Current funding model/need for change

Internationally the Salvation Army operates in 125 countries, with funding predominantly coming from the Salvation Army in a small number of Western (or industrialized) nations. Eighty percent of this funding is generated by the Salvation Army in the United States. Western Territory Commander, Commissioner James Knaggs has recognized that the current model of funding for the Salvation Army is not sustainable, and that a new model is necessary for the future. With increasing emphasis on Corporate Social Responsibility (CSR) initiatives in Western society, Commissioner Knaggs is looking at an alternative model of funding, one that emphasizes corporate partnerships as the way forward.

Definition of CSR

CSR may be defined as an organizational approach whereby corporations assess and acknowledge their responsibilities relating to the environment, employees, consumers and the community. Large corporations that generate a great deal of money, assets and power have been made accountable for their impact on society, often referred to as a ‘licence to operate.’ Rather than engaging in philanthropy by simply providing financial support to community organizations and their projects (e.g. Salvation Army), organizations are becoming increasingly involved in projects that target social change and sustainability. CSR initiatives aid an organization’s mission by demonstrating compliance with the law, ethical standards and environmental legislation. Furthermore, they can generate positive public relations, increase corporate competitiveness and enhance employee engagement.

Salvation Army Brand

As a trusted organization with a high public approval rating, the Salvation Army is an attractive partner for Western companies looking to engage in CSR. Corporate leaders are becoming increasingly aware of the benefits that will come from implementing philanthropic endeavours in conjunction with the Salvation Army. This partnership promotes ‘cause-related marketing’ where there is mutual benefit for the two organizations. The Salvation Army Western Territory has also recognized the immense opportunity in partnering with first-world corporations outside of the United States.

Salvation Army and Brazil

One country that is in the midst of rapid economical growth is Brazil. Indeed, over the past few years Western companies have been flocking to Brazil and the country has cemented its place as the seventh largest economy in the world. In times of economic uncertainty for many nations, it is predicted that Brazil will increase its annual gross domestic product by 4.5 percent in the lead up to 2014 and take its place as the fifth largest economy in the world. As the next host of the soccer World Cup, over 250,000 jobs and $24 billion in investment will be generated over the next two years. Indeed, further growth is anticipated following the World Cup as Rio de Janeiro will also host the 2016 Summer Olympics. While Brazil’s recent economic success has seen 20 million people from a population of 190 million rise out of poverty into middle class, much work still needs to be done to improve human rights, labor rights, environmental rights and importantly, reduce corruption.

Government schemes targeting social inequality have been implemented to ease the contrast between rich and poor, giving high priority to discrimination, and discrepancies in salary among women and ethnic minorities. Legislation now requires large corporations to spend a minimum of 2% of profits on initiatives that aim to effect social change. This legislation also applies to Western companies who have opened offices in Brazil. As a result, opportunities for the implementation of new CSR projects over the next few years are abundant.

What has been done so far

The Salvation Army has operated in Brazil since 1922 and has extensive programs that demonstrate classic Salvation Army Corps and social services. Indeed, Brazilians have not forgotten the relief work provided by the Salvation Army for the 83,000 people left homeless following the floods that devastated the north-east in 2010.  The Salvation Army has also been recognized for assistance provided to rescue workers following the tragic plane crash at the Sao Paulo airport in 2007 that killed up to 200 people. Over the past ten years the Salvation Army has built constructive relationships throughout Brazil that has seen the successful development and functioning of thrift stores, with profits being filtered back into the community. More recently, the Salvation Army has been carrying out very valuable work, targeting extreme poverty demonstrated in Brazil’s poorest neighbourhoods known as favelas. This work certainly captures the heart of the Salvation Army and beautifully demonstrates its mission aimed at helping the poor and transforming lives.

However, much work still needs to be done to improve living conditions; providing safe shelter, access to food, clean water and sanitation. Due to societal problems, Westerner’s travelling to Brazil to conduct business are often placed in unsafe environments where there is a risk to the safety of individuals and their families.

