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The views and opinions set out therein do not necessarily represent the position of Irish Aid


Good businesses create value for community and society A basic guide for businesses in partnership with CIVIL SOCIETY ORGANIZATIONS (CSOs)


Content 1. Why businesses should invest in community and development programs that are linked with their core business

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2. Are there any practices or case studies in Vietnam?

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The project: “Community-based public toilets in Hai Chau district” in Da Nang city:

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The project “Mobilize social resources for rennovation of Cau Giay park, Hanoi”:

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The project “Partnership for developing sustainable tourism and local livelihoods in Cat Ba, Hai Phong”:

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3. How businesses can develop a strategic corporate philanthropy programs?

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Step 1: Define goals/objectives

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Step 2: Develop a strategy, program or activity

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Step 3: Allocate resources and make a budget

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Step 4: Publicize the corporate philanthropy program

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Step 5: Evaluation

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Center for Education and Development (CED) Room 1502, OCT3A Building, 74 Pham Van Dong, XuanDinh ward, BacTuLiem district, Hanoi Tel: (84-4) 562.7494 Fax: (84-4) 540.1991 Email: cedhanoi@ced.edu.vn Website: http://ced.edu.vn/


ACKNOWLEDGMENT

This guide is developed under the framework of the project “Developing a Sustainable Civil Society Sector in Vietnam” funded by Irish Aid and coordinated by The Asia Foundation (TAF). The project has been implemented from March 2014. This is a summary of the guide entitled “Strategic partnership for corporate philanthropy and community support” compiled by CED for Vietnamese businesses. This guide provides information for businesses to enable them to have better understand of effective corporate philanthropy, as well as how to promote effective partnerships with CSOs in supporting community development activities that bring benefits to businesses and communities. This guide is made possible through valuable contributions and inputs from many organizations and individuals.

Firstly, we would like to thank Irish Aid for their generous financial support and The Asia Foundation for their timely and efficient technical support throughout the project implementation, particularly the development of this guide. Our thanks also go to the Vietnam Young Business Association (VYBA), Start and Improve Your businesses (SIYB) in Ho Chi Minh City, Vietnam Creative Entrepreneurs Club (VCE club), and the Central branch of Vietnam Chamber of Commerce and Industry (VCCI), for their enthusiasm, cooperation and support during implementation of project activities as well as the development of this guide. We would like to express our sincere thanks to all businesses who participated in our project’s forums and provided inputs to make this guide useful. We welcome your questions, concerns, comments, and recommendations.

The Centre for Education and Development (CED) is responsible for all contents included in this guide which do not necessarily reflect the views of Irish Aidand the Asia Foundation.

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1. Why businesses should invest in community and development programs that are linked with their core business? A vibrant community enables businesses to grow and develop. Businesses can grow dramatically and sustainably only if they operate in a healthy business environment, together with a high quality of life for people in the community where they operate. Thus, supporting community development through philanthropic investments will not only bring benefits to the communities, but also for businesses themselves. Vibrant communities have healthy networks of philanthropic and educational organizations, which are supported by volunteers’ time and financial

Instead of considering corporate philanthropy as giving back to the community, many businesses consider it as a social investment as it creates benefits not only for the community, but also for the company. Businesses can contribute in cash or in-kind, volunteering, partnerships, and with any other type of business asset. Corporate philanthropy can be part of a wider program of Corporate Social Responsibility (CSR) and can be seen as business commitments to society.

