PETER BAINES Founder of Hands Across the WetPeter touches on some very interesting and timely concepts in his book Doing Good by Doing Good. | agree with his views that many organisations are attempting to do the right thing. and certainly have the right intent when it comes to CSR, but few are executing their strategy to bring about the best return Peter's advice to the charity sector to step up and change thelr ways, shifting from the old paradigm of just seeking donations, Is encouraging and if heeded will lead toa more engaged sector and deeper relationship between corporate and charity. If you are in business, part of a foundation or leading a charity, you ‘would be served wel to read Peter's latest work. Chris Cuffe, Company Director, Investment Professional and Philanthropist Baines makes a highly practical contribution to how the best ‘businesses erate Value by having a more positive social impact. And considering his track record of actually doing so, who better to listen to, —Peter Sheahan, author founder and ‘CEO of Changelabe™ Peter Baines has correctly written that innovation and a sense of the entrepreneurial sprit are the key tothe future, irrespective ‘of industry or academic discipline. Ths is advice offered at an important time in our collective search for best practices and the truth —William E, Strickland Jr, President and CEO, Manchester Bidsvell CorporationFin publ in 2015 by Joy Wey Son stalls, Lad -E2heDougall Se Mion Ol 464 Oe skin Metboune ‘ype in 115/135 pe Palatino LT Sed (© Peter ines Consing 2018, ‘hastabions © Guy Downes 2015. ‘The moral rights ofthe ator have been aera Nasional brary of Australia Ctaloguinge-Pbliction dat: ‘author ines, Peter author. Tie aig Good by Doing Good: eh ceting shart ‘ales the key o powering buss growth and Innovation / Peter Baines ISBN: S7a07a0S143 pb) Sran7OSI4SS (ek) Notes Incas index Sabet Busines enterprises Charitable contributions ‘Socal responsi of sins, Good (Commerce) ‘Soccess in Business Dewey Number: 688159 All ght served. Except as permit under the Autation Capri Act 195 for example far dealing forte purposes of ty researc ica ‘review no pt ofthis book may be meprodcd, ston n 2 rete ‘stem, communicated of tans in any form ry any means without ‘ror writen permite Allinuies ould be made th bleh 3h Cor design by Kou Creative rot cover and irl hstraons © Guy Downes Printed in Singapore by COS. Printers le Lid 10987654321 Disclaimer ‘The merlin thi publication Is ofthe nature of ger comment en, and doesnot represent professional advice. It nt intended to provide Specie gusdance for parca ccumsances andi should ot be ced ‘nas the Dsl for any dessin to Yak action oF not take action on any Ialer which covers Readers shoul! sain prosonal advice where "ppropsae before making any such decison. To the maximum exten permuted by Low he author snd! publisher scan al sop and [abit to any person, sing diet or insect rm any person hing ‘or no taking ation tased-on he information nts pblation, Acknowledgements Preface Introduction: Clarity comes with action 1 Isthere a better way? 2 How to engage 3 Business benefits of engagement 4 Small business: the multiplier effect 5 Medium-sized business: aligning values and purpose 6 Large business: strategic investment 17 The Origin story 8 Charity taking the lead 9 Journey to shared value 10 Measuring and reporting AL Value of shared experiences 12 Selecting a charity partner Afterwort: Looking forsard —ohat'son the horizon Index 85 103, ma 137 151 169 11 213, 231 2aacknowledgements {In writing a book there ate those who contribute to the text you hold in your hands right now and there are those who provide you with the lov, inspiration, and at times space to write. The Contribution of both makes for what every author hopes is 2 ‘quality reflection of their thinking, Let me acknowledge the contribution of both groups. Guy Downes is a genius. I frst met Guy when from the back fof the room he captured my one-hour Keynote in a graphical representation, the likes of which I had never seen before ‘When itcame time to write the book, Guy was the fist person I contacted to be part ofthe projet. His contribution throughout the book brings to it to life and you would have to agree he possesses a unique skill in what he does. I love the way his ‘mind works and the benefit I see his corporate clients take from his work The book has a number of case studies and many of the contributors were most generous in ther time and in sharing of their wiselom. Without thei views and insights this ook would bea reflection of my thoughts alone. It isthe case studies, both ‘of those contributing to the charity space and those working Within, that add so much value. To each of these contributors who were so giving, please accept my deep appreciation, ‘Theteamat Wiley. The rise of self-publishing means that