What will be done in the coming months

Over the coming months, the Salvation Army Western Territory will be connecting Western businesses with offices in Brazil with the Salvation Army in Brazil to implement initiatives aimed at helping the Salvation Army’s work in Brazil. Projects will aim to reduce homelessness and domestic violence, and improve opportunities for education and employment. The Salvation Army understands that CSR initiatives need to be conducted with sensitivity, respect for the Brazilian culture and awareness of community values. Over time, it is hoped that the Salvation Army in Brazil will become self-sufficient by attracting corporate partners. As a result, increased financial support will help the Salvation Army to secure an effective funding model at the international level, and continue to improve the social welfare of people living in Brazil, and throughout the world.

Our partner company nSynergy has been providing specialist SharePoint Consulting Services since 2004, helping to give businesses the competitive edge. nSynergy places a strong emphasis on knowledge transfer throughout client engagements to ensure the long-term sustainability of programs. nSynergy have engaged the services of our change management experts at Apricot to successfully implement User Adoption initiatives that will compliment current approaches to technology enablement. Today’s article will address two important components of change; business alignment and people engagement, and will provide further detail about how we at Apricot work to implement change.

Business Alignment

Grounded first in assessment, at Apricot we prepare our clients for the journey that they need to make by assessing the current organizational climate. Business alignment is essential to the adoption framework because without it, businesses will not be able to build momentum or keep adoption levels high enough to provide continuous, ongoing value. It involves the assessment of five key areas:

1. Organizational Assessment
2. Coalition
3. Vision, Mission and Values
4. Project Management
5. Governance

Organizational Assessment involves understanding organizational structures and leadership paradigms. We identify the ‘key players’ who we will be working alongside to initiate change, and who is best equipped to influence change among the group.

Coalition highlights the need to create a sense of urgency and momentum around the need for change with key stakeholders. We work to convey the message that change is being implemented for the greater good of the business, to help staff function more efficiently, not simply for the sake of change.

Creating a simple vision and mission that people can grasp and remember is central to the change process. At Apricot, we ensure that staff members (at all levels) are involved in the development of organizational values. This helps employees who may not be commonly involved in decision-making processes to identify with, and express ownership over the long-term vision of the organization.

When implementing change, Project Management involves establishing a holistic strategy, plan, timeline, and milestones to ensure that the change lasts. When ‘wins’ are made (i.e., successful completion of certain milestones) we aim to implement processes that recognize and reward achievement.

The final process of business alignment at Apricot involves as assessment of Governance. It is vital that the terms of use, policy and procedures encourage appropriate participation while protecting critical IP and meeting compliance obligations.

People Engagement

Following the assessment of processes relating to business alignment, people engagement strategies can be implemented. The five key components of people engagement include:

1. Cultural Assessment
2. Recognition
3. Communication
4. Education
5. Key Influencers

Culture is the engine room of the organization. The best way to measure an organization’s culture is to engage with its employees and learn about “how we do things around here.” Any consultant entering a new organization is required to take note of its culture and adapt accordingly. Apricot founder and CEO Derek Linsell was once the CEO of the AFL Foundation, a predominantly male sporting environment where irreverent language is often considered the norm. In stark contrast, Derek has also worked extensively with the Salvation Army, an evangelistic organization dedicated to helping the poor and unfortunate by bringing them into a meaningful relationship with God. In both cases, it was imperative that Derek be aware of the organizational culture in order to engage employees and be accepted by the group. It would have been inappropriate for Derek to use poor language in the presence of Salvation Army Officers, just as it would have been inappropriate for him to initiate a meeting with AFL executives by opening in prayer. Culture is related to productivity, and we at Apricot are aware that it heavily impacts analysis, planning, risk and ultimately the success of user adoption initiatives.

Recognition processes promoted by Apricot encourage positive behaviors by linking them to performance, rewards, and goal achievement. Similar to the implementation of taxonomies for collaboration, recognition process provide clear guidelines and promote standards of behaviour that employees are encouraged to strive for.

When introducing new IT solutions, we at Apricot ensure that employees understand new methods for viral and programmatic communication. Employees should feel supported and understand that there are structures in place for when assistance is required.

