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Community Investment Strategies
James Lette Social Impact Strategies
Common Goals: Partnering Business, Government and CommunityANZBA Corporate Social Responsibility Conference24 November 2014
What is Community Investment?
‘Community investment (CI) refers to a company’s long-term strategic involvement in community partnerships
to address social issues chosen by the company to protect corporate interests and enhance reputation’.
Community Business Limited
‘Voluntary actions or contributions by companies to help communities in their areas of operation address their development priorities and take advantage of
opportunities created by private investment, in ways that are sustainable and support business objectives’
IFC
Community Investment is:
• getting involved in the communities in which you operate
• more than making financial contributions to charities.
• working in partnership with communities
• developing/ assisting social initiatives to meet community need.
• through providing access to:
equipment or infrastructure (eg computers, meeting space, schools)
human resources (eg time, skills, knowledge)
business capacity (eg customer reach)
Why does my business need a CI strategy?
• There are well documented business drivers for working with communities
• ‘Throwing more money at the issue’ isn’t necessarily the right answer
• It’s not just about mitigating risk or project impact
• When Community Investment is done badly it:
o Creates conflict
o Wastes resources
o Fosters dependency
o Damages your business
=> that is, revenue forgone
There are some Ground Rules for success
• Know your values
• Have a plan – don’t just respond to requests
• Focus on, and stick to, what you know
• Address an issue strategic to your business for longer
term success
• Invest – don’t give
• Do it sustainably – avoid dependency
• Leverage your investment
• It’s not just money and it’s not just ‘things’ -> people
Ground Rules…..
• Its not just once a year
• Take the time to Listen
• Find out if it works
• Stay grounded. KISS.
• Celebrate what you do
• Communicate
What should my business invest in?
• Ask!
• Align:
1. What your business can do
With
2. The needs of the community in which you operate
• In a way that actively involves employees
• Ideally this will also align with national development goals
Long haul or short term?
• Focus on longer term projects (livelihoods, skills and
capacity development)
• But provide for some quick wins and flexibility (donate
supplies, fund small infrastructure projects).
Make it easier for your Business
• How do you know what your community needs?
• Work with local structures/ institutions
• Partner with suppliers and experts – that is, NGO’s
What can be done?
SABMiller in Latin America
• These stores play an important role in community building, and deliver 80% of SABMiller’s total sales volume
• Invested in business, social and leadership skills
• SABMiller - Sales increased by approximately 10%
• Family Shops - Sales increased by 17% and Margins increased by 2%
• Broader social benefits
• Worked with family shops, similar to those here in Laos
