofequalconcerntobusinessesastheyaretocharities,forexamplethedepletionofnaturalresourcesthatarekeytotheirsupplychainorconflictinareaswheretheyoperate.Theseissuescannotbetackledbyoneorganisationalone,andlendthemselveswelltocollaboration–withcharitiesbringingexpertiseandnetworks,andbusinessesofferingmarket-basedinsightandsolutions.

6. Co-createTheclosestcollaborationsbetweenbusinessesandnon-profitsinvolvelong-termmutuallybeneficialpartnerships,focusedonbuildingsomethingtogetherbasedontheexpertiseandresourcesofbothparties.Examplesofthisarehardertofind,buttheydoexist:McCainFoodsarepartneringwithYunusSocialBusinesstodevelopanewbusinessmodelinColombia,andIDEO.orghaveembarkedon1.5yearinitiativewithbusinessessuchasAirtelandVodacominEastAfrica,focusedondevelopingmobilemoneyservicesthatworkforthepoor8.

8 https://www.ideo.org/project/gates-foundation (Accessed 8th September 2017)

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FOCUS POINT What are the benefits of employees engaging with non-profits? Employeevolunteeringandprobonoinitiativesareperhapsoneofthemainwaysinwhichbusinesses

engagewithnon-profits,andthereisagrowingbodyofresearchsettingoutthebenefitsofthis,

rangingfromemployeeattractionandengagementtoskillsdevelopmentandimprovedperformance.

Highlightsinclude:

Employee attraction, retention & engagement GenYandGenZ(thosebornsinceroughly1980)inparticulararenotedfortheirpreferenceforwork

withpurposeandresponsibleemployers.Engaginginvolunteeringisonewayinwhichtheycan

pursuethis,andDeloitte’s2011VolunteerImpactSurvey9showedthatthosewhofrequently

participateinemployeevolunteeractivitiesare:

• Morelikelytofeelveryloyaltowardtheircompany(52%vs.33%)• Morelikelytobeverysatisfiedwiththeiremployer(51%vs.32%)• Morelikelytorecommendtheircompanytoafriend(57%vs.46%)

Skills development & performance Accordingtothe2010CorporateCitizenshipstudyVolunteering–TheBusinessCase10,themajorityof

volunteersreportskillsdevelopmentinthefollowingareasthatcouldbeconsideredtobestronglyrelatedtotheirindividualorpersonaleffectiveness:

1. Communicationskills(66%ofrespondentsassertedthattheirskillshadundergonesomedevelopmentorsignificantdevelopmentinthisarea)

2. Theirabilitytohelpothers(65%)3. Adaptability(54%)4. Influencing/negotiatingskills(45%).5. Teamworking(43%)6. Leadershipskills(41%)7. Willingnesstocontinuallyimprove(41%)8. Planningandorganisation(40%)9. Decision-making(39%)10. Problemsolving(39%)11. Abilitytobuildrelationshipsandnetworks(39%)

Theseso-called“soft-skills”areincreasinglyrecognisedassomeofthemostcriticalinbusiness;

Deloitte’s2016GlobalHumanCapitalTrendssurvey11reportedthat92%ofHRexpertsconsiderthem

apriority.

9 https://www2.deloitte.com/us/en/pages/about-deloitte/articles/citizenship-deloitte-volunteer-impact-research.html (accessed on 13th January 2017) 10 https://corporate-citizenship.com/our-insights/volunteering/ (accessed on 13th January 2017) 11 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/gx-dup-global-human-capital-trends-2016.pdf (accessed on 13th January 2017)

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TheCorporateCitizenshipreportgoesontonotethat:• Acrossthesampleofrespondentsasawhole,41%eitheragreeorstronglyagreethattheskills

andexperiencegainedfromvolunteeringhavehelpedthemperformbetterintheirjob.• Amongthoserespondentswhofeltmotivatedtovolunteertodeveloptheirskills,the

proportionofthosewhoagreedthattheyareperformingbetterintheirjobrisesto61%.Thislastpointsuggeststhatengagingwithnon-profits,withtheexplicitgoaloflearninganddevelopingskills,hasanevengreaterimpactonpersonaldevelopment.

Leadership development programmes & community action

Theaboveclaimsupportsthecasefortalentandleadershipdevelopmentprogrammeswithacommunityactionaspect,whichseemtobegrowinginpopularity.TheCenterforCreativeLeadershiphasidentifiedfivebroadtypesofchallengesthatmosteffectivelydriveleadershipdevelopment–allofwhicharearguablyrelevanttoprobono12andprojectsthatinvolveprovidingstrategicsupporttonon-profits:

• Unfamiliarresponsibility:havingtodealwiththingsthatareverynewordifferentfromyourusualtask.

• Creatingchangeintheorganization:whetherthat’sstartingsomethingneworturningaroundsomethingthat’snotperformingwell.

• Highlevelsofresponsibility:whenyourworkorperformanceismorevisible,there’smoreatstake.

• Workingacrossboundaries:workingbothinternally,acrossdepartmentsorexternally,forexamplewithvendors,customers,orregulatoryagencies.

• Workingwithdiversepeople:diversityatalllevels,includingsocialidentity,personality,andculture.

