Corporate Social Responsibility (CSR) is now an important element of companies’ overall strategic work. In 2009 SOS Children’s Villages collected NOK 451 million, with almost 70 per cent coming from private individuals. But over the last ten years SOS Children’s Villages has started to target companies in a much more structured way.
“It began with a large donation from Orkla via the TV campaign on NRK. We realised then that there was something big here, and formulated an offer to suit the market’s needs,” explains Nina Edholm, who is responsible for sponsorship.
Two concepts
Since then, SOS Children’s Villages has collected donations under two concepts: main business partner and house-builder.
As a main business partner, companies commit to donating at least one million kronor a year for at least three years. In Norway there are six companies that are main business partners with SOS Children’s Villages.
“The large construction companies prefer to be house-builders. They finance the construction of one or more family homes in various children’s villages,” explains Maria Høivik Rugaas, Marketing Consultant at SOS Children’s Villages in Norway.
There has been a significant rise in the number of house-builders, from seven in 2006 to 23 at present.
As a house-builder, the company contributes to creating secure homes for children for generations – and by way of thanks they are given a visible plaque bearing the company’s name or logo. When the children have moved in, the company can also choose to sponsor the children.
Constantly listening
In 2008 SOS Children’s Villages also started working with operational sponsorship.
“We realised that we didn’t have a decent option for small and medium-sized enterprises,” says Nina Edholm, explaining that they are constantly listening and adapting their operations.
“The more companies we attract, the more people we can help. It’s as simple as that.”
As a company sponsor, the company pays at least NOK 1,000 a month, which is spent on running the children’s village, i.e. everyday costs such as school books, uniforms and school fees.
In only two years, SOS Children’s Villages has succeeded in attracting 55 companies as operational sponsors.
• So why do companies invest in CSR?
“There’s a clear trend. 10–15 years ago, many companies were choosing to give a little to everyone. Now they prefer to make one donation and look instead for one major beneficiary. They often want organisations to present themselves and their operations so that they can see similarities in their values,” explains Nina Edholm.
And as aid organisations are becoming more and more professional, the demands on SOS Children’s Villages are becoming tougher and tougher.
“To be able to compete for companies’ involvement and money, we must be able to satisfy the needs that exist,” says Maria Høivik Rugaas.
Companies usually know where they want their donations to go. Some want to assume humanitarian responsibility, others to contribute to a better environment. They also look at the proximity to the receiving organisation, both geographically and in terms of values.
“For example, we have the shipping industry as a major donor, as many of their employees come from the Philippines, where SOS Children’s Villages in Norway has operations,” says Nina Edholm.
• What do companies get back in return from SOS Children’s Villages?
“Above all, involvement and inspiration for new ideas at the workplace,” says Maria Høivik Rugaas.
Most employees are usually proud that the company they work for gets involved.
And social responsibility is at the same time becoming increasingly important in the recruitment process.
“It’s one way of attracting and then retaining much sought-after labour. It’s clear that younger, newly-qualified professionals often demand clear commitment from the company they work for,” says Nina Edholm.
Another good example is the company that exercised for Zambia.
“They simply combined their commitment to us with a keep-fit initiative,” explains Nina Edholm.
It’s important for many to adapt work on CSR into the corporate culture. It can involve anything from concerts to family events. One company let its employees’ children come to work one day to plait friendship bracelets for the children being sponsored. They then received a delivery of handmade dolls back from the children’s village. These kinds of activities create strong bonds and loyalty. This is why many companies now have CSR as an important element of their strategy.
“And that’s just what we want to find – long-term, beneficial partnerships with companies,” says Nina Edholm.