Corporate-NGO Partnerships Barometer 2013Welcome to the C&E Corporate-NGO partnerships Barometer...

•Innovationbreaksthroughasadriverforpartneringbetweenthesectors.Butbewarebottlenecks!

•CorporatesandNGOsarefailingtomeasureandcommunicatetheimpactoftheirpartnershipstointernalandexternalstakeholders

•FutureprospectsfortheCorporate-NGOpartnershipsagendaremainverybright

2013Corporate-NGOPartnerships Barometer

Corporate-NGOPartnerships Barometer 2013

Contents

2

Introduction 3

Headlinemessages 4

Part1: Motivations-WhycorporatesandNGOspartner 9

Part2: Partnershippracticeandeffectiveness–includingourfocustopiconimpactmeasurement

12

Part3: TheStars–ThemostadmiredCorporate-NGOpartnershipsandpartneringorganisations

25

Part4: FutureTrends 31

ConcludingRemarks 36

AbouttheBarometer-Appendix1:Methodologyandsample 38

Appendix2-ListofparticipatingcompaniesandNGOs 40

©C&EAdvisoryServicesLimited2013

Welcome to theC&ECorporate-NGO partnerships Barometer2013 – the fourth in our annualseriesofpractitioner-ledstudies.

ThiseditionoftheBarometerdrawsontheexperienceof the120 leadingcompaniesandNGOswhocompletedourconfidentialsurvey during July, as well as insightsfrom roundtable discussions held withsenior corporate and NGO partnershippractitionersinearlySeptember.

With data from three prior years, we arebetterable toapply the ‘barometereffect’–todeterminetheextenttowhichchangesincontext (economic,social,political)areaffectingbothcurrentpractice,aswellaspractitioners’ sentiments about the futureprospectsforcross-sectorpartnering.

Forthisyear’sfocustopicweexaminedthe extent to which companies and NGOs measure, evaluate and communicate the impact of their strategic partnerships.The results of this self-analysis arerevealingandraiseissuesforbothsectors.

Again,wearegratefultoallourrespondentsand commentators for sharing theirperspectives and experiences. We hopethis 2013 edition of the C&E Corporate-NGO Partnerships Barometer helpsto inform and enhance their and yourunderstanding, investment decisions andpracticeofcorporate-NGOpartnering.

As usual, we welcome comments andsuggestionsforthenextedition.

Introduction

MannyAmadi,MVOCEO, C&E Advisory

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Importanceandroleofcorporate-NGOpartnerships

Reputation, access (to funds and people) and innovation stand out as reasons for the enduring importance of partnerships between businesses and NGOs

Unsurprisingly,given theirdifferingcore rolesand imperatives,businessesandNGOshavedifferingprimaryreasonsforworkinginpartnershipwitheachother.

For businesses:•Enhancing brandor corporate reputation and credibility is (with a score of 91%) byfarthemostimportantreasonlistedbybusinessrespondentsastowhytheychosetopartnerwithNGOs.Thisreflectstheincreasingimportanceofbrandandtrustattributesasimperativesforbusinesssuccess.

• Innovation breaks through this year to become, for businesses, the second highestlisted reason forpartneringwithNGOs.Approximately two-thirds (67%)ofcorporaterespondents cite innovation–developingunexpected / newwaysof addressingoldissues and complex challenges – as a key reason for partnering. This a massiveincreaseof20%on2012figures,andprovidesevidenceoftheincreasingmaturityofthepartneringagenda.

And for NGOs:By contrast, the opportunity to access and generate resources (including funding) remainsoverwhelminglythemostimportantreasonwhyNGOspartnerwithbusinesses,with100%ofNGOrespondentslistingresourcegenerationasareasonforpartnering.

• However,thereareotherreasonswhyNGOschoosetopartnerwithbusinesses.WeagainfoundevidencethatNGOsmaybemovingbeyondthesingle-dimension,‘cashpartnership’mind-set and thatbusiness partnerships are increasingly important to NGO’s mission-delivery agenda (whether that relates to service delivery orcampaigning).

• 83%ofNGOrespondentslistedaccesstopeopleandcontacts(drawingonawider pool of technical expertise, experience, skills, labour and networks) asthesecondmost importantreasonforpartnering;andnearly two-thirds(65%)ofNGOrespondents list reputationandcredibilityas the thirdmost importantreasonforpartneringwithbusiness–againreflectingtheimportanceoftheseattributesasimperativesinNGOeffectiveness.

• Finally,at52%,innovationranksasthefifthmostlistedreasonwhyNGOsenterintocross-sectorpartnerships,butinasurprisingfindingthescoreforinnovationdroppedby23%comparedtothe2012Barometerreport.Thishighlyreducedscore contrasts starkly with the very strong corporate appetite for innovationnotedabove.Thisdivergenceofemphasisbetweenthetwosectorsmayhaveimplicationsfortheplanningandexecutionofpartnershipsbetweenthesectors.

HeadlineFindings

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Levels of investment

Inthisyear’sBarometer,wediscoveredthatataconsolidatedlevelacrossbothsectors,40%ofthefullrespondentsampleofNGOsandcorporaterespondents,investorsecureover£5millionperannum incorporate-NGOpartnering.Butsignificantvariancesemergewhen thedata isanalysedatNGOandcorporatesectorlevels:

• 23%ofNGOsestimatethattheysecure£5millioninfinancialandnon-financialvaluefrompartnerships.

•Bycontrast,overhalf(56%)ofcompaniesinoursamplesetestimatethattheyinvestover£5millionperannuminsuchpartnershipsandoverathirdofbusinessrespondents(37%)investmorethan£10millioninpartnershipswithNGOs.

The shift towards more strategic partnerships continues

Ata consolidated level, 43%of respondents classify over half their partnershipportfolio as‘strategic’. Such partnerships tend to be given the highest priority by the parties involvedbecause they arematerial to core business.They tend to command higher investments offinancialandnon-financialresourcesandarealsolongerintheirduration.

However:

• On the whole, businesses tend to classify a significantly higher proportion of thepartnershipsasstrategic,thandotheirNGOcounterparts.Thisimpliesthatthecorporatesector is significantly ahead of NGOs in undertaking the more efficient, strategicpartnershipsthatarecommonlyheldtoyieldgreatervalueforstakeholders.NGOsmayneedtothinkmorecarefullyabouttheirpartnershipportfoliodesignandmanagement,aswellastheefficienciesinresourceusethatcanderivefromhavingamorestrategicapproach.

Confidence

Againthisyear,theBarometerdiscoveredanoverwhelminglevelofconfidencethat strategic partnerships between NGOs and businesses are meeting their objectives and delivering value,with91%ofrespondentsexpressingsuchviews.

Partnerships are really moving the dial for business

The overwhelming majority of respondents from both sectors state that Corporate-NGOpartnerships have improved business understanding of social and environmental issues,andamajorityofcorporaterespondentsstatethatcorporate-NGOpartnershipshavehelpedbusinessestoimprovebusinesspracticesforthebetter.

Specifically,thisyear:

• 93%ofcompanyrespondents‘agree’or‘stronglyagree’thattheirkeyNGOpartnershipshavehelpedtheirbusinessestoimproveunderstandingofsocialand/orenvironmentalissues.Nobusinessrespondentdisagreedwith thisview.And in termsofbehaviour,46%ofcorporaterespondentsstatethattheirkeyNGOpartnershipshavehelpedtheirorganisationstochangebusinesspracticesforthebetter.

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• ...But NGOs continue to understate the value of their role in improvingbusinesspracticesandenhancingbusinessunderstandingofsocialandenvironmentalissues.

• 40%ofNGOrespondents‘agree’or‘stronglyagree’withthestatement“wehavehelpedourcorporatepartnerstochangetheirbusinesspracticesforthebetter”.Thisnumberisdown10%onthe2012figuresandislowerthantheequivalentfigure(46%)indicatedbybusinessrespondents.

•Nonetheless,nearlyfouroutoffiveNGOrespondents(79%)‘agree’or‘stronglyagree’ that their strategic partnerships are helping key corporate partners toimproveunderstandingofsocialand/orenvironmentalissuesbybusiness.

