Chapter Six - Analysis

‘ENHANCING BUSINESS COMMUNITY RELATIONS’
NATIONAL RESEARCH REPORT

BEIRUT, LEBANON, MARCH 2003
CHAPTER SIX - ANALYSIS

6.1 - ‘SWOT’ analysis of business community relations in Lebanon
6.2 - The business case for social responsibility

6.2.1 - Social responsibility and community involvement make very good business and
economic sense…
6.2.2 - Benefits of Corporate Social Responsibility
6.3 - The business case for corporate volunteerism

6.3.1 - Corporate Volunteerism and its potential in Lebanon
6.3.2 - Benefits of corporate volunteerism
6.3.3 - Is Corporate Volunteerism really volunteerism?
6.4 - Partnerships… a more effective way to community involvement
6.5 - Measuring the return on investment
6.6 - Communicating community initiatives
78
This document is the property of UNDP/UNV and the New Academy of Business and cannot be used without prior written approval
The views expressed in this article are those of the author and do not necessarily reflect those of UNDP/UNV or the New Academy of Business
CHAPTER SIX -ANALYSIS
As mentioned in the introduction of this report, although Lebanon’s human development ranking is amongst
the highest compared to other countries participating in the ‘Enhancing Business Community Relations’
project, the country is not the most advanced and/or effective in the business community field. This could be
attributed to many internal and external factors. Some of these were outlined earlier in this report, especially in
the ‘Country Profile’ chapter. Could Lebanon overcome some of these and become as advanced as some
other countries in the business community field? To assess, a ‘SWOT analysis’ will be used to list Lebanon’s
strengths, weaknesses, opportunities and threats in this field. This analysis will be complemented with many
recommendations in Chapter seven.
Throughout this report, several weaknesses were noted. Some of these can be overcome with enhanced
education and awareness on the field. As a result these recurring themes were grouped, and will be further
developed in this chapter. The first section of this chapter will start off with a ‘SWOT’ analysis to provide an
overview and summary of the state of business community relations in Lebanon. The ‘SWOT’ analysis will be
followed by two other sections that will outline the ‘business cases’ for social responsibility and corporate
volunteerism, since one of the major findings that may be impeding the advancement of the field in Lebanon is
that many sectors and especially businesses do not understand why social responsibility, specifically strategic
community involvement and corporate volunteerism make very good business and economic sense.
Furthermore, apart from not having a strong knowledge of the business case, stakeholders were also not
accustomed to working together as partners for development. Therefore, the following section discusses the
importance of partnerships along with their risks and benefits. The last two sections also tackle some issues
that companies and other stakeholders had a misunderstanding of: Measuring and communicating community
involvement.
Overall, the ‘SWOT’ analysis outlined in the first section (Section 6.1), shows that with many internal strengths
and external opportunities, Lebanon is in a good position to develop further in this field. Although many
weaknesses are outlined, these can be controlled and slowly overcome in the future. What is needed is an
effective and neutral center to link businesses and communities together and to take all the strengths and
opportunities a step further in order to make a positive change. This recommendation is explored in detail in
Chapter seven. The change that is foreseeable in the future is in the form of an enhanced level and type of
community involvement, and possibly some quantum and very slow internal corporate change in ethical,
human resources and governance practices, to eventually achieve corporate social responsibility within
companies over the long run.
79
6.1 – ‘SWOT’ analysis of business community relations in Lebanon
SWOT ANALYSIS OF BUSINESS COMMUNITY RELATIONS IN LEBANON

