This edition   Stakeholders’ Expectations of Business Winter 2010 Volume X, Issue I

CECP asks:

What do you expect of business

in solving social problems, now
and in the future?
In This Issue

Investor Perspective Roger W. Ferguson, Jr.,

Doing Well by Doing Good
President & ceo, 3
TIAA-CREF

Global Policy Perspective Richard N. Haass,

Business and Society, Society and Business
President, Council on 4
Foreign relations

humanitarian perspective Raymond Offenheiser,

Corporate Leadership to Address Poverty
President, 5
Oxfam America

Foreign Leader perspective

Open for Business, but Not Business as Usual
Ellen Johnson Sirleaf,
President of Liberia 6

advocacy Perspective Kevin J. Jenkins,

Convergence: A New Paradigm for Collaboration
President & CEO, 7
World Vision International

Consumer Perspective Jack Leslie,

Do the Smart Thing
Chairman, 8
Weber Shandwick

civil Society Perspective Diana Aviv,

Imagine the Incredible Potential
President & CEO, 9
Independent Sector

Private Foundation Perspective Luis Ubiñas,

Shared Responsibility, Renewed Patriotism
President, 10
Ford Foundation

Corporate Strategy Perspective Lenny Mendonca,

Strategy at the Crossroads of Business and Society
Director, 11
McKinsey & company
the corporate philanthropist Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS

Letter from the Executive Director

Global Leaders: Solving Social Problems

through Business Strategy
Over the past year,
every sector of society
has experienced
challenges of nearly
unprecedented
dimensions, causing us all to rethink the
ways we engage with the world and its prob-
lems. We have entered an age of solution-
oriented collaboration, in which each party
coming to the table must leverage its unique
resources for maximum effect.
Businesses have many constituencies, and
a new definition of “shareholder” has
emerged as one of “multiple stakeholders,”
a term that includes government,
employees, consumers, activist groups, the
nonprofit sector, and others. A broader
view of business’ position in society requires
a better understanding of the challenges
and opportunities companies will face in
social engagement and partnerships ten
years from now.
As part of an exploration of this topic,
CECP has reached outside the private
sector in this issue of The Corporate
Philanthropist, to a number of these
stakeholder groups important to business,
represented by national and international
as well as public and independent
leaders. Each of these contributors was
asked to answer a single question: What
do you expect of business in solving
social problems, now and in the future?
We are grateful to our nine esteemed
contributors for lending their perspectives
on this important question and hope the
following articles will inspire the business
sector to engage in new partnerships and
to build a better society. We are impressed
with the responses and consider this
publication pre-reading for our forthcoming
Board of Boards CEO Conferences in
New York (February 22), in London (May
6–7) and in Abu Dhabi (November 11) –
where the best in business will shape the
future of our societies, focusing on Global
Leaders: Solving Social Problems through
Business Strategy.
Charles Moore, Executive Director,
Committee Encouraging Corporate
Philanthropy

next steps:

Throughout 2010, CECP will continue to develop and share thought leadership on the issue of business’
role in solving social problems in an expanded schedule of convenings and publications:

February 22, 2010 Board of Boards CEO Conference

New York, NY

May 2010 The Corporate Philanthropist

Spring/Summer Issue

May 6-7, 2010 Board of Boards CEO Conference

London, United Kingdom

June 2-3, 2010 Corporate Philanthropy Summit

New York, NY

October 2010 The Corporate Philanthropist

Fall Issue

November 11, 2010 Board of Boards CEO Conference

Abu Dhabi, United Arab Emirates

For more information, contact CECP at 212.825.1000.