The variance in levels of confidence between the sectors about the impact of partnershipsonbusinessunderstandingandpracticemaybedue toscepticismor lackofconfidenceonthepartofNGOs.ItmayalsoresultfromthefactthatcorporatesareclosertotheevidenceofchangesenabledbypartnershipswithNGOs,butarenotbeingeffectiveincommunicatingtheseimpactstothelatter.

Disputed value

The gap between NGOs’ and corporate perception of the value (or perceived value) of non-financialsupporthaswidened.

Inwhatnowseemsconsistentlytobethegreatestareaofdissonancebetweenthesectors,this2013BarometeragainrevealsasignificantgapbetweenNGOandcorporateperceptionsregardingtheextenttowhichnon-financialcorporateinputsdoorcanmakeadifferencetothedeliveryofthemissionofNGO’s.

• 69%ofbusinesses inthe2013Barometer ‘agree’or ‘stronglyagree’ thatharnessingtheircompetenciesandnon-cashresourceswouldmakemuchmoreofanimpactonthefulfilmentoftheirNGOpartners’objectives,thanpurelycash-basedrelationships.

•However,only34%ofNGOsagreedwiththisview.

Measuring value

InfindingsthatalignwithNGO’sstatedreasonsforpartneringwithcompanies,wediscoveredthatat81%‘directcontributiontothebottomline’(incomegenerated,costreduction,efficiencygains, etc.) is by a clearmargin the leadingmetric used byNGOs to assess the value ofpartnerships.Brandandreputation(awareness,trust,credibility,etc.)rankssecond(at60%),withmissiondelivery(securingbetterresultsforbeneficiaries)statedasthethirdrankingmetriccurrentlyusedbyNGOstoassesspartnershipvalue.

Forcompanies,‘employeeengagement’is(byasmallmargin)thekeymetriccurrentlyusedto assess partnership value, closely followed by ‘brand and reputation enhancement’ (72%and70%respectively).Thesearefollowedby‘moreeffectivedeliveryofmission’(56%)and‘enhancingotherstakeholderrelationships’(53%).


6©C&EAdvisoryServicesLimited2013

A yawning gap between intent and performance

Having identified the keymetrics used by corporates andNGOs to determine the value ofpartnerships,thisyear’sBarometeralsoassessedhowpractitionersfromeachsectorratetheperformance of their organisations on a range of important partnership practices.The self-assessmentsmadeforarevealingpicture.

• Only 39% of NGO respondents rate their organisation as ‘good’ or ‘excellent’ atcommunicatingtheimpactoftheirpartnershipsexternallyandjust33%placethemselvesonthesamescalesinrelationtointernalcommunication.

•Only27%ofcompaniesratethemselvesas‘good’or‘excellent’atcustomerengagement,whilstasmanyas41%ratethemselvesas‘belowaverage’or‘poor’onthisperformancecriterion.Thenumbersforinternalandexternalcommunicationarehardlybetter.Overa third of companies (36%) are self-rated as ‘poor’ or ‘below average’ at externalcommunications,whilstnearlyafifth (19%)ofcompanies rate themselvesas ‘belowaverage’or‘poor’atcommunicatingtheimpactofpartnershipsinternally.Indeed,nearlyhalf(48%)ofcompaniesratethemselvesas‘average’atinternalcommunicationwithregardtosharingmessagesabouttheimpactofcorporate-NGOpartnerships.

Consideringthatcorporatesratebrand&reputationenhancement,andemployeeengagementhighlyintheirchoiceofmetricsandreasonsforengaginginpartnership,thereismuchroomforimprovementintermsofcommunicatingtheimpactofpartnershipstokeystakeholders.

The most admired Corporate-NGO partnerships and partners

MarksandSpencer’scollaborationwithOxfamwasagainvotedthemostadmiredcorporate-NGOpartnership thisyear.Thismuchadmiredandenduringpartnershipmaintainedaveryhealthygapbetweenitandtheothercontenders,securing15%ofpractitionervotesin2013.

• ThepartnershipbetweenBoots&Macmillancementeditsplaceinthetoprankingsbyholdingontosecondplacethisyear,and

• Inaremarkabledebut,therecentlylaunchedpartnershipbetweenGSKandSavetheChildrenstormedintothirdplace

Intermsofthemostadmiredpartneringorganisations:

• Oxfamagainsecuredthe‘MostAdmiredPartneringNGO’acclaimin2013status,aheadofSavetheChildren(second)andMacmillan(third)

•M&Salsosecuredtheaccoladeofthe‘MostAdmiredPartneringCompany’in2013-aheadofBoots(second)andUnilever(third)



Future prospects for corporate-NGO partnerships

For the fourthyear ina row,sentimentabout themid-term prospects for corporate-NGO partnering remains very positive.Between2013and2016:

• Bothbusinesses(84%)andNGOs(96%)expecttheroleofcross-sectorpartnershipstobe¬comemoreimportanttotheirorganisations

• The desire by companies and NGOs to leverage each other, pressure onbusinesses todemonstratesocietal consideration,and theneed forNGOs toraisefundsarethekeydriversbehindthisexpectedgrowth

• Investment (of time, commitment and resources) in corporate-NGO partnering is set to grow over the next three years,withtwo-thirdsofbusinessand86%ofNGOrespondentsexpectingtheirinvestmentincross-sectorpartnershipstoeitherincreaseorincreasesignificantlyoverthenextthreeyears

• The nature of partnerships will also evolve with trends towards morestrategic,integrative,holisticandmission-focusedpartnershipsbecomingmorepronouncedinthemediumterm

Concluding points

Asistheirinherentnature,cross-sectorpartnershipsremaincomplexandsometimeschallengingto execute effectively since they are dependent on finding and aligning interests acrossorganisations, sectors and cultures. However, this practitioner-led 2013 edition of theC&ECorporate-NGOPartnershipsBarometeragainconfirmstheimportanceofsuchpartnershipsforbothcompaniesandNGOSandthattheirprospectsremainbright!

Onthewhole,andasillustratedbythemostadmiredpartnerships,practitionersaresuccessfullyevolvinginordertomeettheirobjectives.However,inordertofullyleveragepotential,companiesandNGOshavemuchtodoinordertocommunicatetheimpactoftheirpartnershipswithkeyinternalandexternalstakeholders.



Part1:WhyCompaniesandNGOsPartner

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Again,wecommencethisreportwiththefundamental,existentialistquestion:whypartner?Itiswellknownthatpartnershipsandcollaborationsofanytype–whetherbetweenindividualsororganisations–canbecomplexandchallenging.Thisisadditionallysowhenorganisationsfromdifferentsectors,with fundamentallydifferentcore rolesseek tocollaborate.So inaneraofongoingeconomicchallenge,whatmotivatesbusinessesandNGOstospendtimeandvaluableresourcesworkingtogether?

Reputation,access(topeopleandfunds)andinnovationstand-out

Unsurprisingly,giventheircorerolesandcultures,businessesandcompanieshavedifferingreasonsforpartneringwitheachother–andthereisnodoubtabouttheprimaryreasonsforeachsectorwishingtopartnerwiththeother:thedrivetoenhancereputationandcredibilityremainsaleadmotivatorforbusinesses,whilstinafindingconsistentwithpreviousbarometers,theopportunitytoaccessandgenerateresourcesisagainthesinglehighestreasondrivingNGOstopartnerwithcompanies.

However, behind the seemingly obvious headlines, lie some important changes in themotivationsforpartnering,particularlywhenthedataisviewedbysector.

Why does your organisation engage in corporate-NGO partnerships? TICK ALL THAT APPLY

Figure1:WhycompaniesandNGOsengageinpartnershipswitheachother


As figure 1 shows, enhancing brandor corporate reputation and credibilityis (at 91%) by far the most importantreason listed forbusinessengagement inpartnershipswithNGOs.Perhapsmirroringthe increasing importance of brand andtrustattributesasimperativesforbusinesssuccess, ‘reputation and credibility’ wasgivena9%higherscorein2013thanintheprioryear–andscoresnearly25%higheras a reason for partnering than the nextmosthighlyrankedlistedreason.Innovation breaks through this year to become, for businesses, the second highest listed reason for partnerships with NGOs. Ranked the fifth highestreason for partnering by companies inlast year’s study, at 67%, the scores forinnovation–developingunexpected/newwaysofaddressingoldissuesandcomplexchallenges–areupbyawhopping20%on2012figures.