STRENGHTS WEAKNESSES
Lebanon has a strong philanthropic culture, and The lack of availability of a well – established business
many Lebanese businesses, employees, media community centre is a weakness and limits the development
agencies, etc. have a strong belief in the role they of the field in Lebanon
can play to enhance their communities. They also
have the will and the receptiveness to make a
change in their community.
Many business owners in Lebanon are either There is weak knowledge of the ‘Business Case’ for social
political and community leaders or are affiliated with responsibility as well as the strategic importance and added
such public figures. Given their strong interest in value of community involvement. As a result, many companies
their own communities they tend to actively engage continue to behave in a manner that is not consistent with
in supporting causes that enhance their social responsibility and continue to engage in the community
surroundings and regions. in a non-strategic manner.
The fact that the majority of companies in Lebanon There are weak implementation structures of corporate
are small and family owned can be considered a community involvement, since some companies lack a clear
strength, since SMEs have easy access to contacts, strategy, process, and measurement system for implementing
and are placed closer to their communities and their community initiatives.
hence are able to know the community needs
better.
Different sectors of the Lebanese society have very limited
trust for each other and tend to work individually instead of in
partnership. As a result, the majority of community projects in
Lebanon are of a philanthropic nature without concrete
involvement on behalf of organizations in the form of
volunteerism.
Companies and other sectors in Lebanon do not have many
incentives in the form of tax deductions, awards, etc, that
encourage them to become more engaged in their community.
The lack of concrete plans to have these in place in the near
future is a weakness and limits the development of the field
OPPORTUNITIES THREATS
An opportunity exists to build on the awareness, The current political situation in the Middle East and in
momentum, know-how and leaning tools that are Lebanon has not been stable enough to encourage
currently available and can positively impact the companies to place emphasis on their level of strategic
field. (e.g. this national research report and the case community involvement. Should it continue in a similar
study book) fashion, it will be a threat to further develop business
community relations
Lebanon is currently facing many development The economic situation in Lebanon has also caused some
challenges and the private sector has ample room constraints for organisations to survive, let alone engage in
to step in and contribute to enhancing their their community. Should this continue, it will pose a threat to
communities and ultimately the economy. the development of the field.
A business community centre is in it is early stages The majority of companies in Lebanon are Small and Medium
of development and could be a great potential to Enterprises (SMEs) and do not have the human or financial
advance the field in Lebanon. resources to engage in community practices. This poses a
threat to the development of the field.
With an increased level of privatisation in Lebanon,
new private sector organisations can become
actively engaged in their communities.
80
6.2 – The business case for social responsibility
6.2.1 - Social responsibility and community involvement make good business and economic sense…
As mentioned earlier in the report, most management in Lebanon, still do not fully recognize the strategic
importance of social responsibility and the value-added that strategic community involvement programs yield.
Many, are also still not capable of turning community relations into a source of competitive advantage. Some
of the reasons why this was concluded, include the fact that the majority of Small and Medium Enterprises
(SMEs) in Lebanon have traditional management styles, and view such issues as cost centers and a low
priority item on their agenda. Many base most of their business decisions on potential short-term returns or
profits. This mentality was strengthened during the war, since many businesses lost all their revenue and in
some cases, their premises, and therefore, as they re-established their operations, they became only
concerned with short-term returns. As a result, many currently adopt the attitude: ‘Lets make a living for
today…and we will worry about tomorrow later’. This attitude is reflected in the fact that most SMEs in
Lebanon do not have mission and vision statements, and business plans.
The fact that businesses focus more on the short-term output can also be reflected in the way they handle
their human resources practices as was highlighted earlier in the findings section. For example, they rarely
invest in upgrading their human resources practices, such as increasing their employees salaries, or providing
them with training for enhanced career prospects. This mentality is influenced by external factors among them
the readily available pool of unemployed individuals that can easily replace existing ones. Similarly, many
companies do not know how to make community involvement strategic for their business. As a result, their
decisions on community projects are either based on emotions, or quick returns. This attitude is very different
from that of companies in other developed countries that have for example, made a commitment to make
huge investments to upgrade their environmental practices, with the vision that they will slowly recover such
investments in the future, while making a more positive impact in their community. Why the big gap in this
type of thinking between companies in developed and developing countries? Could this be due to the fact that
in a country like Lebanon, businesses face many economic challenges that companies in other countries do
