Building Corporate Alliances and Partnerships

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Day Three Presentation

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  • Schedule = New opportunities Time: 25min Aim: Showing different opportunities of CSR
  • Schedule = UN Global Compact Principles Time: 10min Aim: This is the Global Compact definition of CSR and it leads to the following key statements about CSR…

Transcript

  • 1. Building Corporate Alliances and Partnerships Nonprofit Leadership: Maximizing Impact
  • 2. Mission of Nacientes Palmichal
    • To preserve and protect natural resources specially the water resource of the Nacientes Palmichal formed the Negro y Tabarcia rivers basin and assure the water supply for the habitants, agriculture and industrial production.
  • 3. Main programs
    • Environmental education (community and schools)
    • Rural Ecotourism with benefits being shared by the organization and community
    • Sustainable production practices working with individuals and corporations
  • 4. Crafting Alliances – why do it?
    • Convergence Phenomenon
    • CSR – what it and what drives it?
    • A framework for evaluating potential alliances
    • Some models of alliances
    • Some risks…
    • Making it work
  • 5. The lines between businesses and nonprofit are blurring… Convergence
  • 6.
    • CSR refers to business practices intended to have a positive impact on society – not just the company’s financial bottom line.
    • Source: Institute for Global Ethics
    Corporate Social Responsibility
  • 7. Doing Good Business
    • “ We believe that the winning companies of this century will be those that not only increase shareholder value, but increase social and environmental value.”
    • Carly Fiorina, CEO, Hewlett Packard
    Nonprofit Leaders can leverage this enlightened business mentality
  • 8. The UN Global Compact is the largest voluntary CSR initiative with over 5000 members (short video)
    • CSR means aligning business operations with fundamental and universal values:
        • Human rights
        • Labour rights
        • Environmental standards
        • Anti-corruption & transparency
  • 9. Some drivers moving business towards CSR practices include: Growing investor pressure
  • 10. Some of the benefits experienced by businesses adopting CSR measures
    • Enhanced brand image and reputation
    • Increased sales and customer loyalty
    • Greater productivity and quality
    • More ability to attract and retain employees
    • Better use of renewable resources
    • Community relations
    • Product safety and decreased liability
    Improved Financial Performance
  • 11. Discussion Questions inspired by ‘Capitalizing on Convergence’
    • Do you have some concerns with CSR?
    • What can nonprofits learn from businesses?
    • What can businesses learn from nonprofits?
  • 12. A conceptual framework for looking at corporate alliances Loss making Break even Profitable Mission enhancing Mission neutral Mission interfering Consider Yes Yes No ? Yes No! No Scrutinize Source: Corporate partnerships: A Guide for the nonprofit manager. The national center on nonprofit enterprise
  • 13. Some options for corporate-nonprofit alliances
    • Event sponsorships – financial or other contribution in exchange for recognition
    • Transaction-based promotion: Donation in direct proportion to sales revenue. E.g AmEx.
    • Direct sales – partner with business to sell products under their own name
    • Solicited donations – corporations help solicit donations by using their own channels
    • Product approvals – lending your “seal of approval” to corporate products for a % of sales (royalty)
    • Shared resources – pro bono work by corporations
    Source: Corporate partnerships: A Guide for the nonprofit manager. The national center on nonprofit enterprise
  • 14. Alliances should be structured as a win-win arrangements
    • Nonprofit leaders should ask themselves the following questions when thinking about building alliances:
    • What is our image?
    • Do we have brand recognition?
    • Is our cause especially attractive to certain industries/companies?
    • Is our target audience particularly relevant to certain corporations?
    • Are we local, national, or int’l?
    • Do we have board members we could leverage?
    Proactively develop a strategy for corporate alliances
  • 15. Does your nonprofit organization have a natural corporate partner profile? (Workshop in small groups – pick one person to volunteer his/her org.)
    • Which alliance model might make sense for you? (see last 2 slides and go through the 6 questions)
    • Come up with a specific corporate partnership opportunity for your nonprofit organization
    • How does your idea present a ‘win’ for the business?
    • What benefits does your organization get?
    • What internal obstacles may you face?
    • How could you initiate such an alliance while mitigating the risks?
  • 16. Making the alliance work
    • Open and clear communication between partners
    • Terms specified in a contract
    • Routine track of progress
    • “ When these work they have great payoffs for both partners – as well as for the public.”
  • 17. What are some of the risks to nonprofits?
  • 18. Some of the risks to nonprofits
    • Wasted resources
    • Reduced donations
    • Loss of organizational flexibility
    • Tainted partners
    • Dependency of corporate funding
    • Overwhelming success!
    Source: Profits for Nonprofits - Andreason
  • 19. Sharing partnership experiences
    • Positive experiences
    • Negative experiences
    • Lessons learnt…
    Source: Profits for Nonprofits – Andrason
  • 20.
    • “The leaders of nonprofits and businesses would be wise to shift their current mind-set from one of “us and them” to one of “we”.
    Austin J, Gutierrez R, Oliastri E, Reficco E. Capitalizing on Convergence . SSIR (2007).
  • 21. Time permitting
  • 22. Cause-related marketing – and its difference from CSR
    • Cause-related marketing (CRM) is defined as the public association of a for-profit company with a nonprofit organization, intended to promote the company's product or service and typically to raise money for the nonprofit. CRM is generally considered to be distinct from corporate social responsibility – why?
    Source: The Foundation Center http://fdncenter.org/learn/faqs/html/cause_marketing.html
  • 23. “ The era of convergence is upon us”
    • Creating Value – social and economic value
    • Managing Stakeholders – both are broadening their definition of stakeholders
    • Hybrid Organizations – for-profit and non-profit subsidiaries
    • Mobilizing Capital – social venture capital to Socially Responsible Investing
    Austin J, Gutierrez R, Oliastri E, Reficco E. Capitalizing on Convergence . SSIR (2007).
  • 24. Socially Responsible Investing
    • Socially Responsible Investing (SRI) is an investment strategy that integrates social and/or environmental criteria into financial analysis.
    • SRI is catching on with many individual and institutional investors who seek to:
      • Align their investment portfolio with their personal values by avoiding companies that do not meet certain standards.
      • Encourage improved corporate social and environmental performance through an active investment strategy.
      • Identify companies with better long-term financial performance through the analysis of social and environmental factors.
    Source: Calvert Group : http://www.calvertgroup.com/