Corporate Global Pro Bono: State of the Practice

By Amanda MacArthur and Alicia Bonner Ness

August 2014

Corporate Global Pro Bono: The State of the Practice

PYXERA Global

CONTACT:[email protected]

The State of the Practice | August 2014

PYXERA Global The New Frontier of Global Engagement | 2

IntroductionOver the past five years, PYXERA Global has conducted an annual benchmarking sur-vey of the state of the practice of Global Pro Bono or International Corporate Vol-unteerism. This research has sought to lend structure, insight, and direction to this growing practice.

This year’s study has revealed three key trends that are of particular note:

1. Interest in cross-corporate collaboration2. Exploration of effective quantitative measurement3. Emphasis on effective stories of impact

Perhaps the most exciting is the growing interest in cross-corporate collaborations to address specific global challenges. At PYXERA Global we are especially excited about this trend, because it opens the door to more people developing more comprehensive solutions, meeting the needs of different geographies and more complex challenges. IBM, a pioneer in nearly every aspect of this practice, not only fields the single larg-est program (in terms of participants, value, and geographic span), but is also leading the way in impactful collaboration, generously sharing their experience, encouraging other companies to join, and enabling opportunities for cross-corporate, cross-sector collaborations with increasingly tangible results.

As of this writing, a team of 41 Dow employees have just completed what many of them have described as a “life-changing” week, working with local clients in Addis Aba-ba, Ethiopia. IBM strategically fielded a team at the same time, resulting in a highly synergistic collaboration supporting the International Medical Corps.

Another trend is the growing importance of quantitative measurement, not just of the impact on participants, but also of the impact on the clients and communities in which they operate. Though there is still work to do in order to standardize measurement across programs and companies, we are pleased to see a growing emphasis on ensur-ing meaningful impact and sustainability.

As global pro bono programs mature, they are increasingly visible at the highest levels of corporate management. Whether it is SAP CEO Bill McDermott tweeting about their Social Sabbatical program or Andrew Liveris of Dow mentioning their Leadership in Action program on a panel discussion moderated by Bill Clinton at the 2014 US-Africa Business Forum, the visibility of these programs is evident. Companies recognize the need for their employees to be culturally competent, not just in Europe and Japan, but in Ethiopia, Colombia, and Cambodia, countries that are achieving new importance as the markets of the future.

Finally, another critical difference over previous years is the way that companies are telling the stories of their programs’ impact, increasingly asking their participating em-ployees to blog, tweet, and otherwise communicate about their experiences firsthand. These stories demonstrate the deeply personal impact that an experience working in an emerging market has on the business leaders of tomorrow, who emerge from their experiences with greater awareness of the vast, untapped opportunities and perhaps not quite so daunted by the challenges that exist in these markets.

I am excited by what the future holds—we have never had such a variety of sectors represented, so many different program models being implemented, and such excite-ment for the potential of these programs. I look forward to the next decade of impact that is just waiting to be realized.

Amanda MacArthur VP, Global Pro Bono & Engagement,

PYXERA Global

The Problem with “Volunteering”

Global pro bono was originally described as international corporate volunteering, but some companies have grown frustrated with the implications of the characterization for two key reasons:

1. Volunteering does not accurately capture the talent and abilities their participants bring to their projects.

2. Volunteering, especially in the United States, has developed a strong association with service activities (as opposed to utilizing professional expertise) targeted at the most needy individuals within communities.



In 2003, Pfizer deployed its employees into emerging mar-kets to strengthen health systems as part of its Global Health Fellows program. In 2008, IBM piloted the Corporate Service Corps, a team-based pro bono model, which is now the largest program in the world, sending an average of 500 participants a year. To date, 3,000 IBMers from 55 countries have engaged in more than 1,000 projects (valued at $65 million) in nearly 25 countries, impacting 140,000 people directly.

