Chapter 8: Recommendations
- The government should continue to see its role in corporate community
investment as endorsing constructive innovation, facilitating best practice
and partnering business and non-profit enterprises where appropriate
opportunities arise. There is no ‘one size fits all’ model of best practice and
governments should allow divergent models to emerge without mandating
specific approaches.
- The Parliamentary Joint Committee on Corporations and Financial Services
recommended that the Australian Government provide seed funding to
establish an organisation, the Australian Corporate Responsibility Network, to
be modelled on the UK initiative, Business in the Community (an organisation
that attracts substantial government as well as private sector funding). We
note there are already several initiatives in Australia that reflect at least
some of the activities of Business in the Community and believe these should
be left run their course. We note however that there may be scope for an
enhanced mechanism to facilitate the spread of best practice by collecting
and disseminating data and showcasing the successes and challenges of
corporate experience. The development of a business model for such a
vehicle, based firmly in the business sector, could be explored.
- While there is still progress to be made in many large corporations towards
sophisticated and optimal community investment, this is at an early stage
of development with SMEs. The Prime Minister’s Community Business
Partnership should consider how it can further assist the development of
strategic community investment in SMEs. Larger companies with relevant
experience should be encouraged to support any initiatives to transfer
learnings and skills to SME sectors
- Companies should be aware of growing staff demands for corporate
community investment and for direct involvement of employees in community
activities. Opportunities for staff volunteering and matched giving should be
considered by companies where they do not currently exist.
- There are major challenges ahead to ensure that the current trend of staff
volunteering leads to the best possible outcomes for both companies and
community organisations. While some non-profit organisations are currently
addressing this, further analysis and capacity building for both sectors is
a priority to ensure optimum use of resources. Some further government
support for non-profits to assist in this area should be considered.
- The report notes in passing the paucity of attention to corporate community
investment in management education, including in business schools, other
business related education, and in the internal orientation and training
programs of companies in Australia. Management education is very client
driven and given its significance in business strategy and the attitudes of
young staff and executives, there appears to be some market failure here. This
could be addressed in part by an initiative by business and government to
create greater awareness of this gap, and to help resource teaching materials
and possibly staff positions in leading schools.
- It is noted that both the Parliamentary Joint Committee on Corporations
and Financial Services (June 2006) and the Corporate and Markets Advisory
Committee (December 2006) strongly supported further development
and expansion of corporate social and environmental reporting (including
corporate community investment) while rejecting regulation and mandatory
reporting. This position is supported, but companies are encouraged to
publish and further enhance this reporting, and to collaborate to achieve a
more uniform approach.