12 https://www.taprootfoundation.org/about-probono/blog/pro-bono-reshapes-leadership-development-playbook (accessed on 13th January 2018)

17

Case study 2

Fidelity Investments: Developing skills through volunteering

US-basedinvestmentmanagementfirmFidelityInvestmentsmakes

significantcommitmentsoftheirstafftimeinprobonofornon-profits.Toensurethatboththenon-

profitsandFidelityemployeesgainmaximumbenefitfromthis,theypartnerwithCommonImpactto

identifysuitablepartnersandprojects.

The2017FidelityTechImpactDay13saw125FidelityInvestmentstechnologistscometogetherto

designdata,networkingandwebstrategiesfor14non-profitsintheRaleigh-DurhamareaofNorth

Carolina.

CommonImpactsaidoftheinitiative:“Fidelity’stechnologyleadersviewtheseinitiativesasawayto

honetheconsulting,creativeandclient-facingskillsthatitneedstoremaincompetitiveinamarketplacethatincreasinglydemandsagilityandadaptability.”

DarrellFernandes,Fidelity’sHeadofITStrategyandPlanning,added“Whenouremployeestakeon

non-profitsasclients,theyneedtothinkcreativelyabouthowtosolvechallengeswithlimitedresourcesandhowtocreatemulti-dimensionalsolutionsthatconsiderboththebusinessandsocialimpact.Thisapproachempowersouremployeestobecreative,innovativeandadaptable,whichnotonlydevelopsskillsthatarecriticaltothevitalityofourfirm,butalsotothesuccessoftoday’stechnologists.”

Buildingonthesuccessofthistypeofinitiative,CommonImpacthavedesignedanapproachto

developingup-and-comingITemployees14atFidelitywhichseesthemworkinginteamstotakeon

projectsfornon-profitclients.Fidelitysupervisorshavefoundtheprogrammetobehighlyeffective,

andCommonImpacthashelpedsetupprojectsforover25teams.

CommonImpact’sevaluationoftheprogrammehasfoundthat:

• 77%ofFidelityInvestmentsparticipantsreportedimprovedcreativethinking• 82%reporteddevelopingbetterteamworkskills• 85%reportedincreasedflexibility

Ofcoursesomeofthislearningmaycomesimplyfromworkingonaprojectdifferenttotheday-job,

butparticipantsdoreflectonwhattheygainspecificallyfrombeinginthenon-profitenvironment–

forexamplethroughworkingwithstaffwithparticularlyproblem-solvingandresourcefulmindsets.

Key findings: Part 3 How can businesses benefit from working with charities? Sowehaveseentheassetswhichcharitiescanbringtobearinbusinesscollaborations,andsomeof

thewaysinwhichbusinessescanengagewiththemtobenefitfromthese,buthowcanthishelp

businessesto“dobetter”? ThefollowingmodelsetsouttherangeofbusinesschallengesthatthisFellowshipfoundcharities

bringingtheirskillsorinsighttotackling:

13 http://commonimpact.org/blog/post/common-impact-and-fidelity-investments-launch-tech-impact-day-in-durham-nor (accessed on 13th January 2018) 14 http://commonimpact.org/pdf/Fidelity_Developing-Leaders-2.pdf (accessed on 13th January 2018)

18

Amodelforbusinesslearningfromcharities

CONTRIBUTINGTOAHEALTHIERBUSINESS“ECOSYSTEM”

EXTERNAL INTERNAL

ASU

STAINABLEBUSIN

ESS

Customers

Organisation

Community&government

Employees

1.Identifyingpurpose

2.Developingabusinessmodel

4.Operationalef;iciency

5.Futuretalentdevelopment

3.Riskmanagement

6.Talentattraction

7.Diversity&inclusion

8.Employeeengagement&development

9.Licensetooperate

10.Respondingtoorpre-emptingregulation

11.Tacklinganissueofshared

concern

14.Innovationinproductsandservices

12.Improvingcustomerservice

13.Enteringnewmarkets

19

MODEL IN ACTION

15 http://reports.legalandgeneralgroup.com/2014/responsibility/doing-business-better/improving-our-workplace/vulnerable-customers.html 16 https://www.ideo.org/project/simgas 17 https://seaworldcares.com/Future/HSUS-Partnership/ (all accessed on 6th January 2018)

CONT

RIBU

TING

TO

A HE

ALTH

IER

ECOS

YSTE

M OU

TSID

E OF

THE

BUS

INES

S EXTERNAL Initiativesthatfocuslargelyonhowthebusinessinteractswithexternalstakeholdersincludingcustomers,communitieswheretheyoperateandgovernment.

INTERNAL Initiativesthatfocuslargelyonstructuralandinternalconcernsofthebusiness,forexamplewhytheyexist,howtheyoperateandwhoworksforthem.

BUILDING A SUSTAINABLE BUSINESS FROM THE INSIDE

CUSTOMERS

12. ImprovingcustomerserviceAsaninsurancefirmwithabigfocusonservingcustomerswellwhentheyareattheirmostvulnerable,Legal&GeneralpartnerwithcharitiessuchasAgeUKandSamaritanstotraintheirfront-linestaff15,buildingtheirunderstandingofthecircumstanceswhichcustomersmightbeinandgivingthemtheskillstorecogniseandmanagethisduringcallswiththem.

13. EnteringnewmarketsSimgasdevelopedabiogasdigesterandstoveintendedforusebysmallholderfarmersinAfrica.However,theydidnotknowthelocalcontextwellenoughtotaketheproducttomarketthere,sotheyenlistedthehelpofIDEO.orgtodevelopaservicemodelthatwouldfitintothelivesoftheirtargetmarket16.