not face? Could it be that that the majority of companies in Lebanon are SMEs and lack the financial and
human resources, while those in other countries are not? Regardless of the reasons, it is important for
Lebanese companies to start by adopting this attitude at least by having a good understanding of this
‘business case’, and by slowly applying that, with the hope that through such responsible actions, they can in
the future make a better impact on their business.
What was discussed earlier was realized by many leading businesses worldwide, as social responsibility has
become a strategic imperative, not only a value added option. According to research done by Business for
Social Responsibility: ‘Producing safe goods and services that customers want to buy and doing so profitably
and within the law, form the crucial basis for being a good corporate citizen. Without this, business can offer
little else to society over the longer term... Over the past decade, largely as a result of changing societal
expectations of business and the challenges of operating in new markets, these factors have become more
important drivers that can either enhance or undermine a company’s financial performance.’1 Another report
further confirmed this by stating: ‘For many companies, managing corporate social responsibility well is no
longer seen as an extra cost or burden on hard-pressed management. Rather, it is increasingly viewed, not
only as making good business sense but also contributing to the long-term prosperity of companies and
ultimately its survival. Being a good neighbor and showing that you care on the one hand and being a
successful business on the other, are flip sides of the same coin.’2
1
‘Corporate Social Responsibility’, White Pages, Business for Social Responsibility, www.bsr.org
2
R. Holme and P.Watts, Corporate Social Responsibility: Making good business sense, January 2000
81
In addition to not realizing the ‘business case’ for social responsibility, many do not realize that such actions
also make good economic sense. What is the link between social responsibility and economic growth? Social
Responsibility drives economic growth, and economic growth brings about business growth. For example,
when companies become involved in the community, they enhance their business operations and reputation.
They also make a positive contribution to their community. As they enhance the living standards in the
community, especially the poor, they ultimately enhance their own businesses since the community they
support, will be better able purchase their products/services in return. In a sense, this drives a cycle of
sustainability where by doing good, businesses benefit themselves. This concept was touched on, in a report
by the World Business Council for Sustainable Development, which stated that ‘The primary duty of
companies must be to meet market needs through the efficient and profitable use of resources, thereby
preserving and expanding the invested capital of shareholders, while taking into account the interests of a
broader set of stakeholders. Efficient allocation of resources is what drives economic growth, and economic
growth is what drives improved living standards.’ 3
Having said all the above, business cannot afford to ignore the wider social, economic and environmental
impacts of its activities, both positive and negative. Nor can it ignore the wider challenges faced by
governments in terms of investing in human development, infrastructure and institutions, both national and
international, that help to create a sound enabling environment and healthy societies. By supporting
governments, inter-governmental organizations and civil society in creating such an enabling environment and
building such societies, business will prosper over the longer term. ’Failure to develop these new approaches
and failure to gain and sustain public support for globalization may seriously undermine progress on trade and
investment. This in turn may undermine not only business opportunities and economic growth, but also the
potential to reduce poverty and to invest in environmental sustainability.’4
The following section will outline the many benefits of behaving in a socially responsible manner, and also
provide an explanation on whether such benefits that have been based on research in developed countries,
can be applicable to a developing country like Lebanon.
6.2.2 - Benefits of Corporate Social Responsibility5
According to report ‘Meeting Changing Expectations’ by World Business Council for Sustainable
Development: ‘Concern is sometimes expressed that Corporate Social Responsibility has no clear business
benefits and could destroy shareholder value by diverting resources from core commercial activities. As a
result, many in business are worried that businesses will be persuaded to take on social responsibilities that
should be handled by government and individuals’6 However, should these responsibilities be handled only by
the government and individuals? What would happen in the case of a country like Lebanon that has gone
through war, which deteriorated economic conditions and limited the government’s ability to fully handle such
responsibilities? Don’t companies have a role to contribute to community development as well?
As mentioned earlier, social obligations should not be seen as just another cost. According to the above-
mentioned report: ‘A coherent Corporate Social Responsibility strategy, based on integrity, sound values and
a long-term approach, offers clear business benefits to companies and a positive contribution to the well-being
3
P. Watts and L. Holme, Meeting Changing expectations, Corporate Social Responsibility, World Business Council for
sustainable development
4
Corporate Social Responsibility’, White Pages, Business for Social Responsibility, www.bsr.org
5
Benefits listed are taken from various research papers mentioned in the ‘Sources used’ appendix
6
P. Watts and L. Holme, Meeting Changing expectations, Corporate Social Responsibility, World Business Council for
