DECEMBER 2012
philanthropy Personal touch Staff members at Rethink are encouraged to nominate causes that mean something to them at an individual level
Paper pusher Silver Bullet Shredding owner Bailey Jung offers used supplies and shredding services to help charities
In-kind Pan Pacific general manager Tim Tindle says the hotel’s donations of services are worth the price tag
Added value Andrew Reid’s Big Fish Interactive uses conversations about philanthropy to build staff engagement in the workplace
PRINTING PARTNER
1205 BES Philanthropy_R2.indd 1
SPONSORS
11/15/12 11:33:04 AM
*#/'' 0 " !%'&
- "' *" !%'& '%
'-& *0 ' & '-. *
'( &*' - " '%
-,'% $$ *". '*,! & '-. * ("$ &' - " '%
! , - " / #&'/ ,! *'-, *'% ,' "+ * * $0 +,* " !, . &$0 ( . $"& -, /",! )- ,,*'" ( *% & &, $$ /! $ *". & "& * + *" ! " !, ", + (* "+ $0 /! & *' '& ","'&+ ,!*'/ 0'- -*. ,! , ,! $$*' *&+ ",+ # ( & ", ' +& , $''# ! $ +",,"& +,"$$ "& 0'-* *". / 0 ",! * !
Š 2012 Audi Canada. “Audi,� “A4,� “allroad,� “quattro,� “Vorsprung durch Technik,� and the four rings emblem are registered trademarks of AUDI AG. To find out more about Audi, visit your Audi dealer, call 1-800-FOR-AUDI, or visit us at www.audi.ca.
1205 BES Philanthropy_R2.indd 2
11/15/12 11:33:07 AM
DECEMBER 2012
philanthropy Working for a cause The influx of new i-toys and apps-for-that has changed the culture of work in the 21st century, but there are still elements that haven’t changed, such as the desire to make a difference. Whether it’s a collection basket during December holidays or extensive sponsorship of charity events, cause philanthropy has not disappeared in the new workplace. If anything, technology has upped the possibilities. As well, as a business incentive, there is an appetite to do business with people who are helping community, according to Tracy Theemes, co-founder and partner at Sophia Financial Group. This year, our close-up look at philanthropy examines how different sectors approach charitable causes. How do they select where to donate time or money? What role do their employees play in selecting a non-profit to support, and how does their involvement make a difference in the workplace? What do you do in a small business with little time and money to spare? Accompanying the philanthropy edition of Business in Vancouver’s Business Excellence Series is a breakfast on the same topic with speakers Harvey McKinnon, president, Harvey McKinnon Associates, author of The Power of Giving, and Andrea Southcott, partner at Southcott Strategy marketing and advertising. The breakfast takes place December 4. Visit www.biv.com/events for more information. – Baila Lazarus, features editor, Business in Vancouver
CONTENTS 4
Reaping the harvest Vancouver-based financial companies are using philanthropy to help clients “achieve their dreams”
6
Cause célèbre Giving back through the creative process
10 Full disclosure Feeling good about a charity might mean taking a look at its books before you give
12 What giving gets Corporate philanthropy has measurable benefits for communities and companies alike
16 Small business thinks big Even the smallest companies can maintain a social mission if they’re dedicated and clever about their efforts
18 The perks of charity work Philanthropy offers the hospitality industry a boost in its social equity – and its bottom line
leadership MAR 2012 sustainability JUN 2012 marketing SEP 2012 philanthropy DEC 2012 Business in Vancouver 102 East Fourth Avenue Vancouver, BC V5T 1G2 P: 604.688.2398 F: 604.688.1963 E: info@biv.com
PUBLICATIONS MAIL AGREEMENT NO: 40069240. REGISTRATION NO: 8876. Return undeliverable Canadian addresses to Circulation Department: 102 East Fourth Avenue, Vancouver, BC V5T 1G2. E-mail: subscribe@biv.com
1205 BES Philanthropy_R2.indd 3
11/15/12 11:33:08 AM
Reaping the harvest ’
Vancouver-based financial companies are using philanthropy to help clients “achieve their dreams”
C
By James Dolan
all it the gift that keeps on giving: Vancouver-based financial companies are using charity to do good work for the community. By doing so, they’re getting more work for themselves. “If you look at companies that are doing well, they’re often thinking outside themselves and thinking of the community and other interests,” said Wayman Crosby, CEO, Nicola Crosby Real Estate Asset Management and partner, Nicola Wealth Management. “If it’s part of your culture, I think it’s good for business.” Crosby also believes philanthropy can be a tool for attracting and retaining staff. “A lot of younger people have choices in terms of where they work,” Crosby noted. “Can they find a company that also is giving back to the community – that seems to be something of value for younger people.” As Crosby explains, Nicola Wealth Management has contributed to a number of charities, including the food bank, BC Children’s Hospital, Arts Umbrella and more. Going forward, however, the company’s charity committee has created a five-year philanthropic plan that focuses on children’s health, education and welfare – causes that appeal to all staff. The company has also set up a charitable foundation to facilitate giving from clients.