it really is within anyone's capacity to write a book In such a crowded marketplace it then becomes even more important to gt it right nd surround yourself with » GREAT team. The entite team atWiley is that, a grest tam that kept me on-track, ontime and Sremessage Thanks to Sarah, Lay Jem and Chris fr staying ‘th me daring ths process. “Totheclients who gett bul these CSR programs ith thanks {ortho trust for blieging there fe another way of engaging with thecommanty sector [Now tothe second group, those who provide the love, support and inspiration, ‘To each and every one of the Thai staff and the hundreds of Thai kids that I have had the pleasure of working with over the last decade, I continue to learn from you. Thave become a nicer and more caring person just from spending time with you and Seeing the way you live Your lives no matter the challenges. To the generous supporters of Hands who jump on a bike and ride across Thailand with me, or those who donate their hard feared money to us, You all confirm my belie there is another ‘way of doing charity and people do want to do more than just give ‘To my three beautiful childeen who I adore, you make me so incredibly proud in the decisions you make. Lachie, Kels and Jack, Tlove you guys not just because you are my kids, but because ofthe people you are, Some of my greatest moments ‘over the last ten years are the ones we have spent together either inthe snow ori the sun, Tove you guys to bits Finally to Claire Thomas. I love what we create together and the lives we build each day: Your patience, not just during the ‘writing ofthis hook but in putting up with the razy life [lead isnot found in everyone, but that’s okay, don't need everyone for anyone els fr that matter, have you. The love and support ‘you give me CT makes this wild journey so much Fun and {love ‘you so deeply. Preface So how does a former police officer come to write a book on corporate social responsibility? [ often ask myself the same question, as the path from where I began to where Lam now has hardly been a predictable one, ‘After leaving school soon found myself in uniform. worked at Merrylands and Cabramatta police stations in the late eighties and early nineties. It was fristration over attending back-to- back domestic disputes rather than a passion for science that led me to jin the Physical Evidence Section (later to become the Forensic Services Group) of the NSW Police. I found my place there and would spend the next 15 years ‘on the tools, attending major crime scenes and incidents, For 10 years I lived in rural New South Wales, where my three children, Lachlan, Kelsey and Jack were born, After years of driving op and down the New England and Newell highways investigating scenes of death and destruction, I was promoted to inspector and returned with my family to Sydney. When terrorism arrived on our doorstep with the Bali bombings in 2002, Iwas deployed as pat ofthe Disaster Victim Identification (DVI) team. The Work of the Australians in Bali cemented our important regional roe in disaster response in Asia-Pacific. Just over two years later, while on a family holiday at the beach ‘on the south coast of New South Wales, T watched the 6 pm news lead with the tsunami that had just struck South-East Asia, Within days I returned to my DVI work, this time on a ‘much larger scale, in Thailand, In what remains to this day theain Gaby Ding Gd world’s largest identification atterapt undertaken following a Ulisaster, 5395 bodies were recovered. I spent several months {in Thailand, leading both the international and national teams in the disaster response. We faced unprecedented challenges. that required unigque‘solutions and strong leadership. I worked slongside some amazing people and had the opportunity to meet many individuals, both Thais and foreign visitors, who hhad lost family members ‘but it was meeting the children who had lost their parents ‘that would realy change things for me. It was August, some tight months.on from the tsunami, and there were 32 of them living in a tent, which was the only home they had. 1 couldn’ _shange what had happened, but I elt it was within my power “o change what happened next in thee lives. This was the birth of the charity Hands Across the Water ‘During the final two years of my career with NSW Police 1 worked on a counter-(errorism project with Interpol in Lyon, France, and with the United Nations Office on Drugs and Crime in South-East Asia I began raising money for Hands through paid speaking ‘engagements, during which [talked about leadership. Pursuing, thecorporate speaking circuit and holding down a fali-time job, while atthe same time trying to build the charity, proved to be lunsustainable over the longer term. I knew I could no longer {do justice to all three and had to make a decision. At the end of 2008 