Special Forum 2 on Corporate Volunteering at the 11th IAVE A-P Regional Conference Dec 9, 2007

Forum 2 Corporate Volunteering Corporate Social Responsibility (CSR)

Coordinator: Ms. Akiko Seto

Speakers:

• Mr. Koichi Kanda, Daiwa Securities Group Inc.
• Mr. Kiyoshi Fukuwatari, Sompo Japan Insurance Inc.
• Ms. Hyeon-sook Heo, Hyundai-Kia Automotive Group
• Ms. Chona Ignalaga, Intel Philippines

CSR promotion model
Koichi Kanda, Daiwa Securities Group Inc.

1. conducting core business (serving society in each company’s current operation)
2. providing products/services taking social/environmental aspects into account
3. external promotion activities (advocacy, training supply chains, ..)
4. corporate philanthropy (donation, in kind donation, )
5. CSR management

CSR evaluation model
In the past the focus of NGOs was on the systematic level, but recently companies have shifted emphasis to the performance level and now on an impact level

CSR implementation model
Presents a chart with four axes of human development, market approach, human security and the philanthropic approach. As the emphasis of companies shifts from the current market to socially and environmentally conscious market, then towards the BOP (base/bottom of the pyramid) markets to help developing countries solve the problem of poverty. On the philanthropic approach, companies are shifting from mecentant to education and environment and meeting basic human security needs. In its the flexible use of ODA by the private sector is very important.

Case Study: Daiwa Securities Group and the Asian Community Trust. This was private to private resource mobilization scheme. The Asian Community Trust (ACT) is Japan’s first fund raising charitable trust established in 1979. Japanese companies tend to support at the ‘emergency’ stage, but the real needs exist in the ‘reconstruction’ stage. This project focused on microfinance in Indonesia, India and Sri Lanka. Daiwa funded local NGO programs between an intermediary fund management trust bank (ACT) to provide accountability. Every year for ten years Daiwa donated 100,000USD. Annually Daiwa has a performance report and every three years an evaluation report.

The intermediary NGO system is a model which could be applied to other projects, because donors do not understand local NGOs even though they are doing good work.

Sompo Japan’s Initiatives on CSR
Kiyoshi Fukuwatari, Corporate Social Responsibility Division, Sompo Japan Insurance Inc.

From single bottom line to triple bottom lines
In the past in Japan 10-15 years ago companies based their performance on sales, profit, cash flow etc. but recently the definition of corporate value is changing to a triple bottom line of social, economic and environmental issues.

From environment to CSR - a brief history
Sompo established a department of global environment in 1992 - the first in the Japanese financial sector to do so. By 2000 they developed an environment management system, and in 2001 produced a sustainability report and a CSR Office in 2003.

Key terms for CSR: environment and corporate citizenship
Sompo has two principles: environment and corporate citizenship. On environment the focus on products, conservation and partnership with CSO.

Activities in partnership with CSOs

1. Sompo held a public seminar on the environment in partnership with a local CSO.
2. CSO learning scholarship program since 2000 offering 8-month internships to students - currently there are 325 students working as interns in 68 NGOs.

Sompo Japan’s approach to corporate social citizenship activities
The principles incorporate 2 perspectives and 3 focal areas. The perspectives are activates and employee contributions. The 3 focal areas are social welfare, fine arts and the environment. For example, a sign language choir performs at local events, children, and tours of art museum for blind people. In the field of welfare, employees visit the Swan Bakery store, which employs people with learning disabilities - since 2001 sales have been held at Sompo offices.

Ms. Hyeon-sook Heo, Hyundai-Kia Automotive Group
Following from yesterday’s presentation, Ms. Heo presented some examples of Hyundai-Kia’s programs.

Hyundai’s main activities are the Easy Move and Safe Move programs. Easy Move involves designing wheelchair access vehicles. Safe Move is an awareness campaign and children’s education on traffic safety. In addition, Hyudai coordinates global programs, affiliate company core programs, and employee volunteering programs. The volunteers are organized under a dual structure of group and company volunteer corps.