Today, a number of companies around the world leverage their corporation’s talent to foster social impact, economic growth, and leadership development in 80 countries around the world through global pro bono programs, including the 26 that responded to our Benchmarking Survey: Accenture, BD, Celanese, CitiCorp, Credit Suisse, The Dow Chemical Compa-ny, Eli Lilly and Company, EY, FedEx Corporation, Google, GSK, IBM, Intel, John Deere, JPMorgan Chase, “La Caixa” Foundation, Mars, Medtronic, Merck & Co., Inc., PepsiCo, Pfizer Inc., PIMCO Foundation, PwC, and SAP AG

More than half of those corporations surveyed (14) have launched their programs since 2010. The following research reflects the insights and direction of these companies and their programs as a growing community of corporate social respon-sibility (CSR) and human resources (HR) leaders seek to create a movement that advocates engaging human capital in emerg-ing markets in ways that transform business, create new op-portunities for shared value and citizen diplomacy, and enrich lives and livelihoods around the world.

BackgroundGlobal pro bono, or international corporate volunteerism (ICV) as it is also called, is a corporate practice growing in popularity. This survey defines such initiatives as “those which provide cross-border, skills-based opportunities that engage the professional skills of employees in countries in which they do not normally live or work on a regular basis.”

Since 2008, more than

26 corporations have sent over 8000

employees on global pro bono assignments in

80 countries on 5

continents.



DesignPro bono program design is a critical step in program success and a number of industry trends stand out in this domain. A clear majority of corporations align their programs to CSR, collaborate with non-profit implementing partners, and select participants based on a specific range of competencies.

Program Mission & ObjectivesCorporations undertake global pro bono programs with a range of motivations, including:

• To increase employee satisfaction and loyalty to the com-pany

• To generate sustainable social impact in local communities• To improve the employees’ leadership skills

A plurality of corporations (43%) rated the first and third objec-tives as the most important. Many companies aim their programs at top-talent, specifically targeting employees that are consistent-ly high performers and therefore at risk for being recruited away from the company at certain tenure points. Providing employees with an opportunity to expand their skill sets, travel internation-ally, and contribute to the greater good fosters deep appreciation within program participants that often translates to effective re-tention.

Similarly, a number of companies specifically design their pro-grams for leadership development. Providing top employees with an opportunity to work in resource-constrained emerging-mar-ket environments and in in multi-cultural, multi-expertise teams under a tight deadline to deliver a quality product to a client, has a profound impact on talent development.

Social impact remains the highest priority of these programs. A majority of corporations (54%) rated the “sustainable social im-pact in local communities” as their program’s most important ob-jective. Yet, it is important to observe statistically that a number of corporations rated all three objectives as the most important, communicating that these objectives are not mutually exclusive.

Based on these motives, a large majority of corporations (80%) craft program mission statements that help program leaders ex-plain the program’s importance and impact. Of those with mis-sion statements, a large number (also 80%) use their mission statement to communicate externally about their company.

Program ManagementA majority of corporations (61%) manage their programs within the CSR or community involvement department, with a much smaller number (14%) directing their programs from HR or the corporate foundation. Since the 2013 survey, the number of programs managed by the CSR function has increased nearly 10%, though many programs managed from CSR are closely aligned with talent development and HR.

Additionally, a number of companies (64%) work with an external implementing partner that typically has full responsibility for in-country logistics (housing, transportation, etc.) and local client satisfaction and impact evaluations, while shared responsibilities

4% 7% 7% 7% 4% 7%

14% 21% 18%

32% 14% 25%

43% 54%

43%

To increase employee satisfaction and loyalty to

the company

To generate sustainable social impact in local

communities

To improve the employees’ leadership skil ls

1=least important 2 3 4 5=very important

Pro Bono Program Objectives

61% 14%

14%

7% 4% Corporate Social

Responsibility/Community Involvement Department Human Resources

Corporate Foundation

Other

Operations or a Business Unit

Pro Bono Program Department Alignment

64% 18%

14% 4% Yes, we partner with a

non-profit organization(s)

Yes, we use both non-profit and for-profit partners

No

Yes, we partner with a for-profit organization(s)

Do you partner with an NGO to manage your program?



between the corporation and their implementing partner typically include participant orientation, participant satisfaction evaluation, travel logistics, participant training, project selection, program design, external communication/story sharing, and project supervision.