2 committee encouraging corporate philanthropy

Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS the corporate philanthropist
INVESTOR PERSPECTIVE
Doing Well by Doing Good
Roger W. Ferguson, Jr., Businesses can take steps to operate more
President & ceo,
TIAA-CREF
TIAA-CREF manages
retirement savings on behalf of 3.6 million
individuals and 15,000 institutions.
Questions about the emerging recovery
tend to focus on speed and size rather than
sustainability, a mindset that no doubt
contributed to our current state. Instead,
we should be asking ourselves what kind
of country we want America to be. We
should be asking ourselves what role
business – and business leaders – will play
as society tries to right itself.
We need to appreciate that efforts to “do
well by doing good” can have strategic
relevance for all businesses by reducing
risk, enhancing corporate reputation
and competitive position, and providing
opportunities for growth. By encouraging
businesses to adopt a more rational,
long-term approach, we can enhance
financial security. Individuals need similar
help and guidance.
It is imperative that we strengthen the
strained relationship between businesses
and individuals while ensuring transpar-
ency of both effort and motive. We must
closely align the interests of employers
and employees, sellers and consumers, and
issuers and investors.
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
What steps can your business take
to operate more prudently to drive
corporate performance and help
strengthen the market overall?
committee encouraging corporate philanthropy 3
prudently, such as strengthening their
risk management programs and ensuring
through good corporate governance
that their strategies and compensation
are aligned with the long-term interests
of shareholders. This approach can
drive corporate performance and help
strengthen the market overall.
Individual shareholders in the United States
should be given greater rights, including
access to the proxy to nominate directors,
majority voting in director elections, and
a shareholder vote on executive compensa-
tion. Shareholders and companies have a
common goal of long-term wealth creation
and must work toward that goal together.
Taken together, these changes can help
us to achieve a more balanced state to
ensure long-term financial security for
society. Going further, though, will require
a dramatic cultural shift. We need to save
more and consume less. We need to help
our fellow citizens get safely to and through
retirement. We need to wean ourselves
off of unchecked consumerism and
focus on exporting and investing to drive
growth. Behavioral changes such as these
are as equally important as regulatory
reform, corporate governance overhaul,
and keeping in check the spiraling costs
of health care.
As we look to recover from the worst
recession in 70 years, we must be mindful
of the far-reaching structural changes
that have altered the macro-economy.
These changes include globalization of
capital, labor, and production and the
evolving role of national governments in
driving growth and expanding regulatory
What short-term sacrifices might your
company have to make to pursue a the sustainable financial security of
long-term view of wealth creation?
oversight. These forces may have a
moderating effect on inflation, particularly
given the current phenomenon of high
unemployment and the strongest produc-
tivity growth rate seen over a six-month
period since 1961.
However, they also create dangerously
favorable conditions for asset bubbles:
sudden, sharp price increases in discrete
sectors of the market as we experienced
in commercial real estate in the late 1980s,
the dot-com equity market of the late
1990s, and the current housing market.
“Shareholders and companies have
a common goal of long-term
wealth creation and must work
toward that goal together.”
In such an environment, businesses must
resist the temptations of short-termism,
and focus instead on sustainability.
A group of financial and academic leaders
convened by the Aspen Institute has
posited that “a healthy society requires
healthy and responsible companies that
effectively pursue long-term goals.”
In essence, we are all in this together.
Doing good serves to promote long-term
value and upholds the fiduciary respon-
sibility that all companies have to their
shareholders. In fact, such a double-
bottom line focus is precisely what is
needed to help boost our recovery.
How can your company contribute to
society, including all shareholders?
the corporate philanthropist Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS
Global Policy Perspective
Business and Society, Society and Business
Richard N. Haass,
President, Council on
Foreign Relations
The Council on Foreign
Relations is an independent, international firms is education, especially
nonpartisan membership
organization, think tank, and publisher dedicated to
creating a better understanding of the world and the
foreign policy choices facing the United States and
other countries.
Business has always been involved with
the rest of society. Government affects
corporate affairs through legislation and
regulation, and the recent financial crisis
and its aftermath provide ample evidence
of the government’s new role in a “private”
sector that is increasingly becoming a
hybrid. At the same time, corporations
and business associations have long
pursued a strong interest in social and
political issues. Corporate philanthropy,
corporate social responsibility initiatives,
and efforts to shape public policy are all
elements of this involvement.
Several factors, however, suggest that there
is now a case for corporations to do more.
The relative importance of business in
society has increased as companies have
grown and merged, as governments in
Washington and elsewhere have become
financially stretched, and as globalization
has raised the salience of economic issues.
Businesses have on-the-ground knowledge
from their global presence. And contribu-
tions from the private sector are needed in
developing the technologies and deploying
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
How can your firm play a greater role in
corporate statesmanship and advocacy,
increasing knowledge and awareness of
important issues?
4 committee encouraging corporate philanthropy
the resources to meet this era’s principal
challenges, from terrorism and climate
change to pandemic disease and poverty.
Firms operating overseas have a number
of opportunities to play a positive role, and
many already are. One priority area for
in places like the Arab and Muslim worlds,
where basic (not to mention quality)