I resigned from the police force after 22 years, putting my faith in my ability to draw an income from my speaking and my ‘new consulting practice, have been fortunate enough to travel the globe speaking 10 audiences ofall sizes, from all industries, and meeting some amazing people along the way: The more I spoke, the more ands grew; as Hands grew, so did my corporate speaking, and Twas able to fun what I learned int a sticcessful consultancy: Hands has grown to cover all points ofthe compass in Thailand. Several hundred children have found sanctuary in the seven centres we run across the country. AE one centre we Were fable to halt the alseming mortality rate among children with HIV-related illnesses. Thirteen of our children from the tsunami home are now at university. ‘One of our major sources of income, our sponsored bike rides, ‘now sell out ina matter of hours, and a high percentage of riders returm year on year based on the strength of their experience, [And I get to lead corporate bike rides in Thailand, which has prompted me to wonder whether Ian now describe myself as 4 professional cyclist when filling out my customs form on the journey home These days travel, both domestic and international is something, I do every week. [ absolutely love it and feel incredibly fortunate. When I'm not travelling, home for CT, my very patient, loving and supportive partner, aril me isthe Northern Beaches of Sydney. In 2011 Pan Macmillan published my autobiography, Hands ‘Across the Water: he cildren ofthe tsar, ad one man» crusade fo make a difference, which is now in is fourth printing and continues to sell well. Then last year T was approached By the team at Wiley: would Ibe interested in writing on the concept ‘of corporate social esponsibility? It took some time for me to ‘warm tothe idea, but as Isat and planned what the book might cover I became increasingly enthusiastic about the opportunity to share my own experiences and especially those of others ‘who are, in my opinion, doing corporate social responsibilty well, What excites me most about this book is that Tan see tangible benefits flowing both to business and, importantly, to the charity sector from the initiatives outlined here. As you'll see teal isa case of doing good by doing good. If you would like to get in touch, you can email me at peler@peterbaines.comau or visit www:peterbaines com. Part of the proceeds of the sale of this book will 30 fo Hands ‘Across the Water, For more information on Hands, please ist ‘eo hndsacrosthewaterong.. PoeIntroduction Clarity comes with action It we do nothing, then nothing will change. ‘The Chinese philosopher Lao-tzu (604-531 BC) famously sac that a journey of a thousand miles begins with a single step Certainly not as enduring, but with a similar meaning, 1 often say that clarity comes with ation. The more you do, the clearer your thinking will become. When you start something quite ew you don’t have all the answers—you don’t even kaow ‘hat ll the questions will be—but with action comes larity,Shared value [A lange part ofthis book is devoted to the concept and worth ‘of creating shard one, Shared value is economic Value created by addressing the needs. and challenges of the community, In fffect, i's a company putting their resources into a community oF social need and by addressing that reed bringing value back to the ‘company. The value may be in a new, previously untapped market; it may be in securing raw materials from local suppliers, ensuring continuity of supply; or it may be demand-led innovation tha forces change to their product. Shared values economic value created by ‘dressing the needs fn challenges of the ‘The obstacles to creating an integrated shared value model within a business will be tied to the change that is require. “There may be significant investment in change to manufacture and certainly there will be risk, with returns not immediately forthcoming. Investmentin research to identify the opportunities within the marketplace will reduce the risk, but the resources required to.conduet such research may be beyond the means of all but the larger corporates. “There are lessons forall of usin the concept of shared value, even iF itis nota fit for those just looking to bring a level of giving into their businesses. The overarching theme is that we should be doing go! by dong goad. This book looks at how to maximise the giving to create @ return. When there isa return that can be measured there will be greater enthusiasm for the giving If we can icentfy and articulate those returns that are positive for the business, we are likely to give more and become more sophisticated in our giving In the chapters that follow we will look at the following questions + What are the benefits to business of getting involved in ‘community problems? I you're going to get