contributions from local citizens and private businesses. From this, social, economic and environmental issues can be addressed. When the local community suffers, businesses also encounter difficulties in attracting and retaining employees and expanding their customer network. Therefore, businesses should join hand with the government and civil society organizations (CSOs) to create shared value for all stakeholders including businesses. 2. Are there any practices or case studies in Vietnam? Vietnamese businesses have had initiatives to support communities or develop strategic giving plans that bring benefits for businesses, communities and society as a whole. Some businesses have had long-term and strategic partnerships with civil society organizations to implement their corporate philanthropy programs. The project: “Community-based public toilets in Hai Chau district� in Da Nang city: Businesses and social organizations in Da Nang join hands in investing and promoting tourism through improving access to free, clean and convenient public toilets for the increasing number of tourists coming to Da Nang. In response to bad conditions and a lack of funded public toilets and to meet the needs of local residents and the increasing number of tourists coming to Da Nang, in early 2015, Hai Chau Business Association had an idea to mobilize resources from business communities

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Social value Meets the demand of an increasing number of visitors to Da Nang

Tourism trade, service development Increasing visitors to Da Nang

Economic value

COMMUNITY BASED PUBLIC TOILETS

Cost effective Keeps the environment clean

Visitors impressed by environmental value

Environment value

Saves environmental cost

Figure 1: The project “ Community-based public toilets in Hai Chau District” in Da Nang city

in Da Nang to create a network of community-based public toilets. The Association has cooperated with the Da Nang Center for Tourism Promotion and Da Nang Tourism Association to set up a project management board to implement the project: “Socialization of communitybased public toilets” with a friendly name: “Comfort as at home” in Hai Chau district. The project was launched just before the International Firework Festival in Da Nang on 30 April 2015. The project objective is to mobilize resources from the community and businesses to offer their existing toilets for public use. The project management board works with businesses in the tourism, trade and service sectors, including hotels, restaurants, cafes, bars, offices, shops and showrooms located in central areas of the city. After evaluating the facilities of these interested partners, those who met the project criteria and requirements were given a logo so that tourists and users can

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Strategic partnerships for corporate philanthropy and community support

recognize these free facilities. So far, the project has attracted 80 businesses that have quality and clean toilets for public access. As intended, the project brings economic, social and environmental benefits for both businesses and the community (see Figure 1). The project: “Mobilize social resources for rennovation of Cau Giay Park, Hanoi” Businesses in Hanoi have invested in developing a quality public space for communities from their own resources (products and services). The need of local residents in Hanoi for quality public spaces and entertainment (especially the poorer groups is increasing) while the available public land has shrunk with an increasing population. A project to create a quality and modern playground for free public use has developed in one of the most populous districts of Hanoi, with resources coming from businesses and individuals working and living in the district. This project has mobilized eight billion VND from 13 businesses and 30 individuals. The playground within Cau Giay Park was ready for public use from February 2013. Businesses contributed their own services and products for developing the playground. This project has brought back great economic, social and environmental benefits for local communities and businesses (see Figure 2). Partnership for developing sustainable tourism and local livelihoods in Cat Ba, HaiPhong: A local business is partnering with a local NGO to develop tourism services while creating sustainable livelihoods for the local community.


CREATED FROM CAUGIAY PARK PROJECT

Improving the public attitude to protecting the environment in public spaces

Saving budget to promote products and brands

VIR ON VA MEN LU E TAL

Improving the environment in surrounding neighborhoods

EN

Cooling down the surrounding neighborhoods

Saving on the cost to health

ECONOMIC VALUE

Improving value for local government

Reducing dust and noise in the area

SOCIAL VALUE

Increasing the value of nearby houses and apartments

Creating a playground and free spaces for children Creating green spaces for the local community

Engaging the local community

Figure 2: The project: “Mobilize social resources for renovation of Cau Giay Park�

Quang Anh Tourism Services Company Ltd., primarily focused on aquaculture and restaurant services. In 2014, to meet the increasing demands of tourists coming to Cat Ba, the company extended their operations to offer more services for tourists such as ocean fishing, exploring Lan Ha bay, boat and kayak services. To deploy their business plan, the company has partnered with a youth group called Action for the Future (A4F) in a project developing sustainable eco-tourism in Cat Ba to serve for backpackers, especially foreigners, who prefer experiencing cultural and hands-on tourism.The project develops home-stay programs and services for this clientele in Lan Ha fishing village while creating sustainable livelihoods for local citizens.