education is often lacking. Public-private
initiatives are a good model: corporations
could work with governments, NGOs,
and others to identify and support best
practices, with girls’ education being a
particular focus given its large economic
and social benefits.
“Contributions from the private
sector are needed in developing
the technologies and deploying
the resources to meet this era’s
principal challenges, from terrorism
and climate change to pandemic
disease and poverty.”
Societies emerging from conflict are also
ripe for corporate involvement. Firms
can foster peace and reconciliation by
helping citizens build normal lives and
enjoy the fruits of stability and growth—
in other words, by showing that peace
pays. Corporations can also offer valu-
able expertise to bolster the capacity of
governing institutions in developing and
Does your company have unique on-
the-ground knowledge that can be more
actively shared with other stakeholders help strengthen the regional business
to advance public debate?
post-conflict countries, something that
improves the business environment and
builds stronger economies and societies
over time. There is thus ample opportunity
for firms to do good and do well around
the world.
Businesses have a role in tackling chal-
lenges in this country as well. Indeed,
business leaders would do well to revive
the tradition of corporate statesman-
ship. Voices from the private sector have
often been among the most enlightened
in debates over immigration, trade, and
foreign investment. But corporate advo-
cacy for continued American openness
has weakened in recent years, one reason
the United States has edged away from
its welcoming traditions. This shift repre-
sents a real danger, not just to American
business, but to American society and,
indeed, the world. Corporations can help
not only with direct advocacy but also
with efforts to increase knowledge and
awareness of relevant issues among
Americans, through educational programs
and support for policy-relevant research.
At a time when firms operate under more
scrutiny—from the government, the
media, and the public—than ever before,
speaking out on important policy issues
and fostering progress on social concerns
is the right thing for corporate leaders to
do. It is also important if firms are to build
and maintain support for free markets.
As Neville Isdell said in a speech last
March at my organization, the Council
on Foreign Relations, “We must change
how we practice capitalism if we want the
benefits of capitalism to continue.”
Are there philanthropic investments
your company can make now to
environments in which it operates?
Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS the corporate philanthropist
humanitarian perspective
Corporate Leadership to Address Poverty
Raymond C.
Offenheiser,
President,
Oxfam America
Oxfam America is an
international relief
and development orga-
nization that creates lasting solutions to poverty,
hunger, and injustice.
Poverty represents one of the great
challenges of our day. Four billion people
live on less than four dollars a day, and
hundreds of millions of people are threat-
ened by water and food shortages, which
are exacerbated by climate change. For
global companies operating in, sourcing
from, or searching for new markets in the
developing world, poverty driven conflict
is a direct threat to the bottom line.
Multinational companies have the capacity
to drive positive changes in developing
countries. Many companies already make
an impact through philanthropic programs
and public-private partnerships. However,
investors, consumers, civil society, and
governments are increasingly looking to
companies for more active engagement.
Among these various constituencies,
Oxfam America—a global development
organization—seeks not only to change
harmful corporate practices, but to
leverage the economic, political, and
creative power of companies to reduce
poverty. Oxfam recognizes that leader-
ship will come from companies that see
a financial interest in ensuring stable
markets, strengthening suppliers, managing
reputational risks, and developing new
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
How can your company seek to innovate
its products and services in a manner
that also drives positive social change?
committee encouraging corporate philanthropy 5
products and services that benefit the poor.
While these practices are not covered by
laws, they adhere to voluntary norms and
human rights principles—which now apply
to companies as well as governments.
For Oxfam, best practices begin with efforts
to engage and be accountable to corporate
stakeholders—affected communities,
consumers, farmers, and workers. To these
ends, Oxfam calls on companies to:
Make clear, public commitments to
human rights and sustainability.
It is not enough for companies to “do”
the right thing—they must make their
commitments public to underscore a
seriousness of purpose and willingness to
be held accountable. Alongside individual-
ized corporate “statements of principle,”
companies should endorse global
and industrywide standards and engage
employees and stakeholders around
these norms.
“Multinational companies have
the technology, the resources, the
connections, and the creativity to
innovate new solutions to poverty.”
Take responsibility for the full
“sphere of influence.” Beyond direct
operations, major brands are expected
to understand and take responsibility for
the life cycles of their products—from
field to fork, mine to disposal. Large
multinationals are also assumed to exercise
influence over their suppliers and distribu-
tors, as well as their industry peers, affected
What reporting measures are most
effective in accounting for your
company’s progress in meeting
commitments?
communities, and local governments.
Many companies have come to promote
sustainability and human rights along
supply chains. Similarly, companies must
ensure that their social and political efforts
are aligned with commitments—distancing
themselves from harmful lobbying and
marketing and undertaking new initiatives
to promote stronger governance, respect for
human rights, and sustainable practices.
Measure, evaluate, and report. In
order to ensure compliance with commit-
ments, a company must measure and
report on its impacts. To paraphrase UN
Special Representative on Business and
Human Rights John Ruggie, how does a
company know that it is “doing no harm”
or respecting human rights if it hasn’t
done the due diligence?
A range of tools exists today to supple-
ment traditional environmental and labor
reviews, including human rights impact
studies and poverty footprinting. Using