Many companies deeply value their relationship with their implement-ing partners. From a strategic perspective, one company reported that their implementing partner ensured the business integration of their program.

“They have been able to connect our strategic business priorities with the right host clients and projects and ensure the participants have the opportunity to have a life-changing experience.”

Logistically, one company specifically identified their partner’s coordi-nation and troubleshooting expertise.

“They are excellent in arranging the organizations we work with in-country, and experts at resolving problems.”

Most companies dedicate no more than one full-time employee to program management. One respondent noted that the right partner made all the difference, remarking that time demanded was directly affected by the quality of the implementing partner: “Very minimal if you have the right partner.”

Participant SelectionMost corporations consider a wide range of criteria when selecting their pro bono program participants. No criterion was universally ranked as the most important, though a plurality (33%) did identify job function and skills as the most important factors. A larger plurality (39%) took into consideration the participant’s leadership potential, and half of all programs placed some consideration on the language skills of the par-ticipant. Other criteria whose results were not statistically significant included management level, recognition for superior performance, and tenure within the company.

Within their selection process, a large number of companies (85%) use an individual application. At least half (54%) also use a personal inter-view and essay, and require a supervisor nomination. One program describes their application pro-cess as an “open call for applica-tions (essays), followed by exec-utive interview with semi-finalists which then determine finalists.”

In fielding teams to projects around the world, many corpora-tions strive to make their teams global, ensuring that no one team is dominated by one na-tionality. One program manager describes their program: “It’s a global program. We seek to field teams based on our employee base which is 50% USA and 50% outside of USA.”

11%

7%

11%

21%

4%

4%

50%

21%

26%

14%

39%

26%

4%

29%

33%

Language skills

Leadership potential

Job function/skills

1=least important 2 3 4 5=very important

ParAcipant SelecAon Criteria

To expose high performing employees to the “next generation” ways of doing business...

We send our most talented and globally experienced staff to tackle business and societal issues in the growth markets.

To develop global leaders…through an immersive ‘performance with purpose’ experience that leverages business skills that… helps to advance our global citizenship priorities.

Program Mission and High-level Goals

Internal Focus:

External Focus:

External and Internal Focus:



Teams & FellowshipsA clear majority of corporations (67%) place employees in a team-based environment, and a plurality (44%) send participant teams of at least 10 or more individuals from across the organization. Only a small number (11%) place individuals in fellowships embed-ded with local organizations.

At the same time, the duration of pro bono projects varies significantly. A plurality of programs (40%) place participants in the field for between three and four weeks, while close to one third (30%) place participants in the field for less than two weeks and an equivalent number (30%) place participants in teams or fellowships assignments lasting from four weeks to five months.

Participant PreparationAlmost all program participants engage in some orientation activity prior to departing for their in-country assignment. Pre-departure training and orientation address a wide range of topics, though the format of orientation activities depends heavily on program constraints, including available employ-ee time and program funding. Almost all participants (96%) attend an orientation course or session and a majority (63%) attend a skills training course or session. Virtual programs are typically module based, wherein each week, the team or individual is required to learn about a specific topic relevant to their deployment. One corporation hosts a 1.5 day long in-person training to better prepare participants for depar-ture. Overall, companies focus on virtual training, requiring at least one full day (8 hours) of training, and some requiring as much as seven to eight days, which can include a combi-nation of virtual and in-person orientation, preparation, and training activities. Topical focus on policies and procedures has increased since the 2013 survey, and training on safety and security has diminished.

DeliveryCompanies make a number of key decisions that influence their global pro bono program experience for participants.

