bpo csr- bpo perspective

Upload: yogasana

Post on 11-Oct-2015

14 views

Category:

Documents


0 download

DESCRIPTION

HKKIO IOPUY

TRANSCRIPT

  • 2013 TELUS International telusinternational.com | @TELUSint

    Outsourcing for Social Good: A BPO Perspective

    Insight Paper

    When it comes to corporate social responsibility (CSR), is there a new imperative for BPOs? Global

    BPO provider, TELUS International, in partnership with global CSR consultancy, Impakt Corporation,

    explore the rising social purpose of the outsourcing industry.

    Learn more at: http://telusinternational.com | http://impaktcorp.com

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 2

    Idea in Brief

    The Business Process Outsourcing (BPO) industry was born out of a desire to cut

    operating costs. However, the industry is changing considerably. Today, progressive

    BPOs are focused on creating an exceptional customer experience while delivering top-

    line value to their clients in a way that also addresses social inequities in the countries

    where they operate. At the same time, clients are evaluating BPO suppliers on more

    than the conventional value proposition. Clients have come to recognize that

    Corporate Social Responsibility (CSR) is a vital way to assess the values of a company.

    By responsibly and ethically employing hundreds of thousands of people, BPOs have a

    role to play in shifting the social landscape in emerging economies around the world.

    A crucial next step is to develop more robust techniques for measuring both societal

    and business impacts of CSR initiatives, including reduced agent attrition, better

    customer satisfaction, and improved public opinion.

    The Need for Social Change

    The need for social change is as urgent today as at any time in history. About 1

    billion people around the globe will go to bed hungry tonight, 200 million of them

    children. According to USAID, nearly 800 million people lack dependable access to

    clean water, and about 2.5 billion people lack access to modern sanitation1.

    Until recently, addressing these critically important social issues has been the sole

    responsibility of governments and non-governmental organizations (NGOs). Despite

    the best efforts of civil society, the social conditions for too many people around the

    world remain unacceptable. As government programs and services are being cut and

    NGOs struggle to stay afloat, societys expectation of business has changed. Milton

    Friedmans belief that the responsibility of business to maximize profits is being

    challenged and the question of what constitutes business value is being re-

    examined.

    How can businesses align short-term business goals with long-term social

    objectives? What is the business value of social change and the social value of

    business performance?

    A new model is emerging that touches every aspect of a company's operations. It is

    embodied in a term coined by Michael E. Porter and Mark R. Kramer in their 2011

    Harvard Business Review article "Creating Shared Value". Instead of relying on

    altruism or optics to drive corporate social responsibility, the concept is based on

    1 http://www.usaid.gov/what-we-do/water-and-sanitation

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 3

    "reconceiving the intersection between society and corporate performance." By

    aligning corporate success with social progress, new products, services and

    approaches are developed that bolster a company's long-term profitability, while

    also addressing major social issues.

    As the world's largest purchaser of black tea, Unilever supports social change

    through its Better Livelihoods program. It has already trained about 450,000

    smallholder tea farmers in sustainable agricultural practices and made high

    quality seeds and fertilizers available to them. Farmers have improved their

    yield and their livelihood, while the company has a more robust supply chain

    focused on smallholders.

    Nestl has also developed a new sourcing practice for its highly popular

    Nespresso coffee brand. Most coffee beans used for specialty coffees are

    sourced through small farmers in Africa and Latin America whose production

    is limited by a lack of resources. To overcome this problem, Nestl has

    provided advice, financial assistance and agricultural inputs, while also

    building local processing facilities. This has increased yields, while also

    providing Nestl with a more secure source for their coffee.

    Google.org is leveraging its robust mapping technology for the public good,

    providing everything from crisis response information to flu and dengue

    trends. These actions are helping the world tackle some of its most daunting

    challenges.

    Clearly, progressive companies are already making social change a core pillar of

    their business. How does this approach apply to the Business Process Outsourcing

    (BPO) industry?