these tools, companies should publicly
report on and account for their progress
in meeting commitments. These reports
serve as platforms for engaging stake-
holders and demonstrate transparency
and accountability.
Innovate new solutions. Multinational
companies have the technology, the
resources, the connections, and the creativity
to innovate new solutions to poverty.
These solutions—in the form of new or
modified products and services—may be
pursued out of commercial interest (for
scale and sustainability) but should also
be developed in close collaboration with
local populations to ensure viability and
pro-poor benefits.
Can consulting with local populations
become part of the process in planning
for the viability of your company’s
community investments?
the corporate philanthropist Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS
Foreign Leader Perspective
Open for Business, but Not Business as Usual
Ellen Johnson Sirleaf, American academics in the mid-1960s
President of Liberia
Ellen Johnson Sirleaf
is Liberia’s first
elected female president,
as well as the first
elected African female leader.
Liberia is on the move. After decades of
economic mismanagement and 14 years of
brutal civil war, Liberia’s national night-
mare is over. Progress is underway toward
the vision of achieving rapid, inclusive,
and sustainable growth articulated in our
bold, three-year national development
plan—the Lift Liberia Poverty Reduction
Strategy (PRS).
The sheer quantity of projects, programs,
and policy reforms that the Government
of Liberia, with the support of its many
key development partners, aims to deliver
in the coming years is staggering. And
yet, at the heart of Liberia’s PRS is an
understanding that the private sector holds
the key to the country’s future.
Historically, Liberia has always been open
to free enterprise and outside investment.
But the picture is complicated, to say the
least. Liberia’s economy posted steady
economic growth following World War
II and GDP vaulted from us $36 million
in 1950 to $500 million in 1972. However,
most of these gains were concentrated
within the elite, and the majority of
Liberians saw little benefit. A group of
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
How can the private sector work with
government to simultaneously support
business and societal growth in
emerging markets?
6 committee encouraging corporate philanthropy
famously described the situation in Liberia
as “growth without development.”
So what’s our plan today? Keeping in
mind our nation’s unfortunate history of
consolidated economic power, we are
seeking to quickly revive Liberia’s tradi-
tional sources of growth – rubber, timber,
mining, and cash crops – while ensuring
that the benefits accrue to all Liberians
in a sustainable manner. We’ve already
made important strides on this front. After
taking office in 2006, my administration
conducted a critical examination and
renegotiation of our largest investment
contracts with ArcelorMittal and
Firestone. A recent Revenue Watch case
study praised our constructive engagement
with private sector partners in these
renegotiations which successfully secured
a better deal for our nation and people,
while also bolstering trust and building
investor confidence in our administration.
This effort has paved the way for new
investment agreements in the mining,
forestry, and agriculture sectors.
“At the heart of Liberia’s Poverty
Reduction Strategy is an under-
standing that the private sector holds
the key to the country’s future.”
But to ensure inclusiveness and sustain-
ability, we must go beyond encouraging
investments from international companies
in our extractive industries. We must take
strong steps to diversify the economy over
Is there a link between a business’
commitment to making socially-minded
investments and that company’s long-
term prospects for success?
the medium term into the competitive
production of labor-intensive downstream
products, manufactured goods, and
services. We hope to see this as the focus
of new investors. Returns may be slower,
but for the socially minded investor, there
are still excellent opportunities. One
example is that of Buchanan Renewable
Energies using old rubber trees to produce
electricity and providing seedlings for
felled trees—sustainable development with
a positive environmental impact.
President Johnson Sirleaf’s government has been
focused on rehabilitating infrastructure and
delivering basic services in order to achieve broad-
based growth and poverty reduction.
My government’s commitment to a robust
private sector is starting to pay off. Critical
infrastructure, such as roads and electricity,
is improving. The strengthened business
climate is reflected in the fact that Liberia
has been one of the fastest improving
performers on the World Bank’s Doing
Business Survey over the last three years.
And a recent report from Transparency
International shows significant progress
in the fight against corruption. As govern-
ment strives to do its part, we remain
acutely aware that it’s the private sector
that will ultimately determine whether
we reach our goal of rapid, inclusive, and
sustainable growth.
How can business shift its strategy
to encourage sustainable development
with a positive environmental impact?
Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS the corporate philanthropist
advocacy Perspective
Convergence: A New Paradigm for Collaboration
Kevin J. Jenkins,
President & CEO,
World Vision
International
World Vision is a
Christian relief, develop-
ment, and advocacy organization dedicated to
working with children, families, and communities to
overcome poverty and injustice in nearly 100 countries.
Our human history holds plenty of para-
doxes. There have always been the wealthy
and the powerful alongside the poor and
the vulnerable. Nations have risen
and fallen. New forms of governance and
power structures have evolved over time.
The planet has been fraught with conflict,
war, disease, and disaster. But there have
also been amazing successes developed by
humankind that have led to revolutions
and positive change.
In the last 200 years, the pace and scale
of change in every human development
dimension has surpassed anything in the
history of our planet. The world’s popu-
lation has increased seven fold. The
number of countries and borders has
doubled. We have learned to fly, and
800 million vehicles have reduced
enormous distances to the equivalent of
a Sunday drive. More than four billion
people use some form of electronic
communications technology. Our world is
connected in an unsurpassed way.
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