With their experience and creativity, A4F selected three locations with distinct and unique landscapes and culture on Cat Ba island and helped Quang Anh company to develop their business plan and invest their resources to develop new services and programs with reasonable costs while protecting the environment (for example, a networks of rest-stops, transfers, bars, bike rental, kayak services and hostels with reasonable prices). This project is a huge success, bringing economic, environmental and societal benefits for businesses, communities and NGOs (see Figure3).

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Business

CSOs/NGO Benefits

Creating new, reasonably priced services for businesses

Improving incomes and livelihoods

Reaching new potential clients (foreigners)

Increasing the quality of tourism with culturally rich home-stay experiences

Building strong partnerships with local producers to supply companies

ECONOMIC VALUE

SOCIAL VALUE

Increasing operational cost for A4F, supporting them to fully achieve their mission

ENVIRONMENTAL VALUE

Protecting the environment with the increased use of friendly transportations such as bike and kayaks

Figure 3: The project: “Partnership for developing sustainable tourism and local livelihoods in Cat Ba, Hai Phong�

3. How businesses can develop a strategic corporate philanthropy program Most Vietnamese businesses, especially those of small and medium size (SMEs), are interested in and eager to respond to community needs. However, most of them do not have a specific plan for guiding and leveraging their resources in an effective manner. Up until now, contributions have been largely shortterm support or come in response to an emergency (mainly in the form of

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Strategic partnerships for corporate philanthropy and community support

cash donations). There are few businesses participating in more long-term and strategic programs or commitments that address public concerns on environmental or social issues while bringing benefits back to their businesses. Based on the review of corporate philanthropy literature from Vietnam and around the world, corporate philanthropy programs can be classified into three categories: Responsive Philanthropy, Strategic Philanthropy, and Catalytic Transformative Philanthropy (see figure 4).


Responsive

Strategic

Catalytic

Economic value

Environmental value

_1_ Responsive _2_ Strategic _3_ Catalytic

Social value

Figure 4: Creating value through philanthropic investments

Catalytic Transformative Philanthropic Investments can happen by design or grow from initiatives that start as Responsive or Strategic Philanthropy initiatives to create increasingly robust value and engage other resources in the business to create greater impacts and benefits for society and the business. Businesses can participate in these programs through different approaches and channels: through company foundations, business associations and/or partnerships with CSOs and NGOs. Why are strategic partnerships needed for corporate philanthropy? In order to professionalize the corporate

philanthropy field and meet the needs of businesses and communities, companies should cooperate with organizations with trusted networks of partners or who share the same objectives and/or values as their business. Below are some of the reasons why strategic partnerships can add value to your corporate philanthropy. Creating business value and social or environmental benefits: Partnership with civil society organizations can result in measurable business and social or environmental benefits, such as reduced costs, reduced risks, new market development, and enhanced brand value

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along with reduced environmental impacts in the company production line operations or supply chains. Improving environmental performance and/or social equality: Innovation arising out of partnerships can create comparative advantages for a business while addressing social and environmental problems. Leveraging resources, skills, and relationships from other organizations: Strategic partnerships can help businesses address issues that they may not have the expertise, skills or resources to manage on their own. Building respect and credibility for corporate philanthropy as well as NGO work in Vietnam: Strategic partnerships in corporate philanthropy can help both

Partner with 1-2 organizations that have a similar vision, goals, and mission.

sectors to build trust and credibility in society. Providing independent validation: Strategic partnerships in corporate philanthropy programs can provide independent “third party� validation of a company’s claims of the environmental or social benefits of a project. Helping achieve long-term vision. Most leading companies and organizations have long-term goals and visions, though they are often pre-occupied with short-term priorities in their dayto-day operations. A partnership project designed to address a long-term issue can help provide the external push needed to realize long-term goals. Companies can use the following criteria to identify a potential partner:

Focus its resources on partnering with one or two organizations or programs.

