Corporate engagement in 2010

Simon Burne

August 2010

The definition of

corporate

responsibility has

broadened and

become decoupled

from philanthropy…

Leo Martin, Director GoodCorporation

Corporate

Corporate objectives

Brand-building

Advisors/Network

Staff involvement

Campaigning

Gifts of product or resource

Communication channels

Funding

Charity

Funding

Gifts in kind

Secondees

Strategic advice

Communication channels

Brand-building

Campaigning

Corporate objectives

Building long-term success

Preferences Match

Engagement CommitmentInterest

Project visits

Networking

Conferences

Word of mouth

Mailing

Advice

Donation of

product

Donation of time

Low value

donations

High value donations

Recommendations

How Companies will Commit

Project visits

Networking

Conferences

Word of mouth

Mailing

Advice

Donation of

product

Donation of time

Low value

donations

High value donations

Recommendations

The components of Corporate Responsibility

We must change from

“What do we want from you”

to

“What can we do for each other?”

and

“What can we achieve together?”

The impact of the recession

Gala dinners• Less interest in attending – keep low

visibility

• Table prices are down

• Less sponsorship of such events

Sponsorship

• Little free money for sponsorship

• Business benefits pushed harder than ever

• Marketing budgets under pressure

• Child helplines offer clear brand benefits

Grants

• Corporate trusts/charity committees have percentage of profits

– Percentage falling

– Profits falling

• Small regular gifts to niche charities relativelysafe

Cause-related Marketing

• Still deals to be had – but much more bottom line driven

• TV-driven CRMs most popular

• Not many financial deals to be had!

Employee fundraising

• Holding up well – even growing

• COTY’s carry on with greater emphasis on employee fundraising

• Challenge events receiving more match fundin

• Team-building events

Gifts in kind

• Growing – especially staff out-placement and volunteering

• Fitting out projects (equipment and decorating)

• Beware Dear Johns

• Beware dead stuff

• More demand for co-branding/recognition

Campaigning

• Growing interest where strategic brand positioning interests coincide

• Willingness to use commercial communications channels

What companies say…

• Inundated with requests

• Spoilt for choice

• CSR aligned to corporate strategy

• CSR must keep stakeholders happy

• CSR must bring about change

Most important factors in decision to sponsor

Marketing– Brand fit– Fit in Overall Marketing Mix – Marketing impact– Audience Reach– Media exposure

Corporate Social Responsibility – Fit in Corporate Responsibility Framework– Business need

Social Outcomes– Specific Objectives– Community Outreach

The Perfect Partner for a Sponsor

Knowledgeable – done their research

Professional

Listening to business needs

Innovative

Value for money

Clear what they stand for

Flexible about meeting halfway

Open-minded and helpful

Enthusiastic

Responsive

Easy to get on with

Someone who recognises win-win situations

What companies want from us…

Help deliver corporate objectives

Infrastructure in place

– Dedicated account manager/team

– Model contracts

– Information packs

– Fundraising materials

– Co-branding agreements

Local projects or clear projects that will benefit

Excellent reporting on progress

What charities do corporates like?

• Well known and understood

• Readily recognised brand

• Motivating for their stakeholders –especially staff

• Good spread of projects across the UK or internationally

• People (children/cancer) or environment focused

• Good track record of corporate partnerships

What companies don’t like

• Amateurishness

• Over-promise, under-deliver

• Slow in response

• Narrow offering of ways to engage

• Lack of flexibility

• Consortiums

• Can’t or won’t acknowledge the work the company is doing

Best practice

• Research companies carefully

• Screen ethically up-front and decide on appropriate levels of engagement

• Nurture over time

• Focus on partnership: mutual strategic benefits

• Bespoke packages addressing common areas of interest and benefit

• Offer range of options for engagement

• Financial and non-financial benefits

Know what you can offer

Clear ex ante ethical policy and engagement strategy

Thresholds for engagement

– Product endorsement

– Licensing

– Roles and responsibilities

Ethical policies

• Often a bureaucratic way of saying “no”

• Often no more than a listing of sectors “we feel uncomfortable with”

• Often reflects the biases of the most vocal

• Inflexible and restrictive

Why don’t we talk about the ethics of refusing a donation?

Rather than the ethics of accepting a donation

A beneficiary-focused ethical policy

Four questions:

– What impact would refusing a donation have on the charity’s ability to deliver to beneficiaries?

– What would our beneficiaries say?

– Have we asked them?

– Would they accept a poorer service on ethical grounds?

A brand-based ethical policy

No dialogue

Dialogue

Transaction

•Advice

•Monitor

•Verification

•No publicity

•Challenges

•Donations

•Consulting

•Emp. FR

•No publicity

Profile•COTY

•Sponsorship

•CRM <£50k

Partnership

•CRM >£50k

•Long-term

AlignmentShared

brand

values

In conclusion…

What to do?

• Nurture who you’ve got

• Think about strategic co-achievement

• Non-financials – especially volunteering

• Think strategic alliance or don’t think at all!

• Be proactive and selective – research and approach

• Think long-term

• Be ever more professional and flexible

• Focus on those areas showing strength – especially employee fundraising