How is the quickening pace of change
in communities accounted for in your
company’s philanthropic strategy?
committee encouraging corporate philanthropy 7
On the other hand, our successes are
accompanied by tragic failures. Two
billion people survive on less than two
dollars per day. Every 10 days, more
children die from preventable causes
than died in the 2004 Asian Tsunami.
For example, road crashes are the leading
cause for children and youth dying
between ages 10 and 20.
On the eve of 2015, the target date for
achieving the Millennium Development
Goals, humankind anxiously awaits one
more revolution that could change the
course of our current trajectory.
World Vision proposes that the next revolu-
tion must involve “convergence,” a new
form of collaboration and cooperation
between civil society, government, and
the private sector. A convergence model
allows the major players to cooperate
early on by identifying mutual goals
and sharing analyses and concepts; then
they continue collaborating to provide
resources and technology for mutually
beneficial solutions.
“Convergent collaboration” can address
complex, systemic issues. For example,
HIV/AIDS is a major health issue in
Southern Africa, a large area covering
seven countries. Sex workers trying to
make a living often live along the region’s
transport routes where the itinerant
lifestyles of transport workers create high-
risk for the transmission of HIV/AIDS
and other diseases. A large Dutch logistics
corporation answered the social and busi-
ness challenges facing its operations
by working with government ministries
to create an integrated local health
services model.
Is growing income inequality inevitable?
How can a cooperative approach be
taken without sacrificing a company’s
competitiveness?
Together, they developed a social enter-
prise approach that is scalable, sustainable,
locally owned and operated, and transfer-
able. Today, hundreds of health service
centers are located along these transport
arteries. The incidence of HIV/AIDs
transfer is decreasing, access to safe
healthcare is increasing, and the involved
governments are closer to achieving some
of their national health goals.
“To create a radically different
and hopeful future for millions,
we need a convergence model of
collaboration and cooperation
between civil society, government,
and the private sector.”
The paradigm-shifting changes expected
in the next decade will exacerbate the
inequities at the root of the world’s major
problems. To create a radically different
and hopeful future for the millions of
people mired at the bottom of our social
and economic pyramid, we need to
change our operating model. To para-
phrase an old saying: If we want to create
a world that is incrementally better, be
competitive. If we want to create a world
that is exponentially better, be cooperative.
Developing opportunities for convergent
collaboration and cooperation is both
my plea and my commitment as the new
CEO of World Vision International.
What can early-stage planning
with government and civil society
mean for the sustained impact of
your social programs?
the corporate philanthropist Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS
Consumer Perspective
Do the Smart Thing
Jack Leslie, of brand advocates in order to reach
Chairman,
Weber Shandwick
Weber Shandwick is
the world’s leading public
relations and public
affairs firm with offices
in major media, business, and government capitals
around the world.
The stock market may be rising, but don’t
expect trust in business to come back
anytime soon. The collapse of trust in
American business has been a long time
coming. For more than half a century,
Yankelovich, a leading consumer research
company, has been asking the question,
“Does business act responsibly?” In 1968,
70 percent of Americans said yes. By
1985, only 30 percent thought business
acted responsibly, and last year, just 20
percent thought so.
Why does trust keep falling when so many
companies are adopting strong corporate
social responsibility policies? The fact is
that trust in most institutions has declined,
and Americans increasingly expect compa-
nies to act responsibly. It’s become table
stakes, particularly for well-known brands.
So, what can companies do? How do they
rebuild trust and compete at the same time?
First, companies must begin treating their
customers like advocates, not just as
consumers. Effective marketing used to be
about creating brand awareness first, by
targeting millions to reach thousands. Today,
the imperative is first to engage thousands
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
Do your customers see the best of
themselves reflected in the way you engagement provide a competitive
do business?
8 committee encouraging corporate philanthropy
millions more. And what’s the smartest way
to engage people? Through a conversation
about the things that matter to them.
This is why, of course, social media is
so important right now. The medium
has changed, and so have the messages.
Even before the recession, there was
plenty of evidence that people strongly
connected with businesses that responded
to social needs. Witness the rise of social
entrepreneurism and the advent of the
Green Revolution. The recession has just
accelerated the trend.
“Does business act responsibly?”
70%
30%
20%
1968 1985 2008
Source: Yankelovich and CNN/USA TODAY/ Gallup Poll
Today, American consumers are forced
to make hard choices. They are obviously
looking much more carefully at the value
of what they are buying. It turns out, they
are also looking more carefully at the
values of the businesses that sell them
products and services. And interestingly,
they’re not looking so much to make
judgments about the business as they are
to make judgments about themselves.
Does your company’s community
advantage?
People want to do more to better their
lives and communities—the recession
hasn’t changed that. They also want to
lessen their own impact. This changes
the focus from questioning whether a
company itself is behaving well to whether
its products help me, the consumer,
become a better, more responsible person.
So for a business, it’s all about how I can
connect with my customers’ aspirations.
“The focus has changed from
whether a company itself behaves
well, to whether its products,
help me, the consumer, become a
more responsible person.”
This fundamental change has enormous
implications for how companies handle
their corporate social responsibility and
marketing programs. It demands CSR 2.0
or something that can be called “ethical
enterprise.” It’s been gaining steam for
years, beginning with pioneering brands like
The Body Shop, Ben & Jerry’s, and Ethos
