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Archive for the ‘Oxfam’ Category

Can you remember the first time the two of you got together. The stolen looks, the uncomfortable moments of silence, the tripping over your sentences, the sweaty palms, the he-likes-me-he-likes-me-not thoughts, the private meetings when no one was looking, the uncomfortable first meal together. Yes, I am talking about stakeholder engagement. Just as with any relationship in the early wooing and courting stage, stakeholder engagement is never easy at the start.

Most companies just don’t know how to talk to activists and campaigners. Hey, make no mistake, activist hardly knows how to talk to companies either. But they don’t need companies to like them as much as what companies need them to like them. Or at least leave them alone and not target them.

Don’t feel bad when they target you. It happens to the best of companies. Sometimes it makes sense and sometimes not. I remember seeing an anarchist kicking a Nike sign at the battle of Seattle in ’99 – while wearing his Nike shoes and top…

But there are a few tips you should follow if you decide to engage and start courting. This is not an exhaustive list. Just a few tips to get you through those first uncomfortable early stages of stakeholder dating.

Firstly, do your homework and find out a bit more about the NGO and what it regards as its ‘bottom line’ – it is unlikely to be financial! I was invited to speak to the global affairs team of a very large pharmaceutical while I was at Oxfam (I headed up the Access to Medicine Campaign for a while). I was shocked to hear that the majority of people at the company thought that Oxfam only worked on health issues. And this happened when Oxfam was in the middle of their Coffee Campaign! Dig around a bit first and find out what the NGO does and what is their mandate. Most of them are registered with a constitution that states what they should focus on and how they should work. This will help you understand whether there is any potential for a longer term constructive relationship – or just a one night stand. Also a good tip when you start dating – know who you are dating. Except if you like blind dates.

Secondly, respect the differences between NGOs by not lumping them all together in the same room for a consultation exercise – NGOs are proud and competitive too. You wouldn’t want them to call a whole bunch of companies together and still expect special treatment just aimed at you. You should respect their differences and treat each one differently. Rather meet each one separately in an environment that works best to put them at ease. Meet them where they feel most comfortable – maybe at their place. Especially if you want to build the foundation for a long-term relationship. And even this should work best for real dates – don’t bring all your prospective dates together in the same room. They might just start sizing each other and you will be left with no date at all.

Thirdly, don’t make the mistake of thinking that you are the only company that is the target of the NGOs campaigning efforts, or that the NGO hasn’t other programs and projects that may have nothing to do with business. Just as with the large pharmaceutical company I mentioned, most NGOs have numerous focus areas and different programs and projects to try and achieve their overall goals. And most large campaigning NGOs have various campaigns going at the same time. They might have one single broad focus, but it plays out in different campaigns and programs. For instance, Greenpeace might be about the environment, but they focus on climate change, oceans, forests, genetic engineering and nuclear issues. So your company might only be a small part of their focus and interest. Same with real life dating. A friendly smile does not mean they want to date. It might just be a friendly smile.

Fourthly, start by talking, learning about each other and building trust rather than starting by expecting ground-breaking strategic partnerships. There might be a few obstacles to overcome – perceptions of what ‘big business’ is all about and a feeling that you want to ‘clean’ yourself by associating with them. Take it easy and just talk. Let them get to know you. Don’t create expectations. Just listen and learn and see where this might take you. Again a good tip for real life dating as well. Don’t ask them to marry you or expect ‘the commitment’ on the first date – it might just scare them off.

Lastly, remember that cash does not necessarily have the same currency as it does when buying products or services from other companies. First and foremost NGOs want to affect change. But they don’t always see money as the way to achieve change. Yes, some of them have huge budgets and operate like multinationals. But they generally have strict guidelines on receiving money from companies. For instance, Oxfam will not accept money from companies that fall within an industry they target in their campaigning. They might not even accept money for travel – never mind for a program. They would rather see you ‘do the right thing’ than pay them to do something. Okay, this one is less relevant for real life dating. Money generally impress prospective dates!

Okay, one more tip. Don’t expect them to agree with you on everything. And don’t make this a prerequisite for your potential relationship. I love my wife to bits. But we only agree 80% of the time. But we don’t let the 20% of the time we disagree define our relationship. No. Focus the relationship on what you have in common and don’t get stuck on the differences. It’s part of being human – we are all different. And the same for companies and NGOs – we are all different. And I learned that I am wrong 20% of the time in any case. Just ask my wife.

