Justifying Increased NGO investment in Private Sector Engagement (CSR) Joanne Patroni

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Uses trends in corporate giving to justify increased investment by international NGOs and the public sector into private sector engagement and corporate social responsibility. …

Uses trends in corporate giving to justify increased investment by international NGOs and the public sector into private sector engagement and corporate social responsibility.

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  • 1. JUSTIFYING INCREASED NGO INVESTMENTIN PRIVATE SECTOR ENGAGEMENT (CSR)1 9th November 2012 Corporate Social Responsibility
  • 2. 60% of Companies increased giving between 2009 and 20112 9th November 2012 Corporate Social Responsibility
  • 3. 40% if Companies predict an increase in giving in 2012 despite economic uncertainty3 9th November 2012 Corporate Social Responsibility
  • 4. Reasons for increased giving in 20111. Expansion of partners or programs • In 2011, many companies cited new initiatives as a driver of increased contributions. • Some cited growth in number of guarantees • Also cited was a deepening of existing nonprofit relationships, in which non-cash grants were added to cash grants made previously to nonprofit partners.2. Increased focus on strategic areas • Companies focus more exclusively on program areas that address both business goals and societal needs, they often give more to the particular programs that best reflect these focused priorities.4 9th November 2012 Corporate Social Responsibility
  • 5. These preferences are evident as companies are becoming more targeted with their engagement5 9th November 2012 Corporate Social Responsibility
  • 6. Reasons for decreased giving in 2011 One time contributions • Results in decreased giving for the following year (Haiti 2010) • These losses are significant and represent missed opportunities for ongoing engagement6 9th November 2012 Corporate Social Responsibility
  • 7. Risks for NGO of not engaging more fully with business • Weakening relationships with existing supporters - If UNICEF decides not to engage with businesses in this way, it runs the risk of damaging relationships or even losing some of its key supporters • Lost new potential new supporters • Loss of potential for leverage • Falling behind on the ‘competition’7 9th November 2012 Corporate Social Responsibility
  • 8. Increase in Corporate giving has notbeen evident in our Fundraising income PSFR Gross Income (millions US$) 1400 1200 Japan 1000 Other 800 Major Gifts Events 600 Legacies 400 Corporate 200 One Off Gifts 0 Pledge 2003 2004 2005 2006 2007 2008 2009 2010 20118 9th November 2012 Corporate Social Responsibility
  • 9. Decrease in ODA as % of National Income While total global Official Development Assistance is gradually increasing, it is decreasing in relation to gross national income9 9th November 2012 Corporate Social Responsibility
  • 10. Untapped potentialPrivate capital flows of developing countries have shown a dramaticincrease in contrast to public contributions – this shows a lot ofpotential for private engagement10 9th November 2012 Corporate Social Responsibility
  • 11. Example: AfricaPrivate investment in African countries increasing while ODAdecreasing in proportion to external flows to the area – CSR potential 11 9th November 2012 Corporate Social Responsibility