This document discusses building reputation and brand differentiation for nonprofit organizations. It provides information on: - The global nonprofit sector's large economic footprint and role. - Factors that differentiate especially effective nonprofits, such as more effective boards and use of correct management procedures. - How developing trust with stakeholders through integrity, competence and charisma can provide competitive advantages for nonprofits. - The benefits of cause branding and social marketing campaigns for both nonprofits and partner companies.

1. Building [NPO Reputation] to last
Trust – Cooperation – Passion… Inspiring the Change!
EACD Regional Debate Lisbon, 29th May 2008

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The Main Issue
REPUTATION & BRAND DIFFERENTIATION
IS A TOUGH, COMPLEX TASK
WITH
NONPROFIT ORGANIZATIONS
GOAL
M Create a trustworthy type of corporate brand
by creating an inspiring kind of
nonprofit organization

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The Global Nonprofit Sector
Source The Johns Hopkins Comparative Nonprofit Sector Project, 2006 www.jhu.edu/ccss
GLOBAL (40 COUNTRIES) PORTUGAL
 $1.9 trillion in operating
expenditures
 48.4 million full time equivalent
jobs
 4.6% of economically active
population
 53% fees as source of
Revenue (35% government, 12% phil.)
 $5.4 billion in operating
expenditures = 4.2% GDP
 227 thousand full time equivalent
Jobs
 4.2% of economically active
Population
 48% fees as source of
Revenue (40% government, 12% philan.)

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The Global Nonprofit Sector

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The Global Nonprofit Sector
Source The Johns Hopkins Comparative Nonprofit Sector Project, 2006 www.jhu.edu/ccss

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Nonprofit Organizational
Effectiveness
Source “Nonprofit Organizational Effectiveness: contrasts between especially effective and less effective
organizations”, Herman & Renz, 1998, Nonprofit Management and Leadership
Aligning Stakeholders judgments with
NPO’s goals and objectives
(Multiple Constituency Model)
 More effective boards
 Do things right
 Use more practicioner-identified
correct management procedures
Use more change management strategies
 Have board with social prestige only
moderately related
WHAT differentiates
an especially
effective
NPO?

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Building Trust
Develop Trusting
Relationships
=
Source of
Competitive
Advantage
Barney&Hansen
1994
SOURCE
CREDIBILITY
Ethos → character &
integrity
Logos → expertise &
competence
Pathos → charisma
REPUTATION OF BEING
TRUSTED by making deposits
of good works into the “trust
bank”
TRANSPARENCY &
HONESTY on telling the
story through mediated
channels to create and
sustain mutually-beneficial
relationships
Trust is a central construct in the framming and dynamics of managerial
relationships (Credd & Miles, 1996). Developing and maintaining trust is seen
especially important to managerial and organizational effectiveness (Davis et al, 2000)
A
R
I
S
T
O
T
L
E

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NPOs as Trust Leaders
Source www.edelman.co.uk/trustbarometer

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Action Towards Trusting Co.
Source www.edelman.co.uk/trustbarometer

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Most Credible Sources
46% 49%
55%
48%
46%
55%
31%
37%
39%
27%
23%
30%
19% 19%
20%
Source www.edelman.co.uk/trustbarometer

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From Trust to Trustworthy
“Without Trust, organizations are bogged down
by suspicion, anger, cynicism and disappointment” (Golin, 2004)
BENEFITS → POSITIVE OUTCOMES
 Higher job satisfaction, productivity and higher commitment
to the organization (Flaherty & Pappas, 2000)
 Higher sales and profits, lower emplyee turnover (Davis et al, 2000)
 Enabling cooperative behaviour (Gambetta, 1988)

