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February 04, 2012
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Leveraging Deficits: How the Best Corporate Citizens drove more effective cross-sector collaboration during the Great Recession

In last week's blog post, I pointed to the emergence of a "renaissance" in how companies, NGOs, and governments are collaborating to tackle some of our toughest challenges. This week I'm going to look in-depth at the specific new models and practices we're seeing emerge. 
 
Throughout 2011 we looked for successful practices in cross-sector collaboration by examining commitments made as part of the annual COMMIT!Campaign and by talking with CR Magazines Best Corporate Citizens. There were stark differences in the way these organizations engage with NGOs and governments as compared with most companies and donors. The best:
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Deficit-Driven Developments


The recession started a renaissance in how companies, NGOs, & governments collaborate

Necessity, they say, is the mother of invention.  With governments and non-profits facing yawning budget deficits and business facing one of its biggest trust-deficits in history, organizations are coming together in unprecedented ways to tackle some of society's greatest challenges. In fact, a distinct set of collaborative practices used by the “best corporate citizens” and their partners have emerged that others could adopt.

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The Campaign to Change the World

We call it the COMMIT!Campaign because it does exactly that: it calls on organizations to make commitments that will change the world. But people often ask exactly how does it work? Sometimes, others see you more clearly than you see yourself… 
 
"Oh! I get it. It's like Match.com for corporates and causes."
 
"Makes perfect sense. Nothing major gets done in government without a deadline and a press conference. Why would corporate responsibility be any different?" 
 
These two quotes perfectly sum up the essence of the COMMIT!Campaign and Forum. Earlier this year, over 600 people gathered in New York City at the COMMIT!Forum, a place the GRI's Ernst Ligteringen called, "...full of ideas, full of commitment."  The Forum called upon people to come together to make commitments to change the world. The 2012 Campaign and Forum picks up exactly where the Forum left off.
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Understanding the Value of Corporate Responsibility

Susan Pullin, CSC Vice President of Corporate Responsibility, writes that

There are many opinions about the real value to a company of corporate responsibility (CR). Aman Singh recently wrote for Forbes about these contrary opinions and posed the question: “Are we fighting over semantics or strategy?” She went on to consider how stakeholders often view CR. Is it perceived as something that is disconnected from markets, profits and capitalism itself? Is it typically misinterpreted as a cost, with some seeing CR as little more than “giving away money and adopting the latest cause of activists”?

As we look at this debate, one point is clear:  if CR is perceived anything but a contributor to top-line growth, then stakeholder opinions will be negative and the value of CR is misunderstood.

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Attention Washington: Please address the skills crisis, too

In his address to a joint session of Congress last week, President Obama said, “Tonight we meet at an urgent time for our country.  We continue to face an economic crisis that has left millions of our neighbors jobless, and a political crisis that’s made things worse.”Indeed, the evidence abounds.

In recent days, the Labor Department reported that the economy created virtually no net jobs in August—its poorest monthly showing in a year. Unemployment remained stuck at 9.1 percent. The president’s own budget office, in its midyear review, forecast that the jobless rate will persist at 9 percent into next year as well. And just today, the U.S. Census Bureau announced that the national poverty rate had hit 15.1 percent last year while median household income declined. The 46 million Americans living below the poverty line last year represented the largest number in the 52 years for which poverty estimates have been published.

Sparking an economic revival in America and creating new jobs has no higher national priority. Yet as a business membership organization representing companies that employ millions of Americans, Corporate Voices for Working Families grapples with a related and urgent imperative: A widespread skills gap, which leaves many employers struggling to fill job openings even as millions of Americans search for work.
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WANTED a jobs & growth agenda

In his address tonight to a Joint Session of Congress, President Obama will lay out his plans for kick-starting employment and growth. America needs a plan for good-paying jobs combined with sustained and sustainable growth. Here’s our jobs and growth agenda at the COMMIT!Forum Sept 26-27 in NYC:

 
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COMMIT to selling more, saving more, growing more

How can corporate responsibility help you sell more stuff, save more money, and grow your business? Come find out at the COMMIT!Forum on Sept 26-27 in NYC when you hear:

- How UPS uses sustainability reporting to sell more & save more. 

- How HIP Investor, TIAA-CREF, & KKR deliver shareholder returns.

- How Corporate Voices for Working Families builds a more competitive workforce.

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YOU are a Corporate Responsibility Officer

Individuals at all levels can take action to improve Corporate Citizenship

“[G]lobalization and the information technology revolution have gone to a whole new level,” wrote Thomas Friedman in his Sunday New York Times Op-Ed. “Thanks to cloud computing, robotics, 3G wireless connectivity, Skype, Facebook, Google, LinkedIn, Twtter, the iPad, and cheap Internet-enabled smartphones, the world has gone from connected to hyper-connected.”

 

Now, thanks to the globalization/IT revolution, YOU can be a corporate responsibility officer (CRO). “This globalization/IT revolution is… ‘super-empowering’ individuals, enabling them to challenge hierarchies and traditional authority figures – from businesses to science to government.” While these tools have caused disruptive change – from Tunisia to the Tea Party – these same tools empower individuals at every level to become change agents of a more incremental, more impactful kind.

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American Tribalism?

Will “tribal” loyalties tear American society apart?

An empire at its peak brought low by mounting debt, a government beset by in-fighting, business and bureaucratic elites conspiring to line their own pockets, and emerging countries that eventually surpass and overwhelm it.

A prediction about America?  Possibly.  But this little vignette actually comes from Frances Fukuyama’s description of the fall of the Ottoman Empire.  The Janissaries, the bureaucratic class that controlled many of the levers of imperial power, organized themselves into the equivalent of political parties, fighting each other over the spoils of empire, even as it became increasingly clear that the imperial economy was collapsing under its own weight and that the rising powers on its borders had out-innovated it and would soon overtake it.  The parallels to our modern crisis leap off the page.

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Show me the Money: Getting CSR Capital for your NGO

More than ever, non-governmental organizations (NGOs) are echoing Cuba Gooding Jr.’s line “Show me the money!” when it comes to corporate social responsibility (CSR). Having successfully fundraised CSR capital for an NGO, I’m often asked for my secret, as though I have the best-ever marinara sauce recipe. These conversations are often asymmetrical as I get excited about how CSR is revolutionizing development and exclaim: “But it’s about rethinking our whole approach to social change!” or “Think in terms of making the pie bigger, not just redistributing wealth!” or “Creativity not bureaucracy!” Although NGOs embrace the excitement about CSR, they understandably have questions about companies’ funding priorities, how the procurement process works, if they should present themselves differently and so on.

Navigating corporate funding is indeed a bit like being at sea with no compass. So I’m setting aside my excitement for a moment, putting on my practical hat and listing a few tips for chasing CSR money...

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