27%

29%

44% 1 to 5

6 to 9

10 or more

Number of parAcipants per team

67%

22%

11% Team-based

Both

Individual

Team vs. Individual Assignments

79%

82%

86%

89%

93%

96%

96%

Media and communications

Alignment with corporate strategy or business plans

Country specific information

Safety and security

Cross-cultural attitudes or behavior

Logistics

Program policies and procedures

Pre-‐departure Training Topics

12%

11%



Geographic TargetsCorporations use their pro bono pro-grams to engage their employees for social impact in countries around the world. While Africa (29%) and Asia (25%) combined represent half of the geog-raphies targeted by these programs, Latin America (23%) and Europe (16%) are also important project destinations. Together, the 26 companies surveyed sent teams to a total of 80 countries worldwide.

In alignment with the country-level analysis, at least a third of participants (35%) reported in this survey were de-ployed to Africa, with just under a third (29%) deployed to Asia and one fifth de-ployed to Latin America.

29%

25% 16%

13%

10%

4%

3% 1%

Africa

Asia

Europe

South America

Central America

Middle East

North America

Australia

Pro Bono Global Reach

CommunicationCompanies sustain a varied level of initiatives to communicate about their programs before, during, and after participants are deployed. Very few corporations (11%) do not have a formal plan for communication about their program. Almost all (96%) require individuals who return from the field to give in-person presentations about their experience to groups of prospective participants and interested colleagues. A large majority (85%) also represent their programs internally by way of corporate newsletters and

websites and more than three quarters (77%) use social me-dia to communicate about their program externally. While a large majority (73%) also publish press releases and videos about their programs, this number has diminished by 15% since 2013. In addition, more than two thirds (69%) publish external impact results concerning their programs in sus-tainability reports and external blog outlets.

Many program managers report that their program enjoys a high level of visibility within the corporation. Close to three quarters (74%) of CEOs are aware of their company’s pro-gram and its impact, and more than half reported other C-suite or executive-level awareness.

Success FactorsProgram managers were asked to identify the top three key success factors in meeting the objectives of pro bono programs.

1. Development of professional skills2. Partnering with an outstanding NGO3. Project selection and design; clear and attainable objectives, with an adventure flavor

Other factors that were identified included employee volunteer selection, matching the right volunteers with the right project, alignment with the business strategy, strong communications with the implementing partner and local client, project preparation, team diversity, immersion, flexibility, strong networks, host organization preparation, and learning from other existing programs.

74%of CEOs are aware of their company’s global pro bono pro-grams and its im-pact.



CommunitiesA large percentage of respondents reported that local client impact, including training and building the capacity of local staff, pro-viding local organizations with access to resources they would not otherwise have, and improving and increasing the ability of those organizations to offer their services to their local constituents, were either very important or most important.

ParticipantsParticipants develop a wide range of skills through their participation in global pro bono programs. Among those skills ranked by survey respondents, leadership development was the most important (69%) followed by a large number who identified cultural adaptability as very important (42%) or most important (42%). Teambuilding, professional skills, and entrepreneurship were also important skills, which were all ranked in importance by respondents as at least somewhat important (3 out of 5).

In addition to improving the skills of participants, pro bono programs also increase employee satisfaction. A large majority of re-spondents reported that the opportunity for employees to use professional skills in a new and different way (85%) and improve cross-cultural knowledge and competencies (69%) were most important. Respondents also noted that employees benefited from a broader network within the global company and increased visibility and potential for promotion.

ImpactGlobal pro bono programs are a unique corporate investment that yield multi-ple returns. Many program managers often speak of the “triple benefit” of global pro bono, which includes impact on participants, local communities, and the company. A majority (54%) identify the social impact on local com-munities as the most important bene-fit of global pro bono programs, while a plurality (41%) emphasize employee skill development.

Local Client Impact

4%

4% 8%

4%

19%

4%

12%

27%

35%

38%

46%

46%

42%

Ability to provide improved services or

products to their local constituents

Access to resources that they could not

otherwise get

Training and capacity building for the staff

1=least important 2 3 4 5=most important

ParAcipant Skills

12%

4%

4%

8%

19%

8%

4%

4%

38%

19%

15%

8%

12%

19%

31%

42%

42%

15%

12%

38%

31%

42%

69%

Entrepreneurship

Professional skil ls

Teambuilding

Cultural adaptability

Leadership Development

1=least important 2 3 4 5=Most Important

Pro Bono Program Impact

7%

8%

7%

11% 4%

12%

11%

15%

15%

8%

44%

19%

19%

30%

26%

11%

19%

15%

26%

41%

54%

Increasing employee satisfaction

Improving the capacity/capabilities of local clients

Developing employee skil ls ( leadership development, teambuilding,

entrepreneurship, etc.)

