Guidelines for Corporate Community Engagement February 2012 The Chamber of Commerce and Industry of Western Australia (Inc)
Contents 1. Introduction 3 2. Establishing and building community engagement from a business perspective 4 2.1 What will benefit business? 4 2.2 Identify opportunities 4 2.2.1 Within business 4 2.2.2 Externally 4 2.3 Establishing contact 5 2.4 Being approached by a community organisation 5 2.5 Businesses with application guidelines 5 3. Approaching business from a community perspective 6 3.1 Establishing connections 6 3.2 Developing a proposal 6 3.3 Concluding the project 6 4. Useful resources and websites 7 2
1. Introduction The growing public interest in community, its importance and business involvement, highlights the need for CCI to consider a more specific focus on community issues and in particular a social context to policy formulation. Whilst there is no internationally accepted or recognised definition of Corporate Social Responsibility (CSR), it includes business entities acknowledging how their business affects the wider community and the environment. The growing awareness of CSR, the need for a strong community to support business growth, city vibrancy and the changing nature of the labour force has and will continue to have financial and practical impacts on CCI and it members. A Summary Report on the state of CSR in Australia notes, among other things, the following 1 : the business case for CSR is widely accepted; organisations are increasingly seeing CSR as a strategic opportunity for creating new value and not just mitigating risk; organisations are reporting increasingly strong links between CSR capabilities and positive organisational performance; lack of top management support remains the key obstacle preventing organisations from realising the full strategic possibilities of CSR; and stakeholder engagement is the key capability for organisations to develop in order to improve CSR performance. Community engagement, on the other hand, requires matching the CSR objectives and internal resources of a business with a partner to value add. Instead of Not-For-Profits, for example, seeking corporate support, businesses are increasingly aligning their practices not only with their employees expectations and values but with suitable community partners. There are two players (at least) in the relationship and there needs to be an understanding of the nature of that relationship for there to be benefits and added-value to all participants. CCI has a large not-for-profit membership and many of these require assistance and support from business to enhance their activities. Some of the smaller community-based organisations have struggled to engage with small- to medium-enterprises and have asked for ways in which they can approach businesses for support. The Social Policy Committee at CCI wishes to assist both business and the community to engage, to the benefit of both, and these guidelines target small to medium businesses that wish to engage with the community in a CSR relationship. The guidelines cover a number of options and assist business to approach community groups and establish and develop a relationship, and vice versa. CCI s social policy principles: recognise that human and social capital are key determinants of strong communities, health and wellbeing; seek to strengthen social capital through the development of connections and reciprocity between all members of a community and the resources and access to economic capital (such as employment and educational opportunities) that arise from such connections; maximise beneficial outcomes to communities and business and the outcomes should outweigh the costs; be flexible and practical, aiming to achieve measurable outcomes in the community through efficient and effective strategies; adopt a range of approaches and engage a range of organisations (businesses, governments and not-for-profits) to suit specific community needs and desired outcomes; support corporate social responsibility initiatives at the community level and monitor the outcomes of business investment in communities; and support community projects that contribute to the development of social capital and strengthening relationships to produce sustainable and better health and wellbeing outcomes. These guidelines have been developed underpinned by these principles. 1 Australian Centre for Corporate Social Responsibility (2011) The State of CSR in Australia Annual Review 2010/2011 Summary Report 3
2. Establishing and building community engagement from a business perspective 2.1 The first step for any business wishing to demonstrate Corporate Social Responsibility is to establish what it is that the business will get out ofa relationship with a community organisation. Ask the question What will benefit business? Benefits to business include: morale building; professional development; brand or status recognition; recognised as a valued member of the community; and aligning activities with the organisation s values. If new to the development of community engagement and service, contact Volunteering WA (www.volunteeringwa.org.au) as it has a range of resources and supports for assisting volunteers, businesses and community organisations. 2.2 Identify opportunities 2.2.1 Within business Business leaders and managers should talk about the importance of community to the success of the business. Leaders and senior managers should demonstrate respect for community perspectives and encourage others to consider carefully community needs when making decisions. People at different levels of an organisation should be encouraged to build strong relationships with external community members. Effective stakeholder engagement builds trust. Trust means listening and keeping promises through consistent and reliable actions. Think about sustainability and balance that against realistic support. Consider the possibility of offering three year rolling relationships, especially if they involve substantial monetary donations. Also make sure there is an exit strategy. Involve staff in decision making. What is the nature of the proposed business relationship? (Note: These are not mutually exclusive.) 1. Business providing business expertise to community. 