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Social Marketing (R)evolution
CAMPAIGNS BENEFITSKEYS to SUCCESS
SOCIAL
MARKETING
use of MKT principles
& techniques to
influence a target
audience to
voluntarily change
behaviour
for the benefit of
others: improving
public health, safety,
environement or
community
well-being
Educational & Awareness building → Persuasive communications → Promoting behaviours!
Source “Corporate Social Responsability”, Kotler & Lee (2005)
HEALTH
• drug use prevention, breast
cancer, physical activity, teen
pregnancy, eating disorders,
HIV/Aids
INJURY PREVENTION
• traffic safety, suicide preven-
tion, emergency preparedness
ENVIRONMENT
• water conservation, air pol-
lution, wildlife habitats
COMM. INVOLVEMENT
• volunteering, voting,
organ donation, crime prevent
Supports brand positioning
Creates brand preference
Builds traffic
Increase sales
Improve profitability
Attract credible partners
Makes a real social impact
Focus on an issue aligned with
core business or strenght
Select an initiative that will
leverage corporate citizenship
Build partnerships with
knowledgeable organizations
(with common goals and
interests) to increase
positive outcomes
Ensure that local participants
are given a clear role,
training and resources

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Social Marketing (R)evolution
Source www.coneinc.com/files/2007ConeSurveyReport.pdf
CAUSE BRANDING AND SOCIALLY ALIGNED BUSINESS INITIATIVES
92% have a more positive image
of a company that suports a
cause they care about
87% are likely to switch one product
to another (same price and quality)
if it is associated with a cause
84% of women and 75% of men
considers a company commitment
to social issues when deciding
what or where to buy
86% want to see companies with
social commitment doing business
in my community
77% where to work and
65% invest in stocks or mutual funds
72% want their employers to do
more to support a social cause
93% to provide them with
opportunities to become involved
89% feel a strong sense of loyalty
The top 4 issues to be addressed
80% health
77% education
77% environment
77% economic development

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BENEFITS TO THE CAUSE BENEFITS TO THE COMPANY
 Enhance public perception and concern for
the cause through communication efforts
 Encourages clients and communities to
sponsor/financial givings
 Increase participation and engagement
on related activities
 Supports change behaviour with positive
social impact
 Raise number of volunteers and related
experiences, ideas, knowledge...
 Increase corporate reputation and strenghts
brand positioning
 Increase appeal to investors and financial analysts
 Increase ability to atract, motivate, retain employees
 Decrease operative costs by adopting effective
business practices
 Create strong relationships with community
 Support MKT activities that generate traffic, increase
Sales & market share, atract new customers...
Doing Good... Doing Great!

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Inspiring the Change...!

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Who are we?
Nonprofit organization and Public interest
association specialized on:
Risk behaviour prevention
& health education
Community development
Drug Treatment &
Social Inclusion
Drugs and Drug Abuse National Agency,
Social Security National Agency
Emplyoment and Training National Agency
CONVENTIONS
Partner of Public and
Private organizations
Social newtwork Agent on
health & social care
Social and Solidary
Economy agent
Membre Dianova network
(Special Consultant Status at ONU
for education, youth and drug abuse)

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Our People
Total Staff
56
Therapeutic 70%
Management 30%
Sex
Male 50%
Female 50%
Age (mean)
37 y.o.
Low Turnover Rate
11,4%

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What do we do?
Mission: develop actions & programs that proactively contribute
to the individual autonomy and social progress
Values: Commitment • Solidarity • Tolerance • Internationatlity
Inspiring and helping people
to change behaviour!

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How are we perceived?
Government
• Legislators
• Regulators
• Politicians
• Central & Local
Officials
• Project Analysts
• International
Agencies
Organization
• Leaders
• Employees
• Volunteers
• Associates
• Supplyers
• Partners
Community
• Community Leaders
• Financial community
• Investors & Sponsors
• Public
• Legislators
• Regulators
• Academics
Market
• Recommenders
• Prescribers
• Social & Health
professionals
• Public & Private
buyers
• End users
• Industry analysts
• Opinion leaders
• Job security?
• Good place to
work?
• Agenda?
• Trustworthy?
• Service quality?
• Relationships?
• Good corporate
citizen?
• Follow through
on commitments?
• Add value?
• Innovative?
Dianova needs to address issues in a differentiated way

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Managing Reputation
BENEFITS
Impact on organization’s performance by enhancing
the support of stakehloders towards the org.:
create competitive advantage
atract and retains best talent
enhance effectiveness on obtaining resources
atract investors and influentials
increase access to new markets
increase loyalty of customers
…
Reputation
how an organization
is perceived by key
stakeholders
Source (MacMillan et al 2005), “Reputation in relationships:
measuring experiences, emotions and behaviors”,
Corporate Reputation Review
REPUTATION FOR WHAT?
• Determine what is important
for each group of stakehloders
REPUTATION TO WHOM?
• Good will will be drawn
through stakehloders’
relationships
REPUTATION TO WHAT
END?
• Generate good will is the
ultimate goal on developing
and maintain reputation