Generating sustainable social impact in local communities

1=least important 2 3 4 5 6 7=most important



CompanyBeyond the benefits to the local community and participants, global pro bono programs yield a number of returns to the company at a strategic level. All respondents identified “better under-standing of the opportunities and challenges in emerging markets” as somewhat important (3 or higher) and a plurality (38%) ranked it as the most important. Almost all (96%) recognized “increased knowledge of the operations and business environment in emerging markets” as important, with a plurality (38%) ranking it as somewhat important (3 out of 5).

Beyond these important insights into emerging market dynamics, respondents also empha-sized the way in which global pro bono pro-grams enabled them to meet CSR and HR goals within the company.

SectorsCorporations aross sectors, from healthcare to chemical production, technology to logistics, have embraced the benefits of global pro bono within their companies. The social impact of their programs across sectors is equally diverse. More than half (59%) of projects focus on four key areas: microfinance, healthcare, econom-ic growth, and education, closely followed by women’s empowerment (9%), agriculture (7%), and entrepreneurship (7%). Eight additional sectors account for the remaining project focus (18%).

More than half of companies measure the business impact (56%) and social impact (54%) of their programs, yet many challenges still re-main in the domain of impact measurement. Most companies are highly reliant on qualita-tive measurements—namely testimonials—in reporting the effectiveness and impact of global pro bono within their company. For those who are able to quantitatively measure impact, hu-man resource statistics are often the source of this measurement. At least a third (from 35 to 38%) quantitatively measure the program’s im-pact on career progression, employee engage-ment, and retention and recruitment, though this practice is far from mainstream.

Pro Bono Addresses CSR ObjecAves

8%

4%

4%

4% 12%

4%

12%

35%

23%

12%

42%

65%

73%

Enhancement of the company’s image

Ability to actively engage employees in the company’s CSR strategy

Substantial improvements in the welfare of the local communities


5%

4%

8%

4%

4%

33%

4%

29%

54%

50%

25%

38%

42%

Improved staff retention

Evidence that the company cares about the employees and are willing to invest in them

Increased employee motivation & commitment


Pro Bono Addresses HR ObjecAves

18%

17%

13% 11%

9%

7%

7%

4%

2%

2% 2%

2% 2%

2%

2%

Micro Finance

Healthcare

Economic Growth

Education

Women Empowerment

Agriculture

Enterpreneurship

Community Development

Access to Finance

Environment

Social Welfare

Healthy Lifestyles

Clean Safe Water

Enabling Job Readiness

Energy Access

Sector Impact



Measurement & ImpactThough many companies primarily measure their program’s impact by way of testimonials, a large number feel that they have strong evidence of their pro-gram’s positive effectiveness in a number of domains. One company reports that within their program,

“Participants are 41% less likely to leave the company, and 85% feel they are doing something differently as a result of their experience.”

Another company reported that their program has impacted more than 140,000 lives. Yet, many barriers persist that limit the ability of corporations to measure their program’s impact effectively.

Still too few companies are engaged in global pro bono for the practice to have developed a measurable collective social impact. Further, corporations lacked a shared standard by which to measure their programs.

CollaborationPerhaps the greatest opportunity within the practice lies in cooperation among companies. While close to a third (32%) were not interested in col-laboration, more than half (54%) had either formed joint teams (29%) or in-tentionally collaborated with another company to either provide parallel or sequential services to a local organization (25%). Further, close to a quarter (21%) had not collaborated in the past but were considering the model and interested in doing so in the future. One response: “We would welcome the opportunity to collaborate.”