involved, how do you select your partners? ‘+ Whatare the options around getting involved, and how ‘much involvement do you really want? ‘+ Why does the concept of shated value make sense? ‘+ How do you make your investment in the charity sector profit centre? Why is tin everyone’ interest that you're doing gad by doing good? | Who should read this book? [think there are five main groups of people who are going to take the most value out of reading this book: nes ++ those with an interest in business who are looking for new ‘opportunities to improve end-ol-year returns a iving Gall Dog God «+ those working within, or hopiig to expand their knowledge of, corporate engagement ‘those involved in the charity sector as charity leaders or directors on not-for-profit (NFP) boards 4 those who call themselves philarithropists or who play ‘role in foundatjons that distribute money to charities and NFPs ‘+ social éntrepreneurs who love the excitement of building new business ventures while atthe same time benefiting others ACTION comes cuarity! In the following pages well explore how each ofthese groups stands to benefit from the case I'm going to make, Essentially, the book represents my observation and interpretation of those wha have worked within this space and have added immensely to their business or the company they work for and to their own personal wealth, and along the way have also managed to feed their soul, What ties them all together is that their pursuit of doing good has resulted in their soi god, an therein les the magic. ote create a RETURN ‘The book contains a collection of ease studies from public and private companies of various sizes who have adopted corporate social esponsibility (CSR) in the past but have jumped ahead of the pack in developing a new style. In most eases they have changed the course of their giving in order to create a deeper impact in the communities they are working with, and consequently they have seen a direct improvement to their business. The improvement they have seen may take the form of raised morale, deeper engagement, a tighter workforce, new ‘customers or increased brand awareness, and a number of these ‘companies have already seen inereases to their bottom line. But ‘what you will se is that many of these results were incidental to and not the driving force behind their change in community engagement, 1 should declare a personal interest in a number of the organisations I have profiled in this book, insofar as I have worked with them on a consulting basis to implement oF ‘overhaul their strategy for contsibution and engagement with the community. There are also a number of ease shidies from. ‘companies whose presence ot position T would love to fakeDein Gaby Den Gd the credit for bu sadly Fesinnot. The entrepreneurial vision of Blake Myconki, the founder and ‘Chie Shoe Giver’ at TOMS, i an obvious choice What Flove most about the work of TOMS s the sheer simplicity that ses the model worko effectively No messy formilas, no percentages from gross oF net profs ust te for one. Asa businessman Mycoskie has done Very nicely from his socal venture, and in my mind there is abwolutely nothing wrong with that. The community can only benefit by encouraging and applauding those who, like Mycoskie, bring ther shlls and vision to this sector, rather than losing then tothe corporate word Mycoskie dossn’t have all the answers to the problems in developing countries; he doesn’t pretend to. ss model the ‘nly one to follow? Maybe no, But there are several lion people n the cleveloping word wih, but for TOMS, would not fave shoes on thee fee today. And that has to be a good thing. Mycoskie was alvays going to be a huge success and make a stack of mone, gjven his eye for opportunities and ability to tum concept into realty, an the chen of Argentina, Nepal, Malawi, Kenya and Ethiopia are better off a a result of TONS ‘commercial success, If you have CSR attached to your job description, unless you are with quite a large organisation, there isa good chance this isnot your only role. You may also be wearing a marketing oF internal commisnications hat an CSR is just something the ‘executive teain thought should sit with yous when they looked for a home for it on the ong chart. Thei thinking reflects how they see it: 1's a nice thing to have in the organisation, but is ‘not sales, thats for sure. I's not operational It's the softer side of things’ Even those of you who ate working in a dedicated CSR role will probably have come from marketing, PR oF {internal comms, How does the fact that you workin marketing, for communications qualify you to make the best decisions on something that can be so important to the business, and has $0 ‘much potential ifthe resources are appropriately allocated? ‘You might rightly ask the same question of me. How does working in the