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Partnership anyone?

 

The oil spill seems to have more than just an environmental and political impact. It’s starting to impact how partnerships are formed between companies and NGOs. Some environmental NGOs are being tarnished – thanks to their relationship with BP. The Washington Post wrote an article about how the Nature Conservancy (and Conservation International and EDF) is facing a potential backlash because of their ties to BP. It has sparked a lively debate amongst Nature Conservancy members as the Nature Conservancy defended it’s position in a piece called “Why We Engage With the Energy Industry: It’s For Nature“. I’m less interested whether environmental NGOs should partner with energy companies as that is for each one to decide according to their principles and what they are trying to achieve in their own unique way. What I am interested in are the lessons we can take from the controversy – for NGOs and companies. 

Of course NGOs will have to be more discriminating when it comes to their partnerships. Or maybe a bit more transparent and proactive with their members on how they partner and who they partner with. The complaints from the Nature Conservancy members are legitimate but it is mostly because they just did not know about the Nature Conservancy and BP relationship. They based their support for the Nature Conservancy on what they thought the Nature Conservancy should do when it comes to partnering and not what the Nature Conservancy actually does. We live in an increasingly transparent world where no information is hidden anymore. That’s not to say that the Nature Conservancy (or any of the other NGOs) hid what they did. It was just not seen as a priority communication to members. Their argument will be that the information has always been there for anyone looking – or asking. 

However, the information overload in the world we live in also means that people can’t research all the facts – there are just too much information. What we’ve seen more and more is that people rely on their friends, blogs and other social media to get their information. They trust these sources – why would my friend lie? The problem is that none of these new sources of trusted information tend to have all the facts. Your friend tells you that the Nature Conservancy is cool because they have always supported them or they’ve read something that they liked etc. But the detail tend to be missing. The sources people trust do not always have all the details – just soundbites. It works most of the time as most things tend not to be such a huge issue. Until a major oil spill hits you… 

NGOs need to be more transparent on who they partner with, how they partner and why they partners. More importantly, they need to get to those places where people find their information – friends, blogs and social networks. It’s not enough to have a Facebook page or a nice blog telling people what you think and why they should support you. You should use these tools to engage not only new and potential members but also your existing members. Engage them and inform them of those areas you (and them) would see as potential risk areas – your corporate partnerships… Be open and transparent about who you are, what you do and who you work with. We ask companies to be transparent and proactive about these issues – and so should those who defend the rights of civil society and the environment. Go out and engage in a transparent and open way. The more people know the more likely you will have members who know what they are getting into and the more loyal they will be. It’s like any relationship – you want to know everything before making a commitment. Don’t be like so many who marry based on a gut feeling instead of digging deeper to see if you will really stick together in “sickness and in health.” 

People also make assumptions based on names. The Nature Conservancy. It’s about conserving nature, right? And the elevator speech tells me that. Most people don’t read further than that because the name and soundbites gave them what they think they were looking for. However, the devil is in the details – the fine print. Encourage supporters to be diligent in doing their research before the time. Give them a “Term & Conditions” document to “agree to” before they can become a member. Spell out what you do and who you do it with. The same way we want companies to tell us who they partner with. Don’t assume people will know what you do – they don’t. 

Don’t try to be everything for everyone. There are so many causes nowadays – I’ve written about this here. Competition amongst NGOs are growing as each one tries to carve out a bigger part of the “market share”. The number of NGOs are exploding because each individual is trying to match their “unique” view with a charity to match. It becomes increasingly difficult for large NGOs to attract new members. One way they try to address this is by becoming everything. You care about turtles? We’ve got just the right program for you. Oh, you like trees a bit more? Step right this way for your own huggable tree. 

You can’t be everything. Pick what you want to address and be the best at that. Less of a Jock of all trades – more a master of one. This way you know what you are and, more importantly, your members know exactly what you are and it’s easier for them to see what you do and how you do it – and who you do it with. Starbucks sells coffee not cars. Microsoft doesn’t sell houses. Timberland doesn’t drill for oil. They know who they are and what they are good at. I don’t have to guess what they do when I go and buy my coffee, software or boots. Furthermore, knowing who they are and what they offer makes it so much easier for me to dig around to see how they do what they do – the CSR and sustainability bits. And, of course, who they partner with. 

