Rise Issue 8 September 2009

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the changing nature of business and NGO partnerships A great partnership is the key ingredient for a

Fielder,

another in accomplishing an agreed outcome,”

successful business – just ask William Hewlett

for example, implemented their Daily Bread

says Jude. “In an ideal world we would have

and David Packard of the famous printing

Programme to help bolster the number of parcels

a facilitator between the business and charity

company Hewlett-Packard.

at some food banks. After researching food

sector that can identify the opportunities and

Food

manufacturer

Goodman

Partnerships come in many forms, for many

bank demand, they arranged a daily delivery of

assist in making them reality. This could apply to

different purposes, across many spectrums.

bread so that families in need would have fresh

any industry that has a consumer offering.”

non-government organisations (NGOs) and

bread to eat – not just the standard tin-can types

In New Zealand, as well as worldwide,

for-profit businesses may at first seem an odd

of food donations. By identifying this need and

governments, businesses and non-profits do

couple: businesses focus on the bottom dollar,

increasing the volume of their production, they

successfully work together towards a common

were able to meet the food demands of City

goal. The New Zealand campaign against family

Mission and the Salvation Army.

violence is one example. The Ministry of Social

while charities work for something far less tangible. But by partnering up, businesses can connect with socially responsible consumers, and NGOs can secure funding without having to dust off their coffers first. “You don’t have the right to do business unless you enable the community.” It is this powerful statement that was the cornerstone of many business decisions in 1930s America says Jude Mannion, Founder and Chief Executive Officer of the Robin Hood Foundation. And it’s this philosophy that’s becoming more and more prevalent in modern-day New Zealand.

Fairfax Media was also able to make use of

Development, nonprofits such as anti-violence

their resources for the good of the community.

coalition Family Violence Clearinghouse, and

Their efficient printing systems went towards

businesses such as the Bank of New Zealand

helping children in low-decile kindergartens after

have joined forces to disseminate a consistent

they launched their First Books programme in

anti-violence message to the nation. Organisations are catching on to this type

2006 to provide books for kids to take home. on

of creative co-operation, and it’s spreading like

equipment that they already had to benefit

wildfire. “I believe we are going to see a new

society. It’s a trend that’s catching on, and

kind of social entrepreneurship emerge”, Jude

consumers, government and other businesses

says. “One where charities look to embrace

are taking notice.

ways they can move from the beggar bowl

These

two

businesses

capitalised

“Businesses, government and NGOs each

mentality and move towards having some

Social responsibility isn’t just a PR catch phrase

have something to bring to the table. They

for the ways companies do business. Using a

each have a different perspective and different

She uses past examples, such as Lance

great deal of creativity and collaboration with

resources that can be used to accomplish a

Armstrong yellow arm bands to promote

NGOs, many businesses are able to do good by

shared objective. It’s just a matter of sitting

cancer research, and Girl Guide biscuits to help

capitalising on their strengths and resources.

around a table and agreeing to support one

fund Girl Guiding New Zealand, to illustrate.

10 RISE: Issue 8 – September 2009

control over their own sustainability.”

RISE: Issue 8 – September 2009 11

Social responsibility isn’t just a PR catch phrase... Using a great deal of creativity and collaboration with NGOs, many businesses are able to do good by capitalising on their strengths and resources. While these are great examples of charities

Some businesses understand the inherent

creating independent funding, she thinks that

gains of social responsibility so well that they

in the future they will find even more inventive

don’t even expect accolades or praises to

“We really need to start seeing the benefits

ways of becoming self-sufficient – by tapping

come from their efforts. There are no visions

as not merely financial. When people become

into consumers’ heightened awareness of

of increased profits; no trying to win over

actively engaged in something they become

ethical business practice.

consumers – they contribute simply because it’s

so much more employable. The payment is

It makes sense that businesses and NGOs

the right thing to do. Jude, however, thinks that

important, but the payment isn’t the only

work together because one can benefit the

all businesses should be recognised for their

thing that people get out of [working and

other. For-profit businesses are learning through

philanthropic efforts, which is why the Robin

volunteering].”

research and anecdotal support that their consumers will support them if they can prove that they’re socially responsible. Robin Hood’s tagline, “Doing good is good for business”, summarises people’s interest in a business’s attention to social issues. Although historically there has been discussion over legislation demanding that businesses adhere to socially responsible standards, Jude believes that doing so restricts creativity. If businesses can come to their own conclusions on how

Hood Foundation created the annual Social Hero award. “We need to acknowledge companies doing well. We need to look at recognition and acknowledgement as a currency. Like profit as a currency, giving a business recognition for what it does for the social sector will inspire others to follow”, says Jude. Like Jude, Wellington City Council Advisor Roger Tweedy thinks the idea of currency, payment and gain must be redefined. Roger’s career has taken him to the private

had an incredible amount of learning and experience. To me, that’s a return”, he says.

However,

this

arguably

unconventional

definition may be hard to grasp for some NGOs. As Roger says, “Innovation is risk-taking. Entrepreneurship is risk-taking.” Businesses seem to grasp the concept of weighing the potential profits of taking an organisational risk, but it’s more difficult for charities to utilise the same principle. Roger thinks that NGOs can also learn how to manage their missions by paying close attention to how successful businesses operate.

to help charities, and help society as a whole,

sector and community voluntary sector, as well

He believes that it’s important for nonprofits to

they’re more likely to be creative and engaged.

as central and local government. His experience

stick closely to their mission, and to constantly

will

working with national and international social

hone the best way to do it. At the core of any

even switch brands based on a company’s

enterprise innovators has helped hone his

organisation’s purpose, of course, is a clear

proven support of a worthy cause. It’s obvious

outlook on helping nonprofits work to the best

definition of who the customer is – or in the

how

of their potential.

case of NGOs, those who are benefiting from

Businesses

charities

know

that

can

consumers

benefit

from

this

association – by being the first to approach businesses

associated

with

this

kind

In one project, he borrowed the financial

their efforts.

of

idea of ‘return on capital’ – but not in the

“Like businesses, NGOs have to make sure

philanthropy. Non-profits are seeing that they

conventional, monetary-based sense: “The

that they don’t lose their edge. It’s important

no longer have to take a passive role in funding

most recent thing I tried to do in Wellington,

that they stick to their mission and have a clear

their causes; they can actively seek opportunities

and I picked up the idea in Canada, was a youth

purpose for what they do. It often comes down

instead.

enterprise centre. I set out this centre for young

to organisational decisions and using the best

“Ten years ago, the idea of social responsibility

graduates just coming out of uni, who were

people suited to the work,” Roger says.

[in businesses] was marginal – now it’s

really struggling with trying to find their way,

mainstream. This idea goes beyond sustainability;

and were looking to set out business ideas.”

It seems that the unique perspectives of government, businesses and NGOs can work

businesses want to know right through their

“These students were looking to set up a

together for positive change. NGOs could

supply chain what the implications of their actions

company together, based on their friendship.

do well to find opportunities and potential in

are”, says Jude. “Mandating doing good is generally accepted as nowhere near as effective or innovative as incentivising it.” 12 RISE: Issue 8 – September 2009

It didn’t work, but rather than sitting at home on the dole, or going to work at McDonald’s – in trying to get something off the ground they

non-traditional means of funding. In challenging times, creative and innovative partners help each other survive – and even thrive.