A breakfast briefing Perth, September 23 rd 2008.
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A breakfast briefing Perth, September 23rd 2008
Agenda
• Brief introduction
• Measuring community programs:
• The context
• LBG and how it helps
• A word on the environment
• Questions
Who we are
We help companies deliver on their community and environmental
responsibilities in practical ways that make business sense. Our award-
winning programs involve and enthuse employees, have high social and
environmental impact, and are measured and managed for results.
Through a unique mix of specialist skills and partnerships, We are able to offer clients:
• specialist CSR strategy and program management;• access to renowned international measurement and benchmarking;• a complete solution for your CSR communication and reporting needs
London Benchmarking Group is the pre-eminent international benchmark for organisations looking to assess their CCI performance. In Australia, LBG is exclusively licenced through Positive Outcomes.
Haystac is one of Australia’s premier independent marcoms agencies maintaining a blue-chip, national client base. Haystac offers highly strategic media and communications programs across a diverse portfolio.
Rodeo combines imaginative minds, strategic thinkers and technical know-how to offer insightful creative communication. Rodeo serves as a one-stop-shop for a wide range of creative services across all areas of advertising and graphic design.
Climate Positive is a not-for-profit organisation established to assist individuals, businesses and policy makers to understand and take action on climate change through auditing, measurement, reduction and offsetting.
Through the Mitchell Communication Group, we work in close collaboration with these best practice groups
to deliver a comprehensive service to meet your CSR program needs
Our strategic partners
Measurement under scrutiny
• Based on survey of 72 sustainability
reports, 58 following GRI guidelines
• Aimed to identify how companies are
reporting on community impacts
GRI’s sustainability reporting
guidelines are used by over
1,000 organisations worldwide
Findings Companies tend to report their own performance in relation to community
rather than the changes or benefits for communities and the environment
Few use quantitative indicators of community impact
Majority only mention positive, not negative impacts
Reports tend to focus on charity/philanthropy, rather than sustainable
community development
…. although community engagement is a major reporting focus for mining and
forestry companies (90% give this prominence)
Overall, community impact “appears difficult for most companies to define and
report in a meaningful way” ….
Lack of interest, lack of capacity, lack of guidance/tools?
What is the LBG? The LBG Model is an internationally recognised method for measuring,
benchmarking and reporting a company’s community contributions and achievements
Established by 6 international companies in the UK in 1995, to address two questions: How much are we contributing to the community?…. and Is it making any difference to society or our business?
Now a group of over 220 companies internationally, working together to: Create a global community investment measurement standard Improve the management, implementation and reporting of community
programs Benchmark and share best practice
LBG operates worldwide – UK, USA, Australia / NZ, Canada, France, Czech Republic, Germany and Spain – with total community contributions now exceeding $AUD2.8 billion
Members: LBG Australia / New Zealand Sep ‘08
Why businesses join LBG
• Define what the company gives and why
• Manage a more effective programme – fit with business goals, strategic planning
• Take better decisions on future investments, justify CCI budgets
• Capture CCI data from around the company
• Define, track and measure what CCI achieves
• Achieve better and more robust communication, internally and externally
• Use benchmarking and share best practice
LBG Pyramid of motives
LBG Categories of motive
LBG Category Why How Example Outcome
Donations Promote common good on intermittent basis. Moral responsibility
Partnerships with employees, customers, suppliers
Disaster relief, payroll giving, matched employee gifts, employee volunteering
Build reputation as a “caring company”. Few direct business benefits.
Community
Investment
Promote and protect long-term interests. Intelligent self interest. Healthy society for business
Strategic partnerships with community organizations
Support for education, crime prevention, inner city regeneration
Some measurable business benefits in improved physical/social environment
Commercial
Initiatives in the
Community
Achieve a range of business goals and promote brand. Direct commercial benefits.
Commercial departments’ partnerships with charities
Cause-related marketing
Charity event sponsorships
Measurable benefits in sales and market share, access to best qualified staff and suppliers.
The Input Output Impact model
Inputs
Outputs
Impacts1
year
1-2
year
s1-
10 y
ears
Mea
sure
men
t
time
scal
e
Inputs
Monetary value of costs of CCI programs(cash, time, in-kind)+Management costs(CCI program staff salaries/benefits/overhead)=Total cost of community involvement
Inputs
Cash• Donations
• Community sponsorship
• Matching employee giving
• Employee involvement
costs
• Other facilitated giving
• Membership and
subscriptions
• Cause-related donations
Time
• Employee volunteering
• Secondments
• Technical/managerial
volunteering
• In-house training
• Development assignments
Inputs
In kind• Product gifts from inventory• Free or low cost advertising space• Meeting rooms & other building resources• Hospitality, catering, accommodation• Access to training courses• Expertise, professional services• Exceptional one-off gifts valued at cost
Value at cost to the company (not commercial / retail value)
Management Costs• Community affairs staff
• Running costs
• Communicating the programme to relevant audiences
One company’s experience
LBG Australia / New Zealand 2007 results
Headline performance 2007 2006
Number of members making a return 27 14
Total contributions reported $117,924,070 $33,080,179
Average estimate of contributions captured 80% 77%
Contributions per employee $213 $143
Total contributions as % of pre-tax profit 0.56% 0.43%
Total contributions as % of revenue 0.06% 0.05%
Average % of employees having paid time off to volunteer 4.8% 3.7%
Average % of employees undertaking community activities 6.3% 8.1%
Total leverage reported $43,703,694 $28,084,886
Community
Activity
INPUTS OUTPUTS
Cash,
Time,
In-kind
LeverageCommunity
Benefits
Business
Benefits
Charitable