Lastly, some NGOs like Oxfam GB, WWF and Greenpeace have very strict rules that govern their behaviour and partnerships. I’ve worked for Oxfam GB and they don’t rule out partnerships with companies but have very strict guidelines. For example, they will not accept any funding from companies remotely linked to any issue or campaign they work on. It hasn’t always been a popular position but it made it easy and very clear on how you manage relationships and expectation – and engagement with supporters and companies. Oxfam GB can work with a company to help them on the ground as long as it helps them achieve their primary goals – addressing poverty – but no money can be exchanged. NGOs should be clear on this – when do or don’t you accept corporate cash or goods. I’m not saying that those being targeted because of the oil spill and their partnership with BP don’t, but it is clear from the concerns by members that the members did not know the rules. During my days at Oxfam we used to make that a key part of all communications – large public meetings with supporters or closed meetings with companies. Everyone knew the rules and had to live by those rules. Make it, know it and talk about it. 

Last point on how the oil spill could be redefining partnership… This time on the corporate side. 

Companies should also become more discriminating about their partnerships. The partner of your partner now becomes your partner. True progressive companies, or at least those who claim CSR and sustainability leadership, will have to become more careful who they pick as their NGO partner. Do you really want to partner with an organization that might be perceived as “sleeping with the enemy” because of other relationships they have? Their reputation is your reputation. It works beautifully when they can help tell your story but it can come back to haunt you if they become tainted. Pick your NGO partner carefully – using the same rules I mentioned above for NGOs. 

But progressive partnerships go further than your partnerships with NGOs. Who are you partnering with on the corporate side? It is becoming increasingly unacceptable to have a “lager” mentality where you can keep quiet about what other businesses are doing. Not every business out there is your friend just because they are a business. Think about it this way… 

Say you are dependent on milk from a very specific area for that unique cheese you have to offer. And then they find oil there. This could mean the end of your business or at least your competitive edge. Do you keep quiet or do you tackle the business that threatens your business? 

Let’s try another example… 

Let’s say that as a company you stand for the environment. Your brand is something that stands out in its advocacy for the environment. You might even be in the line of making clothes or boots for outdoor use. You champion this and you build your brand on your environmental credentials and progressive advocacy. What do you do when a mining company mines off the top of a mountain? Do you keep quiet because it is another business or do you speak out because it threatens your business or at least devalues your brand. 

The same goes for Climate Change. Why keep quiet if you truly believe that it can have a material impact on your business? Should you not defend your business interests and long-term survival? Should you not tackle those who threaten your business or who advocates against your interest? Why even closely associate yourself with businesses whose practices threatens your business? Just because they are a business? We don’t even do that as humans… 

Your partnerships and allies will be a key way to communicate what you stand for. Traditional business associations are becoming more irrelevant by the day – new broader stakeholder partnerships based on shared values are increasing. Why? Because people see who you are through the relationships that you have. Associate with businesses that are against what they believe in will make them question you. And threaten your business. The question for you – what does this mean for your business and how can you stay ahead of the pack? Redefine your partnerships with NGOs and other businesses. Find the right match and build on that. 

Partnerships are being redefined and you will either fall behind or you can be part of defining the new way of partnering. You decide.

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(Note: One quick clarification. The NGOs I refer to in this blog are not those who partner with companies but rather those activist NGOs. The Greenpeace, Oxfam, Global Witness type. Those NGOs who bug the living hell out of companies…)

So many businesses see activist NGOs as the enemy. Always biting at their heels and pointing out everything they do wrong. Sometimes these frustrations are legit as most companies do not go out to do harm. But they slip up or didn’t know about something bad on the ground and wham! – the activists are in the streets and getting everyone all worked up. The frustration boils over when these NGOs point out something that is wrong and then don’t applaud the company when they do the right thing. Or even worse, from a company perspective, when a company does something right and positive all on its own the activists still don’t support them or even give them much – not even a nod of approval. Why don’t these guys want to be friends? Why don’t they play nice? Or, in the extreme, why do these damn activists point out what is wrong without really providing a workable solution?

Answer: They are not meant to be your friend.

As simple as that. Don’t expect them to be your friend. If you do then you are asking the wrong question and misunderstanding their role in society completely. Their role is not to buddy up to business or tell you when you are doing a great job. They are here to be a societal watchdog that checks whether you are still sticking to your contract with society.