14. Innovationinproducts&services

AdidasarepartneringwithcharityParleyfortheOceanstocreaterangesoffootwearandswimwearmadefromplasticrecoveredfromtheocean–reducingoceanpollution,raisingawarenessoftheissueanddesigningwell-sellingproducts.

ORGANISATION

1. IdentifyingpurposeOnrecognisingthatthebusiness’futurewasunderthreatamidstashiftinpublicperceptionsofanimalconservation,SeaWorldenlistedthesupportoftheHumaneSocietyoftheUStoredefinetheorganisation’spurposeandrefocusactivitiesonthehealthoftheoceansandoceanlife17.

2. DevelopingabusinessmodelMcCainFoodsareworkingwithYunusSocialBusinessinColombiatotrialrunningpartoftheirbusinessinthecountry,CampoVivo,asasocialbusiness.ThelessonslearntfromthisinitiativehavethepotentialtoinformthewiderMcCainfoodbusinessacrosstheworld.

3. RiskmanagementTheFairLaborAssociationbringstogetherapparelbusinessesanduniversitieswithcivilsocietyorganisationstoimprovehumanrightsstandardsintheirsupplychains.

4. Operationalefficiency

Thescience-basedtargetsthattheWorldResourcesInstitutedevelopedforMarswillresultinchangeswithinthebusinessthatshouldultimatelyleadtocost-savingsandincreasedsustainabilityofproducts.

20

18 http://www.sustainablebrands.com/news_and_views/organizational_change/sustainable_brands/34_millennials_would_take_pay_cut_work_socia 19 https://www.fastcompany.com/3062835/microsoft-autism-hiring 20 https://www2.deloitte.com/us/en/pages/about-deloitte/articles/citizenship-deloitte-volunteer-impact-research.html 21 https://blogs.ncvo.org.uk/2017/04/07/does-volunteering-improve-mental-health/ (all accessed on 23rd January 2018)

COMMUNITY & GOVERNMENT

9. LicensetooperateWhenlookingtoworkinanewarea,especiallyonewhereabusiness’presencewillbestronglyfeltbythelocalcommunity,NGO’sbringvaluableskillsandcredibilityforbuildingbridgeswithlocalpeopleandgaininglicensetooperate–aroletheUNDevelopmentProgrammeoftenplaysinruralColombia,wherepost-conflictcommunitiesmayfeelparticularlyinsecure.

10. Respondingtoorpre-emptingregulationNewregulationmayrequirebusinessestoquicklyunderstandandtakeactiononunfamiliarissues,oftenonesonwhichcharitieswillalreadyhaverelevantexpertiseandconnections.ThisisthecaseforTDBankinBoston,whothroughmembershipoftheMassachusettsCommunity&BankingCouncilconnectedwithlocalnon-profitsthathavehelpedthemtomeettheirresponsibilitiesinrelationtotheCommunitiesReinvestmentAct(CRA).Partneringwithcharitiescanalsobeaneffectivewayforforward-thinkingbusinessestounderstandandactonsocialissuesrelevanttotheirbusiness,beforeregulatorsstepin.

11. TacklinganissueofsharedconcernSomesocialissueshaveaparticularlysignificanteffectonbusinesses,andoftentheycannottacklethemalone.AgoodexampleofthisfromtheUKissuicideontherailwaylines,which,besidesthedevastationcausedtofamilies,canhaveadeepimpactonrailstaff,customersandemergencyresponders,aswellascausingcostlydisruptiontoservices.Toaddressthisproblem,NetworkRailhasbuiltalong-termpartnershipwithSamaritanstohelpreducesuicideandprovidesupportforthoseaffectedbyit.

EMPLOYEES

5. FuturetalentdevelopmentTheeconomyisafocusareaformanycharities–particularlyinrelationtoemployment.PartneringwithcharitiestoinspireyoungpeopleintoSTEMcareershasbecomecommonplaceamongstbusinesses.Charitiescanalsoplayaroleinunderstandingtheemploymentandskillslandscapeandinformingthedevelopmentoffuturetalent,astheBogotáChamberofCommerceandUNDevelopmentProgrammehavedonewiththeirrecentstudyofhumancapitalacrosstheITandsoftwaresector,whichincludesafive-yearactionplan.

6. TalentattractionBusinessesareincreasinglyseeingthatyoungpotentialrecruitsareinterestedintheiremployer’ssocialimpact,andtheopportunitiestheywillhavetogetinvolved,assuchCSRhasbecomeapointofcompetitionforattractingtalent18.

7. Diversity&inclusionWhenMicrosoftlaunchedtheirAutismHiringProgrammein2015(aspartoftheircommitmenttobuildingadiverseandinclusiveworkforcewhich“enrichesourperformanceandproducts,thecommunitieswhereweliveandwork,andthelivesofouremployees”),theydidsowiththesupportofnon-profitssuchasProvail,whoprovidementoringtosupportnewrecruitssothattheycansettleandthriveinthebusiness19.

8. Employeeengagement&developmentAssetoutabove,skills-basedvolunteeringandprobonoareincreasinglypopularwaysforbusinessestobuildemployees’engagementanddeveloptheirskills.ResearchbyDeloitte20consistentlyshowsthatvolunteeringisbeneficialtobusiness.Evidencealsosuggests21thatvolunteeringisgoodforpeople’smentalhealth–potentiallysavingbusinessesbyreducingabsenteeism.