There is every indication that this verystrikingincreaseinthescoresforinnovationprovides evidence for thematurity of thepartnering agenda. There appears tobe a clear move towards effective andbusiness-based collaborations in supportof the increasingly recognised conceptsof purpose-led growth or shared valuecreation.

Inafindingthatalignswiththeabove,accesstoknowledge(includingtheopportunitytomitigateriskandreducepotentialmistakesbygreaterunderstandingoftheoperationalcontext)isrankedthethirdmostimportantreason for businesses seeking to partnerwith NGOs. Nearly two-thirds (63%) ofcorporate respondents list access toknowledgeasareasonforpartnering.Thisisup14%ontheequivalentscorefor2012andsupportsthefindingoninnovation.

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Why Corporates and NGOs engage in partnerships: Top 3 reasons (NGO and Businesses Consolidated)

Rank2013

(2012)

Reason Percentage (NB: Multiple

options allowed)

1(2) Reputation and credibility: Achieving organisational

reputation and greater credibility.

78%

2(1) Access to people and contacts: Drawing on a wider pool of technical expertise, experience,

skills, labour and networks.

68%

3(3) Innovation: Developing unexpected / new ways of addressing old issues and

complex challenges.

60%

Figure2

Why businesses engage in partnerships with NGOs: Top 3 reasons (businesses only)

Rank2013

(2012)


options allowed)

1(1) Reputation and credibility: Achieving

organisational reputation and greater

credibility.

91%

2(5) Innovation: Developing unexpected / new

ways of addressing old issues and complex

challenges.

67%

3(4) Access to knowledge: 63%

Figure3

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It is also worth noting that the score forhumanresourcedevelopmentasareasonfor companies engaging in corporate-NGO partnerships (56%) has increasedby 17% compared to our last study.Thisemphasis on enhancing professionalskills and workforce competencies mayindicate a move towards the types ofskills-basedvolunteeringwhichisdeemedmostvaluablebyNGOsandonwhichwehave commented in past editions of theBarometer.

By contrast, the opportunity to accessfunds (100%) remains by far the mostimportant reasonwhyNGOspartnerwithbusinesses.PressureonothersourcesofincomeforcharitiesandNGOs(forinstancethewell documented reductions in publicsectorfunding,ortheimpactoflowinterestratesoninvestmentincome)meanthat,formostNGOs,incomegenerationwillremainaparamountmotivationforpartneringwithcompanies.However, thereareofcourseotherreasons,forNGOswishingtopartnerwithcompanies.

Access to people and contacts (drawingon a wider pools of technical expertise,experience,skills,labourandnetworks)isagain(atascoreof83%)listedbyNGOsas the secondmost important reason forpartneringwithbusiness.

Reputationandcredibilityisthisyearlistedby nearly two-thirds (65%) NGOs as thethird highest reason for partnering withbusiness. Up 7% on 2012, this increaseindicates that reputation and credibility isbecoming more important for NGOs asthey seek to cut-through an increasinglycluttered landscape in order to achievetheirobjectives.

Why NGOs engage in partnerships with business: Top 3 reasons (NGOs only)

Rank2012

(2011)


options allowed)

1(1) Access (to funds). 100%

2(2) Access to people and contacts: Drawing on a wider pool of technical expertise, experience,

skills, labour and networks.

83%

3(3) Reputation and credibility: Achieving organisational

reputation and greater credibility..

65%

Figure4

Finally, in what is by any measure, astriking finding, innovation which wasin 2012 the third most stated reason byNGOs for partnering with business, fallsinthisyear’sstudybyamassive23%.At52%,innovationstillranksasthefifthmostlistedreasonwhyNGOsenter intocross-sectorpartnerships,butthehighlyreducedscorecontrastsstarklywiththeverystrongcorporateappetiteforinnovationdescribedabove.

Thisdivergenceofemphasisbetweenthetwosectorsmayhaveimplicationsfortheplanning and execution of partnershipsbetween thesectors. Indeed inanumberofcompanieshighlightedtheirexperienceofbottlenecks infindingNGOs topartnerwithonsignificant innovations.We returntothistopiclaterinthereport.

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Part2:Partneringpractice–andeffectiveness

Whatarethelevelsofinvestmentincorporate-NGOpartneringandtowhatextentdothesedetermineperformance?HavepartnershipsbetweencompaniesandNGOsbecomemoreorlessstrategicoverthelastyear?Howarepartnershipsaddingvalue?Weaddresstheseandrelatedquestionsinthissection.

Levels of investment

Forthefirsttime,wecategorizedthelevelofannualinvestment(financialandnon-financial)incorporateandNGOpartnershipsmadebytherespondentstoouronlinesurvey.Wediscoveredthatataconsolidatedlevelacrossbothsectors,40%ofthefullrespondentsample(figure5),investorsecureover£5millionperannumincorporate-NGOpartnering.

In approximate terms, what is your estimate of how much your organisation invests in – or secures from – Corporate-NGO partnerships in the UK and elsewhere annually? Please include total estimate of financial and non-financial value.

Figure5:Estimatesofhowmuchrespondents’organisationsinvestin–orsecurefrom–corporate-NGOpartnerships(bothsectorscombined)

Zero - £1 million

£1 million - £5 million

£5 to £10 million

Over £10 million

Don’t know

15%

25%

31%

29%

1%

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Figure6:Figure6:Estimatesofhowmuchrespondents’organisationsinvestin–orsecurefrom–corporate-NGOpartnerships(NGOsonly)


Significantvariancesemergewhenthedata isanalysedatsector level.Asfigure6shows,23%ofNGOsestimate that theysecure£5million infinancialandnon-financial value frompartnerships.

Bycontrast,overhalf (56%)ofcompanies inoursamplesetestimate that they investover£5millionperannum in suchpartnershipsandovera thirdof business respondents (37%)investmorethan£10millioninpartnershipswithNGOs.


Figure7:Estimatesofhowmuchrespondents’organisationsinvestin–orsecurefrom–corporate-NGOpartnerships(Corporatesonly)

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Weanalysedmuchofthedatainthisreportby ‘size of investment’ and note in therestof this report, instanceswhere resultsvary significantly by ‘size of investment’segmentation.

The shift towards more strategic partnerships continues to hold – this is more so for companies

Previous Barometer reports noted thatpartnerships between companies and

When thedata forstrategicpartnerships issegmentedbyNGOandcorporates,significantvariancesemergebetween thesectors.ForNGOsonly30%of respondentsclassifymorethan30%oftheirportfolioofpartnershipsas‘strategic’(figure10),comparedtothe59%ofcorporaterespondentsclassifyingoverhalfoftheirpartnershipsportfolioas‘strategic’(figure9).

ThesefindingsimplythatthecorporatesectorissignificantlyaheadofNGOsinundertakingthemoreefficient, strategicpartnerships that are commonlyheld to yieldgreater value forstakeholders.NGOsmayneedtothinkmorecarefullyabouttheirpartnershipportfoliodesignandmanagement,aswellastheefficienciesinresourceusethatcanderivefromhavingamorestrategicapproach.

NGOswerebecomingmorestrategic.Thisyear’ssurveyagainconfirmsthetrend.Ataconsolidated level,43%of respondentsclassifyoverhalftheirpartnershipportfolioas ‘strategic’. Such partnerships tend tobegiventhehighestprioritybythepartiesinvolvedbecausetheyarematerialtocorebusiness. They tend to command higherinvestmentsof financial andnon-financialresources and are also longer in theirduration.