4
If you look at companies that are doing well, they’re often thinking outside themselves and thinking of the community and other interests
[]
WAYMAN CROSBY CEO, NICOLA CROSBY REAL ESTATE ASSET MANAGEMENT AND PARTNER, NICOLA WEALTH MANAGEMENT
“Part of offering financial planning and wealth management to clients is that we help them realize their dreams,” Crosby explained. “For a lot of people, increasing their charitable giving, leaving a legacy, those sort of things are important parts of the financial equation. “We model what it is we’re asking people to do. From an investment perspective, our money is in the same place the clients’ money is in. Our charitable giving is on the same platform as what our clients are doing.” Bryan Mavrow, senior vice-president, marketing and community investment at First West Credit Union, views philanthropy as something inherent to his company’s business model.
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 4
11/15/12 11:33:14 AM
There is an appetite in the marketplace to do business with people who are genuinely helping out in the community
[]
TRACY THEEMES CO-FOUNDER AND PARTNER AT SOPHIA FINANCIAL GROUP, RAYMOND JAMES
“It’s our DNA as a community credit union to try and support and improve communities we live and work in,” Mavrow said. “We basically are returning our profits and providing direct involvement to the specific communities we operate in.” Mavrow says the company’s annual contribution to charity is “in the neighbourhood” of $1.5 million. In addition, company staff contributed more than 4,000 hours of involvement to community causes last year. First West contributes to several dozen organizations throughout its operating regions. It also has a well-known “signature” cause: Feed the Valley, a program to help hungry families throughout the Okanagan-Similkameen region. “We’re partnering with local food banks and providing a conduit of both food and funding,” Mavrow said. As Mavrow explains, philanthropy serves as a powerful reaffirmation of a client’s decision to do business at First West. “The way I find it’s most powerful is once we have a member on board,” Mavrow said. “It’s then that the story starts to be revealed and mean more to them. They start to understand that their financial institution is deeply [involved in] the well-being of their communities.” For Tracy Theemes, co-founder and partner at Sophia Financial Group, Raymond James Ltd., philanthropy was something that came naturally. “From the
very beginning, even while we were eating rice and beans, we have always done a day a week of pro-bono work,” Theemes said. “It’s woven into the structure of who we are.” It wasn’t long before Theemes noticed that such pro-bono work paid dividends. “There is an appetite in the marketplace to do business with people who are genuinely helping out in the community,” Theemes said. “What ends up happening is that you create sort of a network of benevolence. The more we do it, the more professionals know we do it, and the more professionals then help our people.” While Theemes works pro bono throughout the year, the major focus of her philanthropy is her company’s annual Wealth Academy for Women in February, a one-day seminar that teaches women personal finance skills. Theemes expects more than 500 attendees this year, with 100% of net proceeds (about $40,000) going to charity. Given the positive returns on her charitable work, Theemes plans to let clients know about her company’s philanthropy in the future, without necessarily flaunting it. “It’s not [our] personality to be going out and taking out a billboard about it,” Theemes said. “We’re trying to continue to draw to us the kinds of clients who would appreciate it – not bat people over the head.” ■ BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 5
5
11/15/12 11:33:17 AM
Cause célèbre Giving back through the creative process
T
By Noa Glouberman
he advertising industry has a unique edge when it comes to philanthropy. In addition to cutting cheques for charity, many agencies do pro bono work, donating their time and expertise to help raise awareness for worthy
causes. “We’ve always believed in using our creativity to give back,” said Rethink Communications owner Tom Shepansky. “Non-profits don’t always have the resources to develop ideas that will help them raise attention, so we donate the services that enable them to do so in kind.” While Rethink often chooses “groups that have been turned down by other agencies because they’re too controversial,” staff members are encouraged to
6