EXTERNAL INTERNAL

21 21

Key findings: Part 3 How can businesses benefit from working with charities? (continued) Thismodelisintendedtoshowthediversewaysinwhichlearningfromacharitycanfeedintoabusiness’operations,ultimatelybenefitingtheirbottomlineorsustainabilityasanorganisationwhilstalsocontributingtosociety.It’slikelytherearemorewaysthatthisFellowshiphasnothadtheopportunitytoconsider.Someoftheareaslistedarerelativelyestablished–commissioningresearchfromcharitiesoremployeevolunteeringandprobono,forexample.Othersaremoreexperimentalortentative,suchaspartneringwithacharitytodefineabusiness’purposeordevelopabusinessmodel.Anumberoforganisationshaveembeddedsuchacollaborativeapproachacrosstheiroperations(suchasthoseprofiledinthisreport),whilstothersengageinitonamoreadhocorone-offbasis. Businessesthatcommittothetypesofactivitieslistedabove,prioritisingtheirroleinsocietyaboveoralongsideprofit,are:- Contributingtothedevelopmentofahealthierbusinessecosysteminwhichtheneedsand

wellbeingofstakeholdersareconsideredandrespected.- Creatingamoresustainablefutureforthemselves,bybuildingaresilientorganisationthatcanbe

trustedbyconsumersandcreatesproductsorserviceswhichmeetthebroadestneedsofsociety(andarelikelystaycompetitiveinthemarket).

22

CASE STUDY 3 Microsoft: Working with non-profits is business as usual Microsoft’smissionis“toempowereverypersonandeveryorganizationontheplanettoachievemore.”CEOSatyaNadelladescribesthismissionasbeinginMicrosoft’sDNA.Hefeelsthatcultureis“perhapsthemostimportantdriverofsuccess”,andbelievesMicrosoftneedsaculturefoundedinagrowthmindset,inparticularthroughthreedistinctareas:Customer-obsessed,diverseandinclusive,“OneMicrosoft”(individualsunitedbyasinglesharedmission).PeopleandteamsacrossMicrosoftworktowardsbuildingthiscultureandachievingthismissioninmanyways,oftencollaboratingwithnon-profits.Examplesofthisinclude:

1. PrivacyProtectingtheprivacyofcustomershasbecomeakeyconcernfortechnologycompaniesinrecentyears,andnon-profitshaveprovidedinvaluableinsightasMicrosoftgrappleswiththischallengingissue:- AnearlyadopteroftheUNGuidingPrinciplesonBusinessandHumanRights,Microsoft’s

understandingandactivityinrelationtoprivacyissuesissteeredbythestandardsandrecommendationsofaglobalnon-profit.

- PrivacymanagersworkingacrossMicrosoftturntonon-profitswhenissuesandquestionsarise,tappingintotheirunderstandingofconsumers’rightsandfears.

- WhenMicrosoftmovedtochallengetheUSgovernmentonlevelsofsecrecyaroundtheirdemandsforinformationoncustomers,non-profittheAmericanCivilLibertiesUnion(ACLU)steppedintosupporttheircase22.

2. RecruitmentAshighlightedabove,Microsoftisoneofagrowingnumberofbusinessesrecognisingthevalueofdiversityintheirworkforce,particularlythroughtheirinclusivehiringprogrammewhichseekstotapintothetalentpoolofpeoplewithdisabilities.CharitiessuchasProvailhavesupportedMicrosoft23todevelopthehiringprocessforcandidatesontheAutismspectrum,andprovidecoachingforthosetakenonbythecompany.3. AccessibilityTodayaccessibilityisarealpriorityforMicrosoft;thebusinessinvestsheavilyinensuringitsproductsareaseasyaspossibletouseforpeoplewithdiverseneedsincludingvisualimpairmentsordyslexia.Featuresincorporatedintotheirproductsforthebenefitofuserswithparticularneeds(suchasspeak-to-text,ornight-timereadingmode)havealsoprovenpopularinthemassmarket.Microsoftdidn’tgetherealonethough;institutionalclients,suchasotherbusinessesoruniversities,continuallypushittoimprovetheaccessibilityofproducts.Toachievethis,MicrosoftpartnerswithcharitiessuchastheRNIBtounderstandtheneedsofuserswithimpairments.

22 https://www.aclu.org/blog/privacy-technology/internet-privacy/why-were-supporting-microsofts-challenge-secret 23 http://www.provail.org/specialisterne (both accessed on 7th January 2018)

23

Keyfeatures• TheseinitiativesarenotphilanthropyorCSR;theyarecoretoachievingMicrosoft’smission

asabusiness.• Thistypeofcollaborationoftencomesaboutorganically;peoplewithinMicrosoftare

connectedtotherightorganisations.• Non-profitsareinvitedtoworkwithMicrosoftasexpertsintheirfield,bringingtheir

knowledge,networksandcredibilitytothebusinesschallengeinquestion.• TheregulatoryenvironmentarguablyplaysaroleininfluencingMicrosoft’sprioritisationof

someoftheseissues,makingitallthemoreimportantthattheytrulyunderstandthem(e.g.governmentalfocusonaccesstodata,orregulationrequiringemployersandeducationalinstitutionstoprovideanaccessibleworkingorlearningenvironment).