    BPO: An Industry with a Social Purpose

    The BPO industry was born out of a desire to cut operating costs. However, the

    industry is changing considerably. Today, progressive BPOs are focused on creating

    an exceptional customer experience while delivering top-line value to their clients in

    a way that also addresses social inequities in the countries where they operate.

    TELUS International was interested in producing a balanced and objective analysis

    of the reasons why corporate social responsibility (CSR) is becoming so important to

    the BPO industry. Impakt Corporation, a leading global CSR consultancy, was sought

    out by TELUS International to explore this question.

    The research revealed that BPOs have become connected to and rooted in their

    communities in a way that is inextricably linked to the success of their businesses.

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 4

    By responsibly and ethically employing hundreds of thousands of people, BPOs are

    shifting the social landscape in developing countries around the world, while the

    industry is recognizing that success can no longer be defined by bottom-line

    concerns alone.

    A lot of business leaders look at their business and ask: what are our

    strategic objectives? What are our financial metrics, KPIs and targets?

    What are the core competencies and skills required within the

    organization? And then, in an unrelated secondary conversation, they

    may talk about culture, values and CSR. Its viewed as an addendum to

    the central discussion of the business, not part of the fundamental,

    strategic discussion about the business. For us, its an inclusive

    conversation.

    - Marilyn Tyfting, Vice-President, Human Resources,

    TELUS International

    A New Imperative for the BPO Industry

    Success in the industry can no longer be measured strictly by costs per call or

    number of seats in a call center. Limitations of the original BPO business model have

    led to high attrition rates among call center agents, with annual turnover rates in

    some locations exceeding 80 percent. This has many consequences. For the

    companies the BPOs represent, high attrition rates can translate into a gradual

    diminishing of customer satisfaction as brand continuity is minimized and agent

    dissatisfaction interferes with the customer relationship.

    The DNA of the emerging model for the BPO industry is based on the value of a

    caring culture. When a company thoughtfully analyzes the social issues its

    employees and communities are facing, and then develops effective strategies to

    address these problems, the company, its employees and communities all benefit.

    And when people feel valued and cared for, they become more loyal and enthusiastic

    about the organization they are working for.

    A key imperative for the BPO industry stems from a persistent inability for

    governments and non-governmental organizations to address basic social issues in

    developing countries, such as housing, access to clean water and education.

    This consciousness has spurred companies to think much more strategically in

    forming ongoing partnerships with local communities and aligning shared values

    and goals. Its not a question of companies executing occasional, high-profile

    philanthropic initiatives. It means embedding this ethic in the very way the company

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 5

    conducts its business. This isn't being driven by altruism. It is an innovative and

    sensible strategy for a new brand of business success for BPOs.

    "In our opinion, our team members [agents] are the true difference

    how they feel, and how connected they are to the business. This

    translates into providing passionate, caring customer experiences for

    clients. It changes the ground rules so that traditional criteria and cost

    savings alone become less important."

    - Warren Tait, Vice-President, Culture, Philippines,

    TELUS International

    The Value of a Caring Culture

    Helping communities address basics like housing, education and clean water,

    enhances a company's reputation. It becomes a sought-after place to work, making

    recruitment that much easier. Retention increases substantially. Agents are engaged

    as they feel they are making a real contribution to their families and communities

    through their employer.

    For BPOs, success isn't measured exclusively by the balance sheet anymore its

    also based on seeing the changing reality of communities.

    In creating thousands of well-paid jobs, the stability of the community is improved.

    People no longer have to leave their home country and family behind to earn a

    living. Instead they can build a more prosperous life and community right where

    they live. A wider range of opportunities becomes available. The middle class

    expands. All of these factors have the potential and ability to transform society in a

    profound way. This is not a pipe dream it's a snapshot of what is happening in

    places as diverse as the Philippines and El Salvador.