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Managing Relationships
Model of Business
Relationships
Perceptions and
experiences of
stakeholders
Commitment
and trust of
stakeholders
Desired
behaviour of
stakeholders
• Material and
imaterial benefits
• Power of
persuasion
• Costs
• Sharing values
• Trade equity
• Communication
• Past behaviours
related with trust
• Trust
• Commitment
Source (MacMillan et al. (2000), “Successful business relationships”, Journal of General Management
Stakeholder
relationships
as KEY for
Managing CR
Perceptions depend
upon stakeholder
experiences of a
business
• Creative
cooperation
• Loyalty
• Agreement
• Other behaviours
related with trust

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How the Master Brand Works
Key equities that live in the master brand
and do these things
 Explain
who we are
and what we
do
 Lead employees where
we need them to go
 Pave the way
credibly for
services/innovation
 Help us maximize our social
impact as drug abuse interventions

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Dianova Master Brand Essence
Function
• New, better services to treat drug abuse
• Demonstrating growth and social impact
• Good place to work
• Sound ethical and scientific foundation
• Striving for innovation through R&D leadership
“Managing fundamentals exquisitely”
Differentiation
• A learning and teaching organization
• Managing and leveraging success
• New ways to look at old problems
• Thinking creatively; continually striving
“Pipeline of ideas”
Image/Personality
• Sincerity: honest, real, original, friendly
• Competent: reliable, hard-working, intelligent,
confident, leader, secure
• Exciting: daring, spirited, imaginative, unique
“Pathfinder”
Source of Authority
• “Fit” of partners demonstrates expertise and good
practices
• Separate track records of success
• List of successes in services and social beneficiaries
• Solid management team
“Meant for each other”

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Toward a Long Term
Positioning
Owning the gap strategy
to tell a unique story
 Distinctive from other
organizations because of
our approach:
• We are building on the success
of our social impact
• Each day we are making the
right decisions for our future
• We are challenging old notions
about how health & social nonp
organizations do “business”
Demonstrate ability
to do it better
than anyone as
critical factor in success
 We continually strive to solve
tough health and social problems
by thinking outside the box…
 … we learn from and teach
each other, by managing
knowledge and sharing best
practices worldwide, which…
 … drives us toward stronger
innovation and integrated
Solutions!
KNOWLEDGE • DIFFERENCTIATION • RELEVANCE • ESTEEM

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Messages
Corporate
Communications
“You can do it”
Creative Concept
Corporate Brand
Management
Corporate Social
Marketing
Health/Professional
Communications
Public
Affairs
Media
Relations
DIANOVA
How do we Communicate?
Corporate brand informs and adds depth to traditional
corporate communications

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Living Brand Inside…
ORGANIZATIONAL DEVELOPMENT

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QUALITY, INNOVATION, COOPERATION
… Out!...
Unique Therapeutical
Community with
Quality Certification in PT
Special Consultant Status
at UN/ECOSOC
Youth, Edu., Drug Prev.
Corporate Governance
Best Practice Implementation
Balanced Scorecard
Trust Bank Deposit

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… Out!...

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AWARENESS & EDUCATION CAMPAIGNS
… Out!…

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… Out!...
Spot Vídeo “Looking at drugs with other eyes”

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… Out!…
“Maze of Passions”: Rapidly everything can be transformed into nothing... Life is
beatiful... Take care of You and of Others!