24

Key findings: Part 4 Keys to success

Takingintoconsiderationtheexamplesofbusinesseslearningnon-profitsencounteredthroughthisFellowship,thelessonsaboutwhytheyshoulddoit,andexamplesofsuccessesandchallenges,anumberofkeyingredientsforsuccesscometolight:1. MotivationsandobjectivesTogainthemostfromworkingwithacharity,thedesiredbusinessoutcomesshouldbeexplicitlysetout.Ratherthanbeingnice,doinggoodorhelpingthecharity,thisisaboutthebusinesslearningandbenefiting.Mostbusinesspeopleinterviewedaspartofthisresearchframedtheirorganisation’smotivationintermsof“sustainability”(thelongevityoftheirorganisation);anacknowledgementthatdoinggoodbysociety,isalsobetterforbusiness.Atthesametime,charitiestooneedtolookbeyondthepursuitofmoneyfrombusinesses.Manyofthoseincludedinthisstudyseecollaboratingwithbusinessesasapowerfulmeansofachievingtheirsocialmissionatabiggerscalethantheycanalone.Allofthissaid,themostlikelystartingpointforbusinessespartneringwithacharityremainsphilanthropyorCSR,whichovertimecanevolveintomorebusiness-orientedcollaboration.Thisreflectsthatittakestimeforbothorganisationstounderstandhowtheotherworksandidentifytheopportunitiesforcollaboratingforsocialandbusinessimpact.Howeverthepartnershipbeginsanddevelops,thebusinessbenefitsarelikelytobemoreimpactfulwhentheyarenolongerincidental,whenbothpartiessetoutexplicitgoalsforthelearningandbenefitsforthebusiness,andhowthiswillalsoservethecharity’sneeds.2. Mindset&positioningofeachpartnerThemindsetwithwhicheachpartnerapproachesacollaboration,andthepositionorroletheytakeon,arefundamentaltodetermininghowitworksout.Assetoutabove,thecharityisnotabeneficiaryorrecipientinthisrelationship–itisanexpert,asuppliereven.Traditionally,inthevastmajorityofcollaborationbetweenbusinessesandcharities,thecharityhasbeenseenasthepartnerwiththemosttogain,andthebusinesswiththemosttogive,withmoneythemostvaluableassetatstake.Thisresultsinthecharitybeingseenassubordinatetothebusiness.Ifabusinessistolearnfromacharity,thecharitymustberespectedonequalorevensuperiorfootinginthepartnership.Thebusiness’positionisequallyimportant;inordertoworkwithacharityitmusthavegenuineintentions.Itisn’tenoughtoworkwithacharitytoaddressoneissuewhilstignoringothers.AnexampleofthiswhicharoseduringthisFellowship,wasskepticismsurroundingUber’sattemptstobecomemoresociallyresponsible,whichwerenotseentobegenuine.Asnotedabove,oneofthekeydrawsforabusinessofworkingwithacharity,isthelegitimacywhichtheybring,andcharitiesmustbeverycarefulnottoputthisaspectoftheirbrandatrisk.

25

3. CultureandpeopleAllofthesuccessstoriesconsideredaspartofthisresearchcameaboutandweresuccessfulduetothepassionandhardworkofoneormoreindividuals–usuallysomeonewithinthebusinesswhowasempoweredtopursuenewwaysofcreatingbusinessvalue,alongsidesomeoneonthenon-profitsidewithanopenmindastohowtoachievetheirorganisation’smission.ItmaybetheCEOwhodiscoversapassionforusingtheirbusinesstoaddresssocialissuesorforachievingtheircharity’ssocialgoalsthroughinfluencingbusiness,andleadsthisapproachfromthetop.Itcouldequallybeamorejunior“intrapreneur”whospotsanopportunityfortheirorganisationandactsontheirowninitiative.Corporateresponsibilitymanagersoftenplayaroleininitiatingworkwithcharities,introducingandinfluencingcolleaguesfromotherbusinessareas,butitdoesn’thavetostartinCSR.Thiskindofworkcanbemadeeasierbythecultureofanorganisation–inparticularwhereaCEOencouragescross-sectorcollaborationandlearning.Partnershipsalsotendtorunmoresmoothlywhentherearepeopleinvolvedwhounderstandthelanguage,cultureandprioritiesofboththenon-profitandbusinessworlds–thiscanbesomeoneworkingoneithersideofthepartnership,oranintermediarywhofacilitatescollaborationbetweenthetwo.4. ThebusinessecosystemandregulatoryframeworkTheexternalcontextplaysasignificantroleinthelikelihoodthatbusinessesandcharitieswillcollaborate,andthemotivatingfactorsforsuchcollaboration.Tobeginwith,thepresenceofasocialissuewhichbusinesscanplayaroleintacklingisaclearpre-requisiteforthistypeofcollaboration.Secondly,regulationinfluencesbusinesses’behaviour;itmayforexampleencourageabusinesstopartnerwithanon-profit.However,whencollaborationismotivatedbyregulationitcanfallshortofitsfullpotentialbecauseitisnottrulyseekingtobenefitthebusiness.Similarly,taxbreaksforcharitablegivingencourageaphilanthropicapproachtobusinesscharitycollaboration.Thismayhavetheadverseeffectofmakingbusinesseslesslikelytothinkcreativelyabouthowtheycangainfromworkingwithcharities,potentiallylimitingthesocialimpact.Thirdistheroleofthewidereco-system;beinglocatedinanareawherethere’sathrivingbusinessorcharitysectormakesiteasiertofindcollaborators.Theconditionsforsuchcollaborationcanbecreated,forexamplewhenanorganisationtakesaleadinconveningothersaroundaparticularthemeorsharedgoal,asinthecasestudythatfollows.

