The role of corporate disaster relief
Mar. 27th, 2011 03:53 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
nairiporterWhile the world's attention is focusing on the quick escalation of the conflict in Libya and simultaneously on the desperate efforts of Japan to contain the nuclear threat, it seems it is too easy for the ongoing humanitarian crisis after the Japanese earthquake and tsunami to slip off from view. But let's not forget that with mounting reports of the death toll now moving in numbers beyond 18,000, plus nearly half a million people still living in shelters in the middle of a very frosty spring, the country is still certainly in dire need of support and assistance. And it will be like that for a long time. A report from the WB has estimated that the damage from the disaster will cost somewhere between $123-$235 billion, which is the equivalent of 2.5-4% of the Japan's GDP. Recovery could take up to 5 years and more.
The business in Japan was significantly damaged by the earthquake and its aftermath. The automobile and electronics supply chain in particular appears to be severely disrupted, which leads to vast delays and shutdowns in production. But as the previous disasters have shown, business can also play a big role in rescue and relief operations, and also in the rebuilding efforts that follow. You may look with suspicion at this, but Wal-Mart famously upstaged the US government in responding effectively to the floods in New Orleans after Katrina. In contrast, after the devastating 2008 cyclone in Burma, international companies were slow to offer assistance.And the Haitian earthquake generated a lot of corporate donations, as well as a lot of controversy around the role of companies in economic redevelopment and rebuilding projects.
The corporate involvement in disaster relief in Japan has yet to hit the headlines in any major way, mainly (as far as I can tell) because most big companies have been very conservative in their responses. That doesn't mean that these companies haven't helped raise a lot of money for the cause - no, they have. According to the US Chamber of Commerce's Global Aid Tracker, which does a fairly impressive job of keeping track of such things, the global corporate assistance for the Japan crisis has now exceeded $158 million. This includes 100 million Yen (about US $1.2 mil) each from companies such as Bayer, BP, Hyundai, LG, Nikon and others. Even higher sums (actually up to 5 times as much) have been committed by firms like Canon, Citigroup, Dow, GE, Mitsubishi, Nintendo, Sony and Wal-Mart. So you can see, it is not just Japanese companies either, but global companies, especially those operating in Japan doing the giving. And of course the Japanese Red Cross seems to be the most favoured recipient of the aid.
Some of these companies have linked up their corporate donations with employee giving, often by matching employee donations, as a way of engaging workers in CSR initiatives. An interesting development has been the tie-up between the CSR services company AngelPoints and Network for Good to provide a free online giving platform to the firm's clients. As the firm's press release puts it:
From now until the end of April, two million employees from companies such as Newell-Rubbermaid and Sterling Savings Bank will have access to a centralized online donation platform that will facilitate the immediate transfer of funds to organizations in Japan that need it most.
In fact we could say the online world has seen probably some of the more innovative responses to the disaster from the corporate community. While some (such as iTunes and LivingSocial) have simply enabled users to easily make donations through their sites, various Japanese gaming companies have developed cause-related game tie-ins to engage their users in contributing to relief efforts. The gaming demographic is notoriously difficult to enlist in social programmes, so it's certainly a positive sign that gaming companies are using their core products to reach out in this way. Zinga, the US company behind the Facebook games Farmville and Mafia Wars that are very popular has followed up its Haiti giving initiative with a Farmville in-app donation vehicle which enables users to donate by buying virtual goods from within the game (in this case, a "daikon" crop). Launched within 24 hrs of the disaster, online gamers went on to help Zinga to contribute more than US $1 million in just a couple of days. For a company with a tagline of "connecting the world through games" (and already attracting lots of criticism for its addictive effect on young players), Zinga's ability to use social media to connect gamers around the world with major social problems is a nice breath of fresh air.
But in most other areas there has been a disappointing lack of innovation among the corporate community on the Japan disaster relief. Providing money and in-kind goods is one thing. But what really can make humanitarian aid efforts stand out are when they make use of the core corporate capabilities. The Japanese manufacturing companies with their decades of experience in just-in-time management and sound manufacturing practices, could be using their logistics and expertise about the supply chain for the needs of relief efforts. Law firms and financial services companies could be putting their skills towards helping displaced families (many of which lack earthquake insurance) to sort out the legal and financial mess that they have found themselves in. Rather than simply donating cash. The list can go on long. Short-term charity is fine as far as it goes, but companies should know that a more strategic approach to corporate responsibility has the potential to add considerably more value both to the hurting Japanese people and to themselves as well.
