whythawk ratings: measuring effective development

It has become common cause to present a view of business as selfish and opposed to human interests.  This, of course, is short-sighted, simplistic and wrong-headed.  However, businesses – and brands especially – are very sensitive to accusations of impropriety and ruthless exploitation for fear that this will effect business confidence.  The experiences of Nike and Starbucks (amongst many others) has highlighted the difficulties that corporations experience in a globalised world where every aspect of their supply-chain is scrutinised and judged.

It is no longer sufficient simply to deliver a good product and treat your staff well; now companies are expected to support and develop their communities through targeted social investment.  Companies are expected to deliver charitable services entirely separate from their core business.

Unfortunately, this has the further result of exposing companies to additional risk; this time in fields significantly outside of their expertise or experience.

Charities and development organisations are at significant risk from a lack of oversight and poor financial controls along with esoteric and poorly-measured objectives.  Dr Allan Boesak defrauded Paul Simon’s Children’s Trust of R 1.1 million.  Bill Clinton, Oprah Winfrey and Nelson Mandela have all been embarrassed by their link to Jackie Maarohanye's Ithuteng Trust, recently accused of fraud, kidnapping and public violence.  Winfrey donated $1.14-million to Ithuteng.

These cases are certainly exceptions, however, even if no corruption exists there is little to suggest that development organisations are not squandering donors money on spurious causes or inappropriate solutions.  With development organisations making up 8% of the South African economy, it is only a matter of time before a major corporation is embarrassed by association with corruption and incompetence at a large charity.

“Responsibility, Reputation, and Risk” is a one-day conference to assist companies to develop a system of aligning their social responsibility budgets to causes that can serve their core business, as well as ensuring that their reputations are not put at risk while doing so.