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CASE STUDY 4 Bogotá Chamber of Commerce: A systems approach

InspiredbytheconceptofSharedValue,developedintheUSA

byMichaelE.PorterMarkR.Kramer,theChamberofCommerce

inBogotáhasfocuseditsapproachondevelopinganecosysteminwhichbusinessescreatesocialvaluethroughbusiness.

TheChamberfacilitatesbusinesses’adoptionoftheprinciplesofSharedValuethroughCluster

DevelopmentInitiatives.Theseareorganisedeffortsthatseektopromotegrowthandcompetitiveness

inparticularindustriesintheBogotáregion,withtheparticipationofalltypesoforganisation

includingbusinesses,publicsectorbodiesandNGOs.

Colombia’stroubledhistoryhasgivenNGOsauniqueplaceinsocietyasrespectedandtrusted

partnersandkeyplayersinthepeace-buildingprocess.TheircontributiontotheseClustersis

welcomedandvalued.

AnexampleoftheexpertisewhichNGOsbringtotheseinitiativesisthisrecentreportonhuman

capitalintheITandSoftwaresectorsinBogotá24,co-publishedbytheChamberofCommerce(itselfa

not-for-profit),andtheUnitedNationsDevelopmentProgrammeinColombia(PNUD).Thepurposeof

thereportistoidentifythekeygapsinhumancapitalfortheseindustries,andtomake

recommendationsforclosingthem,supportingthedevelopmentoftheindustryasawhole,and

businesseswithinit.

AswellasdevelopingtheseClusters,whichexplicitlypromotecross-sectorcollaboration,the

Chamber’sPresidentiskeentoinstilSharedValueasamindsetandapproachtobusinessthroughout

theorganisation.Forheritasthebestwaytoachievesustainabledevelopment.

TheChamberpromotesSharedValuethroughhighlightingcasestudiesofgoodpractice,bringing

peopletogetheratevents,andawardinganannualSharedValuePrize.

Keyfeatures

• AsanorganisationBogotáChamberofCommercehastheauthority,influenceandnetworktoinitiateandleadsuchinitiatives;everybusinessinColombiaisrequiredtojointheirlocal

ChamberofCommerce,sotheyhaveawidereachandarespectedvoice.

• TheSharedValueethos,andcollaborativeapproachareledfromthetop;theChamber’sPresidentisapassionateadvocate.

• Theorganisation’sapproachtoSharedValue,andreasoningfortakingiton,areclearlyarticulatedandeasyforstakeholderstoengagein.

• Aswellashavingadedicateddivision,theapproachisembeddedacrosstheorganisation;it’severyone’sroletopromoteandpartoftheorganisation’sDNA.

• ClusterDevelopmentInitiativesareinclusiveinnature;organisationsofallkindsareinvitedtoparticipate,andeachisvaluedfortherespectiveexperienceandexpertisewhichtheybring.

24 http://www.redormet.org/wp-content/uploads/2017/02/Cl%C3%BAster-de-software-y-tecnolog%C3%ADas-de-la-infromaci%C3%B3n-de-Bogot%C3%A1.compressed.pdf (accessed 19th January 2018)

27

Recommendations for implementation Belowaresomesimplerecommendationsbasedonthefindingsofthisresearch.Theyareaimedinparticularat“champions”withineitherbusinessesorcharities.TheinitiativesencounteredduringthisFellowshipshowedthatbusinesscharitycollaborationcanbeinitiatedbypeoplefromanywherewithineitherorganisationanditismostlikelytobetheseindividualswhoareinterestedinthisresearch. Recommendations for (champions within) businesses 1. Network:Formallyorinformally.Gettoknowtheissuesthataffectyourareaofthebusiness

(thesecouldbeinternal,e.g.employees,orexternal,e.g.customers/localcommunity),identifytheorganisationsthatareworkingonthem.Thisisanexcellentwaytounderstandtheissuebetterandgettoknowpotentialpartners.

2. Developabusinesscase:Firstly,whydoesitmakebusinesssensetoaddressthissocialissue?

Secondly,whyisworkingwithacharitythebestapproachtoachievingthebusinessobjectives?Gatherevidencetosupportyourcase.

3. Buildasupportnetwork:Useyourpassionforthecauseandthebusinesscaseyou’vedeveloped

toinspireinternalallies.Theabilitytoinfluenceothersinsupportofyourcasewillbefundamentaltogettingapartnershipofftheground,andearningtheinvestmentneededtosustainit.

Recommendations for (champions within) charities 1. Identifyyourexpertiseandresources:Whatdoesyourorganisationhavethatothersdon’t?

Whatbusinessobjectivescanthishelptomeet;whatisthebusinesscaseforthemtoengagewithyou?

2. Lookbeyondmoney:Besidesprovidingfunding,howcanpartneringwithabusinesshelpyour

organisation?Whatrolecantheyplayinhelpingtoachieveyoursocialmission?Whatisthecaseforyourorganisationtopartnerwithabusiness?

3. Knowyourvalue:Recognisethevalueofyourknowledgeandnetworks.Positionyour

organisationasanexpert,notarecipient;approachbusinesseswithanoffernotanask–whatcanyoudoforthem?

Ø Armedwiththisbeproactiveandgooutandofferyourservicestorelevantbusinesses.

Recommendations for collaborators 1. Setobjectivesandmeasureprogress;inordertolearnandimproveasyougo,andtohelp

supportthebusinesscaseforfuturecollaboration.