Most worthy of note is the significant increase in the number of participants deployed annually, which has increased from 574 in 2009 to close to 2100 (estimated) in 2014.

While the field of global pro bono presents enormous opportunity for companies with the curiosity and will to engage produc-tively in emerging markets, program man-agers identify a number of key challenges that continue to persist.

In the realm of business impact, some be-lieve such programs are too expensive. Others identify that lack of resources or commitment from the local host organi-zations can prevent effectively identifying and quantifying a project’s benefits. As has already been identified within this report, one of the greatest obstacles to scale is a lack of meaningful data, much of which is self-reported, creating inherent bias in its collection. What’s more, many companies struggle to decide who among field sales, business development, and CSR should “get the credit” for the outcomes such pro-grams deliver.

As pertains to social impact, program managers again identify that self-reported surveys of host organizations on a one- or six-month horizon are often insufficient to appropriately capture impact, which is most often long-term. At the same time, many projects run on a relatively small scale on short timeframes, making it diffi-cult to measure any meaningful benefit, or make extended commitments to meaning-ful impact.

In many respects, the best way to address these challenges is through many of the priorities already identified in this report. Greater collaboration among companies, and growing commitments to fielding more employees provides a pathway for more effective impact measurement alongside the practice’s growing social impact.

Number of ParAcipants

2009 2010 2011 2012 2013 2014 (E) # of Volunteers 574 992 1484 1876 2085 2087

0

500

1000

1500

2000

2500

Challenges & OpportunitiesGlobal pro bono programs are unique corporate investments that yield multiple returns. As a growing number of com-panies embrace the opportunities afforded by global pro bono programs, the practice will face a number of challenges and opportunities, including measuring program impact and greater cooperation among companies.



Planning

o Fight for appropriate human and material resource support before you begin.

o Base your program on existing best practices. o Make sure it ties to the strategic objectives of the

company. o Set monitoring/evaluation goals as you start your

program. o Find a partner with shared value and understanding

for the execution.

Gaining Support

o Get to the top decision-makers to communicate the success of the program.

o Make sure that HR has a vested interest, particularly if there is a talent dvelopment component.

o Ensure the CEO endorses the business and social value of the program.

o Engage senior leadership early in the process and gain their support.

Managing

o Expect the unexpected and be prepared for your plans to change.

o Be service-oriented with a focus on host clients’ needs. o Be open to new approaches within a changing environ-

ment. o Tell your story well—internally and externally.

RecommendationsThough such programs can be time consuming and complex to design and deliver, the rewards are well worth the investment. Here are some helpful tips to keep in mind when designing your programs:

To learn more about global pro bono programs, contact [email protected]



The ICV Leadership CouncilCreated and facilitated by PYXERA Global since 2011, the International Corporate Volunteerism (ICV) Leadership Council is a global community of corporations that are implementing global pro bono programs. The goal of the Coun-cil is to promote the expanding field of corporate pro bono and highlight its impact on participants, corporations, and global challenges. The ICV Leadership Council provides an opportunity for professionals in the field to network, share program experiences and best practices, and create new operating models that can lead to improved program and project-based performance.

ICVLeadership

Council

Phone: 1-202-872-0933

Fax: 1-202-872-0923

E-mail: [email protected]

@PYXERAGlobal

www.pyxeraglobal.org

1030 15th Street NW | Suite 730 East | Washington, D.C. 20005

PYXERA Global creates groundbreaking partnerships between the public, private, and social sectors that leverage the unique attributes of each to create shared value and innovative solutions to complex challenges. Our initiatives include a wide range of services from local content development, to global pro bono programs, and integrated community development efforts that transform lives and livelihoods.

With a quarter century of experience in more than 90 countries, along with imagination, determination, and the support of a passionate and dedicated team, we navigate challenges and pinpoint purposeful global engagement opportunities for our clients and partners.

We have a passion for designing and managing solutions that achieve real-world goals yet also inspire, enrich, and endure.

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Corporate Global Pro Bono: State of the Practice

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