THE GLOBAL EXTERNAL RELATIONS PRINCIPLES
Principles around Organizational External Relations I.
General Premise for Principles:
1. AIESEC International can access all country markets, but this access needs to be governed by a set of principles outlined below, balancing the needs and opportunities that appear of all entities and partners. 2. AIESEC International aims to have Global Partnerships up to an amount that sufficiently funds the budget of AIESEC International and leaves a margin surplus to build up its reserves. AI strongly believes in this since managing a large number of Global Partnerships would mean decreased branding for Global partner’s / strategic leverage among the AIESEC talent pool it shall attempt to restrict its number of partnerships to balance meeting its financial needs, and partners strategic brand leverage needs. If further opportunities arise for fundraising, or if revenues are generated beyond budgetary and reserve building requirements, the allocation of such profit shall be connected to the profit allocation discussion taking place in the finance subcommittee, and hence this point must be connected to the outcome of the same, or revised to be in line with the same. 3. AIESEC International will have independent discussions, negotiations with countries on a case to case basis selling similar products to that of AI in order to align the branding / USPs of these products. All such discussion however shall be in fully in line with the Global ER principles. 4. AIESEC International should not focus solely on developing partnerships in the traditional (European) markets, and should look into diversifying its Global ER operations into other regions such as Asia Pacific or other regions which have a significant potential. 5. Countries should be open to introducing AIESEC International to their current sponsors when they see an opportunity for a global partnership or when the company is looking at accessing global benefits. 6. If an AIESEC entity other than AI sells a global partnership (partnership which requires delivery of global benefits), the same must be agreed with AI prior to selling and then the revenue of any products delivered by AI should fully go to AI, so that it can be invested into the Global Network. If products are delivered in conjunction with AI then the pre agreed revenue split between the country and AI shall be respected. 7. A global exchange partnership contract signed by AI shall not include names of countries where the interns will be hosted, but will only state the number of internships. I.e. an AIESEC country has the final choice with respect to hosting of an intern / AI seeks consent from countries before committing internships to a customer in a particular country. 8. Countries will be compensated for their efforts in assisting AI in developing / delivering the global partnership, the percentile for which will be decided on a case-by-case basis, therefore there will be no revenue sharing with countries simply because AIESEC International signs global partnerships with companies which happen to have their head quarters in those countries. II. Organization External Relations Principles 1. Every entity should set the minimum level of reserves it wants to maintain in the long run. Anything beyond that should be invested back into the network at the entities discretion. Explanation: This principle was put in place, so that no AIESEC entity is striving to raise money just for the sake of raising money. Instead, the revenue generated is fruitfully invested back into the AIESEC network.
G_Global External Relations Principles
International Presidents Meeting 2011, Mexico
1
2. Any entity wishing to contact an external entity related to revenue raising in any other country, should first receive approval from the MC of that country (within the timeframe as stated below in implementation guidelines point 1, paragraph 6). 3. Any entity wishing to raise money from the National offices of an existing Global Partner, should first inform the contracting entity of the same. 4. Any entity wishing to contact an Individual related to revenue raising in any other country, should first contact the MC of that country. In case an entity wants to contact an Alumnus of their own entity, based in the geographical territory of another country, the country may do so; however they should ideally keep the MC of the country in the loop of their dealings. An Individual donation from any such Alumni can be made, without any clearance, however any organisational sponsorship/donation, is not allowed without the approval of/ mutual understanding with the country where the alumni is based. Explanation: Self-explanatory. 5. Every contract concluded by an AIESEC entity should not leave any other AIESEC entity in a worse off position legally, financially or in terms of the value of their brand. Explanation: This principle was put in place, so that every entity makes sure that no partnership that they sign negatively affects (financially) the country in which that partnership is signed. 6. AIESEC International can access all country markets, but this access should be governed by the ER-principles balancing the needs of all entities and partners. - GN Boards should prospect and access all markets within their given GN, depending on policies and clearances decided by the GN. - AI would not contact though organizations that have a partnership with the country itself or are in the middle of a negotiation with the country and the principles 2 and 3 would be applicable in order to avoid miss communication. Explanation: This was a specific discussion around how the approval system essentially works in order for AI to approach companies in country territories. The group felt that this principle should be implemented, as it would allow AI ER team to perform to its potential and raise funds to be used to subsidize global services. Currently the vast majority of countries follow this principle already; however there have been concerns with a few countries about the validity of such principle and therefore AI has not sold in these markets. 7. No AIESEC entity shall enter into a contractual agreement on behalf of another AIESEC entity, without their prior written consent. Explanation: This principle refers to the fact that there are currently no formal legal ties between different AIESEC entities and therefore the group wanted to ensure that no other entity formally binds another in an agreement and that legal liability for ones actions rests with the signing entity. However if an entity is receiving benefits from another entities contracts, and in connection with the same must allow the other entity to contract on their behalf, they must give prior written approval to the other entity to allow them to contract on their behalf. 8. Only one AIESEC entity would submit a proposal for a global partnership/international partnership to any particular organization Explanation: This principle was agreed upon to address the concern of the branding of AIESEC in different markets more specifically the concern of having multiple AIESEC entities presenting similar products to an organization, potentially with different delivery models and/or pricing and eliminate the possibility of AIESEC entities undercutting each other.
