Helping people in need is “the right thing to do”. But it can also benefit companies’ bottom line.
Kenema, Sierra Leone. Ebola survivors came together in October 2014 for the first Ebola Survivors Conference in Kenema, one of the epicentres of the Ebola outbreak in Sierra Leone. The conference was co-hosted by UNICEF and the Government. Credit: OCHA/Y. Guerda
While social and ethical responsibility is usually cited as the main reason motivating private sector companies to engage in humanitarian response, this engagement can also create clear business opportunities, says a study published today by OCHA.
In recent years, humanitarian partnerships involving private sector companies are on the rise, with initiatives emerging in the mega-typhoon in the Philippines, the earthquake in Haiti, the conflicts in Syria and Yemen and the Ebola outbreak in West Africa. These partnerships have been forged around different areas including communications technology, logistics, health, education, shelter, water, sanitation and hygiene (WASH), cash transfers, leadership training and the provision of technical support in crises.
Based on extensive surveys and more than 50 interviews with business representatives, the study looks at why and how the private sector engages in humanitarian action, unpacking the "business case" for collaboration between private companies and humanitarian organizations.
While corporate social responsibility is “first and foremost the opportunity to help the most vulnerable communities to become more resilient,” as one survey respondent said – a significant 70 per cent of respondents added that the expected return on investment was a crucial factor in deciding whether to pursue a partnership.
The study identifies four concrete drivers of private sector engagement in humanitarian action:
The study also looked at four models of engagement that can add concrete value for businesses in a partnership:
Produced by Philanthropy Advisors and Vantage Partners, the study aims to inspire more business executives to join the growing number of public-private partnerships. While intended primarily for the corporate sector, it can also help aid organizations understand how the private sector operates and how to better engage with it.
“Creating smart and strategic partnerships with businesses can help encourage principled action and help humanitarian organizations achieve greater impact than by simply raising funds from companies", the study concludes. "Adopting a long-term and sustainable approach to partnerships (…) is also more likely to improve their own humanitarian emergency preparedness and response delivery.”