Breaking Down Barriers and Building Relationships to get Stakeholders on

board your CSR Programmes

Mark Devan

Public Affairs Manager

Ford Malaysia

Why?

• The key to establish and ensure the future sustainability of any successful corporate communications/CSR programme is to get stakeholders buy in.

• Agree?– Key stakeholders:

• Management• Employees• Community

– Others

• How to engage key stakeholders?

Identifying the barriers

• Employees first– Company must have its house in order before

reaching out to the larger community • Economic - profitability• Environmental – corporate responsibility• Social – employee needs

• This will be the first step in overcoming barriers and prejudice– Why give?– What’s in it for me?– No time– Etc.

Maslow's Hierarchy of Needs

His theory contends that as humans meet 'basic needs', they seek to satisfy successively 'higher needs' that occupy a set hierarchy. The basic concept is that the higher needs in this hierarchy only come into focus once all the needs that are lower down in the pyramid are mainly or entirely satisfied.

Building Relationships

• Building a Core Team– People move people and make things happen– Identify individuals who are passionate/with

necessary expertise/connections to make things happen

Global Walk 2005 Core Team

Clarifying Management Expectation

• Getting management buy in and clarifying expectations– What do they want in return - ROI?

• Training for staff, sharing of information, site visits, reports, acknowledgement, publicity, etc.

– This is NOT a publicity exercise• That’s a by-product of a great CSR project

What’s in it for Management?

• So what can management expect in return?– An organization depends on the community for sales,

employees, etc. It is linked symbiotically with the community.

– Motivation• Employees that find meaning in their jobs by being able to

give themselves to a higher cause that allows them an opportunity to make a difference in the community

– Greater inter-department cooperation/networking• Working as one team to deliver results

– Hands on training for staff in leadership, event management, communication

What’s in it for Management?

– Market Research• Interaction with the local community allow staff to learn what are the

real needs, issues, etc.– Company is seen as socially responsible by its stakeholders

• Shareholders, business partners, suppliers, community, media, etc.– Ability to in calculate positive and healthy values to staff

• Health, safety, environmental conservation, sustainable development

– Other returns?• Sharing of resources• New knowledge• Partnerships with local NGOs/community/opinion leaders

Getting Management Buy-In

• Get management and core team to personally visit site/community/project (enter into their world) and help them see and understand WHY they need to be involved:

• How will this project benefit the company/staff/the local community

– What are the returns?• Is there a solid business case reason to support this project?

– Can it be tied back to the bottom line?

Donation of 5 Rangers to MRCS

Donations of 5 Ranger’s to Malaysian Red Crescent Society (MRCS) to aid in its relief work in Aceh, Indonesia following the Asian tsunami disaster. •Staff and company contribution of RM10,226.00 •Time off to staff to volunteer services at MRCS•Donation of palettes to be used in shipping supplies to Aceh

“Be Seen, Be Safe” Road Safety Programme

Almost half of all fatalities from road accidents in 2004 were made up of motorcyclists so we worked with the Road Safety Department to educate our staff on road safety. There are about 350 motorcyclists in our plant.

Challenges

• Funding– In terms of funding allocated to a particular project

• Time– In terms of employees time

• This raises the question of sustainability…– Need for individual companies to find an optimum

balance in their CSR projects so that they can sustain projects long term

Ford Motor CompanyEnvironmental Pledge

"We see no conflict between business goals and social and environmental needs. I believe the distinction between a good company and a great one is this: A good company delivers excellent products and services; a great one delivers excellent products and services and strives to make the world a better place."

Bill FordChairman & CEO

Case Study: Global Walk to Cure Diabetes 2004 & 2005

Global Walk to Cure Diabetes

Objectives: • Education• Raise Funds

– Focus our corporate citizenship activities

– Build relationships with stakeholders in a family day type event

Juvenile Diabetes Research Foundation International

• Leading charitable funder and advocate of type 1 (juvenile) diabetes research worldwide.

• Their mission – to find a cure for diabetes and

its complications through the support of research.

• Since its founding in 1970– JDRF has awarded more than

$800 million to diabetes research.

– In 2003, JDRF awarded $80 million to fund 500 centers, grants and fellowships in 19 countries.

• www.jdrf.org

Ford and JDRF

• Long Partnership • Ford Motor Company has supported JDRF

since 1983

Ford and JDRF

Year

1998199920002001200220032004

Amount Raised (USD)

180,000760,000

1.6 million2.3 million2.6 million

3 million3,010,819

Execution at Ford Malaysia• First Ford facility in Asia • Walk event held on at Taman Pertanian Malaysia

Bukit Cahaya Seri Alam– First year - December 19, 2004– Second year - November 20, 2005

• Attended by over 200 employees and their families

• Family day type event with activities for kids• Diabetes testing and talk

Getting Warmed Up…

The Flag Off…

Keep on Walking…

Fund Raising Activities

• Funds were generated via:– Pledges from employees – Donations from suppliers and business partners

– Donations of lunch coupons from employees

– JDRF Sneaker Sale– Tires & Rims Sale– Cookies & Cake Sale

– Sale of donated items • children's toys, trading cards & rubber mats, etc.

