Building Corporate Alliances and Partnerships

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Day Three Presentation

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Building Corporate Alliances and Partnerships

  1. 1. Building Corporate Alliances and Partnerships Nonprofit Leadership: Maximizing Impact
  2. 2. Mission of Nacientes Palmichal <ul><li>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. </li></ul>
  3. 3. Main programs <ul><li>Environmental education (community and schools) </li></ul><ul><li>Rural Ecotourism with benefits being shared by the organization and community </li></ul><ul><li>Sustainable production practices working with individuals and corporations </li></ul>
  4. 4. Crafting Alliances – why do it? <ul><li>Convergence Phenomenon </li></ul><ul><li>CSR – what it and what drives it? </li></ul><ul><li>A framework for evaluating potential alliances </li></ul><ul><li>Some models of alliances </li></ul><ul><li>Some risks… </li></ul><ul><li>Making it work </li></ul>
  5. 5. The lines between businesses and nonprofit are blurring… Convergence
  6. 6. <ul><li>CSR refers to business practices intended to have a positive impact on society – not just the company’s financial bottom line. </li></ul><ul><li>Source: Institute for Global Ethics </li></ul>Corporate Social Responsibility
  7. 7. Doing Good Business <ul><li>“ We believe that the winning companies of this century will be those that not only increase shareholder value, but increase social and environmental value.” </li></ul><ul><li>Carly Fiorina, CEO, Hewlett Packard </li></ul>Nonprofit Leaders can leverage this enlightened business mentality
  8. 8. The UN Global Compact is the largest voluntary CSR initiative with over 5000 members (short video) <ul><li>CSR means aligning business operations with fundamental and universal values: </li></ul><ul><ul><ul><li>Human rights </li></ul></ul></ul><ul><ul><ul><li>Labour rights </li></ul></ul></ul><ul><ul><ul><li>Environmental standards </li></ul></ul></ul><ul><ul><ul><li>Anti-corruption & transparency </li></ul></ul></ul>
  9. 9. Some drivers moving business towards CSR practices include: Growing investor pressure
  10. 10. Some of the benefits experienced by businesses adopting CSR measures <ul><li>Enhanced brand image and reputation </li></ul><ul><li>Increased sales and customer loyalty </li></ul><ul><li>Greater productivity and quality </li></ul><ul><li>More ability to attract and retain employees </li></ul><ul><li>Better use of renewable resources </li></ul><ul><li>Community relations </li></ul><ul><li>Product safety and decreased liability </li></ul>Improved Financial Performance
  11. 11. Discussion Questions inspired by ‘Capitalizing on Convergence’ <ul><li>Do you have some concerns with CSR? </li></ul><ul><li>What can nonprofits learn from businesses? </li></ul><ul><li>What can businesses learn from nonprofits? </li></ul>
  12. 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. 13. Some options for corporate-nonprofit alliances <ul><li>Event sponsorships – financial or other contribution in exchange for recognition </li></ul><ul><li>Transaction-based promotion: Donation in direct proportion to sales revenue. E.g AmEx. </li></ul><ul><li>Direct sales – partner with business to sell products under their own name </li></ul><ul><li>Solicited donations – corporations help solicit donations by using their own channels </li></ul><ul><li>Product approvals – lending your “seal of approval” to corporate products for a % of sales (royalty) </li></ul><ul><li>Shared resources – pro bono work by corporations </li></ul>Source: Corporate partnerships: A Guide for the nonprofit manager. The national center on nonprofit enterprise
  14. 14. Alliances should be structured as a win-win arrangements <ul><li>Nonprofit leaders should ask themselves the following questions when thinking about building alliances: </li></ul><ul><li>What is our image? </li></ul><ul><li>Do we have brand recognition? </li></ul><ul><li>Is our cause especially attractive to certain industries/companies? </li></ul><ul><li>Is our target audience particularly relevant to certain corporations? </li></ul><ul><li>Are we local, national, or int’l? </li></ul><ul><li>Do we have board members we could leverage? </li></ul>Proactively develop a strategy for corporate alliances
  15. 15. Does your nonprofit organization have a natural corporate partner profile? (Workshop in small groups – pick one person to volunteer his/her org.) <ul><li>Which alliance model might make sense for you? (see last 2 slides and go through the 6 questions) </li></ul><ul><li>Come up with a specific corporate partnership opportunity for your nonprofit organization </li></ul><ul><li>How does your idea present a ‘win’ for the business? </li></ul><ul><li>What benefits does your organization get? </li></ul><ul><li>What internal obstacles may you face? </li></ul><ul><li>How could you initiate such an alliance while mitigating the risks? </li></ul>
  16. 16. Making the alliance work <ul><li>Open and clear communication between partners </li></ul><ul><li>Terms specified in a contract </li></ul><ul><li>Routine track of progress </li></ul><ul><li>“ When these work they have great payoffs for both partners – as well as for the public.” </li></ul>
  17. 17. What are some of the risks to nonprofits?
  18. 18. Some of the risks to nonprofits <ul><li>Wasted resources </li></ul><ul><li>Reduced donations </li></ul><ul><li>Loss of organizational flexibility </li></ul><ul><li>Tainted partners </li></ul><ul><li>Dependency of corporate funding </li></ul><ul><li>Overwhelming success! </li></ul>Source: Profits for Nonprofits - Andreason
  19. 19. Sharing partnership experiences <ul><li>Positive experiences </li></ul><ul><li>Negative experiences </li></ul><ul><li>Lessons learnt… </li></ul>Source: Profits for Nonprofits – Andrason
  20. 20. <ul><li>“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”. </li></ul>Austin J, Gutierrez R, Oliastri E, Reficco E. Capitalizing on Convergence . SSIR (2007).
  21. 21. Time permitting
  22. 22. Cause-related marketing – and its difference from CSR <ul><li>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? </li></ul>Source: The Foundation Center http://fdncenter.org/learn/faqs/html/cause_marketing.html
  23. 23. “ The era of convergence is upon us” <ul><li>Creating Value – social and economic value </li></ul><ul><li>Managing Stakeholders – both are broadening their definition of stakeholders </li></ul><ul><li>Hybrid Organizations – for-profit and non-profit subsidiaries </li></ul><ul><li>Mobilizing Capital – social venture capital to Socially Responsible Investing </li></ul>Austin J, Gutierrez R, Oliastri E, Reficco E. Capitalizing on Convergence . SSIR (2007).
  24. 24. Socially Responsible Investing <ul><li>Socially Responsible Investing (SRI) is an investment strategy that integrates social and/or environmental criteria into financial analysis. </li></ul><ul><li>SRI is catching on with many individual and institutional investors who seek to: </li></ul><ul><ul><li>Align their investment portfolio with their personal values by avoiding companies that do not meet certain standards. </li></ul></ul><ul><ul><li>Encourage improved corporate social and environmental performance through an active investment strategy. </li></ul></ul><ul><ul><li>Identify companies with better long-term financial performance through the analysis of social and environmental factors. </li></ul></ul>Source: Calvert Group : http://www.calvertgroup.com/

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