nominate causes that touch them personally. “It’s certainly not top down,” Shepansky said. “Our team gets to have a hand in supporting things it feels passionate about, which goes a long way to fostering a positive culture within our company.” Last year the agency designed a unique campaign for the Alzheimer’s Society of BC – as Alzheimer’s has affected several employees’ families. To encourage registration in the society’s annual Walk for Memories, Rethink installed a 30-foot “Memory Wall” in downtown Vancouver. The wall was covered in sticky notes – printed reminders to participate in the walk – arranged to form the word “Remember”; as passersby took the notes, the wall slowly dissolved. “Our goal was to do something that not only encouraged people to join the walk but also stood as a symbol for the memory loss experienced by
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 6
11/15/12 11:33:22 AM
Efficiency comes standard Doing creative work on causes we have a lot of heart for inspires us
[]
TOM SHEPANSKY
Progress. It’s the ability to look forward while others look back. A conviction that the status quo is never good enough. It’s the courage to have a vision, and the passion to bring it to life. For over 100 years, our approach to progress has been summarized by our motto, Vorsprung durch Technik – or, loosely translated, advancement through technology.
OWNER, RETHINK COMMUNICATIONS
The Memory Wall: set up by Rethink to encourage registration in the annual walk for the Alzheimer’s Society of BC
But a better future doesn’t rely solely on better technology. That’s why at Audi, we believe in the importance of charitable giving. We’ve partnered with Best Buddies International, a charity that creates opportunities for one-to-one friendships, integrated employment, and leadership development for people with intellectual and developmental disabilities. This spirit of philanthropy lives in every dealership and with every employee at Audi. We encourage you to join us in this commitment to a better future by joining us in our approach. After all, giving fuels the spirit that Audi embodies most: progress.
Alzheimer’s sufferers,” said Shepansky. “We wanted to put our best foot forward rather than just do the standard thing. Doing creative work on causes we have a lot of heart for inspires us to think outside the box.” Giving back also means getting creative at DDB Canada. In addition to pro bono work, not to mention reduced rates for certain not-for-profit clients, the agency’s annual Share DDB art crawl and auction, which originated in its Vancouver office, has become a national initiative that’s raised more than $86,550 for charity in the last six years. “Share DDB is a silent auction of creative endeavours produced by staff, clients, suppliers, family, friends,” said Lance Saunders, executive vicepresident, managing director, DDB Canada/Vancouver. “Bidders can expect to take home anything from BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 7
7
11/15/12 11:33:27 AM
Share DDB is a silent auction of creative endeavours produced by DDB Canada staff and supporters. Bidders can expect to take home anything from paintings to children’s stories to baked goods. All funds raised benefit local charities | DDB CANADA
paintings to children’s stories to baked goods. Everyone’s encouraged to make something and contribute.” The event, Saunders explains, evolved from the company’s desire to celebrate creativity across its departments, not just those known for coming up with cool designs and compelling copy. “People all over the agency contribute to our creativity, and we wanted to showcase that.” He points to an item that had bidders all abuzz at a past Share DDB event: a piece made entirely of tape by an account supervisor. Then there was the pillow that “could have come from a Yaletown boutique,” sewn by a talented member of the communications team. The best part, however, is the money raised. This year’s auction, held November 21 at Main Street’s Heritage Hall, benefitted two worthy causes: the Greater Vancouver Food Bank Society and the James Lee Foundation. “We tend to choose charities that are local but smaller in nature, in order for the money to have a real impact,” Saunders said. “The food bank is … a great cause, and the James Lee Foundation gives us an opportunity to contribute back to our own industry, since it actually awards scholarships to new creative talent entering the industry.” Other advertising agencies interested in helping fellow creative types may wish to include the National Advertising Benevolent Society (NABS) in their philanthropic plans. The organization supports Canadian marketing and communications workers facing personal, career and family challenges due to illness, injury, unemployment or financial difficulties. “NABS is fully funded by the industry, and it’s people in advertising and communications, media and production people … that have the opportunity 8
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 8
11/15/12 11:33:35 AM
You Have a Vision for the Future.
