Bridging the Gap Between

1
Bridging the Gap
Between

• Corporate Philanthropy and Corporate
  Sustainability

2
Before

• Charity giving to the poor - short term.
• Philanthropy (Philanthropy from the greek
• philanthropos love of man) and social
  investment- more sustained and transformative
  actions - Towards positive social change.
• Corp Sustainability Meeting the needs of firms
  direct and indirect stakeholders without
  compromising on the needs of future. Growing
  economic, social and environmental capital base.

3
Statistics

• Corporations in the Unites States annually give
  away over 11 billion to non-profits and other
  charitable organizations an average of 1.3 of
  pre-tax income.
• Nielsen India Corporate Image Monitor 2008 lists
  Reliance Industries, Tata Motors and Tata Steel
  are the companies most admired by stakeholders
  for their CSR initiatives. CSR activities they
  are mostly associated with are the promotion of
  education - among adult and economically
  disadvantaged sections of society Improving
  healthcare infrastructure in India - providing
  healthcare facilities in remote/rural areas and
  the Promotion of environmental consciousness.

4
Reasons

• Enhance company image
• Strengthen employee morale
• Attract top talent
• Improve retention
• Develop corporate allies

5
Also

• Public expectations of Corporations are on the
  increase as stakeholders see the significant
  impact they are having in various spheres, be it
  education, health infrastructure, environment
  conservation, etc. The publics confidence in
  organizations undertaking socially beneficial
  projects is greater than their confidence in
  other channels that try to bring about positive
  social change
• Vatsala Pant, Associate Director, Consumer
  Research, The Nielsen Company.

6
Not only

• We are not doing this for propaganda or
  visibility. We are doing it for the satisfaction
  of knowing that we have really achieved and given
  something to the community in which we are
  working.
• Ratan Tata

7
Also

• Our company is beginning to understand that
  community is only one of many stakeholders and so
  we are developing policies with regard to groups
  like employees, the environment and our
  suppliers. We are also shifting away from notions
  of philanthropy and instead are trying to enable
  people to take charge of their own lives. BILT

8
However

• "To give away money is an easy matter and in any
  man's power. But to decide to whom to give it,
  and how large, and when, and for what purpose and
  how, is neither in every man's power nor an easy
  matter."
• - Aristotle

9
What kind of giving ?

• India actually remains in need of community
  development and charitable giving. While the
  Indian economy has grown by around six percent a
  year since 1990, 25 percent of the population
  still lives below the poverty line, 45 percent is
  illiterate and many lack access to basic
  sanitation and healthcare. While in the developed
  world companies need to consider broader issues,
  such as supplier relations, employee
  satisfaction, environmental impact and corporate
  governance, for many Indian businesses these
  would simply be distractions from the critically
  important work of community development and
  charitable giving.
• Mohan Kaul, director general of the Commonwealth
  Business Council, emphasises the importance of
  this work It is unlikely that development goals
  will be reached unless business is involved in
  some way. This means continuing to fund education
  and healthcare as many businesses already do to
  their great credit. It is no exaggeration to say
  that without these charitable works many parts of
  India would be in desperate trouble.

10
What kind of giving?

• mirror the culture of the company, be genuine in
  its intentions, and be communicated with full
  endorsement by the CEO.  To generate optimal
  returns, the program should resonate internally
  and externally with company values, products,
  practices, and goals. 

11
As a result

• When companies adopt the approach of social
  investment to improve their competitive context
  using their charitable efforts to improve the
  quality of the business environments in the
  locations they operate they align social and
  economic goals.  They improve their long term
  business prospects and direct their philanthropic
  activities to areas where they can be far more
  effective by leveraging their unique assets and
  expertise.

12
An alignment

• citizenship, possibly including integrity,
  alignment, environmental concerns, workplace
  values and corporate giving.  Managing corporate
  giving similar to other key business disciplines,
  with clear objectives, established metrics and
  reporting structures to senior management,
  reflects best practices and ensures shareholder
  support and stabilization of these programs,
  especially in periods of company change and
  volatility.

13
Responsive Philanthropy

• Provides at least 50 percent of its grant dollars
  to benefit lower-income communities, marginalized
  groups, broadly defined.
• Provides at least 25 percent of its grant dollars
  for advocacy, organizing and civic engagement to
  promote equity, opportunity and justice in our
  society.
• Invests in the health, growth and effectiveness
  of its nonprofit partners.
• Provides at least 50 percent of its grant dollars
  for general operating support.
• Provides at least 50 percent of its grant dollars
  as multi-year grants.
• Ensures that the time to apply for and report on
  the grant is commensurate with grant size.