Cover Story
Autumn
Fall2016
2016//Issue
Issue5151
Trust is Key to Successful
Business-CSO Cooperation
C
lever companies
know that it is
much easier and
the effects much
bigger, if their social
investment is implemented in
cooperation with actors from
the community, in particular
with civil society organizations
(CSOs). They can help the company identify and analyze needs,
define the best approaches,
appropriately channel the donations, and measure ach ieved
results. While the company’s
primary goal is to generate profit
in the field it which it operates,
the main activity of any CSO is
to understand the needs and circumstances in their community
and field. They are in touch with
the target groups they serve and
keep track of trends in addressing social problems. Due to the
way they operate, CSOs are
generally more flexible than government institutions and adapt
more easily to cooperation with
companies.
In other countries, companies generally prefer to partner
with CSOs in the form of direct
donations, projects, and other
types of cooperation. CSOs are
the natural partner for them since
they are based on a private initiative in the social sphere, much
like the companies are private
initiatives in the market sphere.
Owners and managers believe
that their companies already
contribute to public institutions
through the taxes they pay, so
they direct philanthropic funds
to private, independent civic
10 AMCHAM MAGAZINE
Author: Nikica
Kusinikova, Executive
Director, Association
Konekt
initiatives. Konekt’s recent research showed that in Macedonia, only 15.4% of the companies cooperate with CSOs. Companies’ trust in CSOs is also not high; only 1/3 of companies
said they trust CSOs, though 97% of those that had cooperated with them were satisfied with the experience. Both sides
contribute to this reality. On one hand, CSOs here generally
don’t approach companies, as they believe partnership would
be difficult. On the other hand, local companies are generally
passive and act on an ad-hoc basis rather than taking proactive approach to their community engagement.
In Macedonia, there are 13,656 registered associations
and foundations while only 4,156 renewed their registration
after the new law in 2010. Some would say this is too many,
but that is not true. To illustrate, Slovenia, a country of similar
size has 27,198 CSOs. A large civil society sector indicates
a healthy, democratic society with active citizens that undertake independent initiatives to improve their society. Similar to
entrepreneurship: the more, the better.
Of course, not every CSO can be a good partner to a company. For companies, it is very important to identify and select
the right organization. It must possess a high degree of dedication, ethical behavior, transparency and responsibility. This
makes cooperation productive and helps achieve the desired
effects. Before deciding whether to partner with an organization, the company should check their work and talk to the CSO
team. In the initial meeting, the discussion should not focus on
the cooperation itself, but rather on getting to know the organization and determining whether they are trustworthy partner.
Some of the issues to consider include:
Cover Story
Autumn
Fall
2016 2016
/ Issue/ Issue
51 51
•
Can the CSO clearly
define what they strive to
change in the community?
Has their previous work been
aligned with its mission or
were they jumping from one
area of work to another?
Good organizations know
exactly who they are and what
their role is in the society.
Be aware if the organization
cannot clearly explain what
they do and stand for in a few
sentences.
•
Ask the organization what
results they have achieved in
the area you want to support.
Smart companies want to
work with an organization
that has a demonstrated
commitment and results in the
targeted area.
•
Transparency and
accountability are one of the
key aspects of work for a
CSO. The work of any CSO is
public, thus it must be open to
share information about their
work, finances, governance
and more. Check whether the
CSOs regularly publishes its
annual reports on its web site
or at least provides it to you at
the meeting. Check whether
the reports provide details on
their activities and finances.
Transparent organizations are
less likely to misuse company
support and engage in
irresponsible behavior.
•
Consider and discuss
their finances. Regardless
of its size, you should look
for organizations that have
continuous operations and
whose finances are used for
the public good in line with
their mission. Ask how the
organization minimizes the risk
of abuse of funds that they
collect.
•
Ask about the
governance and management
structures. Make sure that the
organization is independent
of political party influence.
Talk to them about how they
ensure their activities protect
the public good and how they
handle potential conflicts of
interest.
There are many other aspects
that are crucial for trustworthy
CSOs. To assist the companies
in selecting partners and better
understanding CSOs, Konekt
has developed a certification
mechanism called, “CSO Trust
Mark.” It will be granted to
organizations that comply with
certain requirements related to
transparency, accountability,
fundraising practices and other
aspects of their operations.
The CSOs’ information will be
available on a web platform
that will be easily accessible
for the companies. Brokerage
services will be also available.
In its work over the years,
Konekt has observed the
following common company
misconceptions when working
with CSOs:
•
Many perceive CSOs
to be like any other service
provider that implements
a company project. But
the CSOs are a different
animal, with unique values
and knowledge. They are
established to serve the
community and the public
good, not the company. Thus,
work with them on how you
can jointly achieve the societal
change you want to see.
•
Companies hide from
organizations that are critical
of your company, in particular
of its environmental and
social impact. It is their job to
represent citizens’ interests
and express their concerns.
Companies should be open
for dialogue, even on sensitive
issues. Help the organizations
understand your company’s
position and challenges.
•
Don’t expect CSOs to
do your PR and marketing; it
is not their job. To maximize
the benefits from your CSR
initiatives on the company’s
image, commit to building
effective partnerships that
bring real societal impact. Then
promotion will practically take
care of itself.
AMCHAM MAGAZ INE
11