Sponsorship

• Venue– Taman Pertanian Malaysia Bukit Cahaya Seri Alam

• Event management– Deromp Marketing

• Food sponsors– Nestle MILO– Sime Oleander– Gardenia

• Diabetes awareness talk & blood gloucose testing– Persatuan Diabetes Malaysia– Abbott Diabetes Care– Aventis

Total funds raised…

2004 RM 42, 586.30

2005 RM 69, 743.46

Globally in 2005 we raised USD$ 3.2 Million

Allocation of Funds from Ford Malaysia

Persatuan DiabetesMalaysia

25%

University Malaya Medical CentreDepartment of Pediatrics

25%

Juvenile Diabetes Research Foundation International (JDRF)

50%

Cheque Presentation Ceremony

Media Coverage

Key Success Factors

Key Success Factors

• More to life than just work…– CSR brings new meaning & purposes to our work– Work values

• Opportunity to reach out and influence employees and community – One person can make a difference…

• CSR mindset/culture at Ford Malaysia that sows the seed of change among employees– Diverse work force – race, religion, educational levels.– Blood donations– Collection for charity– Ford Motor Company Conservation & Environmental Grants

Programme– Etc.

Key Success Factors

• No hidden agenda– Employees need to see clear programme benefits for

there to be buy-in to ensure programmes success– Ford Malaysia subscribes to the 90:10 principle.

• This means that 90% of the idea of corporate citizenship is TO DO WHAT IS RIGHT and talking about it only 10% of the time.

• CSR is not merely a marketing, branding or publicity exercise

• Involvement of top management to lead the way– Leadership by Managing Director and Plant Manager

Key Success Factors

• Leadership by Global Walk Committee– Champions in each department galvanizing the staff to support

the programme– Each contributing in his/her own way

• Assembly of truck for sale• Cake & Cookie Sale• Tire & rims sale• Toy sale

• Great opportunity to network and build new relationships– Tap on staff/suppliers/business partners/sister companies– Awesome potential to influence and change for the better

Key Success Factors

• Empowerment and recognition by company for CSR initiatives– 5% of PMP for corporate citizenship project

participation– Each employee is given 16 hours each year to

participate in CSR initiatives

– Opportunity to build leadership and teamwork skills while giving back to the communities where they live and work.

Key Success Factors

• Clear Communication– Top down via regular updates and cascaded to the

shop floor thru the grape vine

• Receiving something in return for donations, time, etc…– Return of tokens in kind for donations in cash

• Family focus type activity– Brings in the family dimension into the picture – Helped bring employees closer together and build

relationships

Key Success Factors

• Can donate more than money– Donate yourself

• Time, energy, expertise…

• Incentives to encourage participation– What’s in it for me?

• Free t-shirts, food, drinks, fun family day event with activities for kids, diabetes info, testing, etc.

• Pushing forward no matter what…– Your leadership and example

The Fundamentals of Giving

Fundamental of Giving

• Get management and staff to experience the “joy of giving”– “Its more blessed to give than to receive”– Only once this is firmly embedded in their hearts will

there be sustainability and continuity of CSR projects

• Giving is a two-way street because those who give will also receive– How? The cause/community that you support will now

influence/change the way you see the world– Tangible and non-tangible benefits

• Goodwill, feel-good, publicity, etc.

Rajen Jones

Man with a mission

“…The present situation in the Jakun village is that the people are becoming mordenised and the Jakuns will soon loose their identity and their own culture and tradition. Therefore, I made up my mind to start a program to promote their culture and heritage. The Jakun people's program will not only help to retain their way of life and their culture but also will become a source of income for them. The Jakun people may not see the results now but eventually they will see and understand.

To achieve my objectives, Ford Conservation and Environmental Grants Programme has become a great source of encouragement and to provide the necessary funds. I will continue to build until I complete the program and thus achieve my objectives. I do it not for any gains but it is an achievement and most of all satisfaction…its a passion.”

By Rajen Jones

Questions?

Global Walk 2006…

• Our next Global Walk will be on: – Sunday, November 19, 2006– 8.00am – 12.00noon– Taman Pertanian Shah Alam

• Join us to fight diabetes: – help educate your organizations on the danger of

diabetes – how can we work together to expand this programme

further?• Welcome to sign up…

– Just pass me your name card or email me at mdevan@ford.com