CORPORATE SOCIAL RESPONSIBILITY

In 2011, as part of its ‘Take Care’ initiative to promote happiness and well-being within their company, hotel chain Marriott International, Inc. established a corporate partnership arrangement with national non-profit Back on My Feet. Marriott Int. has been an avid supporter of Back on My Feet since the organisation’s start-up period in Philadelphia and the hospitality leader provides tremendous support in each of the 11 U.S. cities in which the non-profit organisation currently operates.

Whist I was visiting New York, I was honoured to be invited to attend the Back on My Feet New York City chapter’s annual benefit, where the organisation celebrated four years of combating homelessness with their innovative running-based model. This evening saw Arne Sorenson, President and Chief Executive Officer of Marriott International, Inc. awarded with the Global Corporate Pacesetter Award, recognising outstanding individuals and organisations that have set the benchmark as leaders in corporate philanthropy^cxxx. I was inspired to discover that Mr Sorenson supports Back on My Feet at all levels, from proudly hosting the evening of celebration at the Marriot Times Square Marquis hotel, to running the streets of Manhattan at 5:00am with Terence Gerchberg and the Back on My Feet community.

Why do leading global brands such as Marriott International Inc. believe that engagement in positive social activity is such an important and integral aspect of modern business? 2015 was another highly successful year for the international hotel chain, with adjusted earnings before interest and taxes rising 13 percent to $1.7 billion^cxxxi. With social value creation deeply intertwined across its thriving business activity, it is apparent that charitable giving is no longer an obligation which organisations such as Marriott International Inc. feel they need to fulfil, but has become central to the operations and strategic plan of many of the best companies today.

According to Michael Stroik from the Committee Encouraging Corporate Philanthropy, giving back has become such an integral part of business that many global markets possess the belief that societal improvement is an essential measure of business performance. Stroik provides some of the current trends in corporate social responsibility:
1) Linking a corporation’s performance and corporate societal investments;
2) Aligning philanthropic efforts with their goals for impact;
3) Increasing employee engagement;
4) Increasing non-cash methods of giving^cxxxii.

To date, Marriott Int. has generously donated more than $1 million in financial and inkind support to Back on My Feet and as a national employment partner, it has provided valuable training and job opportunities to its members. This partnership has grown organically over time and the association brings tremendous value on each side: for Marriott Int. this has allowed a company which is primarily driven by profit to foster an atmosphere in which its associates feel proud of their company’s workplace and its contribution to the improvement of society. This positive association can only carry over to its customers - and ultimately, make great impact on its financial business.

Corporate sponsors are not the only in-direct financial benefactors of creative business structuring for mission-led enterprises. Back on My Feet seek to engage all with the capacity to serve; volunteers, donors and the public, as well as their corporate partners. This unified co-ordination to address social issues in a collaborative fashion demonstrates both social and monetary value: every $1 invested in Back on My Feet returns nearly $2.50 to the local community through increased economic output from employment and reduction in costs for shelter, medical services, incarceration and addiction treatment^cxxxiii. This excellent example of collaborative homelessness address shows that via a common bond, meaningful relationships can be developed which benefit individuals, communities, businesses, and ultimately, society.

Corporate social responsibility is a critical area for further exploration as potential support for a movement of mission-led enterprise to address homelessness in the United Kingdom. More and more business leaders recognise that their company’s future is increasingly intertwined with the needs and demands of society. Is it morally or socially acceptable that corporate companies are generating huge profits in cities where local people are resultantly being priced out of their own housing market? In the USA, the answer to this question is no. Should large businesses operating within British cities and towns be held more accountable for supporting disadvantaged members of society, not just with their financial resources, but with their industry expertise, business acumen and marketplace knowledge? In my professional opinion, they should – and there is unprecedented reward to be achieved in doing so.

With funding being cited by most notable literature as a major challenge for social enterprises^cxxxiv, it is imperative we explore alternative and creative financing options for essential public services, as well as practical assistance for innovative start-up organisations and those which are established with promising potential of growth. Internationally, we can learn from best-practice case studies where collaborative partnership models enable self-sustaining socially-focused businesses to purposely serve their communities and not only grow, but thrive. How integral these partnerships are in success is a fascinating and very relevant area for further exploration within this field.

KEY LEARNINGS

• We must identify routes to work in a conjoined fashion and operate more productively across sectors if we are to effectively end and prevent homelessness;
• The public, private, third and voluntary sectors, as well as the public, are able and willing to assist in the quest to end homelessness. We must find a way to harness this outpouring of knowledge, ideas and energy;
• We can demonstrate value creation in inter-sector consortium building via the promotion previously hidden assets and resources;
• The provision of education and support will give cross-sector partnerships the opportunity to arise, develop, mature and reach their full potential;
• The value and benefit of Corporate Social Responsibility is little-known and vastly under-utilised in Britain;
• Social enterprise can help to bridge the gap between sectors and services, allowing exploration of revenue generation for traditional non-profit models. Can we encourage the corporate sector to engage pro-actively and share skill-set and knowledge in order for this sector to become more solution-driven and commercially focused?
• Can we empower SMEs and corporations to meet social responsibility by allowing them to become part of the solution?

Citations

cxxx. http://www.prnewswire.com/news-releases/national-nonprofit-that-combats-homelessness-to-honorarne-sorenson-president-and-ceo-of-marriott-international-inc-300237709.html (Web version unavailable)
cxxxi. http://investor.shareholder.com/mar/marriottar15/letter-to-shareholders.html (Web version unavailable)
cxxxii. http://www.huffingtonpost.com/linda-novick-okeefe/doing-good-is-good-for-bu_b_6369242.html
cxxxiii. https://www.backonmyfeet.org/mission-vision (Web version unavailable however we found their Mission & Vision on this new page - https://backonmyfeet.org/about-us/)
cxxxiv. http://community-wealth.org/sites/clone.community-wealth.org/files/downloads/paper-rykaszewski-etal.pdf (Web link unavailable / now seems unsafe to access)

Copyright © by Amy.F.Varle, January 2018.
The moral right of the author has been asserted.
The views and opinions expressed in this report and its content are those of the author and not of the Winston Churchill Memorial Trust, which has no responsibility or liability for any part of the report.

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