In approximate terms, what percentage of your corporate-NGO partnerships would you describe as strategic as opposed to ‘non-strategic’ (transactional, tactical)? [NGO and corporate respondents]

Figure8:Strategicpartnerships–corporateandNGOresponses

Zero

1% - 20%

21% - 50%

51% - 75%

More than 75%

17%

22%

34%

26%

1%34%


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Zero

1% - 20%

21% - 50%

51% - 75%

More than 75%

15%

27%37%

22%

34%

CORPORATE

Zero

1% - 20%

21% - 50%

51% - 75%

More than 75%

15%2%

15%40%

29%

34%

NGO

In approximate terms, what percentage of your corporate-NGO partnerships would you describe as strategic as opposed to ‘non-strategic’ (transactional, tactical)? [Corporate respondents only]

Figure9:Strategicpartnerships–corporateresponsesonly

In approximate terms, what percentage of your corporate-NGO partnerships would you describe as strategic as opposed to ‘non-strategic’ (transactional, tactical)? [NGO respondents only]

Figure10:Strategicpartnerships–NGOresponsesonly

Onthewhole,organisations with higher levels of investment in cross-sector partnerships, tend to have more strategic partnerships within their portfolio.Asfigure11shows,52%ofbusinessesandNGOsinthe£10mresourceinvestmentsegmentconsideroverhalftheirpartnershipsas‘strategic’.Theequivalent‘strategic’categorizationforthoseinthezero-£1minvestmentsegmentis31%.

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In approximate terms, what percentage of your corporate-NGO partnerships would you describe as strategic as opposed to ‘non-strategic’ (transactional, tactical)? [NGO and corporate respondents]

Figure11:Strategicpartnerships–bysizeofinvestmentinpartnerships

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ConfidenceThere is a high degree of confidence that strategic cross-sector partnerships aremeeting objectives and delivering value

Inafindingsimilartolastyear,wediscoveredanoverwhelminglevelofconfidencethatstrategicpartnershipsbetweenbusinessesandNGOsaremeetingtheirobjectives–anddeliveringthevalueexpectedofthem.Strategicpartnershipsarefitforpurposeandthisfindinghasremainedstableoverpreviousbarometerstudies.

Ataconsolidatedlevel,91%ofrespondentsinthe2013surveyare‘quite’or‘veryconfident’thatstrategicpartnershipsaremeetingtheirobjectivesanddeliveringthevalueexpectedfromthem.

Ofnote,whilstthe91%ofcorporaterespondentsindicatingthattheyare‘quite’or‘very’confidentthat their strategic partnerships are delivering the value expected of them is unequivocal,therearesomenuanceddifferencescomparedtolastyear’sfinding.Thelevelsofcorporateconfidence appears less secure in 2013,with those answering ‘very confident’ down 13%comparedto2012,whilstthoseanswering‘quiteconfident’hasincreasedby10%comparedtolastyear.

LevelsofconfidenceontheNGOsideismoresecure.93%ofNGOsareeither‘quite’or‘very’confidentthattheirstrategicpartnershipsaremeetingtheirobjectivesanddeliveringexpectedvalue,withafifthofNGOsclassifyingthemselvesas‘veryconfident’.

On the whole, to what extent are you confident that your strategic partnerships are meeting their objectives and delivering the value expected from them?

Figure12:Levelofconfidencethatstrategicpartnershipswillmeetobjectivesanddelivervalue

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Capturingimpact

Asafocustopicthisyear,wewantedtorevealthekeymetricsusedbycompaniesandNGOstoassessthevalueofpartnerships.WealsowantedtoratetheperformanceofcompaniesandNGOsacrossarangeofpartnershipattributes.Wehopethefollowingfindingswillprovehelpful.


What are the key metrics used by your organisation to assess the value of your strategic corporate-NGO partnerships currently – and how do you envisage the value of corporate-NGO partnerships being assessed by your organisation in future?

Figure13:Keymetricsusedtoassessthevalueofcorporate-NGOpartnerships(NGOs,currentandfuture)

In findings that align with NGO’s statedreasonsforpartneringwithcompanies,wediscovered that at 81% ‘direct contributionto the bottom line’ (for instance, incomegenerated, cost reduction, and efficiencygains) is by a clear margin the leadingmetricusedbyNGOs toassess thevalueof partnerships. Brand and reputation(includingawareness,trust,andcredibility)rankssecond(at60%),withmissiondelivery(securing better results for beneficiaries)statedas the thirdrankingmetriccurrentlyusedbyNGOstoassesspartnershipvalue.

Askedhowtheyintendtoassesspartnershipvalue in the future,somenotablechanges

emerge.Themost significant of these arethatNGOsintendtopaygreaterattentionto‘mission delivery’ in assessing partnershipvalue in the future. Emphasis on thisattributeincreasesby13%to65%,makingit the most rated future metric with whichNGOswillassesspartnershipvalue.

NGO responses indicate that directcontribution to the bottom line will remainimportant as a metric, though it appearsthatmissiondeliverywillbegivenahigherrating.

NGO

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What are the key metrics used by your organisation to assess the value of your strategic corporate-NGO partnerships currently – and how do you envisage the value of corporate-NGO partnerships being assessed by your organisation in future?

Figure14:Keymetricsusedtoassessthevalueofcorporate-NGOpartnerships(Corporates,currentandfuture)

CORPORATE

For companies, ‘employee engagement’is (by a small margin) the key metriccurrentlyusedtoassesspartnershipvalue,closely followed by ‘brand and reputationenhancement’(72%and70%respectively).These are followed by ‘more effectivedelivery ofmission’ (56%) and ‘enhancingotherstakeholderrelationships’(53%).

Intermsofthefuture,at53%andbyasmallmargin, companies list ‘enhancing otherstakeholderrelationships’(e.g.government,regulators, investors, and suppliers) asthemost likelymetric to beusedby themto assess the value of corporate-NGOpartnerships. Perhaps this reflects the

interests companies have in influencingand shaping the landscape within whichthey operate, as well as their view thatpartnerships can be effective in helpingthemengagewithstakeholders.

‘More effective delivery of mission’,‘employee engagement’ and ‘brand andreputationenhancement’(49%)aredeemedequallytobethesecondmostlikelymetricsto be used to assess partnership value infuture. However, rather curiously all threeattributes score significantly lower in thefuture thancurrently.We intend toexplorethis finding in greater detail in next year’sbarometer.


Ayawninggapbetweenintentandperformance

Having identified thekeymetricsusedbycorporates and NGOs to determine thevalueofpartnerships,wewantedtofurtherassesshowpractitionersfromeachsectorratetheperformanceoftheirorganisationson a range of important partnershippractices.Theself-assessmentsmakeforarevealingpicture.

Onthewhole,NGOsratethemselveshighlyintermsoftheirabilitytoengageexternalstakeholders (other than customers),with 68% or respondents rating theirorganisationas‘good’or‘excellent’inthisregard.Over a third (67%) and over half(58%) of NGOs rate their organisationsas ‘good’ or ‘excellent’ respectively atsetting clear goals for their strategicpartnerships, and engaging customers in

their partnershipswith companies.Theseare encouraging scores indicating thatNGOsenterintostrategicpartnershipswithaclearpurposeand thenworkeffectivelyto engage external stakeholders andcustomers.

However,itisstrikingthattheratingsdropconsiderably in relation to measuringand then communicating the impact ofstrategic corporate-NGO partnershipsto both internal and external audiences.Only39%ofNGO respondents rate theirorganisation as ‘good’ or ‘excellent’ atexternal communication and just 33%place themselves on the same scales inrelationtointernalcommunication.


In terms of your strategic corporate-NGO partnerships, how would you rate your organisation with regard to the following?

Figure15:NGOsself-ratingwithregardtopartnershipperformance

NGOS

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Corporate respondents rated theirorganisations’ performance more highlythan did their NGO counterparts withregard to setting clear goals (83% ‘good’or ‘excellent’), andmeasuring the impactofpartnerships(59%‘good’or‘excellent’).And although only around half (52%)of corporate respondents give theirorganisation a ‘good’ or ‘excellent’ ratingfor engaging stakeholders other thancustomers, this appears a reasonablescore, even if there is clear room forimprovementinthisarea.

However, considering that corporatesrate brand and reputation enhancement,andemployeeengagementhighly in theirchoiceofmetricsandreasonsforengaginginpartnership,itisverystrikingtonotethatmostcompaniesperformatanaverageorbelowaverage level in termsofengaging

customers, and in communicating theimpact of partnerships internally andexternally.