Andrea Southcott, partner, Southcott Strategy: “[NABS] really makes industry folks who benefit from its services feel there’s someone that cares, and that makes a big difference” | DOMINIC SCHAEFER
to be served by NABS,” said Andrea Southcott, a partner at Vancouver’s Southcott Strategy Inc. and an industry veteran with over 20 years of experience. The organization provides a 24-hour helpline, counselling services and financial support for industry members. NABS, said Southcott, “really makes industry folks who benefit from its services feel there’s someone that cares, and that makes a big difference.” There’s a big commitment within the sector to support NABS through various fundraisers, including golf tournaments, a media sale and the Lotus Awards, which celebrate British Columbia’s advertising community and make a contribution each year. Many agencies do their own internal fundraising events, as well, as NABS continues to be an important resource for their employees. “The industry in B.C. is different than it was years ago, when you could count on employment,” said Southcott. “These days, a lot of agencies are working on lean margins; they may be under pressure, financially, and unable to provide people with the same kinds of extensive benefits that were once available.” The cyclical nature of the business, she adds, is such that “layoffs can be sudden and random; for example, when a company loses a big client. There typically aren’t any pensions or extensive safety nets available, so having an organization like NABS there to support people when they’re in trouble is extremely helpful. “It’s important for us, as an industry, to contribute to this kind of organization,” Southcott concludes. “We may be competing for business at times but, at the end of the day, we really need to help each other out and support each other.” ■
Let TEC Canada help you achieve it. For nearly 30 years, TEC Canada has been helping good senior leaders become great CEOs. Discover how our unique approach to leadership development and international executive community of more than 14,500 members, generating nearly $300 billion in annual revenue, can help you succeed beyond expectations. 800-661-9209 info@tec-canada.com Visit www.tec-canada.com
TEC Canada is committed to creating twenty-first century leaders who champion innovation, collaboration and empowerment. Our vision is to accelerate the growth and development of Canadian business. TEC Canada is part of Vistage International. The globe and maple leaf represent TEC’s expansive international perspective rooted in our Canadian heritage.