Water, brands largely created by social
entrepreneurs that go beyond traditional
cause marketing to address a social purpose.
In fact, social purpose is built right into
their DNA so consumers can “do the right
thing” themselves through their purchases.
The most successful companies of the future
will match their skill sets to social needs
and create legions of advocates in the
process. For business, it turns out that doing
the right thing is doing the smart thing.
Social media has opened the floodgates
to instant communication with customers.
How will this trend change the way your
company communicates its values?
 Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS the corporate philanthropist
Civil Society Perspective
Imagine the Incredible Potential
Diana Aviv,
President & CEO,
Independent Sector
Independent Sector is
the national leadership
forum for America’s
nonprofits, foundations, and corporations.
Independent Sector’s mission is to advance the
common good by leading, strengthening, and
mobilizing the charitable community.
Elements of a strong, productive workforce
include employees who are educated
and armed with skills for today’s global
market; workers able to perform at their
peak, knowing their family’s medical
concerns will be addressed; a community
with roads and transportation systems that
facilitate easy access to the workplace; and
a region that is committed to clean air
and safe drinking water. These elements
make it possible for an entire workforce
to give its very best day after day. These
characteristics apply not only to workers
in the business community, but also to
2.7 million civilians who work for the U.S.
federal government and 13 million people
in America’s nonprofit community.
“It is in the best interest of all sectors
to take responsibility for the people and
natural resources on which they rely.”
Many businesses have used their corpo-
rate foundations, social responsibility
programs, and outreach efforts to help
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
Which social issues limit the
productivity of your workforce and leverage the company’s most powerful
what can your company do to help
society overcome those challenges?
committee encouraging corporate philanthropy 9
A panel discussion at Independent Sector’s annual conference included Diana Aviv, Ben Hecht, president and
CEO of Living Cities, and Wendy Puriefoy, president of Public Education Network.
create a climate that fosters a positive view
of their firm. Such activities are welcome
and encouraged for sure. Equally, if not
more important, is recognizing and acting
on the fundamental principle that it is
in the best interest of business to attend
to the larger environment in which it
operates. Being a good corporate citizen is
one thing; building communities in which
people thrive and work to their maximum
potential is another. Companies like
Wal-Mart, Ben & Jerry’s, and others have
internalized this notion to the benefit of
the triple bottom line of helping people,
earning profit, and tending to our planet.
Perhaps one of the most effective ways
to create wealth for shareholders and
stakeholders is for a business to leverage
its powerful assets – innovation, efficiency,
and creativity among them – to improve
human lives and the world in which we
live. Doing so reflects not only enlightened
self-interest, but sound business practice.
Like business, the government and
nonprofit sectors are also dependent on
the wider environment in which they
operate. Productivity drops across the
board when employees or their family
members don’t have access to suitable
Do your company’s social programs
assets, including innovation, efficiency,
and creativity?
medical care. Every establishment – from
the supermarket to the town hall to the
local theater company – shuts down when
a storm ravages an unprepared commu-
nity. It is in the best interest of all sectors
to take responsibility for the people and
natural resources on which they rely.
“Being a good corporate citizen is
one thing; participating in the very
real work of building communities
in which people thrive and work to
their maximum potential is another.”
Imagine the incredible potential should
the combined muscle of the business
sector, government, and charitable
community pull together to address global
climate change or reform health care.
Tackling immense challenges such as these
will require all three sectors to embrace
a deeper commitment to a wider social
agenda. It is also the best way to ultimately
create real wealth for all.
How can commitment to a wider social
agenda aimed at improving human
lives help your company’s bottom line
in the long run?
the corporate philanthropist Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS
PRIVATE FOUNDATION PERSPECTIVE
Shared Responsibility, Renewed Patriotism
Luis Ubiñas, President Local versus Systemic Needs
Ford Foundation
The Ford Foundation
supports visionary leaders
and organizations working
on the frontlines of social
change worldwide.
At the Ford Foundation, our goal is to work
with all sectors of our economy to improve
lives and create opportunity. Many of the
issues the Ford Foundation strives to impact
have substantive implications for businesses
around the world and could benefit from
their constructive engagement. These goals
include ensuring that societies remain
stable by encouraging democratic values
and challenging corruption and abuse.
Disciplined Grantmaking
Grantmakers and nonprofits need to
look at business as an essential partner.
Corporations and grantmakers alike
need to be rigorous and should hold
themselves accountable for results.
We need to understand the challenges,
develop clear paths for addressing them,
and ensure that the grants we make
represent the best available approaches
for meeting clearly defined objectives
and providing at-scale solutions. We also
need the modesty to understand that
without collaboration between business
and government, the likelihood of
success is diminished.
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
What can corporations and private
foundations learn from each other?
10 committee encouraging corporate philanthropy
It is critical to look at how larger systems
influence local conditions. What
seems like a local problem is often the
local manifestation of a systemic issue.
For example, a working mother goes to
the food pantry because she can’t make
ends meet. It may appear that keeping
the local pantry stocked is the solution,
but the issue may be today’s minimum
wage, which is 30 percent below where
it was 40 years ago. Despite working 58
hours every week, she earns below the