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SHARING BEST PRACTICES
… Out!…
Trust Bank Deposit

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… Out!...
Trust Bank Deposit
Empowering Teachers & Other Professionals on Drug Prevention

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MANAGING ISSUES OF PUBLIC INTEREST
… Out!…
Government Relations
Organizations/Influentials: 6.137
Positive Feedbaks: 49
Participation on Forum
Beyond 2008 Drug Policy
Budapest, Jan’08

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TRADITIONAL & NEW MEDIA
… Out!…

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... Out!...
Spot Vídeo “Moments of confusion”
Spot Radio “Community
Centre”

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… Out!…
w
e
b
s
i
t
e
b
l
o
g
g
i
n
g
f
o
r
u
n
s
w
e
b
c
o
m
m

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Measurement & Evaluation
OUTPUT IMPACT OUTCOMES
How effectively
we disseminate
our message
Quality and
quantity of
message delivered
What effect our
communication
has on target
Quality and
quantity of
message delivered
Sales/Admissions
What change we
see in key
business metrics

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Impact Communication
Positive Media Reputation = Competitive Advantage
Influencing Public
Opinion
↓
Shaping
Perceptions, Beliefs
Attitudes &
Behaviours
15 Press releases
6 Featured
Articles
7 Interviews
(Press&Radio)
QUALITATIVE
• Positive coverage (0 neg news)
• Creative & Reader-focused
Headlines and content
QUANTITATIVE
• 110 news published
 38% Internet
 45% General/Regional Press
 13% Specialized Press
 3% Radio 1% TV
• 5.638 million Readers
• ROI €117.872

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Impact Communication
Website Dianova 2007
0
2000
4000
6000
8000
10000
12000
14000
16000
Janeiro
Fevereiro
M
arço
Abril
M
aio
Junho
Julho
Agosto
Setem
bro
O
utubro
Novem
bro
Dezem
bro
Visitas ùnicas
www.dianova.pt
Total Visits: 125.987 Total Hits: 2.195.221 Monthly Visits average: 10.499
Traffic Increase: 14% Online requests admission: 56

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Impact Communication
“... Thank you for the Postcards
collection. We consider of major
relevance the prevention and
cooperation between all
organizations in a global strategy...”
José Braz, former Director DCITE/PJ
“... Thanks for the SOLIS Report
2006 very useful and of special
interest to our students”
Prof. Carlos Poiares, Director
Psychology D., Lusófona University
“The GD congratulates Dianova for
the quality and effectiveness of its
services, regarding the Quality
Certification ISO 9001:2000”
José Cid Proença, General-Director of
Direcção-Geral Acção Social
“It was a surprise for me that
Mothers-employees at Viveiros
Dianova having offer this gift on
Mother’s Day (plant), a good
example for people with difficulties
to access the labour market”
“Congratulations and all the best to
achieve the goals of SOLIS project
till 2009... And for sharing
information that will improve our
knwoledge”
Mário Pinto Coelho, Vice-President of
Irmandade São Roque
“Thank you so much for the
latest issue of your newsletter
EXIT, an important asset of
empowering and knowledge”
Luis Filipe, Social Affairs
Deputy, Aveiro City Hall
“Congratulations for the
health education initiative. I’d
like to invite you to present
these results at our Master”
Paulo-Kuteev Moreira, Prof
of Health Strategy at Public
Health National School
Maria João Rebelo, Vice-President of
Social Labour Market/IEFP

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Impact Communication
Measuring Satisfaction of Newsletter EXIT
SURVEY
Based upon Davies
methodoly
3.000 Questionaries
Multi-Stakeholders
April-June

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Delivering the Promise!
Prevention & Education
356
Drug Treatment
70
Social Inclusion
34
Community Development
653
1.113
People

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Evaluate Reputation on NPOs
CORPORATE
PERSONALITY SCALE
Davies et al., 2003
Instruments or tools: surveys, focus groups, before-and-after polls, ethnographic studies, multivariate analysis projects,
model building
REPUTATION
QUOTIENT
Fombrun, 1996
SPIRIT Stakeholder Performance
Indicator, Relationship Improvement
Tool
MacMillan et al., 2004
THE ORGANIZATIONAL
TRUST INDEX
Schoklev-Zalabak et al, 2003
MEDIA REPUTATION
Deephouse, 2000
BRAND TRUST SCALE
Delgado-Ballester et al, 2003

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In Conclusion
Managing Corporate Reputation is to be found
in stakeholder relationships, their experiences and
intended future behaviours
NPOrganizations should aim to produce evidence
of the strength of these relationships as a routine
in their internal & external reporting
NPOrganizations need to develop an awareness
that evaluation allows them to act now to improve
their governance, both enhancing their reputation
and demonstrate their responsability

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rui.martins@dianova.pt
TM +351 919 923 752
www.linkedin.com/in/ruipmartins