Sustainable Development
82
of society; It provides an opportunity to demonstrate the human face of business.’ 7 ‘By combining social
action with good community relations, companies provide solutions to social problems, strengthen the local
economy, build goodwill towards their companies, and achieve business goals.’8
Research has proven that business-community relations provide immense benefits for everyone involved
businesses, employees, and the community. Such research has shown that 81% of consumers agree that
they are more likely to buy a product or service that is associated with a cause they care about, price and
quality being equal9. In addition to this, through behaving in a socially responsible manner and making
strategic investments, companies can in many cases achieve the following:10
Enhance their brand image and reputation;
Strengthen relationships with all stakeholders through ongoing interaction, which leads to better understanding of
needs and preferences of customers, employees, the community etc.
Strengthen employee skills, loyalty, commitment, morale, retention, and performance;
Enhance the ability to attract more talented and motivated employees;
Improved prospects for long-term financial and organizational success;
Increase attractiveness to investors;
Avoid risk associated with malpractices;
Create healthier economic and social environment to operate in
Increased advocacy related to volunteerism and other developmental topics, leading to a bigger pool of
companies willing to collaborate with the community.
To what extent are these benefits applicable in Lebanon’s case? The lack of availability of measurement
systems of community involvement in private sector companies (see section 6,5) and lack of availability of
research in that field make it hard to make such an assessment. However, based on the understanding of the
field in Lebanon, a generalization can be made for the purposes of this report. In many cases, the above-
mentioned benefits are definitely applicable to the Lebanese market, and in some cases they are not. For
example, few benefits that were indicated such as: ‘Enhance their brand image and reputation’ and
‘Strengthen relationships with all stakeholders, etc…’ are definitely applicable, while others such as increasing
attractiveness to investors may not be as much, since the majority of companies are small and family owned
and are not interested in attracting investors. In addition, according to the latest human development report:
‘foreign direct investment has been very limited in the past years’11 To provide another example, one of the
findings which states that such programs enhance the ability of a company to attract more talented and
motivated employees may also not be so applicable in Lebanon’s case, since there exists a huge pool of
unemployed individuals in the market, who are longing to find employment in order to survive, regardless of
whether the companies they apply to, behave in a socially responsible manner or not. In conclusion, since
some of these benefits do not fully apply in Lebanon’s context, should companies still make the effort and
behave in a socially responsible manner? The answer to this lies in the hands of Lebanese business leaders,
and the hope remains in the fact that they make sound business decisions based on vision and a long-term
outlook. If they do, they will eventually realize that they cannot do without behaving in such a manner.
Apart from not recognizing the business case for social responsibility, many companies also did not recognize
the case for Corporate Volunteerism. The following section was written to provide more understanding of this.
For information on how to establish community involvement programs, kindly refer to section 7.2.1 and 7.2.2
7
8
K. Smitt, ‘Engaging Employees in the Community; Volunteer Canada
9
http://www.bitc.org.uk/marketing.html
10
Benefits listed have been summarized from various sources. For more information, please refer to the sources used
Appendix
11
2001-2002 National Human Development Report of Lebanon, UNDP, p.50
83
6.3 – The business case for corporate volunteerism
6.3.1 – Corporate Volunteerism and its potential in Lebanon
Corporate Volunteerism (CV), which is a subset of corporate social responsibility, generally refers to
employees who are involved in volunteering activities through their workplace. This concept began to emerge
through programs around 20 years ago.12 In some cases, employees volunteer for causes that are in line with
their corporation's social strategies, and in others, they serve causes that are most popular in the organization
as determined by employee volunteer interest surveys. Activities can be done in an individual or group basis,
and can range from one-day activities, to long-term projects, leading to sustainable partnerships.
Many employers support their employee volunteers through various means such as giving them paid time off;
allowing the use of company resources for their volunteer work; offering secondments and development
assignments, and by encouraging them to serve on boards of NGOs; They can also offer flex-time, whereby
employees have more flexibility in their working schedule to perform volunteer work, or shared-time, which
matches their volunteer hours. Companies can also assist their employees financially while carrying out their
volunteer activities such as providing monetary grants, incentives or gifts to the projects or organizations they
serve. In efforts to demonstrate commitment, increase the strategic significance of their community-based
activities and draw more upon the competencies of the organization, many businesses have introduced
‘corporate volunteer programmes’ or ‘employee volunteer programmes’ These are plans that enable firms to
match the volunteer work conducted by employees more effectively to the strategic goals of the business and
to the competencies of its employees. ‘13
As mentioned in the findings section, What is a Corporate Volunteerism Program?