Volunteer program examples

• Designated ‘family volunteer month’. Matching volunteer families with programs. 1,500 members of 450 families joined.
• Hyundai Steel home stay for the disabled. Inviting disabled people to stay at employees’ homes for Korean holidays. The scope of activities has been expanding sine 2005.
• Kia Motors school zone guardian. This is a community network to reduce traffic accidents around schools. Employees act as guardians for students going to school on Fridays.
• Hyundai Motor HUV (Hyundai University Volunteers) recruiting 15 college volunteer clubs to from an inter-college team.
• Asian NGO fund invites Asian civil society leaders to be educated in Korea so they can learn about the experience of the role NGOs played in the nation’s democratization.

Building a sustainable corporate volunteer program
Ms. Chona Ignalaga, Intel Philippines
Intel Involved is the companies volunteer program. More than 200 projects are run in partnership with schools and community organizations. Intel is also a member of PAVE. The mission is to encourage employees to take an active role in our communities worldwide. One of Intel’s values is to be an asset to the community. Intel is very focused on activities in the fields of education, environment, health, safety, youth development, and community development and outreach.

Sustainability in programs is very important to assure they meet critical community needs, are adaptable, skill driven, replicable and owned by the community instead of being dictated to the community.

The VMGP (volunteer matching grants program) for local schools is matched with a $80 grant per employee from the company, the program has resulted in grants for almost P67 million. VMGP partners include key community leaders. The challenges included priority conflicts with the local authorities, access to isolated areas, leadership and management style differences, resources and so on. But the gains outnumbered the setbacks. The program was volunteerism at its best. Impacts included improved students grades.

Questions
Q: Is the Intel Involved program an exception in the Philippines? And what does Intel do in other countries?

Choan: Intel does trainings and networking to inspire other companies in the Philippines to do employee volunteering.

Intel has programs around the world and volunteering is ingrained in the culture of the company. In the Asian region programs are more mature in the Philippines because business started in 1984 and there is a local culture of volunteering compared to offices in Japan, Malaysia, Hong Kong and Singapore.

UNV: When do your employees do volunteering - after or during office hours? How does your company support the scheme during office hours?

Mr. Kaneda: Within working hours we provide time for volunteer activities, but for example the sign language class is after working hours. So it depends on the program.

Mr. Fukuwatari: Most volunteering is done on the weekends or after work. The company also provide volunteer holidays, although only 9 people in the company take them so far.

Ms. Heo: It depends on the programs. We have 3 major campaigns and volunteer weeks around national holidays, when colleagues can volunteer during work hours, but they usually prefer to volunteer on the weekend to involve their families.

Ms. Ignalaga: We have designated volunteer days when offices can go during work hours as long as they ask permission from their supervisors.

Q: We need volunteers with expertise and knowledge more than before. do you recruit volunteers only within your company, or do you use people from the outside too?

Mr. Kaneda: The trend of companies hiring outside experts is growing because expertise is needed. Recently Japanese companies are following this.

Hong Kong: When employees volunteer do companies provide insurance?

Mr. Fukuwatari: We are an insurance company, but we only provide insurance for volunteering during work hours. For events, we buy event insurance, which does not cover travel from home to the site.

Ms. Heo: We provide an insurance policy to all employees anyway, so we don’t need additional coverage.

Ms. Ignalaga: Same with Intel, we have standard insurance as well as health and safety tests to make sure volunteers are fit to do their jobs.

Mr. Kanada: Yes, we offer our employees insurance.

Intel Japan: Do you have a system to avoid duplication with other organizations?

Ms. Ignalaga: In regard to the question on duplication, we work with other foundations, international agencies and local networks to avoid duplication.

Korea: We also need education to train volunteers in handling handicapped and elderly people, so how do the corporates do it?

Ms. Heo: Some of our affiliates have formal education programs for team leaders. Some have official programs but if not we ask the affiliated welfare facilities to provide sessions before employees start volunteering.