Newswise — Corporations are playing a more active role in humanitarian relief, especially by forming partnerships with relief organizations, The Conference Board reports today. Successful corporate-humanitarian partnerships have the potential to deliver fast, effective support during a crisis.
As corporate social responsibility (CSR) becomes an integral part of the business culture of many global companies, numerous cases exist of companies investing in the humanitarian sector through partnerships with relief agencies, through leading CSR initiatives. But skepticism continues to surround many of these partnerships.
The report is based on ongoing research by The Conference Board and the INSEAD Humanitarian Research Group, knowledge shared during Conference Board research working group meetings, and interviews with its members. The goal of the research working group is to examine the critical steps in building successful partnerships, and to identify good management practices in these partnerships. The report features case studies, including Philip Morris International, GlaxoSmithKline, Swiss Re, Global Impact and others.
Although cash does remain the preferred form of contribution, as it gives humanitarians the flexibility to react most efficiently in emergencies and is easier to report for the private companies, clear incentives exist to go beyond cash only. Relief organizations now recognize that businesses have far more to offer, including management expertise and state-of-the-art technology. Similarly, companies are realizing that they may have something to learn from the humanitarian sector, particularly about being agile and adaptable in difficult situations " a major strength of humanitarian organizations such as Fleet Forum and the United Nations World Food Programme.
Creating Mutual Value and Trust The report emphasizes that although each sector has different agendas, with business operating in a profit-driven mode, and humanitarian organizations focused on delivering relief to people in need, the two cultures are not incompatible. When corporate-humanitarian partnerships are successful, they have the potential to deliver fast, effective support during a crisis and foster the exchange of ideas and best practices that benefit both groups.
To overcome reciprocal skepticism, corporations should work with humanitarian organizations between disasters to build trust and increase preparedness. Strong governance of the partnership is also important: the terms and the conditions need to be established initially and adhered to by both parties.
Appropriate Integration and Communication Case studies also indicate that the value of these partnerships depends on how well they are integrated into the company. This implies that proper resources be allocated internally to nurture the relationship with the partner, that it be recognized by top management as an issue of equal priority, and that a set of internal procedures be outlined and communicated to all the stakeholders.
Creating a central department that may be kept separate from the business aspect of the company, responsible for handling the response and, when necessary, the partnership, increases transparency and avoids confusion.
Communicating activities throughout the organization is crucial. When adequately adopted, these measures should ensure the productive transfer of knowledge, effective leveraging of funds, the avoidance of waste and duplication, and increased transparency in reporting. Some companies choose a broker to act as an interpreter between the two sectors to achieve the best results.
Potential BenefitsCompanies benefit from such partnerships in several ways " including improving their reputation, raising employee satisfaction, and improving the attractiveness of the company to prospective employees. Humanitarians benefit by improving their response capacity to disasters, acquiring new resources and technology, and diversifying their pool of donors.
For many companies, these partnerships are a substantial means of demonstrating to their stakeholders that they are active subscribers to the concept of CSR or corporate citizenship. "The corporate community has come to recognize it (CSR) as a key non-financial performance indicator that has the potential to affect a company's reputation value as well as its equity value," notes the report. "Corporate-humanitarian partnerships that include the transfer of expertise can be a great source of learning across both sectors and can be instrumental in improving the preparedness of humanitarian organizations to cope when a disaster arises." It is in both sectors' interests to pursue ways of working closer together, as this report illustrates.
Source:Corporate Responses to Humanitarian DisastersThe Mutual Benefits of Private-Humanitarian CooperationReport. No. 1415, The Conference Board For more information on INSEAD's Humanitarian Research Group, please visit: http://www.insead.edu/humanitarian
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