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 9
9
11/15/12 11:33:48 AM
Full disclosure Feeling good about a charity might mean taking a look at its books before you give
By Michael Bernard
BC
resource companies considering charities should donate to those that are local, have low administration costs and are supported by the donor company’s employees, according to several firms in the resource industry. They should also ensure that if they are public, the donations serve shareholders’ interests in order to reduce the risk of being sued, said one CEO. Nolan Watson, president and CEO of Sandstorm Gold, said when he first entered the business world he looked around for charitable organizations but was disturbed by what he found. “I got fairly frustrated with the amount of money that the average [charitable] organization was spending on salaries and administration,” said Watson. “Even with organizations that said ‘90% of your money goes to the end cause,’ I was able to go into their financial statements to find that they are spending 45% of all donations on salaries.” “I’m not quite sure how you convince yourself that salaries paid to a person sitting in Vancouver is somehow the end cause of an orphanage in Africa, but in my mind it isn’t,” Watson said. Despite that depressing discovery, he still believes mining companies have more reasons than any other companies in the world to donate to good causes. “They need to focus on making sure the communities around their projects are better off, to gain
10
support from their communities and to assure that they as companies are a net benefit to those communities,” he said. “They need to ensure that the company and those mines have the support of the political leaders of those local communities so that they can run a mine effectively, keep their permits, not get their assets expropriated, not get their mine vandalized or blown up. These are all things in the best interests of both the community and the shareholder.” Watson stressed that doing things in the best interests of shareholders is more than a platitude; it’s the law. A few years ago, the Supreme Court of Canada found in ruling on a shareholder suit that companies cannot just give to any old cause but must show the donation serves the prime shareholder interest – making money, he said. Ultimately, Watson and his wife decided the best way to use their time and money was to set up their own charity, Nations Cry, a humanitarian organization focused on improving organization in the developing world. It is currently helping to build a secondary school in Sierra Leone, a West African country where Sandstorm has worked. “We decided to start an organization that is small and grassroots and will never get huge. It will not have any salaried employees, and [instead] our friends and co-workers will do the administration ourselves and just pour money into things that matter.” Giving to local causes is an important criterion for
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 10
11/15/12 11:33:48 AM
I’m not quite sure how you convince yourself that a salary paid to a person sitting in Vancouver is somehow the end cause of an orphanage in Africa, but in my mind it isn’t
[]
NOLAN WATSON PRESIDENT AND CEO, SANDSTORM GOLD
one of B.C.’s major fish-farming companies, which allocates about $150,000 of its annual budget to corporate giving. “Our company’s giving is based on our support to First Nations, education, arts and culture, and sports and health and well-being,” said Marilyn Hutchinson, director of sustainability and growth for Grieg Seafood BC Ltd. “Decisions are based on [various factors] including the area, primarily northern Vancouver Island and the Sunshine Coast, other contributors, the benefit to the community, involvement of our employees with the applicant such as being coach of a team, volunteer at the event or member of a committee leading the fundraising,” she said. The company donates to service clubs, hospital and community foundations, First Nations sports teams and elder groups, and schools and universities, including for scholarships and bursaries, among other causes. The largest amount allocated every year is for four volunteer-run salmon enhancement societies. Forest company Weyerhaeuser has a well-established process for entertaining requests and allocating charitable donations that relies entirely on local input, said company spokesman Wayne Roznowsky. Local committees made up of employees and managers or in some cases leadership groups decide who is chosen to receive funding and how much. “We open for submissions in January and close it off in August,” he said. “Our allocation is based on a
‘per employee’ basis, so if we have 100 employees in a particular community the amount will be based on that.” Roznowsky said the Washington state-based company favours charities supporting education, shelter for people and environmental stewardship, among others. Allocations for charitable donations are kept separate from funding for sponsorships including business events such as those of the local chamber of commerce. He said he is ultimately responsible for determining if the charity’s values align with those of the company but said the company is well aware of the practices and philosophies of the charities it supports. Doug McIntyre, media relations spokesman for Encana, a leading oil and natural gas producer, said his company’s community investment programs are aligned to promote environmental stewardship, enhance skill sets of the next generation and support the needs of its communities. “We support employees’ efforts through matching gifts and offering a volunteer program, which provides grants to organizations where our employees volunteer their time,” McIntyre said. During the Encana Cares annual campaign, held every October, employee contributions are matched dollar for dollar toward their favourite charities. Major charities Encana supports includes the BC Cancer Foundation, the End Violence Association of BC and the Minerva Foundation. ■ BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 11