Also posted to![[livejournal.com profile]](https://www.dreamwidth.org/img/external/lj-community.gif)
talk_politics .
The business in Japan was significantly damaged by the earthquake and its aftermath. The automobile and electronics supply chain in particular appears to be severely disrupted, which leads to vast delays and shutdowns in production. But as the previous disasters have shown, business can also play a big role in rescue and relief operations, and also in the rebuilding efforts that follow. You may look with suspicion at this, but Wal-Mart famously upstaged the US government in responding effectively to the floods in New Orleans after Katrina. In contrast, after the devastating 2008 cyclone in Burma, international companies were slow to offer assistance.And the Haitian earthquake generated a lot of corporate donations, as well as a lot of controversy around the role of companies in economic redevelopment and rebuilding projects.
The corporate involvement in disaster relief in Japan has yet to hit the headlines in any major way, mainly (as far as I can tell) because most big companies have been very conservative in their responses. That doesn't mean that these companies haven't helped raise a lot of money for the cause - no, they have. According to the US Chamber of Commerce's Global Aid Tracker, which does a fairly impressive job of keeping track of such things, the global corporate assistance for the Japan crisis has now exceeded $158 million. This includes 100 million Yen (about US $1.2 mil) each from companies such as Bayer, BP, Hyundai, LG, Nikon and others. Even higher sums (actually up to 5 times as much) have been committed by firms like Canon, Citigroup, Dow, GE, Mitsubishi, Nintendo, Sony and Wal-Mart. So you can see, it is not just Japanese companies either, but global companies, especially those operating in Japan doing the giving. And of course the Japanese Red Cross seems to be the most favoured recipient of the aid.
Some of these companies have linked up their corporate donations with employee giving, often by matching employee donations, as a way of engaging workers in CSR initiatives. An interesting development has been the tie-up between the CSR services company AngelPoints and Network for Good to provide a free online giving platform to the firm's clients. As the firm's press release puts it:
From now until the end of April, two million employees from companies such as Newell-Rubbermaid and Sterling Savings Bank will have access to a centralized online donation platform that will facilitate the immediate transfer of funds to organizations in Japan that need it most.
In fact we could say the online world has seen probably some of the more innovative responses to the disaster from the corporate community. While some (such as iTunes and LivingSocial) have simply enabled users to easily make donations through their sites, various Japanese gaming companies have developed cause-related game tie-ins to engage their users in contributing to relief efforts. The gaming demographic is notoriously difficult to enlist in social programmes, so it's certainly a positive sign that gaming companies are using their core products to reach out in this way. Zinga, the US company behind the Facebook games Farmville and Mafia Wars that are very popular has followed up its Haiti giving initiative with a Farmville in-app donation vehicle which enables users to donate by buying virtual goods from within the game (in this case, a "daikon" crop). Launched within 24 hrs of the disaster, online gamers went on to help Zinga to contribute more than US $1 million in just a couple of days. For a company with a tagline of "connecting the world through games" (and already attracting lots of criticism for its addictive effect on young players), Zinga's ability to use social media to connect gamers around the world with major social problems is a nice breath of fresh air.
But in most other areas there has been a disappointing lack of innovation among the corporate community on the Japan disaster relief. Providing money and in-kind goods is one thing. But what really can make humanitarian aid efforts stand out are when they make use of the core corporate capabilities. The Japanese manufacturing companies with their decades of experience in just-in-time management and sound manufacturing practices, could be using their logistics and expertise about the supply chain for the needs of relief efforts. Law firms and financial services companies could be putting their skills towards helping displaced families (many of which lack earthquake insurance) to sort out the legal and financial mess that they have found themselves in. Rather than simply donating cash. The list can go on long. Short-term charity is fine as far as it goes, but companies should know that a more strategic approach to corporate responsibility has the potential to add considerably more value both to the hurting Japanese people and to themselves as well.
Also posted to
talk_politics .