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Conclusion ThisFellowshipsetouttoexplorethewaysinwhichbusinessescanlearnfromcharities,andhowthiscanbenefittheirbusiness.Itwasbasedpartlyonthepremisethatinbusinesscharitycollaboration,businessesaretypicallyseenasthedonor,andcharitiesasarecipient.Ithasparticularlyencouragingthentodiscovermanyexamplesofmorecreativeandequalpartnershipsbetweenbusinessesandcharities,bothoverseasandintheUK.Thisincludesdiversecasesthatseethebusinesslearningandbenefitingfromthenot-for-profitpartner–exactlythekindofcollaborationthisFellowshipsoughttoadvocate. Asresourcesbecomeincreasinglyscarceforcharities,influencingtheoperationsofabusinesscanofferaviablewaytoachievetheirsocialmissionsatgreaterscalethantheywouldbeabletoalone.Atthesametimebusinessleaders(andtheiryoungfutureleaders)areincreasinglyconcernedabouttheroletheirorganisationsplayinsociety,andthereismuchtheycanlearnfromcharitiesinthisrespect.Theexampleshighlightedinthisreportofferhopethatmoreorganisationswillseethevalueof,andadopt,suchcollaborativeapproaches.Astheydo,itwillbeparticularlyimportanttorecognisethevalueoftheknowledgeandassetsthatcharitiesbring,andforthelearningtobeincorporatedintoabusiness’coreactivities.ThisnolongerCSR,itismorethansimply“doinggood”or“givingback”;itisanewwayofdoingbusinessthatconsidersallstakeholdersandcontributestothesustainabilityofthebusiness.

29

Appendices

Appendix 1: Glossary

Charity/non-profit/NGO

Thesethreetermsareusedinter-changeablyinthisreporttodescribeindependent(non-governmental)organisationsthatexistprimarilytotackleasocialorenvironmentalissue,orserveasocialpurpose.Althoughtheseorganisationsdonotaimtogenerateprofittoreturntoshareholders,theymaymakemoneyfromtradinggoodsandservices(whichwouldtypicallybere-investedintoachievingtheirsocialmission).

CSR

Corporatesocialresponsibilityincludesactivitiesofabusinessaimedathavingapositiveimpactonsociety.

Diversity&inclusion Diversityisthepresenceofpeoplewhoaredifferentfromoneanotheracrossarangeofdimensions(e.g.gender,sexuality,race,religion,educationalorsocio-economicbackground).Inclusioniswhenpeoplewithdifferencesfeelacceptedandwelcomed.

Employeeengagement Employeeengagementistheemotionalcommitmentanemployeehastoanorganisationanditsgoals.(KevinKruseinForbes25)

Intrapreneur Intrapreneursareworkerswithinlargeorganisationswhoactlikeentrepreneurs;theyspotnewanddifferentopportunitiesandtakeownershipoftakingthemforward.

Licensetooperate Whenabusinesshastheapprovaloflocalcommunitiesandstakeholderstooperateinanarea.

Philanthropy Thegivingofmoney,andorotherresources,typicallyforthesakeof“doinggood”,andwithnoexpectationofanyreturnorbenefittothedonor.

ProBono

Professionalworkundertakenbyaqualifiedindividualorbusiness,withoutcharge.

Sustainability

Althoughthetermsustainabilityisoftenusedinbusinessinanenvironmentalsense,itisuseditinthisreporttorefertothelongevityofabusiness;thechancesthatitwillsurviveandthrivelongintothefuture–whichwasthesenseinwhichtheconceptwasmostcommonlyappliedbycontributorstothisresearch.

25 https://www.forbes.com/sites/kevinkruse/2012/06/22/employee-engagement-what-and-why/#3020b9f47f37 (accessed on 22nd January 2018)

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Appendix 2: Further reading and useful resources Toolsandmodelsforcorporatecharitypartnershipsthattargetprofitandpurpose:SharedValue;“amanagementstrategyinwhichcompaniesfindbusinessopportunitiesinsocialproblems”CollectiveImpact;“whenorganisationsfromdifferentsectorsagreetosolveaspecificsocialproblemusingacommonagenda,aligningtheirefforts,andusingcommonmeasuresofsuccess”Taproot’sProBonoandTalentDevelopment,ProgramDesignRoadmap;aguideformaximizingtalentdevelopmentthroughprobonoSDGCompass;guideforbusinessactionontheSustainableDevelopmentGoals Recommendedreadingonthetopicscoveredbythisreport: CreatingSharedValue,MarkR.KramerandMichaelE.Porter’soriginalarticledescribingtheconceptofSharedValue,intheHarvardBusinessReview,January-February2011(subscriptionneeded).DeloitteHumanCapitalTrends2016:Theneworganisation:Differentbydesign.DeloitteVolunteerImpactResearchHub;Deloitte’sresearchonvolunteering,probonoandtheimpactsonemployeesandtheworkplace.InnovatingforSharedValue,MarkW.Pftizer,ValerieBockstetteandMikeStamponprogressinSharedValue,andthefivemutuallyreinforcingelementsthatbusinessesdeliveringitrelyon,intheHarvardBusinessReview,September2013.Probonoreshapestheleadershipdevelopmentplaybook;Taproot’sconversationwithCindyMcCauley,SeniorFellowatCenterforCreativeLeadership,September2016.ThePromiseofSkills-BasedVolunteering;ChristineLetts&DanielleHollyonthepotentialforskills-basedvolunteeringtoimpactoncharitiesaswellasparticipants,andthechallengeofsettingthisup.StanfordSocialInnovationReview,Fall2017(subscriptionneeded).ThePurposeDrivenProfessional;harnessingthepowerofcorporatesocialimpactfortalentdevelopment.DeloitteArticlebyWilliamD.Eggers,NateWong,KateCooney,September,2015.Sixleadershipskillsyoucangainfromvolunteering,inMarketingWeek,July215,MaeveHosea.Volunteeringtolearn:Employeedevelopmentthroughcommunityaction;CIPDResearchReport,RuthStewart,September2014.Volunteering-TheBusinessCase,CorporateCitizenship’s2010reportbyAndrewWilsonandFrancescaHickstracksthelearninganddevelopmentofalmost550employeesfrom16majorCityfirmsvolunteeringinschoolsandcollegesacrosstheUK.