Only 24% of companies rate themselvesas ‘good’ or ‘excellent’ at customerengagement,whilstasmanyas41%ratethemselvesas‘belowaverage’or‘poor’onthisperformancecriterion.Thenumbersforinternal and external communication arehardly better. Over a third of companies(36%) are self-rated as ‘poor’ or ‘belowaverage’ at external communications,whilstnearlyafifth(19%)ofcompaniesratethemselvesas‘belowaverage’or‘poor’atcommunicatingtheimpactofpartnershipsinternally. Indeed, nearly half (48%) ofcompanies rate themselves as ‘average’at internal communication with regard tosharing messages about the impact ofcorporate-NGOpartnerships.


Figure16:Corporatesself-ratingwithregardtopartnershipperformance


CORPORATE

22


ThegapbetweenNGOsandcorporateperceptionofthevalue(orperceivedvalue)ofnon-financialsupporthaswidened.


Inwhatnowseemsconsistentlytobethegreatest area of dissonance, this 2013Barometer again reveal a significant gapbetweenNGO and corporate perceptionsregardingtheextenttowhichnon-financialcorporate inputs do or can make adifferencetothedeliveryofthemissionofNGO’s.

In an echo of last year’s finding, 69% ofbusinessesinthe2013Barometer ‘agree’or ‘strongly agree’ that harnessing theircompetencies and non-cash resourceswouldmakemuchmoreofanimpactonthefulfilmentoftheirNGOpartners’objectives,than purely cash-based relationships(figure 17). However, only 34% of NGOsagreedwith thisview.Althoughthisfigureis14%uponthe2012figurefor‘agrees’,moreNGOs‘disagree’or‘stronglydisagree’(36%) with the sentiments of the abovestatementthanthe34%thatagree.

The message from NGOs remains thattheyareexpertsinthedeliveryofthesocialor environmentalmissions for which theyare conceived (through service delivery,

campaigning) and that they have uniquespecialist know-how to drive their missionforward. They often require additionalfinancial and non-financial resources toachieve greater impact and they value thecontribution (including competencies andotherassets) thatcompaniesbring throughpartnership.However,mostNGOsappeartoprefertheflexibility(ofchoice,procurementofthird-partyservices)thatfinancialsupportbrings, over what is sometimes perceivedas the risk of relying on voluntary serviceprovisionfromcorporatepartners.

Neverthelessasnoted inpart1, this studyhasalsodiscoveredthatNGO’sincreasinglypartner with companies in order to driveforward theirmissiondeliveryagenda.ThisindicatesagrowingrecognitionofthevalueofcorporatepartnershipstotheNGOsector.Despite this encouragingdevelopment, theperceptionclearlyremainsonthecorporateside that NGOs could domore to harnessthe former’s competencies and assets togreatereffect.HowNGOscanbestleveragesuchcompetenciesandassetsmustremainoneofthechallengesforthefuture.


Figure17:Assumptionaboutthepotentialimpactofnon-financialassets

23


Corporate-NGO partnerships are changing businesspracticesforthebetter…


Business respondents seem confidentabout the value and potential value theirsectorbringstoNGOs.DoNGOsreallyshiftthedialinimportantwaysforcompanies?

Again, the overwhelming majority ofrespondents from both sectors statethat corporate-NGO partnerships haveimprovedbusinessunderstandingofsocialandenvironmentalissues,andamajorityofcorporaterespondentsstatethatcorporate-NGOpartnershipshavehelpedbusinessestoimprovebusinesspracticesforthebetter.

Specifically, this year, 93% of companyrespondents‘agree’or‘stronglyagree’thattheir key NGO partnerships have helpedtheirbusinessestoimproveunderstandingof social and / or environmental issues.No business respondent disagreed withthisview.And in termsofbehaviour,46%of corporate respondents state that theirkey NGO partnerships have helped theirorganisationstochangebusinesspracticesforthebetter.Thisisalowerscorethanlastyear’s57%,butimportantnonetheless.Andonly5%ofbusinessrespondentsdisagreewiththisview.

...But NGOs continue to understate the value of the role they play in improving business practices and enhancing business understanding of social and environmental issues.

By contrast, NGOs appear less confidentthat theyarechangingbusinesspracticesfor thebetterbypartneringwith the latter.40% of NGO respondents ‘agree’ or‘stronglyagree’withthestatement“wehavehelped our corporate partners to change

theirbusinesspracticesforthebetter”.Thisnumber is down 10% on the 2012 figuresandislowerthantheequivalentfigure(45%)indicated by business respondents. Asmanyas40%ofNGOrespondentsneitheragree nor disagree with the statementand even more notably, 21% of NGOrespondents disagree with the statementthattheirstrategicpartnershipshavehelpedtheircorporatepartnerstochangebusinesspracticesforthebetter.

Nonetheless, nearly four out of five NGOrespondents (79%) ‘agree’ or ‘stronglyagree’ that their strategic partnershipsare helping key corporate partners toimprove understanding of social and / orenvironmentalissuesbybusiness.

Theoverallmessagesarethatonbothsides,corporate-NGOpartnershipsaredeemedtobeofvalueinhelpingbusinessunderstandtheexternallandscapewithregardtosocialand environmental issues, and indeed indirectlyhelpingbusinessestoimprovetheirpractices.CorporaterespondentsaremoreconfidentintheseviewsthanaretheirNGOcounterparts.ThismaybeduetoscepticismorlackofconfidenceonthepartofNGOs.Itmayalsoresultfromthefactthatcorporatesare closer to the evidence of changesenabledbypartnershipswithNGOs,butarenotbeingeffective incommunicatingtheseimpactstothelatter.

It is clear therefore fromboth sides of thepartneringarenathatcompaniesandNGOshaveseenpartnershipsbetweenthesectorsasaddingclearvaluetobusinesses.



‘Which of the following statements describes your organisation’s current position on shared value?’

Figure18:ImpactonbusinessesofpartneringwithNGOs

Disagree

Agree

Neither agree/nor disagree

25



Part3:Thestars–Themostadmiredcorporate-NGOpartnershipsandpartners

So,whoisreallygettingitright,intermsofpartnering practice? Which are the mostadmiredCorporate-NGOpartnerships andpartneringorganisations–andwhatcanbelearntfromtheirsuccess?

Asisnowusualpractice,inanunpromptedvoting exercise, we invited corporateand NGO practitioners to tell us whichpartnerships and organisations they mostadmired in the cross-sector partneringlandscape–andwhy.Again,thesuggestionsweremanyandvaried,andthereasonsforeachnominationwere verywell informed.Three partnerships clearly stood out fromtherestintermsofunsolicitednominationsbyrespondents,eachwithaclearrationalefortheirnomination.

Averystrategicpartnership.Trulyintegratedintotheirbusinessandtheirsustainabilityfocus.

Agreatbusinessmodel,drawingonthebusinesscompetenciesofbothpartners

Reaches,engagesandnudgessustainableconsumerbehaviour.Abigwin,forconsumers,forOxfamandforM&S.

The Usain Bolt of Corporate-NGO partnering: M&S - Oxfam triumph yet again as ‘Most Admired’ Corporate-NGO Partnership

Marks and Spencer’s collaboration withOxfamwasagainvotedthemostadmiredcorporate-NGOpartnershipthisyear.InaperformancereminiscentofUsainBolt,thismuch admired and enduring partnershipmaintainedaveryhealthygapbetweenitand theother contenders, securing15%ofpractitionervotesin2013.

Thepartnership involvesM&SandOxfamsharing knowledge and working togetherto drive sustainable production andconsumption. The collaboration famouslyincludes Shwopping campaign, throughwhich the partners hope to achieve adramaticreductioninthenumberofclothessent to landfill in theUK.M&Scustomersare encouraged to return their old orunusedclothesandotheritemstoM&SandOxfam stores.These are then either soldorrecycledbythecharity.Inthefouryearssincethepartnershaveworkedonclothesrecyclingover11million itemshavebeendonated,worthanestimated£8million tothecharity.

In addition to the illustrative commentsabove, practitioners commented on theeffectiveness of the communicationscampaigns for thepartnership, aswell asthe success in keeping the partnershipfreshandinnovativeinitsfeel.

Once again, M&S and Oxfam are to becongratulated for raising the bar, ratherthanrestingontheirlaurels.



Boots’ - Macmillan’s focus on customer / supporter care secures them second place

An entirely new entrant in last year’sstudy,thepartnershipbetweenBootsandMacmillan has cemented its place in thetop rankings by being voted the secondMostAdmiredCorporate-NGOpartnershipbypractitioners.