Importantly, establishing programs for onboarding, ongoing learning, and knowledge retention is vital for the change process to be effective. New staff members need to be properly educated and trained in new processes, not simply shown the ‘old way’ by employees who have not properly adopted the new system. In addition, employees should have access to ongoing training, and learning should be assessed regularly, either formally or informally.

Similar to understanding organizational structures and leadership paradigms during the business alignment process of change, we believe it is necessary to identify and empower advocates who will inspire others to engage. It is equally important to defuse resistors (i.e., find out what forces or people might dampen enthusiasm). In most cases, 20% of the group will feel positive about change, 20% will feel opposed to change, and the remaining 60% will be unsure about change. Our aim at Apricot is to engage the middle 60% to bring the proportion of the group who are positive to 80%. In order to this we work with organizational leaders and make sure that they are intentional about promoting change and demonstrating their own adoption of new strategies.  After all, a new IT solution is only successful if people use it.

Our final thoughts

Adding user adoption solutions to technology enablement leads to a more attractive, comprehensive package and an improved ability sell. Furthermore, deeper engagement with customers can lead to ongoing relationships, additional projects and increased revenue. A win for everyone.

Row, row, row your boat gently down the stream. Never up.

Can’t we all learn from this? Not just about kayaking, but about so many things in life. Particularly when it comes to harnessing the position on corporate social responsibility in your organisation.

I recently found a great piece on TriplePundit, where they discussed the business around corporate social responsibility in major sporting events and the impact they can have globally.

They used this equation: BUSINESS = SPORT + ENTERTAINMENT with PHILANTHROPY, CSR and GREENING as side shows…to one where: BUSINESS = SPORT + ENTERTAINMENT + SUSTAINABILITY – which really sums up how we should be looking at this.

Gone are the days of patting the sick child on the head in hospital for a good photo opportunity – now, we can be part of establishing a better life for that child and many more in the same situation.

Or instead of writing a cheque for a village in Africa, go and see what they are really dealing with and get your hands dirty in the process.

At Apricot, we are continuing our work with the North Melbourne Football Club, creating a sensational CSR program that will differentiate them from the other clubs and ultimately, become leaders of the pack.

North Melbourne community embodies a wide variety of cultures, ethnicities and backgrounds. The work Apricot will do with the Kangaroos will tie them closer to the immediate community.

Joining up the recent partnership with World Vision to the community, both in North Melbourne and potentially Africa as well, will be vital to embracing The Kangaroos as game changers and begin to set them on the path for a huge program.

What we have discovered over the course of creating these programs for clients is about the massive affect it can have, locally, nationally and globally. With the right tools, knowledge and passion – it can really save lives.

The journey with CSR in sport is not one that has been broadcasted and is not commonly associated together, but significant impact they have already on the public makes CSR so much easier.

In a report funded by the UEFA Research Grant Program, Dr Geoff Walters and Richard Tacon discuss corporate social responsibility in European football and how CSR has not been reported on in the sporting industry in general until recently.

The role of sport in society has become more prominent and as sport organisations have become increasingly influential members of the global community. The concerns of transparency and accountability evident within the corporate world have transferred to sport. This has led some to suggest that sport organisations cannot ignore CSR and that they have to implement it. 

Sport organisations have, over the last few decades, engaged with various CSR imperatives, including philanthropy, community involvement and both youth educational activities and health initiatives.

Much of the research they have done led them to compiling seven key aspects to utilising CSR in a sporting organisation.

1. The popularity and global reach of sport can ensure that sport CSR has mass media distribution and communication power. That is, the prominence of sport within the media helps to promote and communicate CSR activities to a wide audience.
2. Sport CSR has youth appeal: children are more likely to engage in a CSR program if it is attached to a sport organization or a sports personality.
3. Sport CSR can be used to deliver positive health impacts through programs and initiatives designed around physical exercise.
4. Sport CSR will invariably involve group participation and therefore aid social interaction.
5. This can also lead to cultural understanding and integration.
6. Particular sport activities may lead to enhanced environmental and sustainability awareness.
7. Finally, participating in sport CSR activities can also provide immediate gratification benefits.

With these in mind, the process of creating a stand-out CSR program for the North Melbourne Kangaroos will be a challenge, but we are ready to get our hands dirty for this and potentially change some lives.