corporate volunteerism has not been a very A corporate volunteer program is a company-supported
popular field in Lebanon, with only a few effort to leverage organizational resources and engage
organizations having a well-established employees in projects that target real community needs. 14
program. When asked for reasons why
companies do not engage in volunteerism, Corporate volunteerism is a significant element of many
most mentioned that since they are very companies' efforts to demonstrate their commitment to the
small, they are unable to commit their communities in which they operate. In recent years, as
employees to take time off work to support companies have chosen to extend their efforts beyond
the community. The fact that the majority of traditional philanthropy, volunteerism has become 15
a key
companies in Lebanon employ less than 10 part of companies' social investment programs.
employees poses a challenge for the development of the corporate volunteerism field in Lebanon – Perhaps a
challenge that is not experienced as much in other developed countries, especially those that are leading this
new movement. In line with this, the majority of companies were quite surprised that volunteerism can actually
be done on behalf of the organization, since they believed that volunteerism is mainly done on an individual
basis.
The encouraging thing is that many companies mentioned that they would be interested in implementing such
programs if they were provided with some guidance on how to do so. Moreover, when interviewing employees
in some companies, they confirmed that they are very interested in volunteering, but did not know where to go
12
‘Volunteer Connections’, Volunteer Canada, 2001
13
New Academy of Business
14
http://www.pointsoflight.org/organizations/corporations.cfm
15
http://www.bsr.org/BSRResources/WhitePaperDetail.cfm?DocumentID=158
84
for guidance, since Lebanon does not have a well-established volunteerism center. What can be noted from
this is that businesses do not also realize the ‘businesses case’ for corporate volunteerism. As a result, the
following section will be dedicated to highlighting the benefits of such programs. Due to the effectiveness of
such programs, this idea will be further developed in the recommendation section, since the development of
this field is highly recommended for businesses in Lebanon. The fact that many employees are interested to
volunteer and many companies are open to the idea, form the basis for establishing successful programs in
Lebanon.
6.3.2 - Benefits of corporate volunteerism
Due to the effectiveness of corporate volunteerism initiatives and the proven benefits and impact that such
programs bring to companies, employees and communities, corporate volunteerism has become one of the
most important aspects of corporate community involvement and corporate social responsibility. As a result, it
is being aggressively promoted by private sector organizations and NGOs worldwide.
Companies nowadays are increasingly looking at their community involvement activities from a strategic
perspective - harnessing a portfolio of financial and non-financial resources to meet targeted community
involvement goals - and volunteerism is seen as a key part of the mix. Such companies are finding that their
"investment" in volunteerism - whether by giving employees paid or unpaid time off to volunteer or by
contributing additional finances or resources - often can yield a high rate of return in the form of both
community and business benefits.
Most of the benefits brought about by such programs were mentioned earlier in the ‘business case’ for social
responsibility. What distinguishes corporate volunteerism from other forms of community involvement is that
this type of involvement provides a ‘medium’ for employee development and ultimately enhanced human
resources practices and market leadership. Corporate volunteerism increases interaction between employees
in various departments and levels of the company, and ultimately makes important contributions to
employees’ personal and career growth through developing and enhancing their skills such as employee
leadership; teamwork; confidence; and social and interpersonal skills. According to the ‘Leadership
development through corporate volunteerism’ report16: ‘companies recognize the increased importance of
leadership development in light of new business challenges; yet, old methods for training employees such as
instructor lead training continue to be used. Evidence of the benefits of experiential learning supports the
superiority of this method. This experiential and innovative approach is: leadership development through
volunteerism, whereby the community offers a rich classroom for learning.’ On the community level,
community volunteerism creates opportunities for new forms of dialogue with companies and other
stakeholders and increases talent and energy in the community by increasing the pool of volunteers available
Although all the above-mentioned signify that corporate volunteerisms is great, some stakeholders actually
had reservations about this type of involvement, because they felt that companies can easily use this medium
of community involvement for their own personal interests, which brings about some interesting questions.
Given that businesses actually receive many benefits in return for their community engagement, are they
really a good agent and partner in community development? In line with this, is Corporate Volunteerism really
volunteerism? The following section will provide some opinions.
16
‘Leadership development through corporate volunteerism, National work-life alliance,
http://worklifealliance.org/tools/volunteer/iindex.cfm
85
6.3.3 – Is Corporate Volunteerism really volunteerism?
By definition, volunteerism is ‘an act that must benefit someone other than the volunteer’17 (or business in this
case). For some, this definition supports their decision that corporate volunteerism is not really volunteerism,
since businesses receive a lot of benefits in return for their community initiatives, which ultimately lead to
financial returns (e.g. through publicity, enhanced reputation and employee productivity, which can all be
measured monetarily). This argument however may in some cases also go against the principles of
volunteerism. For example, is an individual volunteer who benefits by enhancing his/her skills, and gain
contacts through voluntary activities, not really a volunteer? Although such benefits are not monetary, they
ultimately allow the volunteer to increase his/her potential to receive financial returns in the long run. Despite
this, the individual is considered a volunteer. Similarly, those who believe that corporate volunteerism is
indeed volunteerism, support their argument by claiming that as long as such activities are not done with the
primary interest for financial returns, they can be considered volunteerism.
Whether for or against, this argument, opens grounds for the real value and importance of social responsibility
and corporate volunteerism, which calls upon companies to see beyond the short term and financial returns of
such actions. As better expressed in the ‘Enhancing Business Community Relations’ report tin the Philippines:
‘It is important to note that as businesses see and value the overarching commonality between themselves
and other social players, they become open to the concept of equity among stakeholders. They will then not
only see gain for the financial bottom-line, but will recognize other gains as well. These gains become the
basis for the business case for social responsibility. The recognition and valuation of benefits not traditionally
associated with business but are naturally recognized by other sectors become the basis for development of
partnerships between the two. When these other gains are valued and proactively pursued without mind of the
profit gain, business may become an appropriate agent/partner in a volunteering effort.’18 The following
diagram further highlights what was just explained.
Conceptual framework for business as development partner and volunteer agent (stakeholder)
Business
view Strategic Primary strategic
Recognition of Recognition and recognition, valuation of non-
common interest valuation of the triple valuation and traditional benefits
between bottom line benefits pursuit of non- (social
business and it (social, environmental, traditional benefits environmental) to the
is stakeholders financial) to business (social, business vs. the
environment) financial bottom line
Business
involvement Stakeholder Community relations Development partner Volunteer partner
Corporate Citizenship
According to the above-mentioned report, ‘This paradigm entails that a collaborative and supportive view is
maintained by other stakeholders as well. Therefore each stakeholder becomes responsible for maintaining a
collaborative and supportive view for and each other and volunteerism maybe employed by any stakeholder
towards the maintenance of such a relationship/partnership. Without such an environment, the volunteer
partnership is not sustainable.’19 Such partnerships among different sectors are key to sustainable
17
United Nations Volunteers
18
C.Nuguid, ‘National Research Report- Enhancing Business Community Relations’ Philippines, 2003
19
C.Nuguid, ‘National Research Report- Enhancing Business Community y Relations’ Philippines, 2003
86
development, and without them, business community relations will remain at the level of sponsorships that do
not yield many of the benefits that were outlined in earlier in this Chapter. In Lebanon, businesses still have
not mastered this concept, and as a result, the following section is dedicated to outlining the power of such
partnerships. For information on how to establish corporate volunteerism programs, kindly refer to section
7.2.2 of this report.
6.4 –Partnerships …a more effective way to community involvement
A message from the United Nations Secretary General about partnerships…
“In today’s world, the private sector is the dominant engine of