    "Many BPO companies stop at corporate charity. They make the poor

    objects of charity. I think TELUS understands sustainability and

    solidarity. It's about empowering the poor to help themselves and one

    another. Its about building a permanent impact schools, water

    systems and toilets have an impact, not just on the health, and the body,

    but on the soul. So it is this spirit that TELUS brings the spirit of

    solidarity and sustainability, of honor and self-respect."

    Tony Meloto, Founder of Gawad Kalinga (NGO in the Philippines)

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 6

    We are helping to create the future leaders of our country; people

    focused on social consciousness and solidarity. They are able to go

    from surviving, to dreaming.

    - Guillermo Valiente, El Salvador Country Manager,

    TELUS International

    CSR: The Next Important BPO Benchmark Increasingly, clients are evaluating prospective BPO suppliers based on more than

    the conventional value proposition. They have come to recognize that CSR is a vital

    way to assess the values of a company: how integrated it is in the community, how

    committed it is to nurturing an environment that cares about its agents, and how

    much it cares about customer satisfaction.

    However, assessing the precise value of qualitative outcomes remains a work in

    progress, and there is no one-size-fits-all approach that will work for BPOs in all

    countries. The key to success is making every effort to understand the social issues

    that matter most at the local level, adapting programs to best address these issues,

    and doing so in ways that reflect each company's values, strengths and expertise.

    "What TELUS has done is enable individuals to show up and do what

    theyve always wanted to do to feel a connection and make a

    difference. The return is loyalty and passion for the business and

    compassion for the community. It becomes an ecosystem and lifestyle

    that is community-based that people thrive in.

    - Kevin Bottoms, Account Executive, TELUS International

    What are BPOs doing?

    TELUS International (TI) has instituted its Day of Giving in several countries,

    including the Philippines and across Central America. In the latest Day of

    Giving in the Philippines, TI mobilized 2,000 of its international team

    members to refurbish the EMS Signal Village Elementary School in Taguig (a

    single school attended by 9,000 children) in conjunction with a new

    partner organization, Hands on Manila.

    Beyond single day activities, TI is dedicated to creating ongoing, long-lasting

    partnerships with their CSR partners, matching team members dedication

    to volunteerism with charitable organizations that need support. During the

    past five years, through a partnership with Gawad Kalinga (GK), TI has

    helped create two villages and built 149 homes in the Philippines. Team

    members also volunteer at the villages every few weeks, teaching life skills,

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 7

    tutoring children, and empowering previously homeless people to take

    control of their lives.

    In a similar model, Convergys uses its Community Action Network (CAN) to

    promote everything from education to feeding the hungry and sheltering the

    homeless. CAN combines volunteer hours, in-kind donations and direct

    financial contributions to perform its work.

    In Central America, TI focuses on youth and education, building schools from

    the ground up, assisting more than 4,000 children. In addition, TI agents in

    Guatemala put their skills to good use volunteering time running anti-drug

    and HIV information hotlines.

    TELUS International has also taken CSR several steps further. Three TELUS

    International community boards located in the Philippines, El Salvador and

    Guatemala, each distribute $100,000 annually to local grass-roots charitable

    organizations. The boards are run by local community leaders, as well as

    TELUS team members. The most unique feature is that local community

    leaders, not TELUS International, determine where funds will be most

    impactful in the community.

    Another program that has made a significant impact is TELUS International

    University (TIU) it helps employees earn a degree right onsite in their

    workplace, improving their prospects without having to leave their jobs.

    Another BPO company, Teleperformance, has also created centers for

    learning TP University. It gives the companys most promising executives

    personalized college courses that immerse them in the company's best

    practices and innovative approaches to customer relationships and the

    customer experience.

    Sykes has created a series of programs as part of its Global Giveback effort

    that supports everything from local clinical health services to physical

    fitness. Sykes Cares represents the companys main philanthropy program

    aimed at raising education levels in the Philippines by providing educational

    facilities and equipment.

    There are several other examples from large scale programs to individual

    stories of giving. But overall, theres a real opportunity for BPOs to embrace

    this new imperative around both customer experience and social change.

