NGO’s Strategy for CSR: Building a Responsible Solution Nona Pooroe Utomo

Corporate Social Responsibility Benefits of CSR Legislative Framework Benefits of CSR Winning new businesses Enhancing your influence in the industry Attracting, Retaining and Maintaining a happy workforce Increase in customer retention Differentiating yourself from the competitor Saving money on energy and operating cost Access to funding opportunities Media interest and good reputation Benefits Enhanced Relationship with stakeholders

WHY CSR? WHY NOW? 1)Corporations are eager to be part of the global movement to address social issues, protect their reputation and avoid criticism by its stakeholders >> look for responsible dialogues for change. 2)NGO’s traditional resource of funding are no longer available or limited >> need to look for other resources. 3)Increasing Government and Community expectation from CSR program and initiatives.

GUIDING PRINCIPLES for CSR PROJECTS: CSR is about corporate citizenship It is about giving back to the society It is about business sustainability It is about thriving in a competitive business environment

What are the Corporate needs – Think about Future Business Responsibilities : 1)Demonstrate a commitment to society’s values and contribute to society’s social, environmental and economic goals through real action. 2)Protect society from the negative impacts of company operations, products and services 3)Share benefits of company activities with key stakeholders 4)Demonstrate that the company can make more profit by doing the right thing.

What are the common interests? 1)Desire to address concerns of local communities, consumers and other stakeholders and response the Government CSR initiatives. 2)Look for responsible dialogues for change. 3)NGOs have the social and environmental accountability that corporate are perceived to be lacking -> protect reputation and avoid criticism by public. 4)Increase Reputation and Images 5)Enhance Compliance with local and international laws 6)Maximize gain and minimize costs

FIRST STEP: Tear down the wall that separates business and society: corporations are selfish and only for profit vs NGOs and CSOs are for social services and self-sacrifice Corporations CAN provide social goods and are part of the fabric of society – when businesses truly see themselves as part of the fabric of society they will behave like it, taking into account the full scope of their positive and negative impacts.

The Strategy for NGO – Corporate Partnership: Philanthropy Transactional Relationship (marketing, PR, etc) Transactional Relationship (marketing, PR, etc) Integrative Partnership (long term cooperation) TRANSPARENCY + MUTUAL RESPECT -  NGO - Corporate Partnership

How to Navigate Corporate Funding: 1)Do your homework – think outside the regular Request for Proposal (RFP): what is the stage of company CSR program, understand their stakeholders and what they need to achieves – most company don’t know what they want, link them to your mission, make it simple. The Project: ANJ Agri, Palm Oil Plantation CSR Initiatives: Conflict Resolution, Plasma Scheme & Provision of Basic Needs and Supplies

2)The Big Idea: Creating Shared Value, as Michael Porter pointed out - Innovation is what company are looking for. Understanding the shared value will help NGOs to pitch their ideas and communicate the benefits of the CSR project to the Corporations. The Project: Frisian Flag Indonesia/Royal Friesland Campina – Dairy Development Program CSR Initiatives: Public Private Partnership – Poverty Alleviation Program, Dairy Village

3)Project Risk – private sector is incredibly risk-averse with CSR. Spend more time going through project risks and mitigation strategies. Don’t forget PR risks. The Project (a): Frisian Flag Indonesia and City of Bandung HIV/AIDS Commission CSR Initiative: Provision of milk for under 5 children born from HIV positive mother under the PMTCT (Prevention from Mother to Child Transmission) program. The Project (b): Alternative Energy Project in Papua

4)Transparency – especially in a country with high level of corruption. Not only on the project related to the corporation but the NGOs operation as a whole. Company needs to be certain and re-assured who are they working with – compliance is imperative. 5)Reporting – some company required Standard Global Reporting (ISO 2600), make sure your NGO understand and comply.

Conclusion Strategic Options for NGOs to work on CSR: 1)Build a strong internal resources and network on CSR 2)Work in longer term partnership and sustained funding with the Corporate 3)Engage in multi stakeholders dialogue with truth and analysis – provide expertise to promote social accountability 4)Facilitate effective community participations in CSR activities – dialogues to hold business responsible 5)Engage in CSR reporting to promote transparency and ethical trading.

Good luck……