growth – the principle creator of value and managerial
resources. If the private sector does not deliver economic
growth and economic opportunity-equitable and sustainable- Business
around the world, then peace will remain fragile and social
justice a distant dream. (…) That is why I call today for a new Community
partnership amongst governments, the private sector and the State Civil Society
international community.”
Kofi Annan Secretary General of the United Nations
‘Partnership is not the first word that comes to mind when business and community groups are mentioned in
the same breath. Originally, the relationship between the two parties is founded, based and reinforced around
conflict. This began to change in the early 1990’s when
the emergence of the business- community partnership What is a partnership?
phenomenon began to offer new hope for building ‘A partnership is an alliance between
consensus towards global sustainability’.20 A decade organizations from two or more sectors that
ago, community related partnerships both locally and commit themselves to working together to
globally were limited, focusing primarily on philanthropic undertake a sustainable development project.
donations (cash and in-kind products) or corporate Such a partnership undertakes to share risks
sponsorships. Currently, in Lebanon we have reached a and benefits, review the relationship regularly
state where donations are not only relatively old and revise the partnership as necessary.’
fashioned, and less effective than partnerships, but also,
in a sense, are akin to taking the easy way out and The Guiding Hand, Brokering partnerships for
reinforcing the individualistic culture we are already sustainable development
deeply immersed in. We all share common needs and Ross Tennyson and Luke Wilde
problems, and that is what makes humanity whole. A
whole that needs to come together regardless of what sector we fall under. Otherwise, if all we ever do, is rely
on what has been done before us by keeping up with the habit of traditional philanthropy, then we would be
lacking innovation, hindering improvement and inhibiting a fresh perspective on things.
Globally, things started to change drawing the focus on and around partnerships and away from traditional
sponsorship. The growing interest on community partnerships has been due to a culmination of factors, but
mainly due to the realization that strategic partnerships yield many more effective results to everyone
involved: businesses, employees, communities, etc. As a result, nowadays, companies are taking an
increasingly active role in the communities where they operate, and recognize that social and environmental
20
In the Company of Partnerships, David F. Murphy and Jem Bendell, 1997
87
responsibility is no longer an option, but a self-enhancing imperative. They are forming partnerships with non-
profit organizations, government agencies, and other stakeholders to fulfill a wide variety of community needs.
These partnerships reflect a newfound understanding of the limited resources of governments and community
service organizations to address specific issues. They also reflect a growing realization that individual
entities- governments, nonprofits and businesses – which traditionally acted independent of one another - can
create powerful synergies when working together for common interests and concerns.
Why partnerships?
The partnership strategy is considered the most evolved
paradigm for engagement, as it is founded on mutual ‘Because the current challenges the current
respect, understanding and agreement as well as challenges are far too complex for one for
equitable (as opposed to equal) sharing of benefits and individual sector to deal with and resources
risks among all players, including business. It stands as are limited. By pooling resources one can
the most effective means of ensuring development as it achieve more and gain long-term
ensures ownership and commitment among all partners. sustainability.’
In an environment wherein these aspects are not present J. Parr ‘UNIDO partnership with private
and cannot be introduced, a partnership cannot properly business report.’
ensue or may not be the most appropriate strategy. In an
environment where these aspects are lacking but can be Risks and benefits of partnerships
built, building the capacities of all potential partners to
Benefits Risks
share risks equitably becomes part of the partnership
More efficient use Possible lack of commitment
strategy. of financial and involvement on behalf of
resources one or more of the partners
Such partnerships, which take time and skill to develop, Expanded contact Possible clash between various
typically involve both a benefit and a risk element to network partners resulting from different
companies, but the benefits usually outweigh the cultures, motives,
challenges. Examples of these risks and benefits can be backgrounds, etc.
found in the table on the right hand side. However for Information Lack of motivation and
such partnerships to be beneficial they need to be sharing and enthusiasm due to amount of
implemented through a well-structured process (See learning among time to view tangible results
partners and benefits
section 7.2.3) and through and effective partnership
Enhanced trust Lost independence for the
broker (See text box below for the role of a partnership and goodwill in initiating agency or other
broker) that is capable of making such benefits a reality. local communities partners
Greater impact Possible lack of communication
Although it can be challenging to maintain motivation and and sustainability channels, processes, realistic
enthusiasm, especially if positive results do not happen in the community objectives, etc.
quickly, partnerships often result in a spirit of sharing and Enhanced Possible abuse resulting from
cooperation. A few businesses in Lebanon have gratefully creativity in one partner using the other’s
realized this. The implementation of the ‘Go Green’ project execution name, contacts, logo etc. in a
partnership that was described earlier in Chapter five is an negative manner.
example of such a partnership that was developed purposely in a manner to promote multi-stakeholder
cooperation
Role of the partnership broker…
Carries responsibility for the process of building a successful partnership and securing its effective
. functioning over the long term.
Supports the partners in designing and implementing the project that they agree to undertake.
Acts as an intermediary and builds collaboration between the partners
Inspires others in the initiating organization and the partner organizations to follow the partnership
approach
Encourages the adoption of behaviors to help the partnership to function effectively and grow.
Protects the principles and vision of the partnership.
SourceThis
(The Guiding Hand, Brokering partnerships forAcademy
sustainable development, Ross 88
document is the property of UNDP/UNV and the New of Business and cannot be usedTennyson
without priorand Luke
written Wilde
approval
6.5- Measuring the return on investment
The presence of measurement systems remains to be a challenge for many organizations worldwide, and
especially in Lebanon. Across the country, very few companies have invested time and/or financial resources
to assess employees, customers, or even community members’ opinion on the company’s social programs. In
addition to this, very few companies have even developed indicators or benchmarking tools.21. The lack of
such tools poses a problem because had this been done, companies might have been able to realize in some
cases that the benefits of social responsibility and community involvement outweigh the investment
undertaken. Another problem is that the lack of measurement systems undermines the ability to determine the
feasibility of planned initiatives, track competitiveness or leadership positioning, and / or implement change
within a given organization.
Around the globe, some benchmarking tools are currently being used to assess the impact of community
involvement on various stakeholders. The London’s Benchmarking Group (LGB) model, which measures the
impact of three main types of involvement: charity donations, social investment and commercial initiatives is
an example of such a tool. Used by a Britain’s major telecommunications company, British Telecom, this
model provided the company with better measurement of community contributions; enhanced communication
and reporting of community involvement; improvements in internal management, and more effective cross
company comparisons. 22
Since measurement is very much linked to, or can lead to effective reporting, it is interesting to note how
Lebanese companies have done in the past when it comes to social reporting as further outlined below
6.6- Communicating community initiatives
Communication of community initiatives is a very important and critical factor in the overall community
involvement process, as it can make a big difference in the success of a project. However, as mentioned
earlier throughout the report, many Lebanese companies keep their community contributions low profile. The
majority does not have social reports and do not communicate their projects in an effective manner.
In line with the above, many companies confuse communication with publicity and mainly rely on the media
for visibility as opposed developing comprehensive internal and external communication programs. This has
caused different stakeholders to believe that companies use community initiatives as an excuse and medium
for publicity. Since the field is only emerging in Lebanon, many stakeholders have not grasped the idea the
return on investment through publicity is only a very small aspect of the many other benefits that are usually
brought about by social responsibility and effective community engagement.
But is publicity of community involvement and social responsibility practices good or bad? Seeking publicity
can be both good and bad, depending on how it is done. Companies, who believe that they can use
community initiatives as a way to get publicity, will be disappointed, since such efforts will only yield short-term
benefits and eventually the public will see right through their motives, which will cause all their efforts to
backfire. A report called ‘Making good business sense’ confirmed this by stating that: ‘It is important to
recognize that partnerships for the sake of publicity undermine credibility and dilute the effect of valuable
21
Benchmarking is a performance management tool to measure operating performance against a set of indicators or
standards for the purpose of improving current practices, gaining competitive advantage and achieving sustainable
development of business operations
22
Companies in Communities, Valuing the contribution, David Logan and Michael Tuffrey, 1999
89
collaborations. Partnerships that provide cover for inaction or have dubious objectives will sap peoples’
energy and waste time and money’23 On the other hand, those who engage in the community out of sheer
conviction for their role in development, and understand that such publicity is only one of the many benefits
that are brought about by behaving in a socially responsible manner, might be very pleased with the outcome.
If they behave in such a manner, they deserve a lot of credit from the media and the public for their support.
After all, companies who sincerely try to do good for others by committing their human and financial resources
deserve to receive good themselves.
It is important to note that for such publicity to be effective, it should

