Toronto Star

When the corporatio­n’s mantra is to save the world

Partnershi­ps between companies, aid organizati­ons can’t be taken at face value

- ANTHONY WESTENBERG SPECIAL TO THE STAR

When Peter Bakker, CEO of global courier company TNT Express, withdrew his marketing investment from a rugby sponsorshi­p in 2003 and instead announced a partnershi­p with the United Nations World Food Programme (WFP), some shareholde­rs were taken aback.

A marketing sponsorshi­p with a sports team was easy to explain; awareness and brand loyalty through associatio­n could be measured through any uptick in sales. But forming a partnershi­p with an organizati­on addressing an issue that is usually the domain of government­s? That was harder to understand.

To Bakker, the logic was straightfo­rward. He wanted to address “the urgency of the worldwide food crisis . . . raging over the world like a silent tsunami,” and WFP was the vehicle he could help to meet that objective.

Logistics were his company’s core competency and a cash-strapped relief organizati­on in dire need of help getting food, blankets and first aid to disaster zones could make good use of his company’s planes and expertise.

Something needed to be done, insisted Bakker, and if one of the world’s largest express-delivery companies — with more than151,000 employees, and revenue of € 6.7 billion ($9.8 billion) couldn’t help, then who could?

“Usually what happens is that people will gather together to address a societal issue, and come up with a vision that often goes beyond the budget of what’s in the public purse,” explains Helle Bank Jorgensen, head of the United Nations Global Compact Network Canada, an organizati­on that helps corporatio­ns address sustainabl­e developmen­t goals. “Partnershi­ps with the corporate sector to help realize a plan have a broader impact, taking it from average to visionary.”

On balance, both investors and government­s cheer these partnershi­ps, and the public response has been positive. Corporatio­ns are part of the community. From Manulife celebratin­g volunteeri­sm to Unilever investing in community kitchens, such investment­s from the corporate sector are now commonplac­e.

Take for instance Royal Bank, which has made a 10-year commitment of $50 million to help provide access to “drinkable, swimmable, fishable water.”

“On water, we wanted to make the invisible visible,” explains Lynn Patterson of the RBC Blue Water Project. “Our annual survey shows that as invaluable as it is to life, we Canadians don’t see the connection between our actions and the quality of our water, which we think is so abundant.”

“Once people become aware that the discarded cigarette butts you see by a stormwater grate take 11 to 13 years to decompose, or that we’re going to need an army of hydrologic­al engineers to address the growing impact of extreme weather occur- rences, people want to get involved,” Patterson continues. “This is why we support a range of initiative­s, from community shoreline cleanups to universiti­es training up the next generation of problem solvers.”

Engaging in community investment is not without peril. The University of Toronto still takes heat for accepting the donation of Barrick Gold to support their internatio­nal relations department. Opponents feel the university is now restricted from addressing human-rights violations committed by mining com- panies.

Coca-Cola was recently called out for contributi­ng $1.5 million to a non-profit founded to combat obesity, going so far as to edit the organizati­on’s mission statement. The nonprofit was spearheadi­ng a campaign to counter “the shrill rhetoric of public health extremists.”

Whether these are missteps from overenthus­iastic corporatio­ns or mal-intended efforts from the outset, the ethical consumer can’t be naive and blindly accept these corporate efforts at face value. We need to listen to the non-profits, ask them about their screening tests and weigh the honesty of the corporate commitment. If a company’s marketing spend championin­g its new partnershi­p is greater than its contributi­on to that non-profit, that’s a good sign their heart isn’t in the right place.

As a consumer, be thankful for a corporatio­n that’s engaged in the community, since their efforts enrich our lives. At the same time, keep your eyes open to anything that doesn’t pass the altruism smell test.

 ?? MOHAMED NURELDIN ABDALLAH/REUTERS ?? For consumers, the challenge is knowing whether corporate partnershi­ps with aid groups are well motivated or not.
MOHAMED NURELDIN ABDALLAH/REUTERS For consumers, the challenge is knowing whether corporate partnershi­ps with aid groups are well motivated or not.

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