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 8

    A Sense of Direction: Where Does the Industry Go From Here? While several BPOs have begun to derive significant returns from their social

    purpose initiatives, many companies still approach non-financial aspects of business

    in a mostly ad hoc manner. The industry is just beginning to approach community

    challenges in a more systemic way.

    Finding the right balance in how to communicate social purpose efforts also remains

    a challenge. Corporations recognize a degree of risk from being seen as blowing

    their own horn too loudly. Yet, business results and social outcomes depend on

    drawing more attention to non-traditional initiatives. And since clients increasingly

    look at CSR as a differentiator in their business and their choice of suppliers, it has

    become more important than ever to spread the word.

    Research conducted in support of this paper has revealed a number of other

    interrelated questions that the industry should address moving forward. Most

    importantly, what are the best tools and metrics BPOs can use to quantify the

    results of a CSR program?

    Other key questions include:

    How can companies in this industry align their social purpose initiatives to better reflect their corporate values and existing areas of expertise? How does a more targeted alignment translate into a better customer experience?

    Is there a way of more formally integrating BPOs and clients in the

    development of shared CSR endeavors?

    What criteria could be established so that BPOs can better determine how best to serve community interests?

    Can social investment practices be standardized and applied in different

    regions across a network of corporate operations?

    How can BPO companies measure and improve their partnerships with local NGOs?

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 9

    Taking the Next Step Companies are good at growing their businesses; they are not created with the

    intention of acting as direct aid providers.

    Although its flattering to be mistaken as doing the work of Canadas primary

    international aid agency, TELUS International recognizes that its role is not to

    deliver aid. Rather, it's to develop long-term partnerships with the most effective aid

    agencies in the countries where it operates. It's to form community boards with

    local leaders to steer the company to the social issues and solutions that will work

    best in each region. It's building a social purpose from the ground up, instead of

    imposing one from the top down.

    "Canadian companies in the Philippines, including TELUS International,

    are leaving a legacy for society. They are helping people belong to

    something bigger than themselves. This creates voices for real

    transformation.

    - Christopher Thornley, former Canadian Ambassador to

    the Philippines

    A crucial next step in the process is developing more robust techniques for

    measuring both societal and business impacts of CSR initiatives. For now, though,

    the positive impact on TELUS Internationals corporate culture is clear:

    "It really is remarkable how infectious this whole CSR philosophy is

    when you do it right. It can come across as hollow and disingenuous

    when it's being produced as a sound-bite or photo opportunity. When

    its part of our DNA, and a pillar of corporate culture, it provides a

    jumpstart to the business. It creates common language for all of us to

    rally around its the glue of our organization, considering how

    disparate and diverse the business really is."

    - Jeffrey Puritt, President, TELUS International

    This paper is the first formal analysis of the relationship between social purpose and

    business performance in the BPO industry. But it is only a starting point. TELUS

    International will continue to explore the relationship between community

    involvement and social purpose, and its impact on better business performance. The

    objective is to advance the interests of the BPO industry and its clients in ways that

    also create meaningful social change.

  • Outsourcing for Social Good: A BPO Perspective

    2013 TELUS International 10

    For more information:

    TELUS International

    TELUS International is a global provider of contact center outsourcing solutions. With locations

    throughout North America, Central America, Asia and Europe, TELUS International drives value by

    enabling customer experience innovation through spirited teamwork, agile thinking, and a caring

    culture that puts customer first. Learn more: http://telusinternational.com

    Impakt Corporation

    Founded in 2001, Impakt helps corporations and not-for-profit organizations become social

    purpose leaders by assessing, improving and measuring the value of social investments and social

    programs. Learn more: http://impaktcorp.com

    COPYRIGHT NOTICE 2013 TELUS International. Other company and brand, product and service names are for identification purposes only and may be trademarks or registered trademarks of their respective holders. Reproduction without permission is forbidden.