be complemented by concrete actions that reflect the company’s ‘CSR is not a cosmetic; it must be
internal and external relations and a full communications plan. Such rooted in our values. It must
communication is not only important for companies, but for media make a difference to the way we
agencies, government institutions, NGOs, etc. One form of do business.’
communication that has gaining increased popularity worldwide is
social reporting. The report ‘Making good business sense’ provides P. Watts, ‘Making good business
more input on this, by stating that: ‘Published corporate social reports sense’
are, with a few exceptions, a relatively new phenomenon. Companies’
experience in the parallel field of environmental reporting suggests that there are important internal benefits to
be derived from the process of preparing and disseminating reports to both internal and external audiences.
Primarily, reports are a tool to help companies convey how their business is being managed effectively. Social
reports also signal to managers and employees that their company takes its social values and policies
seriously.’24 In addition to this, social reports allow companies to reflect on and evaluate their initiatives in the
process, and to document successful practices, which in turn might inspire other organizations to get involved,
thus bring about more initiatives and enhance a cycle of sustainability.
To conclude, it is important to note that real progress for sustainable development can take place through
effective communication and collaboration among all sectors of society. This can be summed by the following
quote from the ‘Good News and Bad’ report: ‘In our view, strategic communications will be a critical asset for
any organization-be it from the public arena, the private sector or civil society in the years to come. We
believe communications can play an important role in dispelling confusion, resolving conflict and bringing
parties together for the improvement of our world’ 25
For more information on the impact of corporate community publicity, kindly refer to the ‘Role of Media in
Corporate Social Responsibility and Sustainable Development’ case study found in the case study book. For
recommendations on social reporting, kindly refer to section 7.2.4
23
24
25
Good News & Bad, ‘The Media, Corporate Social Responsibility and Sustainability’, SustainAbility, United Nations
Environment Programme, Ketchum
90