Chairman of Ford Motor Company, William Ford Jr. once said, “social obligation is much bigger than supporting worthy causes. It includes anything that impacts people and the quality of their lives.”

Corporate Social Responsibility (CSR) is what is changing those impacts and the quality of people’s lives. It is now being used more and more in the heart of the business strategy. This includes its HR strategies, marketing strategies as well as the thinking behind investor relations.

There are still sceptics, there will always be – but the changes and significance of having a CSR program implemented for many organisations globally, is huge. The variation of transparency on environmental and social commitments, waste management (not just physical waste but power etc) all the way to employee engagement to bringing about massive social change is what makes CSR sexy.

There are points which CSR covers across the board that affect daily running and optimally the strength of companies. To start off with CSR is important for human resources (HR). Why? And who says so? Some HR Managers would argue they already do plenty towards CSR in the company such as employee wellbeing and volunteer programs, so what makes sustainability any different?

To attract and retain the best employees, organisations have to be the best. Employees are very conscious of their own employee brand. They don’t want that “damaged “by a tainted organisation or company brand. The best organisations today are those that are innovative, fun, safe and are impacting the world in a way beyond themselves.

So what about employee engagement and retention? Surely that is a basic connection between CSR and HR?

Without happy and encouraged employees, you struggle to find a happy, fulfilling workplace. The CSR programs and initiatives set up have a huge role in both how staff feel about the company and its schemes and also, whether it is portrayed through staff productivity.

This is particularly apparent for new graduates heading into the workforce who are now on the lookout for these sustainable, transparent organisations. Many are even willing to take a cut in pay, for a company that would encourage volunteering and have a positive environmental footprint. A stat from Harvard Business Review in 2011, stated that –

“88.3% of graduating MBA students said they would take pay cut to work for firms that have ethical business practices, and the average amount they’d forgo is $8,087, according to a survey of 759 students in North America and Europe.”

NetImpact also recently completed a study across all generations, and found many of the ‘new generation’ millenialls expect to make an impact through their work.

This brings out a new trend called ‘impact careers’ – which is simple terms means making positive social/environmental differences through one’s work.  A motion not commonly associated with previous generations of workers.

Generation Y, particularly those with a college education, have been taught throughout their lives to think globally. They are instilled with feelings of becoming a world citizen. This is particularly enforced by technology such as the internet, social networking and increased global mobility.

But although the internal dealings are important, the stakeholders and external interests cannot be forgotten either.

Investors are constantly putting up their money behind organisations that participate in ethical behaviour in their business practices.

Particularly areas such as alcohol, tobacco, gambling or weapons manufacturing are typically avoided – unlike what was reported in Jakarta Post last month reporting tobacco firms targeting minors via CSR programs!

For the most successful and effective corporations, CSR is now a major consideration of overall strategic planning. It affects many aspects of the corporation’s life: its people, consumers, suppliers and investors – prime example of the BP oil spill in 2010 in the Gulf Coast. Now three years on, BP has spent around $150 million into promotions to help recover the region – with a very large positive impact being made on residents and local businesses.

As many organisations do not yet get this concept, implementing these practices will ensure responsible and socially aware corporations are ahead of the curve in HR strategies, marketing strategies as well the relationships with investors and will be around for the long haul. Knowledge is no longer power; responsibility is.

Working with local, national and international sports teams is a dream of many organisations as part of their corporate social responsibility schemes – but what about the sports teams themselves?

Sporting Organisations can be a major driving force for change especially in youth issues such as childhood obesity, academic failure, violence and teen pregnancy. Familiar sport stars and their teams can have an enormous impact on not just their fans, but many people or situations across the globe.

And it doesn’t stop there. Using CSR for sports teams can also combat concerns with the environment, sustainability and other emerging social issues.

FC Barcelona is one team that clearly steps up for their efforts with CSR. A not-for-profit club is owned by their members and paying an annual fee allows them to elect members to the board, headed by a president.

Their motto is ‘més que un club’ – meaning ‘more than a club’. And they stick to this. The work they do on the field is competitive and exciting, but the work they do off is just as good.

The FC Barcelona created ‘The FC Barcelona Foundation’ in 1994 and it was established to use sport as the backbone for promoting education and the positive values of sport.