More on this contract with society in my next blog but for now…

The business contract with society is made up of the unwritten laws that governs behaviour and defines the role of business in society. It provides business with the space in which they can operate. it is not covered by government laws and regulations only. Governments tend to be reactive by correcting behaviour. Sometimes they try to be proactive but they mainly let the market regulate itself and force change when the damage is already done. The activist NGO’s are more proactive. They see damage done or potential damage done and drive towards more fundamental change in behaviour and laws. Yes, it is also reactive but they are looking at the future a bit more than governments tend to do by picking up on what is wrong at an early stage or potential danger based on science, research or previous experiences.

Before you become too critical of them. Think a bit about what these activists have done to “enforce” the societal contract and expectations and what they have done to stop and/or prevent damage to society and the main asset of society – the environment. Thank them for raising whale hunting. Thank them for highlighting exploitation in third world countries. Thank them for raising issue of imbalances and injustice in global trade system. Thank them for raising labor issues in China and elsewhere. Thank them for getting to those disaster areas quicker than you. Thank them for digging out the truth about wars and modern day genocide. Thank them for going after polluters who don’t care. Thank them for bringing to an end the curse of blood diamonds. Thank them for pointing out the inequalities when it comes to wages for men and women. Thank them for raising the issue of obesity. Of cancer. Thank them… For so many things. Thank them for covering your back while you are trying to live a life. A normal life.

These activist NGOs play a crucial role in ensuring companies (and others) focus on what is best for society as a whole. Unfortunately,  most people do not have the resources to check up on companies themselves and governments are lobbied to death, focused on the next election and/or fixing past problem – meaning they don’t have much time left looking ahead or even more broadly at what is good for society or not. They live in an election cycle and not geared towards looking at the long-term. Furthermore, government regulate and the majority of people don’t like government telling them what to do or not to do. Activists play a crucial role in sifting through the major challenges to highlight those crucial to society – and those who might need a closer look by people and governments.

No one is perfect. Companies make mistakes. They don’t know all the negative impacts they have. Did companies know of the potential threat of their emissions 20 years ago? No, we didn’t have the science behind it. Did companies know the exploitation of workers in factories in emerging markets 30 years ago? No they didn’t. I hope. Do we truly know the impact of GM crops? Did they know… etc. etc. We’ll know the impact we have in the future. However, companies do not measure their own impact or even always suffer from this impact. People suffer and activists and scientists measure, identify and advocate. Self regulation might work but self-analysis of impact won’t work because companies won’t always know what to measure. Their financial bottom line is not the same as the broader societal bottom line. But activists have a simple aim – preserving the planet in one way or another. No hidden agenda of making money or selling another product. No vested interest to make a quick buck. That is why they are pretty good at finding issues because they only represent those who suffer from impact and who can’t tell their own story – be it people or the environment.

(Note to cynics: Many have told me activists do it for themselves and for money. Sorry, but that is just not true. Show me the activists who made the list of billionaires. They do it for a cause and generally get paid next to nothing. Some of those NGOs who do work with or for business get paid loads but activists do not. Lastly, most of them do not take money from companies, such as Greenpeace, or have strict rules forbidding them from taking money from companies they campaign against, such as Oxfam. They are not perfect but most of them are not driven by either personal or organizations finances. Money for them is only relevant to how it enables them to affect change.)

Anyway… Activists do their research and have to be more prepared to reflect on the future and highlight the threats of today and how it will impact the future. They will make mistakes but they also have to be brave enough to look forward and take a stand before the problems become too much for society to handle. Identify, campaign and prevent. Simple.

They are not here to be the friend of companies. They are here to be the watchdogs. Understand what they want through change and how you impact this – that is the basis of your engagement. Companies can learn much from activists on what is wrong and how to improve their business. Hell, they even gave you a new market through the bottom of the pyramid thinking. But don’t expect them to love you and applaud you. They are not a client or a business partner. See them for who they are and celebrate the different view they offer. Maybe then you’ll know how to engage with them as well.

Until then… See you in the streets where I will applaud their protesting and thank them for watching my back while I try a different tactic in changing corporate behaviour and/or improve business impact – the activist inside.

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Most people know that I am not the biggest Fairtrade fan. Heck, just read My beef with Fairtrade for more of my rantings on Fairtrade. But Brendan May (good guy also in the sustainability field – his Twitter feed is bmay) made me think a bit more about Fairtrade. He had a series of Twitter arguments to tackle Fairtrade and some of the claims they make. Brendan made a few good arguments that highlighted some of the flaws of Fairtrade compared to other certification system and the seriously flawed misunderstood claims most consumers have around Fairtrade. Especially some of the marketing claims made by Fairtrade and the assumption by Fairtrade and their supporters that they are the best out there to help farmers. Show some hard facts please Fairtrade and less unsubstantiated claims. A premium is no reflection on the “wealth” of farmers – we need a bit more on agreeing on measurements and then do a comparative study.