In a brand andmission-led collaboration,Macmillan and Boots are bringinginformation about living with cancer tothe UK’s local high streets, regionalcommunities,andonline.Bootscustomerscangetgeneral informationabout cancer

from all its stores, and be signposted toMacmillan where they can find out moreaboutthebreadthofvitalservicesprovidedbyMacmillan,includingpractical,medical,financialandemotionalsupport.Employeesareheavilyinvolvedinprovidingexpertise,aswellasinfundraisingforMacmillan.

And GSK-Save the Children storm into third place

ThirdMostAdmiredCorporate-NGOPartnershipthisyeargoestoanewentrant.Indeed,acollaborationsonewthatitwaslaunchedonlyinMay2013,thepartnershipbetweenGSKandSave theChildrenappears tohave reallycapturedpractitioners’ imaginations,successfullycuttingthroughtogaintheiracclaimsoonafterlaunch.

The partnership is an ambitious new initiative to save the lives of amillion of the poorestchildren in theworld.This unique collaborationwill seeGSKandSave theChildrenworktogether inaverydifferentway,sharingexpertise,resources,reachandinfluencetotacklesomeoftheleadingcausesofchildhooddeaths.

Amongthekeyinitiativesarethetransformationofanantisepticusedinmouthwashintoalife-savingproductfornew-bornsandtheroll-outofapowder-formofanantibioticinchildfriendlydosestohelpfightpneumonia-oneofthemainkillersofchildrenunderfive.

Forthefirsttime,SavetheChildrenwillbeinvolvedinhelpingGSKtoresearchanddevelopmedicinesforchildren,withaseatonanewpaediatricR&Dboardtoaccelerateprogressoninnovativelife-savinginterventionsforunder-fives,andtoidentifywaystoensurethewidestpossibleaccess in thedevelopingworld.GSKwillbeable to leverageSave theChildren’schildhealthexpertiseandon-the-groundexperiencetoreachchildreninthemostremoteandmarginalizedcommunitieswithbasichealthcare.

Agreatfitbetweentwohighlyrespectedbrandsonanissuethatresonateswellwithcustomersandmeetsrealneed.

Stronglyintegratedandvisionary

Verypurposefulemployeeengagement,withwhatlookslikepassionateandfocusedengagementacrossthecompany

27



Breaksnewgroundandtakessharedvaluetoanewlevel

Bold,ambitiousanddrawsstronglyonthecompetenciesofthepartiesinvolved

Addressesarealneedinnewways

Asthequotesaboveillustrate,onceagain,partnershipprofessionalsratetheseasthemostadmiredpartnershipsbecauseoftheirambition, scale, as well as their ability toinnovatebydrawingonthecompetenciesofthepartnersinvolvedineachcollaboration.Each of these partnerships have alsosucceeded in communicating effectivelyto key audiences. All of them are to becongratulated.

Which other Corporate-NGO partnerships do you most admire and why?

Figure19:The‘MostAdmired’partnerships

Others

Therearenineothercollaborationseachnominatedbyaround2%ormoreoftherespond-ents-allaretobecommendedandarelistedonfigure19.



The‘MostAdmired’partneringNGOs

Forthethirdinarow,OxfamhasbeenvotedthemostadmiredpartneringNGO.This isa result of Oxfam’s partnership withM&Sand other major companies – includingthe charity’s partnership with Unileverwhich also received many mentions frompractitioners.

SavetheChildrenstormsintosecondplaceforsimilarreasons,whilstMacmillanholdsontothethirdplacewhichitsecureforthefirst time in 2012.UNICEFalsomaintainsthesecondplaceitsecuredlastyear.Once again, the high ranking of these

majorNGOsappears toconfirm that theirscale,reachandthepoweroftheirbrandsall enable them to stand out. It is alsoclear that these organisations emphasizemission-led, strategic partnerships andhave become adept in navigating theopportunities and challenges inherent incross-sectorpartnering.

There are eleven other NGOs whowere nominated by just under 2% ormore of respondents.Again all are to becongratulated.

The Most Admired Partnering NGOs

Figure20:The‘MostAdmired’partneringNGOs

29


The‘MostAdmired’partneringcompanies

Figure25


Onceagain,M&Ssecuredtheaccoladeof‘Most Admired Partnering Company.’ Thecompany is clearly very well respectedby practitioners across the partneringspectrumand continues to focuson freshthinkingandeffectiveexecution.

Boots, which broke through to third placelastyear,movesuptobecomethesecondmostadmiredpartneringcompanythisyear.Andforthefirsttime,Unilever,whichhasinpreviousyearsfeaturedatthelowerendofthe rankings, is voted third most admiredpartneringcompany.

Inothernotablechanges,GSKwhichhasnot previously featured on the list movedinto fourth place ahead of Network RailwhosepartnershipwithSamaritansismuchadmiredbypractitioners.

It is again striking that so many of themost admiredpartnershipsandpartnering

organizationsaredrawnfromtheconsumerfacing retail, fmcg and banking sectors.Clearly high profile, impactful, customer-facing partnerships are factors here. It isalso a fact that those sectors have builtup their partnering experience overmanyyears and therefore benefit from theirpartnership savvy. They have also beenpreparedtoinvestinpartnerships,includingintheirpromotionandmarketing–andthisunderpinstheirsuccess.

However, it isencouraging tosee the riseof companies such as GSK and NetworkRailonthelist.GSK’spresenceonthelistshows that innovative thinkingcan indeedleadtobreakthroughs.

There are thirteen other Corporates whowerenominatedbyjustunder2%ormoreof respondents. Again, we commend allthesenominees.

The Most Admired Partnering Companies

Figure21:The‘MostAdmired’partneringcompanies

30



Top 5 Most Admired corporate-NGO partnerships

Rank2013

(2012)Partnership and Partners

1(1) M&S and Oxfam

2(3) Boots and Macmillan

3(newentry)

GSK and Save the Children

4(4) Network Rail and Samaritans

5 Barclays, CARE and Plan; P&G (Pampers) and UNICEF; Unilever &

Oxfam

Top 3 Most Admired Partnering NGOs

Rank2013

(2012)NGO

1(1) Oxfam

2(7) Save the Children

3(2) Macmillan

Top 3 Most Admired Partnering Companies

Rank2013

(2012)Company

1(1) M&S

2(3) Boots

3(5) Unilever

Figure22

Figure23 Figure24

31



Part 4: Future trends – Prospects and likelydevelopmentsincorporate-NGOpartnering

This 2013 Barometer has again foundplenty of evidence that notwithstandingareas for improvement, corporate-NGO partnering is in great shape. Theagenda is demonstrably adding valueto companies and NGOs alike as therole model partnerships and partneringorganisations have illustrated. We turnnow to anticipate the prospects for, andlikely future developments in Corporate-NGOPartnershipsoverthecomingyears.

Cross-sector partnerships willbecomemoreimportantoverthenextthreeyears

Againthisyearwecanreportaresoundingfinding that both businesses and NGOsexpecttheroleofpartnershipstobecomeimportantormuchmoreimportanttotheirorganisationsoverthenextthreeyears.

Bothbusinesses(84%)andNGOs(96%)are confident that partnerships betweenthe two sectors will become ‘more’ or‘much more’ important over the nextthreeyears.Therearesomesubtleshiftscomparedtolastyear’sfigures,particularlyin connection to corporate respondents.A third of corporate respondents expectthatpartnershipswithNGOswill become‘much more’ important over the comingthreeyears(down8%on2012),however,

51%ofrespondentsfromthesamesectorexpectsuchpartnershipstobecome‘moreimportant’totheircompany’sagendaoverthatperiod.

Inanidenticalfindingto2012,40%ofNGOrespondents expect partnerships withbusinesstobecome‘muchmore’importantto their NGO, with 56% of this segmentexpecting such partnerships to become‘moreimportant’overthenextthreeyears(up11%onlastyear).

Much smaller numbers of respondentsfrom either sector expect the importanceofcross-sectorpartnershipstoremainthesame(andanumberof thosewhochosethisoptioncommented that theybelievedthe partnering agenda will remain at analready high level). No respondent fromeither sector could foresee cross-sectorpartnershipsbecominglessimportantoverthecomingthreeyears.