G_Global External Relations Principles
International Presidents Meeting 2011, Mexico
2
9. All entities involved in a partnership or potential partnership shall provide free access to all relevant communication between the entity and organizations in their markets to each other (barring legal or confidential requirements) Explanation: This principle was put in place so that all AIESEC entities recognize the importance of open communication and commit to providing this communication to the other relevant entities. 10. All entities shall deliver their required partnerships as per agreement with the partner, unless so determined by the partner. Explanation: This principle addresses the concern related to the accountability of non-AI entities towards international partnerships. 11. No entity shall enter into a partnership which requires AIESEC to change The AIESEC Way. Explanation: Self-explanatory 12. Any entity entering into a partnership in another market must respect the interpretation of the principles for partnership by the entity in that market and the law of that market. Explanation: The group felt that this principle was required in order to ensure that no entity imposes their interpretation of the principles of partnership on another. For eg: If AIESEC in country X’s interpretation of the POP allow them to work with tobacco companies then they should not be forced to withdraw their partnership with the tobacco company in order for another AIESEC entity to develop a partnership in country X OR that country X which does partner with tobacco companies cannot extend their partnership into country which does not want to partner with tobacco companies.. 13. All entities involved in the delivery of a global/international partnership should mutually agree on the delivery model, respecting the scope of operations defined by the International Compendium and with priority given to the requirement of the client. Explanation: In the case of a dispute, this principle determines who will have the final say in determining the ideal partnership model for an organization / potential customer.
III. Implementation Guidelines for the Principles There are no implementation guidelines for Principles numbered 7, 8, 9, 10, 11 and 12 since they are either selfexplanatory / clear. 1. Any entity wishing to contact an external individual / entity related to revenue raising in any other country, should first contact the MC of that country. How will two AIESEC entities decide on the companies they want to prospect on:
AIESEC entities will carry a prospect list to an IC and IPM or discuss virtually. The two entities will cross check these lists, and decide on the companies each entity will prospect on after putting aside current prospects for an entity, partners. An AIESEC entity can deny access to a company only when there is a proposal pending with that company, when a referral has been made to that company or when that company is a current sponsor of that AIESEC entity or if there is a clear plan to approach that company before the next ILM. An AIESEC country has the final decision making power with respect to access on accounts which are national sponsors. IC, IPM, other physical or virtual meetings will be treated as check points to assess the progress with companies on the lists i.e. If a prospect has remained in that status for around a year, or if a proposal has been declined then that company should be released for another AIESEC entity to pursue a sale with.
G_Global External Relations Principles
International Presidents Meeting 2011, Mexico
3
If two AIESEC entities have the same company they want to prospect on, then the entity that has the stronger lead, contact with a higher executive in the company should pursue the company. The ideal situation is when two AIESEC entities like AI-MC- GN Boards together approach a company with one AIESEC face, and let the customer decide on whether they want to partner with AI and seek global benefits or with MC and seek national benefits or with both to seek both global and national benefits. An AIESEC entity has a maximum of 7 (seven) days to respond to request made by another AIESEC entity with regard to approaching company X in that market and if the request does not receive a response in the defined time then that AIESEC entity should send another email correspondence and await a reply for further 2 (two) days, if still no further response is received then the AIESEC entity is free to make the approach to company X. Exceptions should be made in case for the reasons of conferences, vacations, travel and health. In spite of this the two AIESEC entities should make the approach together. If an AIESEC entity X is contacted by a company which happens to be a current partner of another AIESEC entity Y for a global partnership then, AIESEC entity X can continue, proceed with discussions for a global/regional/multi-country partnerships partnership with that company but must first mutually agree with AIESEC entity Y. This should be allowed since the customer is looking for products and subsequent services that they cannot access through the current partnership they have with AIESEC entity Y.
2. A contract concluded by an AIESEC entity should not leave any other AIESEC entity in a worse off position. Explanation and Mediums of Resolution: If such a scenario does take place or there is a possibility of such a scenario taking place, then the first step shall be to settle the situation between the two entities, and if an agreeable settlement cannot be reached then the matter should be addressed through a relevant body, which we shall aim to be define, in the near future through discussions in the Steering Team and Finance Strategic Meeting. Till the point such a body is appointed, the finance subcommittee could provide recommendations for settlement to the bodies, and global plenary if needed. 3. No AIESEC entity shall enter into a contractual agreement on behalf of another AIESEC entity with out seeking consent from the concerned AIESEC entity. In case AIESEC entity X enters into a contract with a company on behalf of AIESEC entity A, B, C without consent of these entities, then the concerned AIESEC entities will strive to solve the problem internally with facilitation by AI / decision of Global Plenary/other relevant subcommittee but if no decision can be arrived at then a legal solution could be sought. Any controversial issues emerging as a result of non-compliance with these principles, premises and implementation guidelines then a solution will be sought for mutually between the concerned AIESEC entities. But, if there is no agreement, then the solution will be proposed by the global plenary on the basis of a recommendation by the Finance Subcommittee. IV. Procedures to solving the Global ER Policies violations The ICB is responsible to solve cases or provide recommendations to the Global Plenary regarding violation of the ER principles. For description of Whistle-Blowing procedure and for more information on the ICB's power refer to supporting document G.
G_Global External Relations Principles
International Presidents Meeting 2011, Mexico
4