poverty level for a family of four.
“What seems like a local problem
is often the local manifestation of
a systemic issue.”
The basic American value that allows
someone working an honest 40 hours a
week to lift his or her family out of
poverty needs to be restored. In order to
do this, grantmakers and nonprofits
need to work with government and busi-
ness to address the systemic nature
of many social challenges.
Innovation and Scalability
Grassroots, local innovation has often been
the basis of scalable impact. We have to
find ways to bring scale to the grassroots.
What could be worse than knowing a solu-
tion exists and keeping it from achieving
an impactful scale?
Are the due diligence mechanisms
applied to traditional business
investments also applicable to
community investment?
For example, after two decades of local
innovation, many charter schools have
proven that even our poorest and most
disadvantaged children can compete
academically and can exceed the perfor-
mance of our most privileged children.
The challenge now is to take those
countless, scattered examples of charter
school excellence and institutionalize
the lessons learned to bring them to the
98 percent of children who don’t have
access to charter schools.
Commitment to Democratic Values
Business, government, and nonprofits
have a shared responsibility, one that can
only be realized if we begin a dialogue
on what it means to be stewards of a
great nation in our generation. We must
collectively restore the shared ethics and
values that drove this country to greatness
over the last 250 years. These values are
the bedrock of our democracy: the shared
belief that education isn’t an expense, but
an investment; that hard work needs to
be rewarded at all levels of the economic
ladder; and that immigrants who come to
America to work provide immense value.
Our society and societies around the world
face challenges of an unprecedented
scale and complexity. To address this new
generation of challenges, we need to come
together with a shared sense of responsi-
bility and a renewed sense of patriotism.
In an era of increased global commerce,
what does it mean for a company to be
patriotic? Can a global standard of values
replace traditionally nationalistic ones?
Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS the corporate philanthropist
CORPORATE STRATEGY PERSPECTIVE
Strategy at the Crossroads of Business and Society
Lenny Mendonca,
Director, McKinsey
& Company
McKinsey & Company
is a management
consulting firm that
helps leading corporations and organizations make
distinctive, lasting and substantial improvements
in their performance. The firm has extensive expe-
rience in all major industry sectors and primary
functional areas as well as in-depth expertise in
high-priority areas for today’s business leaders.
Business and markets have played a powerful
role in creating tremendous wealth and
raising the standard of living for millions
over the past few decades. This role can
be seen in the provision of medicine, food,
and a host of other life-affirming advances.
Yet, in the face of this great wealth creation,
we are keenly aware of inequities and
promises that are unmet.
“What is the proper role for business
and its leaders in society and
the communities in which they
live and operate?”
Confidence in business and markets has
recently been shaken by the tremendous
destruction of wealth, the surge in
government and regulatory activity, and
social and environmental challenges
CECP ASKS TODAY’S BUSINESS LEADERS TO CONSIDER:
Does your corporate culture How quickly can your company merge its
view “considerate capitalism” as an
oxymoron or a source of potential
competitive advantage?
committee encouraging corporate philanthropy 11
that are now in stark relief from
Columbus to Copenhagen. All these
portend potentially powerful change.
Our collective focus must turn to furthering
the “smart evolution” of business in the
face of trends such as the growing talent
shortage, the rise of Asia, climate change,
shifting demographics, and others. This
change means creating wealth in ways that
are more considerate and aligned with
the natural systems upon which all life
depends. It raises this question: What is
the proper role for business and its leaders
in society and the communities in which
they live and operate? Getting the answer
right is perhaps the single most important
challenge to building successful long-term
business strategies for the companies that
will rule the future. Leaders are coming
to understand that these issues matter so
much that they should sit at the heart of
corporate strategy, not in some sideline
administrative function. The value at stake
is too great to not be addressed through
long-term strategic plans.
And yet, while corporations are
confronted with social issues in every
country in which they operate and at
every level of their organizations, the
role of business in society is not often
considered in a holistic way. In fact,
it’s far more the norm for institutions to
become caught up in internal matters
and pressing day-to-day concerns, losing
sight of the wider world outside. This
notion gives rise to a second critical
question: How can business properly
fulfill its role and responsibilities in
society? The answer to this question will
determine whether our society succeeds
day-to-day priorities with the concerns
of the wider world?
or fails, whether communities prosper or
suffer, and whether we enjoy sustained
economic growth and prosperity.
It is demonstrably clear that success of
the economy and society, as well as the
corporations that operate within them, is
determined in great part by their collective
effectiveness in solving the most pressing
problems. The health of each is shaped
by the skills generated by our education
system, the quality of our water and air,
and even the sustainability of our pension
programs. In most places, there are serious
concerns for each.
“These issues matter so much
that they should sit at the heart
of corporate strategy.”
External shocks, the likes of which we
have just experienced, rarely arise without
warning. Many threats to business arrive
after considerable indications of a coming
storm. Leaders whose strategies embed
and build the capability to sense, shape,
and prepare for long-term horizon risks
and opportunities are better positioned
to handle the trends that will hurt their
competitors. This is the mandate for
winning business strategies for the future.
Do you think the “smart evolution” of
business should begin at a company,
industry, or regional level?
the corporate philanthropist Winter 2010: STAKEHOLDERS’ EXPECTATIONS OF BUSINESS