Okay, so Fairtrade make claims they shouldn’t and push their luck on a few things such as helping the poorest farmers (no they don’t, only those organized in cooperatives), strong environmental claims (there are others out there with much better environmental criteria) etc. But there is one area where I believe Fairtrade is fundamentally different from anyone else out there. They might have forgotten this basic principle over the years – especially since they have grown so big and started operating more like a traditional business. The foundation of Fairtrade is one that is very different from any of the other certification schemes out there and one that asks a much more fundamental question about the world trade system than any other system… And it comes down to the premium that Fairtrade pays.

Why pay this premium? Why did they start off with this idea of a premium in the first place? The figure is so artificial so why have it in there in the first place? To answer this you have to start with the world trade system and everything that is wrong with it in the agricultural commodities field.

Activists like Oxfam (a Fairtrade founder and supporter) have long argued that the global trade system is one of imbalance. The rich nations in Europe and the US have all the freedom in the world to pretty much do what they want. More importantly, they subsidize their agricultural sector to the hilt. Corn, sugar – you name it and they subsidize it. Don’t argue that subsidies are gone – that is a technicality as these countries spend billions of dollars each year on agricultural support where semantics rule. Call it research support but anything over a few billion dollars ending up in the pockets of large commercial farmers are subsidies dressed as research.

But back when the Fairtrade idea started the subsidies were even more blatant. The EU and US were happy to call it subsidies back then. So here you have a global agricultural commodity trade system where the rich countries support their farmers with subsidies because they can’t compete with farmers in emerging markets and developing countries – of course hidden as food security, national security, national interests, etc. The poorer countries? How did they fare on the subsidies front? Not so well…

Not only could they not support their farmers but the WTO rules (that they stupidly agreed to) stipulated that they couldn’t give their farmers subsidies in any case. Great trade system isn’t it? The rich can get richer thanks to the subsidies and the poor will remain poor – or get poorer.

This was where Oxfam and mates stepped in and created Fairtrade. Not to just give farmers a premium for their products but to address the fundamental injustice in the world trade system. The premium they pay and guarantee is a non-government subsidy. It helps farmers from poorer countries to compete against richer nations through a subsidy system that completely passes the WTO system by and is paid for by the people who also pay for the subsidies in their own system – richer nations. Pure genius.

The Fairtrade system has major flaws and I am not always that impressed with the work they do or the claims they make. But do not misunderstand their claims and the true benefit of this system. You need a system that undermines the global trade system if the trade system is so unjust as it is. Fairtrade is needed as long as the world trade system, in especially agricultural commodities, benefit the rich nations over the poor nations. There is no level playing field and the free market is a myth when it comes to argiculture – and Fairtrade plays a key role in trying to level the playing field a bit more. Not perfect but fundamental in trying to address something that is outside of the control of farmers in poorer markets.

No other system can claim the same. They might be better in helping farmers become more efficient or improve their environmental impact but none of the other systems actually addresses the much bigger challenge of a fundamentally flawed and imbalanced world trade regime. We need Fairtrade in a world where free trade does not exist in any other place but empty words and the worthless pages of world trade agreements.

So what about companies that argue against Fairtrade? Maybe they should look a little bit closer to their own supply chain. Do you sell food stuff? Anywhere in the US or EU? Do you by any agricultural products in any of these countries in the US or EU? I can guarantee you that your company benefit from subsidies being handed out to farmers in corn if you sell one single soda or chocolate in the US. Sip your subsidized wine Europe. Spread those subsidized jam and dairy products on those subsidized breads. Slap another subsidies steak on the bbq. The list goes on and on. Almost every single food and beverage company in the US and EU indirectly benefit from some form of subsidy through their subsidized supply chain. Why are they not arguing against subsidies of these farmers a little harder? It sounds like double standards to me that companies are against Fairtrade because of the subsidies but willing to take the subsidized products in Europe and the US and sell that to us. Another slice of double standards anyone?

I think Fairtrade was a genius idea. I just wish they would go back to their roots and remember why they were started in the first place – to take on a fundamentally flawed world trade regime. No other system can claim the same.

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