The Foundation has been an endless source of participation in numerous social, cultural and sporting activities organised through the club. Players and coaching staff also donate 0.5 per cent of their wages to the Foundation.

‘FC Barcelona Foundation’ and Pies Descalzos Foundation (Columbian charity founded by pop star Shakira in 1997) are working together on the ‘Football for youth development and a healthy life’ project which includes the construction of sporting and recreational areas of Cartagena (Columbia) and Miami.

It is to benefit children most vulnerable in Columbia and Hispanic community in the U.S who are at risk of social exclusion.

Their work has been picked up globally and they have partnered with many different charities to conquer different world issues.

Work with the Bill and Melinda Gates Foundation has been used to begin the eradication of polio, connections with UNICEF which began in 2006, using projects to fight AIDS.

There are also organisations that are utilising the sports industry to improve their environmental impact. Natural Resources Defense Council (NRDC) is America’s most effective environmental action group and they started work with NFL’s Philadelphia Eagles in 2004 for their ‘Go Green’ efforts. Since then MLB, NBA, NHL, NFL, MLS and USTA have jumped on board to action their efforts too.

It has a web-based resource that helps teams what areas of work are available in their region to pursue environmentally superior operations and supply chain options. From their website they state, “One of the many ways NRDC has been helping stadiums and arenas reduce environmental impacts is by commissioning energy, waste, and water efficiency audits — many of which result in significant cost savings.”

Apricot Consulting, who has extensive experience in working with elite Sporting organisations in Australia (Australian Football League and Australian Cricket), has recently been appointed by the North Melbourne Kangaroos to work with them on their corporate social responsibility strategies.

Over the coming months we will be working closely with the Kangaroos Board, CEO and Senior Managers to critically analyse all elements of the current CSR program and to help design a world class strategy. These discussions will provide deeper insight into potential operations of what CSR programs could achieve and a future vision for the Kangaroos. It will also lead to bringing about major social change as a result of the engagement of Sport.

Areas of work will also cover employee, fan, media and player engagement, marketplace perceptions, commercial partnerships and game development initiatives.

As things progress Apricot will keep thorough updates of our work and progress via Twitter, Facebook and the website.

Apricot has been working on some exciting ventures this year and we are already well under way with many projects in both the US and Australia.

The Salvation Army, Western Territory, USA.

There are two major projects we have been working on for the last 8 months.

Firstly we are helping to build the relationship of the  Salvation Army with the Californian Government. For over 120 years The Salvation Army has run hundreds of programs and spent hundreds of millions of dollars, assisted millions of Californians without any formal relationship with the Californian Government. Apricot is helping TSA to see what they are actually doing now and in the past and how to communicate that great story to the Government

The second project is one that is very moving. We are working with the Adult Rehabilitation Centres (ARC’s) to help build greater links with the graduates into the broader Salvation Army community and programs. This is what has also taken me to Hawaii and Los Angeles. There are 22 centres in the Western Territory and has the largest residential rehabilitation program in the United States. They receive no Government funding for this and it is free to the participants, financed through The Salvation Army thrift stores.

I continue to work with BlueScope steel in Kansas City, Kansas. This organisation has been through great change and it has been a real pleasure to work with a number of the senior executives as well design an innovative CSR program working with recently released prisoners.

We have also just begun to work with Ambulance Victoria. This is an organisation that has been under incredible change for the last couple of years. Here we will be helping AV to understand its internal culture of the organisation and be clear about what behaviours and culture they want to drive their success for the future. This organisation has been in operation since 1880 and has a long and illustrious history. With non-profit organisations, the change of culture internally can be a real challenge. Many people working in such environments have a sense of duty or calling. We want to tap into this commitment helping to design behaviours that work best for the employees and the organisation.

Another exciting project is with University of Tasmania. We have been working with the executive team here for about six months. This project is to work with the executives to help develop a team to achieve the goals for this changing institution.

These are only some of the projects Apricot Consulting is working on at present. We continue to work with others and with many more opportunities lining up, the future is looking bright. Keep an eye out on Twitter, Facebook and the website for more information.