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Appendix 3: Acknowledgements ContributorsThankyoutoallthepeoplewhotookthetimetomeetwithorspeaktomeandsharetheirexperiencesbefore,duringoraftermyvisittotheUSAandColombia:

- NataliaAranguren,L’Oreal- KaitlynBean,Skillworks- AndrésCarbó,BogotáChamberofCommerce- GayleCarpentier,Techsoup- MattClark&AmandaMacArthur,PyxeraGlobal- LaurenConnolley,CapitalOne- LeonorEsguerra,BogotáChamberofCommerce- KenrickFraser,MacquarieGroup- NataliaGalloway,GeorgetownGlobalSocialEnterpriseInitiative- MauricioGamboa,McCainFoods- KimGillman,TaprootFoundation- StephenGolden,YouTube- BulbulGupta,Independentadvisor- AlizaGutman,CenterforFinancialServicesInnovation- RoxanneHamel,CanadaNationalBank- ShellyHan,FairLaborAssociation- DanielleHolly,CommonImpact- NehaJoseph&CarynMassey,WorldResourcesInstitute- LisaJoyner,TDBank- JulieKerwin,IAmElemental- ErinLauridsen,LighthousefortheBlindandVisuallyImpaired- MeganLawrence,Microsoft- DanaLeWinter,MassachusettsCommunity&BankingCouncil- SteveLippman,Microsoft- DrMarcoLlinas,BogotáChamberofCommerce- ErikaMarcucciNuñezandMariaRonderos,AsociacióndeFundacionesEmpresariales- NicoleMcKinney,GlobalImpact- SitarMody,formerlyatSharedValueInitiative- StacyNeal,SharedValueInitiative,FSG- JustinNelson,MicrosoftPhilanthropies- BillOlechnowicz,MWAArchitects- SandraRincón,AsociacióndeFundacionesPetroleras- MichaelRohwer,BSR- JuanFelipeSanchezBarrera,FundaciónIdeasParaLaPaz- MaryamShariat,Impact2030- ShaminaSingh,MastercardCenterforInclusiveGrowth- KerrySesil,GreystonBakery- RafaelSmith,IDEO.ORG- JamesThurston,G3ICT- MariaTonelli,UNDevelopmentProgramme- MimiTurchinetz,BostonTaxHelpCoalition- AndreaUrban&EliseZelechowski,Thoughtworks- LindsayWallace,MastercardFoundation- MarkWeick,DowChemical- MarybethWittekindSharpe,PacificBusinessGrouponHealth- MichaelZakaras,Ashoka

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Thisresearchalsotookintoaccountvisitsto:

- ABayAreaAccessibilityandInclusiveDesignMeetup event- TheGatesFoundationDiscoveryCentre,inSeattle- OcasoCoffeeFarminSalento,Colombia

SpecialthanksalsotothefollowingwhohelpedmetounderstandthewidercontextofthisFellowship,madeintroductionstorelevantcontacts,orrevieweddraftsofthisreport:

- KatyBailey- MarthaBellisle,AssociatedPress- DrewBonfiglio&RamónMarmolejos,Emzingo- ReillyJ.Carpenter,CapitalOne- LizzieCho,NovaNewOpportunities- AaronChrisco,Splunk- NicoleDulieu,Researchconsultant- RachelEngel,MacquarieGroup- LaurenFarello,AspenNetworkofDevelopmentEntrepreneurs- AlexGill,MendicantGroup- ChrisHealy- JohnS.Hoffmire,UniversityofOxford- IsabelKelly,ProfitwithPurpose- LucLapointe,theBC.Lab- JanLevy&MaryKunnenkeril,ThreeHands- DanielMiranda,NewYorkTimes- LigiaOsoriodeDallos,ConfederaciónColombianadeONG- DrOscarPerez- JenniferSplanskyJuster,FSG- AlyssaTrometter,ClintonGlobalInitiativeUniversity- ClaudiaVergaaraTorres,BogotáChamberofCommerce- SabrinaViva,RealizedWorth- FrancisWest,TheShiftProject- StephenWinstanley,WinstanleyAdvisors

Andlastbutnotleast,averybigthankyoutothefollowingwhomadethisFellowshippossible:

- TheWinstonChurchillMemorialTrustandRankFoundationfortheirgenerousfundingandsupport.

- MyemployerandcolleaguesatThreeHandsforsupportingmeintaking6weeksawayfromtheofficeandencouragingmeinmyresearch.

Theviewsandopinionsexpressedinthisreportanditscontentarethoseoftheauthorandnotofanyoftheabovecontributorsorsupporters.