about cecp

Founded in 1999,
CECP is the only
international
forum of busi-
ness CEOs and chairpersons exclusively February 22, 2010
focused on corporate philanthropy.
CECP provides CEOs and corporate ICPD is a day for the business community to celebrate its achievements in corporate
giving professionals with the tools neces- philanthropy, build awareness of the benefits of corporate community investment,
sary to increase the business and social and inspire companies around the world to engage further in giving initiatives.
value of their philanthropy programs
through premier events, comprehensive Ways to Celebrate ICPD:
corporate philanthropy measurement
and research, thought leadership publica- • Tell your company’s philanthropy story on an internationally recognized day.
tions such as The Corporate Philanthropist,
and extensive media outreach. • Further engage senior management, employees, and nonprofit partners in
your giving programs.
Join Us By standing together in advancing
corporate philanthropy, business executives • Raise awareness of the important role of corporate philanthropy in fostering
demonstrate their commitment to living stronger relationships across sectors.
up to the rising expectations of corporate
integrity and community involvement. • Publicize your company’s philanthropic initiatives, benefiting from the
CEOs and giving professionals at interested added media interest.
companies are invited to contact CECP for
more information on membership. For more ideas, visit: CorporatePhilanthropy.org/ICPD

cecp board of directors THE CORPORATE PHILANTHROPIST

Chairman Founding Co-Chairs Honorary Chairs winter 2010
Harold McGraw III Kenneth T. Derr Peter L. Malkin The Corporate Philanthropist is published
Chairman, President, & David Rockefeller by the Committee Encouraging Corporate
CEO, The McGraw-Hill
Companies Paul A. Volker Philanthropy (CECP). Each issue focuses
Sanford I. Weill upon a relevant issue or theme in the field of
Paul L. Newman corporate philanthropy and includes related
John C. Whitehead
perspectives from industry thought leaders.

Editor: Courtney King

Marc Benioff Robert H. Forrester James E. Rohr
Chairman & CEO, President and CEO, Chairman and CEO,
Phone: 212.825.1000
salesforce.com, inc. Newman’s Own Foundation The PNC Financial Services Group, Inc.
Address: 110 Wall Street, Suite 2-1
Douglas R. Conant Alan G. Hassenfeld Michael I. Roth
President & CEO, Chairman, Executive Committee, Chairman and CEO, Interpublic Group New York, ny 10005
Campbell Soup Company Hasbro, Inc.
Edward B. Rust, Jr.
Kenneth T. Derr Klaus Kleinfeld Chairman and CEO, State Farm Mutual
Email: Info@CorporatePhilanthropy.org
Former Chairman & CEO, President & CEO, Alcoa, Inc. Automobile Insurance Company
Chevron Corporation Design: Thinkside Design, thinkside.com
Shelly Lazarus Barry Salzberg
Daniel L. Doctoroff Chairman, CEO, Deloitte LLP
President, Bloomberg Ogilvy & Mather Worldwide
Henry B. Schacht
Donald E. Felsinger Terry J. Lundgren Former Chairman and CEO,
Chairman & CEO, Chairman, President and CEO, Cummins Engine; Former CEO,
Sempra Energy Macy’s, Inc. Lucent Technologies
Jay S. Fishman Peter L. Malkin Sanford I. Weill
Chairman & CEO, Chairman, Malkin Holdings LLC Chairman Emeritus, Citigroup Inc.
The Travelers Companies, Inc.
Marilyn Carlson Nelson John C. Whitehead
Timothy P. Flynn Chairman, Carlson Former Deputy Secretary of State, Former
Chairman, KPMG International Co-Chair, Goldman Sachs & Co.

12 committee encouraging corporate philanthropy