Chapter Six - Analysis

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‘ENHANCING BUSINESS COMMUNITY RELATIONS’

NATIONAL RESEARCH REPORT

CHAPTER SIX - ANALYSIS

6.2 - The business case for social responsibility

6.3 - The business case for corporate volunteerism

6.4 - Partnerships… a more effective way to community involvement

6.5 - Measuring the return on investment

6.6 - Communicating community initiatives

CHAPTER SIX -ANALYSIS

6.1 – ‘SWOT’ analysis of business community relations in Lebanon

SWOT ANALYSIS OF BUSINESS COMMUNITY RELATIONS IN LEBANON

6.2 – The business case for social responsibility

6.2.2 - Benefits of Corporate Social Responsibility5

6.3 – The business case for corporate volunteerism

6.3.1 – Corporate Volunteerism and its potential in Lebanon

As mentioned in the findings section, What is a Corporate Volunteerism Program?

6.3.2 - Benefits of corporate volunteerism

6.3.3 – Is Corporate Volunteerism really volunteerism?

6.4 –Partnerships …a more effective way to community involvement

A message from the United Nations Secretary General about partnerships…

“In today’s world, the private sector is the dominant engine of

Kofi Annan Secretary General of the United Nations

6.5- Measuring the return on investment

6.6- Communicating community initiatives

It is important to note that for such publicity to be effective, it should

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