Spreading your support to many projects and programs in many areas.

Strategic partnership with one organization to implement a program or activity as part of the supply chain.

Partner with organizations that are addressing issues of concern to the business.

Partner with organizations that will allow your employees to volunteer.

Partner with organizations that are important to your clienteles.

THE WAY BUSINESSES IDENTIFY POTENTIAL PARTNERS

Figure 5: Criteria to identify a potential partner

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Partner with local organizations where businesses are operating.


Developing a strategic cooperate philanthropy program –five basic steps

CSOs/ NGO

STEP

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MAKE A POLICY FOR PHILANTHROPIC SUPPORT

ALLOCATE RESOURCES AND MAKE A BUDGET STEP

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- Environmental protection: Climate change, disaster risk management - Education: Support for children, ... - Community development: Poverty alleviation, agriculture, forestry ...

STEP

EVALUATION

STEP

03

Society’s needs

DEVELOP A STRATEGY, PROGRAM OR ACTIVITY

THE IMPACT ON THE ENVIRONMENT AND SOCIETY

Businesses

Business associations

Step 1: Define goals/ objectives Business opportunities

Business assets

TO MOBILIZE RESOURCES FOR INVESTMENT, PROJECT SIZE, SCALABILITY - Market expansion: New products, new markets ... - Enhanced credibility - Creating a more healthy business environment - Improve efficiency (management, costs, ...)

- Human resources: expertise, skills ... - Product - Facilities - Finance: (sponsorship, gifts and artifacts ... - Network provider customers - Reputation

BUSINESS OPPORTUNITIES

Figure 6: Steps to develop a strategic corporate philanthropy program

Step 1: Define goals/objectives Carrying out research helps businesses to understand the issues and challenges that communities are facing and their expectations to accomplish in their philanthropy programs. Businesses can cooperate with a CSO to conduct this research.

Step 2: Develop a strategy, program or activity After defining goals and/or objectives, companies can elaborate on philanthropic program areas, activities, and locations to achieve their set goals/objectives. While elaborating on activities and programs, companies

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should consider appropriate approaches, channels and partnerships to ensure the successful and effective delivery of programs, especially in areas that are not in line with the core strengths and expertise of the business. Step 3: Allocate resources and make a budget Based on the defined goals/objectives, activity areas, and locations, the company will allocate available resources for its philanthropic programs. While developing the budget, businesses should consider what activities can be charged in the business running costs before taxes and what activities are tax deductible according to existing tax laws and regulations. Step 4: Publicize the corporate philanthropy program This step will help businesses to make a policy for their philanthropy programs, including internal written guidelines for decision making and allocation of resources, and mobilize participation of all stakeholders that are relevant to the business. By doing this, corporate philanthropy will become more professional, transparent, and effective. Step 5: Evaluate When the corporate philanthropy plan is developed and implemented, the company should set up a time to review it to evaluate the impact of the program both to the community and to the business, at least once a year and adjust as needed. The evaluation will help businesses to know whether their philanthropy programs go as they expect and help them to make adjustments as needed.

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More information and specific guidance can be accessed from the full guide: “Strategic partnerships for Corporate philanthropy and Community support for Vietnamese businesses” (published as a companion to this summary guide) or via the website: http:// tuthiendoanhnghiep.com/. In addition, businesses can learn more about tax benefits in the report “Quick review of legal and policy environment on corporate philanthropy and corporate partnership with nonprofit sector in Vietnam” conductedby the project and available on: http:// tuthiendoanhnghiep.com/.


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Good businesses: create value for community and society  

Instead of considering corporate philanthropy as giving back to the community, many businesses consider it as a social investment as it crea...

Good businesses: create value for community and society  

Instead of considering corporate philanthropy as giving back to the community, many businesses consider it as a social investment as it crea...

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