New approach to philanthropy

November 15, 2010

Debate calls for new approach to philanthropy by the UK business sector

Every responsible business must be able to articulate how it is contributing to the common good and we need a new generation of socially responsible business leaders, according to a debate held at the first Pears Business School Partnership lecture at London Business School on Monday 1st November.

Stephen Green, outgoing chairman of HSBC Holdings plc, gave the keynote speech and debated the role of business in society with a 350 strong audience of MBA students, senior business figures, philanthropists and foundations. The other main points raised during the debate were:

• The financial crisis has exposed short term thinking in many businesses – a pervasive culture that it is fine to pursue quick profits without any consideration of the consequences. Profit making shouldn’t be the raison d’etre for business, it should be a sign of business well done. Investors are increasingly recognising this and are using a range of measures to consider their investment, including environmental and social impact and performance – they recognise how important these issues are to real, sustainable business practice.
• The social and environmental challenges we face today are so vastly different in nature and scale from the past that one agency cannot deal with them alone – not business, not government, not NGOs – tackling those challenges will require a multi agency approach, and the business sector needs to be involved.
• Companies must acknowledge the link between the business they do and the social and environmental issues that affect the places they do business in and the communities they serve.
• We are entering a period of austerity for NGOs – the double whammy of falling funding and rising demand for services. The UK business sector can and should do more to tackle this issue.
• We need to challenge outmoded forms of corporate philanthropy – move it on from writing cheques for causes to an active, involved, strategic partnership approach.
• Corporate philanthropy needs to move from the margins of business to the mainstream – a core aspect of the business strategy of truly sustainable companies.
• A more strategic approach to corporate philanthropy is essential to building responsible, sustainable businesses.
• How a company behaves and is perceived to behave will play an increasing role in attracting the best talent. Prospective business leaders now want to become the Bill Gates of business and the Bill Gates of philanthropy. We need to capitalise on that desire so we can create a new generation of socially responsible business leaders.
• A re-evaluation of what a business can achieve through corporate philanthropy, of creating a longer term, more sustainable model of doing business, could be one of the good things to come out of the recent financial crisis.

The Pears Business School Partnership is a collaboration between London Business School, Cranfield School of Management, Saïd Business School and Pears Foundation to encourage deeper thinking among MBA students about the role of business in society. The partnership will publish new case studies on this theme by 2012. It is also staging an annual keynote lecture by a renowned philanthropist or business leader.

Speaking after the lecture, Trevor Pears, Executive Chair of the Pears Foundation, said:

“We believe that greater thought needs to be given to the role that business and business leaders can play in tackling social issues, which is why our foundation is partnering with three leading business schools. It is through events like this, the series of new case studies the three schools are developing, and the conscious placing of social responsibility as a central tenet of business education, that we hope the partnership will positively influence the next generation of business leaders.”

Sir Andrew Likierman, Dean, London Business School, who moderated the debate, said:

“We are delighted to be part of this important initiative to integrate the culture of philanthropy and individual and corporate responsibility more extensively into business school education, through new case studies and a new lecture series. The ability of the global economy to thrive depends on corporations operating in a generous and responsible way to the communities they affect, and of which they are a part.”

Professor David Grayson CBE, Director of the Doughty Centre for Corporate Responsibility at Cranfield School of Management, said:

“At Cranfield we want to develop responsible leaders.  We are excited about the opportunities that the Pears Business School Partnership gives us to encourage our students and other business school student around the world to explore how contributing to the public good is an integral part of responsible leadership and a successful life.”

Pamela Hartigan, Director of the Skoll Centre for Social Entrepreneurship at Oxford University’s Said Business School, said:

“The Pears Business School Partnership comes at a strategic time for Said Business School, as our students, the business leaders of tomorrow, are increasingly demanding curricula that aligns with their aspirations.  Those aspirations are based on pursuing careers that allow them to apply their business talents to improving the state of the world.  Through the Pear-supported case studies, our faculty can showcase how pioneering business leaders and their companies are incorporating sustainable practices as part of the corporate DNA.  It was great to hear such passionate debate about the values and principles that we so desperately need, and hence is a source of hope and inspiration to young people.”

More information on the Pears Business Schools Partnership