SUPPORT STRATEGIC CAUSES

Promote growth through healthy business partnerships – Dr. Muneer Muhamed

It’s always wise to support social causes that one believes in to facilitate long-term and sustained business growth. And it is a good idea for SMEs to partner with NGOs to support appropriate causes, which can create win-win situations for all.

If a suitable partner is selected, increased revenue, greater media exposure, positive public relations (PR) or all three will follow – for all parties.

Instead of simply donating money to a nongovernmental organisation, identify and associate with causes that the business has a natural affinity towards.

For instance, keeping the roads clean would go well with an automotive ancillary business. Likewise, working to improve civic sense could be a natural cause for companies in the packaged goods or water sectors.

Cause marketing initiatives are different to philanthropy. The latter generally involves a specific donation while the former is a more strategic marketing decision. If SME promoters ask why they should undertake such initiatives, they need to be reminded that their organisations must give back to society too.

Another reason to pursue cause marketing activities is to build the brand and business while doing social good. Maximising shareholder value has backfired in many developed economies and this prompted the idea of maximising stakeholder value – i.e. society, suppliers, employees and others linked to the business.

Long-term benefits will arise from developing a community residing in the locality of the business. The right cause marketing initiative is the best PR for small and medium-size enterprises.

Some companies take on corporate social responsibility work to make their businesses visible and popular. However, this may be flawed because the benefits to the top or bottom line may not be apparent in the short term. If done properly however, the long-term benefits can be tremendous.

So what goes into selecting the appropriate cause to associate with?

When identifying a cause, SMEs should check for strategic linkages because they can’t afford to fund every good cause.

Search for NGOs that have a similar mission. It could be civic sense, better healthcare, uplifting women or cleaner cities. After identifying the cause and partner, the SME should work on building a strong partnership.

FUNDING Don’t simply offer money to the partner organisation and cause. Get involved, hold joint meetings, conduct reviews on progress, develop a success metric and facilitate the introduction of a more professional approach to drive the cause.

The organisation may not have the kind of managerial expertise that your business has but don’t impose your thinking on it. This relationship should be collaborative in nature for the cause to succeed.

For example, a certain institution that works for diversity and innovation is closely involved with  governments and a range of stakeholders to co-create a better civic sense in society. The keyword here is ‘co-create.’

When a cause requires several millions of dollars, not much can be achieved in the operational area or strategic decision making if your contribution amounts to only a few thousand dollars.

CLEAR GOALS Set clear goals and expectations that all stakeholders can align with. This leaves less room for any mistrust and non-implementation. It’s best to have all these issues sorted out before inking a partnership agreement.

And always state your expectations upfront – as you would do for any other project funding.

BUSINESS NEEDS Inform your partner about your business needs. Its management must know that while companies are sincere about a cause, they have business needs too. Unless these needs are met, the long-term sustainability of the cause marketing initiative would be in doubt.

Though there’s nothing strange about seeking appropriate branding in the activities conducted under the partnership, it could be a sore issue sometimes. This can easily be resolved through healthy discussion.

COMMUNICATION To build and sustain a successful partnership, the company and NGO must strive to have effective communication channels open at all times. If you’re a major contributor, you could ask for a seat on the board of the partner organisation or membership of a steering committee.

Remember that both entities speak different languages. If this is not appreciated, there can be confusion and misunderstanding.

For instance, several NGOs don’t have mechanisms to track progress and many do not use appropriate metrics. They’re also publicity shy. What matters is the good work they do, and they often don’t appreciate how clever PR can help them build and expand their cause. This is where businesses can help.

MEASUREMENT Both partners should know how well the mission is progressing and how milestones are being reached.

So introduce two types of metrics: to measure the impact of the cause that’s being supported and monitor the awareness levels of end users.

Set clear goals and expectations