Donation
Community
Investment
Commercial
Initiative
LBG Matrix
Community
Impacts
Business
impacts
Leverage
‘The additional resources attracted to a project or
organisation as a direct result of the initiative or
participation of the company. It can include money,
time, skills, and gifts in kind’
• Government funding
• Other corporate partners
• Employee donations
• Community donations
Community benefits – output measures and indicators
Arts and Culture
• No of visitors/viewers
• Number of venues work is shown or performed
• No of new artists supported
Economic development
• New businesses started
• Jobs created
• Sites cleared/renovated
Education and young people
• No of young people involved
• No of additional literacy/numeracy hours provided
• Increases in literacy levels
• No of young people finding jobs as a result of the program
Health
• Patients helped
• Groups supported
• Advice leaflets
• Helpline calls made
Social welfare• No of clients counselled/assisted• Number of groups/individuals
/communities supported• Bed places provided• New volunteers trained/deployed
Environment• No of sites renovated• Trees planted• Volunteer hours deployed
Aid/Emergency relief
• Food/blankets/supplies/school books distributed
• Wells dug/ communities supplied
• Teachers/agriculturalists/nurses funded
• Schools/clinics opened or sustained
Community benefits – output measures and indicators
Business benefits – output measures and indicators
• No of employees involved
• Uplift in morale/commitment
• Additional training/experience acquired
• Volume and value of PR coverage received
• ‘Immediate’ uplift in sales
• ‘Immediate’ cost savings achieved
Community benefits – impact measures and indicators
• Sustainable community services
• Changes in legislation/public provision
• Reduction in crime
• Increased support to the arts
• Increased literacy rates
• More local jobs/businesses
Business benefits – impact measures and indicators
• Reduced absenteeism
• Increased productivity
• Higher staff retention rates
• Sustained reputation with key audiences
• Higher success rate on planning consents
• Reduced claims costs
Cadbury Schweppes & Water AidTo improve the quality of life of cocoa farmers by building water wells across Ghana in conjunction with the farmer’s co-operative, Kuapa Kokoo.
6380 people have benefited directly from this scheme.
Each well saves 165 hours per day which people can use to work or learn
Measurable reduction in water-borne
diseases
Assuming that 50% of the 6380 people helped by the project would go to work, a contribution of £698,610 pa would be made to GNI of Ghana
Gross benefit to Ghana per well is £2,190 pa
For every £1 spent, there is an annual return of £1.32 (132%) pa
Community impacts Business impacts
Community benefits Business benefits
OutputsInputs
Leverage
Improved PR for Cadbury Schweppes valued at xxx
Strong ties forged between Cadbury and the areas in Ghana from which they source their cocoa.
Improved corporate reputation
Long-term cost reduction due to reduced worker illnesses
Improved relationships between Cadbury and Ghana cocoa suppliers and
Reduced infant mortality helps to secure the future of cocoa farming
From 2000 to 2005
Each well costs £1,660
319 wells built by the end of December 2005
Total cost of scheme to date = £529,400
Cadbury Schweppes holds additional fundraising events to support the wells program, value xx
Leverage Community benefits Business benefits
Inputs Outputs
$470k cash contribution
10,000 hours (@40/hr that’s $400k)
610 employee volunteers
•By the end of 2006, 1,100 children had been helped by Reading for Life • x programs have been run in NSW, Victoria, Western Australia, Queensland, Tasmania and also in New Zealand.
2003/2007
Opportunity for x employees to have an empowering volunteering experience
Improved business reputation in local communities
• Team building, with improved focus and morale
Community impacts Business impacts
• Childrens reading accuracy, comprehension and fluency gained 6 to 9 months on average.
• Improved children’s literacy skills, overall academic self-esteem and performance at school
• Reading for Life is now running in x companies and universities, offering x hours reading nationally
Supporting our people to be Reading for Life volunteers and make a difference for local school children has been a real three way win – it’s been great for the children, our employees and Unilever.” Peter Slator, Chairman, Unilever Australasia
Unilever & Reading for Life A volunteer employee reading program to help primary school-age children who are having difficulty reading
•Other companies such as Rio Tinto, ANZ, Mitchells, Amcor and Cadbury now run Reading for Life programs as a direct result
ANZ & Saver Plusa financial literacy and matched savings program assisting people on low incomes
ANZ & Saver Plus
ANZ & Saver Plus
• Many companies are now developing community partnerships
with environmental organisations, making donations, involving
employee volunteers, and deploying company products and
resources
• Motivations are sometimes mixed, and can include carbon
offsetting
• These can be included as community contributions, when the
criteria of ‘motivation’ and ‘identifiable community benefit’ are
met
A word on the environment
Under LBG the activity would qualify as an allowable community contribution when:
• The motivation is primarily to deliver or promote a public or community benefit or good
• All or most of the activity takes place off site, and in communal or public locations
• There is a clearly identified charitable or community group, or non profit organisation, receiving support, or obtaining benefits from the initiative. (This can be extended to a public area, such as a park, public facility, coastal area where there is not necessarily a non-profit organisation involved).
A word on the environment
Under LBG the activity would generally not qualify as a community contribution when:
• The motivation is primarily to improve environmental performance or support better environmental practices in the business, and takes place mostly on site:• Office, factory, site or store recycling schemes
• Internal communications campaigns on reducing energy or water usage
• tree planting/site improvement
• There is no clearly identified charitable or community group, or non profit organisation, or public-use space, involved in, and/or benefiting directly from the initiative.
A word on the environment
Questions
Jerry Marston
129 York Street
South Melbourne, VIC 3205
T: +61 3 8689 2241
E: jerry.marston@positiveoutcomes.com.au
www.positiveoutcomes.com.au
www.lbg-australia.com
www.lbg-nz.com
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