2. Business providing volunteers to the community for specific projects. 3. Business and community in joint ventures. 4. Business providing monetary assistance as sponsorship (marketing), partnership (specific outcomes for both) and/or donations (no strings attached). If there are global or national guidelines for CSR funding within the organisation, be familiar with them and the extent to which they are mandatory or optional. Is brand recognition and/or product differentiation important? Consider both the economic value and social value of a relationship and the potential creation of new value to both parties. Before any approach is made, conduct thorough research on any potential partner, including governance, any previous projects or relationships (successful and unsuccessful why did it not work out?). 2.2.2 Externally Network make use of opportunities to meet community groups, particularly those locally. Read local newspapers see which community groups are active and what they are doing. Raise community awareness of the business, what it is doing and how it wants to be involved locally. 4
2.3 Establishing contact Keep any relationship simple. Arrange to meet the person in charge/decision maker at a venue or location convenient to him or her. Seek a realistic proposal that addresses what each party is going to get out the relationship, presents options including entry level (small) options, and any return on the business investment (not just financial but media potential). Ask for a written proposal, documenting the nature of the relationship (e.g., volunteers, expertise or donation) and the requirement for a written report at the end. Good communication is the key there should be no misunderstanding about what is being offered and who is doing what. Explore future potential projects and longer term relationships. This includes discussing the length of the relationship (say, three years with the possibility of extension) and exit strategies should the relationship prove unworkable. 2.4 Being approached by a community organisation Businesses approached by community organisations need to consider the value (economic and social) of the proposed relationship. 2.5 Businesses with application guidelines Many large corporate businesses have application guidelines to assist prospective community groups that are seeking support. Most support local community groups, that is, the communities in which they operate, to enhance and sustain the community. Guidelines typically contain the following: brief description of the business and its principles; priority areas global, national or local; types of support (donation, sponsorship, partnership); selection criteria; and other administrative and legal matters such as time frames, amounts available, confidentiality, conflict of interest and an application form. A contract may be drawn up, specifying what it is that business will offer and what is expected in return, to be signed by both parties. Smaller businesses may or may not have written criteria but rely on the judgement of the decisionmaker. Approaches to smaller businesses are typically for smaller donations or specialist skills, goods or equipment to assist a community event or activity. The relationship will be much more informal and may be conducted after a handshake. 5
3. Approaching business from a community perspective 3.1 Establishing connections To establish a connection with business, community groups should: 1. Research potential models and find potential businesses with similar attributes to their model of working (some adjustment may be necessary). 2. Identify businesses that have relevant services or products to their activities. Think broadly and include activities such as company expertise for example in governance or legal contracting as well as volunteering and financial support. 3. Know the business s budget and planning cycles (July to June or January to December) so that approaches can be made at the appropriate time. 4. Help articulate how that business can actively collaborate (incorporated in day-to-day activities not a one-off). 5. Is there anyone else who could/should be involved? 6. Get together all participants and develop an agreed financial or non-financial business case for collaboration and to establish the medium to longer term benefits of the relationship. Identify sustainability potential. 7. Be flexible try and fit in with business aspirations rather than sell a fixed concept. 8. Look for opportunities to recognise and celebrate success. Partners need to enunciate the benefit to business, your organisation and the community more generally. 3.2 Developing a proposal In preparing to meet with a potential business partner, the following are considered essential: 1. The need to be very well prepared and to have a plan with long-term goals for presentation to a potential business partner. 2. Having options available so businesses/donors can have a choice. 3. Having a strong profile, preferably locally, via website, community newspaper and schools. 4. Instil confidence that outcomes can be delivered and show clear accountability. 5. Having paid attention to governance and good financial management. 3.3 Concluding the project When the specific project, activity or event has been finalised, it is important to provide the business/donor with: A final report (it need not be lengthy but should demonstrate that the aims and objectives have been met). Recognition (if required and/or agreed in the contract if one is drawn up) of the contribution through a certificate or plaque, mention in the Annual Report, or photo opportunity and/or media exposure in the community newspaper. The potential for extending the relationship other projects or events, potential for donations, volunteers of specialist expertise. 6
4. Useful resources and websites Australian Business and Community Network www.abcn.com.au Centre for Social Impact, UWA www.csi.edu.au Giving West www.givingwest.org.au London Benchmarking Group Australia and New Zealand www.lbg-australia.com Volunteering Australia www.volunteeringaustralia.org Volunteering WA www.volunteeringwa.org.au 7
Chamber of Commerce and Industry of Western Australia 180 Hay Street, East Perth, Western Australia 6004 (08) 9365 7555 www.cciwa.com