forensic area investigating major erime for 20 years make me an authority on this? My answer i: the experience of setting up the intemationa aid organisation Hands Across the Water, a charity that now operates ie three countries and eases several milion dollars» yea for distribution to hundreds of children across various its in Trailand, And it's not so mach the estalishment ofthe charity as itis observing the success that has come fom creating ‘opportunites fr our supporters along the way to share inthe experiences. tm fortunate that I can travel on bth sides ofthe rad. As the founder and lederot the charity lee what ypeo! sponsorship, involvement and tlationships work best Tor the chai Contrary to popular belie just because you data seven figute salary of work for anintemational accounting firm, It dosent ‘mean you have all the answers for smal 1p mediumtaed NFP. Arecent comment in Te Ne York Times rom the head of a charity summed it up pretty ell get another volumes fm going t go out ofbsineas” Asa consultant uling hese Programs for businesses, understand what they are looking forand where th opportunities ie understand what is going to work with the charity and create Ising eatonshipe By Playing in both space sa bt like running withthe foxes and Fanting with the hounds The message What 1 hope that those working within the corporate of business wold il fom this fook the en tat hee another way’ of interacting with soy Its not wong or you trsiness fo benef fom the infraction ih face's dad Sight eter forall involved if you do bene commensal ram Your activites inthis space The position that Unilever Global has taken on bonnes froin and sustnable acts tat then 0 say the least has attached Hs sustainably gals tothe remuneration packages ofits senior management San Now tte compan thats ng estate mine oun ‘There are a couple of shifts I see tha are needed to move from the old paradigm of giving without any real expectation of return, other than publicity as a good corporate citizen, to theui aly Ding God new poradigmofintgiting shared ale into the busines. The fiat the recogni tha fal Bonfited exist and cn ive new busines apprtunit. The son, and pray mont Important or Alstaians, beng okay with saying an truke money out fou socal venture, When toxe words cn bespoke without drawing gasps or loks of disbelief round thevoom, we arp the wa Cand final slide we wont to make MONEY out of our seciol venture. ‘The message inthis book forthe charity and NFP accepting thoreis another way’ of doing hing. you dont accept change you wor't grow and you are tikelytsce your effectiveness and Inuence diminish ove ime Many charities, particulary those that have been around for some time fer have acepte the need to change and Continued to evolve in their operations, with their fanding eee ee attached tothe provision of Services, of are watching. thee tnarket share of the charity dollar Slip. further and further For Charis to grow or even survive insucha competitive marketplace they noe todo things diferent. ‘This means notsimpiy asking formoney: Dan Palla, charity founder and someone with strong views on how charities For charities to grow of ‘even survivein such ‘competitive marketplace they need to do things shiferently. should spend their dollars, believes that people actually want tocontribute and reach ther full potential. And the traditional support of charities through the donation of a portion of people's income is not coming close to tapping the potential. I spend a lot of my time in front of other charities of small to medium size who want to know how we at Hands have successfully captured our share ofthe marketplace. Usually my advice can be simplified to these points *+ Create an experience to bring your supporters closer to What you are doing. ‘+ Ensure you tel the story of what you are doing and the dlifference you are making, and inspite them sufficiently to ‘want to tel your story ‘+ Help your corporate partners ta find a way to maximise their investment in your charity. 1f should go without saying —but I'l say it anyway—that if charity already has the hear, mind and wallet ofa supporter, it ‘willstand to benefit ifthat supporter ean improve ther business through the relationship. If charity leaders are better educated about why business would want to engage with them and how their partners can profit from the experience, then the power in the relationship will shift towards one of equal footing, Rather than sending off your founder or chief fundraiser to ask for ‘more ikea growh-up Oliver Twist, enable your charity lenders to bring value tothe table. A lot ofthe lessons in this book are rot rocket science; in fact, none are based on science on any level at all. Rather, they are based on the concept of shared value and looking to create mutually beneficial relationships. The book