Friday, August 20, 2010

Corporate social responsibility is now a business prerequisite

Hailing from the US educational elite—Yale, Harvard, Princeton, and Brown—it is not surprising that the guests at a recent ‘Room to Read’ (RtoR) event were interested in learning about a charity that gives the lasting gift of an education. It does, however, come as a surprise to hear where the event took place.

Gucci’s Ginza cafe played host for RtoR—giving the NPO 20 percent of its sales that night, donating designer Italian bags, and offering a preview of its upcoming spring collection. So what does a fashion powerhouse like Gucci have to do with impoverished children? More than you may think.

“Gucci appeals to strong, independent, self-assured women,” say David Ray and Meg Nakajima, co-leaders of RtoR’s Tokyo chapter. “Room to Read has 6,500 girls on scholarships in nine different countries. With the life-long gift of education, these girls will grow up to be strong, self-reliant thinkers. According to research, a woman’s income increases 10 percent for every year she goes to school.”

Although recipients of an RtoR girls scholarship may not necessarily rush out to a Gucci store upon graduation, there is reasoning in Gucci’s corporate responsibility endeavors. Like other companies, Gucci is looking to align itself with charity activities that link with the business—as well as doing good.

CSR equals PR
“The fact that CSR is a PR opportunity has increased the number of companies who are willing to partner with Room to Read,” explain Ray and Nakajima. “As a global brand supporting education in Asia and Africa, we are focusing on building relationships with companies that are doing business in the countries where we build schools and fund scholarships for girls. It makes strategic sense that Room to Read tries to develop partnerships with companies like Honda and Panasonic since they have large operations in Vietnam. Developing an educated workforce is in their best interest.”

RtoR’s impact can be immediately seen—donations translate directly into schools, libraries and other educational pursuits. But for charities where the funds cannot be converted into concrete objects, how difficult is it to get the support they need?

“Amnesty International (AI) spends its income on research, campaigning, lobbying, and education (on human rights),” explains Chris Pitts, Amnesty International’s Tokyo English Network (AITEN) coordinator. “My experience is that it is much easier to get a corporate donation for say, building an orphanage in Cambodia or providing clean water to a village in Burkina Fasso, than it is to get a corporate donation to AI.” He adds, “The bigger and more international the company, the more difficult it is, because AI might be criticizing the human rights situation in a country they may be doing business with in the future.”

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