It is clear therefore that the Corporate-NGO partnering agenda will becomeeven more material to businesses andNGOsoverthenextthreeyears.Thiswillpresent significant opportunities to thosepractitioners on either sector who arereadytoharnesstheseopportunitieswhilstskilfullynavigatingtheinherentchallenges.

32


Desirefor leverage,pressuretodemonstratesocietalconsideration, theneedtogenerateincomeandmoreevidenceofthesuccessofpartnershipsremainkeydriversofthelikelygrowthintheimportanceofcross-sectorpartnering.

Corporates(81%)andNGOs(90%)areunitedintheiropinionthattheneedforcompaniesandNGOstoleverageeachsector’sdifferentassetsinordertomaximisemutualbenefitisakeyfactorlikelytomakecorporate-NGOpartnershipsmoreimportantoverthenext3years–withoverfouroutofeveryfiverespondentsonbothsidescitingthisfactor.Thisisthesinglemostimportantfactorforbothsectors.

For companies (and to a lesser extent, for NGOs) this is closely followed by pressure oncompaniestodemonstratesocietalconsiderationwithintheirbusinesspractices,with79%ofbusinessesand71%ofNGOscitingthisfactor.

Unsurprisingly,forNGOs,thesecondmostimportantfactorlikelytomakepartnershipswithcompaniesmoreimportantoverthenextthreeyears,istheneedtoraisefundsinwhatislikelytoremainadifficulteconomicclimate(79%).

Inspirationalsoappearstobeadriver.60%ofcorporateand50%ofNGOrespondentsseemoreevidenceofthesuccessofcross-sectorpartnershipsasafactorwhichwillcontributetothegrowthinimportanceofthisagenda.Successbreedssuccess,andthecompetitivezealalsomeansthatcompaniesandNGOsarelikelytowanttoachievethesuccessandbenefitsbeing achieved by the types of partnerships and organisations acclaimed in the previouschapter.

What is your expectation of the role that partnerships will play in the corporate or NGO agenda over the next 3 years? Would you say they are likely to become?

Figure25:Likelyimportanceofcorporate-NGOpartnershipsoverthenext3years


33


Investmentincorporate-NGOpartneringsettogrowoverthenextthreeyears

In findings that are near identical to the2012 data, it is pleasing to record thatthesignificantmajorityof respondentsonthe corporate and NGO sides expect toincrease their investments (commitment,time, and other resources) in cross-sector partnerships. Clearly, this findingaligns fully with the driving factors notedabove and the expected increase in theimportance of corporate-NGO partneringoverthenextthreeyears.

Exactlytwo-thirdsofcorporaterespondentsexpect their investments in cross-sectorpartnershipstoeither‘increase’or‘increasesignificantly’overthenextthreeyears,with9%expectingasignificantincreaseand56%expectingtheirinvestmentstoincrease.Athirdofcorporaterespondentsexpectthat

In your view, what factors are likely to make corporate-NGO partnerships more important in the next 3 years? TICK ALL THAT APPLY

Figure26:FactorsinfluencingtheimportanceofCorporate-NGOpartnershipsoverthenextthreeyears


their investments in partnerships wouldneither increase nor decrease between2013and2016–andonlyatinyminority(2%)ofcorporaterespondentsexpecttheirinvestments to decrease over the sameperiod.

Again this year, NGOs have an evenmore optimistic view about theirlikely investments in corporate-NGOpartnerships than their corporate peers,with 86% of this segment expecting thattheirinvestmentsinpartnershipswilleitherincreaseorincreasesignificantlyoverthenext three years. Of these, 21% expectthat their investments in partnershipswill‘increase significantly’, and 65% expecttheirinvestmentsto‘increase’.

In all therefore, the future remains verybright for the corporate-NGO partneringagenda. And practitioners have positiveexpectationsfortheperiodbetween2013and2016.

34


Thenatureofcorporate-NGOpartnershipswillcontinuetoevolveoverthenextthreeyears

Finally, having established that the corporate-NGO partnering agenda will become moreimportantandreceivegreaterinvestmentoverfutureyears,wewantedtoenablepractitionerstomakeinformeddecisionsintheirplanningforthefuture.WithinputfrompartneringpractitionersfromthecorporateandNGOsectors,wehaveidentifiedanumberofcharacteristicsthatwilldefinesuccessfulcollaborationsinthefuture.

Is your investment (commitment, time, resources, etc) in corporate-NGO partnerships likely to increase or decrease over the next 3 years?

Figure27:Likelymovementsincorporate-NGOpartnershipinvestmentsoverthenextthreeyears


To what extent do you agree or disagree that Corporate-NGO collaborations will increasingly demonstrate the following characteristics over the next 5 years?

Figure28:LikelycharacteristicsofCorporate-NGOpartnershipsoverthenextfiveyears.

35



We asked practitioners about the extentto which they agreed or disagreed thatCorporate-NGO collaborations willincreasingly demonstrate a number ofcharacteristics. The vast majority ofrespondents agreed that the attributesnoted in figure 28 will become eitherimportant or very important over thenext five years. The lowest scores for‘important’ and ‘very important’ related tothestatementthatcollaborationsbetweenthesectors “will focusmoreon improvingcompanies’ practices for the better /mission delivery for NGOs”. 3.7 out of 5the average score given by Corporateand NGOs respondents regarding thelikelyfutureimportanceofthispartnershipcharacteristic. However, it seems clearthat more and more partnerships will infutureseektoinfluence,shapeorimprovebusiness practices for the better whilstdeliveringthecoremissionoftheNGO(as,for instance, the M&S-Oxfam and GSK-SavetheChildrenpartnershipsseektodoindifferentways).

There are even clearer expectations thatsuccessfulpartnershipswilloverthecomingyears require companies and NGOs tooperateinanintegratedmanner,combinethe provision financial and non-financialsupport, leverage the competencies andassetsofeachpartner,andbeevenmorestrategic in nature than they are today.Eachofthesecharacteristicsscoredhighlyintermsofrespondentaffirmationswiththestatementsputtothem(figure28).

As we have seen, the partnershipsthat are acclaimed as ‘most admired’demonstratetheabovecharacteristics.Todothat,theyhavehadtoundertakeclearstrategic planning processes, engagedandsecuredstrongleadershipsupportandchampionship,andsucceeded inbuildinganenablingenvironment inwhichall keyparts of the organisations concerned(for instance, commercial and tradingteams, marketing and communications,distribution, and sales, on the corporateside; and policy, campaigns, services,communications, and programmedivisions on the NGO side) feel a senseof joint ownership for the success of thepartnerships. Leadership, integrationand ‘wholesystem’ thinkingandplanningrequire careful planning and effectivenavigation.

The role of partnership practitionersincludesactingaschangeagentstosteerthe partnership agenda through theirorganisations. We hope that the findingsfrom this 2013 edition of the Corporate-NGOPartnershipsBarometerwill help toilluminateyourpathasyouseektoachieveyour future ambitions for cross-sectorpartnering.

As is inherent in their nature, since they are by necessity dependent on aligning interestsacross organisations, sectors and cultures, cross-sector partnerships can be complex andsometimeschallenging toexecuteeffectively.However, thispractitioner-led2013editionoftheC&ECorporate-NGOPartnershipsBarometerhasfoundthecross-sectoragendatobeinrudehealth:

• Drivenprimarilybytheneedtoenhancereputationandcredibilityonthebusinessside,andNGOs’ need for financial resources, cross sector partnerships have continuedtobeveryimportanttobothsectors.Thereareofcourse,additionalreasonsforthelevel of importanceattributed to thepartnering agenda.For businesses, innovationhasbroken through this yearasa keymotivation,whilst businesspartnershipsareincreasinglyimportanttothedirectmission-deliveryobjectivesofNGOs.

