AmCham Macedonia Fall 2016 (Issue 51) | Page 10

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