will provide the charity leader with a road map for helping their partners to find rewards in the way they give ad tomeasure their returns, Charity boards seldom have the same pressure to perform as a commercial board does. The shareholders of a company have skin in the game, they have a voice and they have a vote. They ‘expect the directors on the board to perform and bring them a relum, or they are out the door. The expectations on a charity board, while not insignificant, are different and generallyain ody Osage tess onerous. They are seldom held fo account in the way a ‘Sect Wo oes wth thi re lane {SSTvel of complastney, an acceptance ofthe status quo and a retancetochange, As US water Seth Godin putt Ityou are ‘not upsetting people you are not bringing about change’ “Too often directors op charity boards lac the necessary level fcompetence, hold thee postions well beyond thei help fate The bounds of cartes eed t be challenged in their expectations that people Gannon will donate because they have in Charities need.to challenge the past or that they should get thestatus quo, they need SP ey g services for nothing because they are a charity, ignoring the well known truism that ‘you get what you pay for’. Charities need to ‘Challenge the status quo, they need to provide value on both sides of the equation—for those they are supporting and for those who are funding them, There needs tobe an enhanced level of shared value fr sustainable growth. foprovide valve on both Fido the equation for thowe they are supporting tnd for those who are fading them Dreamers of the day Ifyou asked me what L would tke to do “when I geow up’ the anower would be to sit atthe head of a large foundation that makes grants to chartes and NEPs. Whats the attraction in that? Ieee huge opportunities within those foundations dive Change inthe chat sector Tete would be serious incentive {o implement change ifthe bankers ofthe charities attached Productivity change to thelr dollas—not through impesing Exrctions, but through paying bons forthe implementation ff chonge progeamsthat will rive shared value, Accessto grants from many foundations fs bya process of ering out charities bad upon a diminishing criteria, The criteria wil often start With the need for deductible gift recipient (DGR) status, then they might include the requirement that those charities who receive the funds only support Austallan ehildren ving in url areas that come from single-parent homes, are under the age of 12 and have slow attendance rate at school. They are clear on who they want to support and on the projects they want to support. Many also require the provision of reports on how their money is spent. But very few look atthe effectiveness of the charity or NFP or at how change to that organisation could see the better utilisation of many donors. ‘A case in point is the annual Failure Report’ produced by the NGO Engineers Without Borders, The name ofthe organisation ‘makes it lear what it does andl where it works. This insightful report looks at what it has done (nothing nevr there) and also what didn’t work. It then looks atthe lessons to be learned and makes recommendations for next time. Ifa wonderful honest and courageous document and so refreshing to read, [An interesting report from Enginoers Without Borders that speaks to ths point concerned funcling fr the implementation of a water project in an underdeveloped area. The funding was to a Canadian group and was for the installation of a water system—specifically, anew system, While they were installing the water system, they were stepping over and removing the US-installed system that had broken down, The water would be drawn from the same source and delivered to the same community via very similar technology. The report found that fora fraction ofthe cost ofthe installation of thenew system they could have made repairs to the US system that aleady serviced the community. They could not do that, however, because the funding conditions did not allow for maintenance or repairs but only for the installation of a new system. It didn’t make sense to those on the ground and still doesn’t make sense. Isa clear example of a donor determined to take sole credit and showing, inflexibility in the use of their funds. It also shows where the Power lies. Not equally between donor and NGO, not even ‘lose. My point is that if those at the foundation level choose to form a partnership rather than believing that because they have: the money they should make al the decisions, the foundation's ‘or donor's money could be more efficiently utilised. The final group I see deriving real value from this book is the social entrepreneurs. These individuals may have worked in a dozen different jobs, following three or four diferent ‘careers by the age of 25, but haven't yet taken contol ofthe company i