• In termsofperformance, thedrive towardsmorestrategicpartnerships identified inpreviousyears,hascontinuedin2013;thereisconfidencethatsuchpartnershipsaremeetingtheirobjectivesanddeliveringthevalueexpectedofthem;andthisBarometerhas found further evidence that cross-sector partnerships are moving the dial forbusinessesandNGOs–theoverwhelmingviewofdataprovidersforthis203studyconfirmingthatCorporate-NGOpartnershipshaveimprovedbusinessunderstandingofsocial/environmentalissues,whilstmany,particularlyonthecorporateside,statethatsuchpartnershipshavehelpedtoimprovebusinesspracticesforthebetter;andwehopeitwashelpfultorevealforthefirsttime,themetricsdeployedbypartnershippractitionersindeterminingthevalueoftheirkeypartnerships

• In terms of the future, this 2013 Barometer has revealed that sentiment regardingprospectsforCorporate-NGOpartneringoverthenextthreeyearsremainverypositive.DrivenbythedesireofcompaniesandNGOstoleverageeachother’sassets;pressureonbusinessestodemonstratesocietalconsideration;aswellasNGOsongoingneedtosecureadditionalresources,theCorporate-NGOagendaissettobecomeyetmoreimportantoverthenextthreeyears.Inlinewiththis,NGOsandcompaniesaresettoinvestmoreintermsoftime,commitmentandresourcesinsuchpartnerships,whilstcontinuingtoevolvethenatureofpartneringpracticetowardsmorestrategic,holistic,mission-focusedrelationshipsthataremorecloselyintegratedintothecorebusinessofbothcompaniesandNGOs.

Despitethesehighlyencouragingfindingssomekeychallengesremain.Theseinclude:

•Clearbottle-necksinthemotivationsforandpracticeofpartnering.Notableamongsttheseare:

• ThegapsbetweenthecorporateandNGOsectorsregardingtheirrespectiveappetites for innovation. The former recorded a sharp rise in interest ininnovation,whilstthelatterrecordedanequallysharpfallininterestinthesamesubject,leavingthelikelyscenarioofunfulfilleddemandintermsofthetakeupofopportunitiesforjointinnovation.And,

• The significant dissonance between the sectors regarding the value (orperceivedvalue)thatnon-financialcorporatesupportcanyieldforNGOswasveryevidentagainin2013

©C&EAdvisoryServicesLimited2013 36

ConcludingRemarks


•A yawning gap between intent and practice in terms of both NGO and corporatecommunication of the impact of partnerships to their key internal and externalstakeholders.Withsignificantnumbersofrespondentsself-ratingtheirperfomanceinthisareaas‘average’or ‘poor’,thereisclearly,muchroomfor improvementaroundcommunicatingtheimpactofpartnerships.

Thesearemajorchallengestothecross-sectorpartneringagendawhich,unaddressed,willlimitcurrentandfuturepotential.Or,toputthepointmorepositively,thereremainsplentyofscopeforsavvyNGOandcorporatepractitionerstoleveragetheverysignificantopportunitiesthatexistforcross-sectorpartnering.Goodrolemodelsareimportantinthedevelopmentandevolutionofimprovedpractice.Inthiscontext,wefoundmuchenthusiasmandacclaimforthe‘most admired’ corporate-NGOpartnershipsandpartneringorganisations.Wecongratulatethemall.

AboutC&EAdvisory

C&E is a leading specialist ‘business and society’ consultancy.Weworkwith someof theworld’s foremost businesses, NGOs and High Net-Worth Individuals, helping them securesustainablevalue–shareholder,socialandenvironmental.Ourpracticeareascoverstrategy,programme design, oversight and reviews, performancemeasurement and reporting, highperformanceteamdevelopmentandleadershipcoaching.

And because today’s challenges and opportunities require new ways of thinking, C&E isparticularlyadeptatinspiringandenablingsometimessurprisingcross-sectorcollaborations.Wehaveadvised–andcontinuetoadvice–onsomeoftheworld’sleadingandbestknowncorporate-NGOpartnerships.C&Ealsoadvisesonallaspectsofthesharedvalueagenda.www.candeadvisory.com





Appendix1-AbouttheBarometer

Methodology

TheC&ECorporate-NGOPartnershipsBarometer 2013was compiledusing responses toa confidential online survey of 120 leading UK-based companies and NGOs engaged incorporate-NGOpartnerships.

Thenumberofrespondentsreflectsagrowinginterestinthecorporate-NGOpartneringagendaandconfirmssomeofthefindingsinoursurvey.Italsoreaffirmspractitioners’strongappetitefor the Barometer as an important instrument which provides a sector-wide perspective,gaugingchangesinthecross-sectorpartneringlandscape.

Thesurveycomprisedabroadmixofnewandpreviouslyaskedquestions.Thismixallowedustoidentifynewissuesinpartnering,whilstsimultaneouslyenablingaccurateandeffectivecomparisonofdataagainstBarometerreadingsfrompreviousyears.

Inthisyear’ssurvey,morerespondentsthaneverexpandedontheirownopinionsthroughopen text.This offered awealth of useful individual commentarywhich is reflected in thisreport.

Asafinalstepinourprocess,wemoderatedtworoundtablediscussionsinvolvingpractitionersfromthecorporateandNGOsectors.Thesepresentedopportunitiestoreviewanddiscussthesurveyfindings,and Input from thisqualitativeexerciseenabledus tomoreaccuratelyinterpretthesurveyfindings.

Theonlinesurveyandpractitionerevaluationtookplaceduringthesummerof2013.

TheSample

Theonlinesurveywasundertakenby120respondentsallofwhomwereinvolvedincrosssectorpartnerships.Ofthese,corporatesectorrespondentsweredrawnmainlyfromtheFTSE100,Interbrand’s Best Global Brands Ranking, and Business in the Community’s CorporateResponsibilityIndex.NGOrespondentsweredrawnmainlyfromtheleadingUKcharities–bybrandandrevenueranking.(SeeAppendix1forlistofparticipatingorganisations).Ourthankstoallwhotookpart.

Thedistributionof46%corporateand51%NGOs(figure29)wasagainverywellbalanced,with the remaining few respondents representingCorporate Foundations and internationalnon-profitagencies.

The survey participants encompassed a diverse range of professional roles all directlyengaged in, or overseeing corporate-NGOpartnerships froma senior level.However, thisyearnoticeablyoverathirdofcorporaterespondentsheldaspecificcorporateresponsibilityposition,ascanbeseeninfigure30.



NGO

Corporate

Other51%46%

3%

Figure29:Sectorrepresentation

Figure30:Respondents’roles

• AfriKids

• AmnestyInternational

• AnthonyNolan

• Barnardo’s

• Bliss

• CancerResearchUK

• CAREInternationalUK

• CitizensAdvice

• CLICSargent

• CommunityLinks

• FamilyandChildcareTrust

• FareShare

• GetConnectedHelpline

• GlobalActionPlan

• GreatOrmondStreetHospitalChildren’sCharity

• GreenAlliance

• HelptheHospices

• InternationalPlannedParenthoodFederation

• KidsCompany

• LeonardCheshireDisability

• London’sAirAmbulance

• MacmillanCancerSupport

• MalariaNoMoreUK

• Merlin

• Mind

• NationalTrust

• OvariancancerAction

• Oxfam(GB)

• ProstateCancerUK

• RedRUK

• RNIB

• SavetheChildren

• Scope

• SenseInternational

• Shelter

• Sparks

• Tommy’s

• UNICEFUK

• Variety,theChildren’sCharity

• VSO

• Wildfowl&WetlandsTrust

Appendix2:Surveyrespondents(excludingorganisationswishingtoremainanonymous)

NGO

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• AllianceBoots

• AllianzInsuranceplc

• AngloAmerican

• ArcelorMittal

• AstraZeneca

• Aviva

• Barclays

• BootsUK

• BritishAirways

• BSkyB

• BT

• CEMEX

• CitiGroup

• CityofLondonCorporation

• ClifordChanceLLP

• CreditSuisse

• DeBeers

• DeutscheBank

• DivineChocolateLtd

• E.ONUK

• Edelman

• HomeRetailGroup

• HSBC

• ICAN

• IBMUK

• JaguarLandRover

• Kingfisherplc

• LinklatersLLP

• NationwideBuildingSociety

• Nestlé

• NFUMutual

• O2

• OldMutual

• RBS

• ReedElsevier

• Rolls-Royce

• Syngenta

• Tesco

• UBS

• Vodafone

COMPANIES&CORPORATEFOUNDATIONS

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Corporate-NGO Partnerships Barometer 2013Welcome to the C&E Corporate-NGO partnerships Barometer...

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