11
11/15/12 11:33:57 AM
What giving gets Corporate philanthropy has measurable benefits for communities and companies alike
I
By Peter DeVries
n the years following anti-apartheid activist and future South African president Nelson Mandela’s 1962 arrest and imprisonment, many across the world stood up to oppose the apartheid regime that procured his incarceration. Among them was Harvey McKinnon. He was studying history at Dalhousie University when he started an organization to protest apartheid and other injustices. “I had no idea that something that awful existed,” he said. “I was your typical university student who would go to dances and have a beer.” Shocked into action, McKinnon decided to devote his life and career to helping those in need. Soon, Oxfam came knocking on his door and he went to work for it. In 1989, he decided to develop his own business around giving, and Harvey McKinnon Associates was born. His company provides strategic direction and fundraising programs for non-profit
12
organizations looking to secure donors. Specializing in direct mail, McKinnon offers everything from online giving programs to fundraising training. He’s written a bestselling book on the topic as well, The Power of Giving, which has been published in eight languages and devotes an entire chapter to the subject of corporate giving. In general, said McKinnon, there exists a wellaccepted tradition that businesses will help build and support the communities in which they operate, enriching the lives of the people around them and sharing the wealth. “But there’s a lot of research in the last few years that shows that there are many more benefits to corporate giving than people thought.” By partnering with a charitable organization, businesses build credibility, McKinnon says. “People are more likely to patronize businesses that are involved in the community, that are supporting charities and that are perceived as more ethical.” His company’s choice of a courier service offers a
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 12
11/15/12 11:34:06 AM
People are more likely to patronize businesses that are involved in the community, that are supporting charities and that are perceived as more ethical
[]
HARVEY MCKINNON PRESIDENT, HARVEY MCKINNON ASSOCIATES
Catherine Osler, President, TEC Canada
TEC Canada is proud to sponsor BIV’s Business Excellence Series and the conversation on Philanthropy. The TEC community deeply values and fully supports the role philanthropy plays in the creation of strong communities. As a premier leadership development company, TEC Canada’s vision is to create business leaders who build strong, sustainable enterprises where employees are proud to work, where innovation leads to next-generation products and services, and where the success of Canadian business lifts the prosperity of Canadian society. To raise prosperity is to foster philanthropy, engaged citizenry and vibrant communities. Every year, our members support a diverse array of cultural, educational, environmental and social initiatives in their communities – the societal “threads” that help to bring us together as citizens.
good example. Years ago they switched to one that supported environmental causes. Price wasn’t the deciding factor. The courier company’s ethical values motivated the change. People who work at a business that supports community organizations will also feel better about where they work than those who do not, said McKinnon. “I know people who have quit very high paying jobs because they don’t feel good about the business.” It’s also good for team building. McKinnon recounted one occasion when he brought his staff on a trip to a worksite for Habitat for Humanity. “It was a fantastic experience for everybody,” he said. “We worked together and people felt great about it.” Camaraderie among staff and liking the company for which they work keeps people from leaving, too. “Companies in many sectors have a high turnover. Anything they can do to make people feel good about their company will make a significant difference in staff retention.”
I am proud of TEC Canada – our members, Chairs, and trusted advisors – who help, support, celebrate and share in the achievements of those in our community, and equally, give of their leadership talents and resources to the growth and development of their communities. More than money, the wise practice of philanthropy is the demonstration of wise leadership. Warm regards,
Catherine Osler, President, TEC Canada
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 13
13
11/15/12 11:34:09 AM
Andrew Reid, founder of Big Fish Interactive: “it’s a great tool that can be used for staff engagement” | DOMINIC SCHAEFER
14
Helping companies keep staff around is one of Andrew Reid’s strengths. As founder of Big Fish Interactive, for the past 22 years Reid has worked with companies to develop leadership and development programs that better staff, improve corporate performance and promote retention. Although he didn’t start out with a focus on philanthropy, it’s now a significant part of his business. “It’s a great tool that can be used for staff engagement,” he said. His approach to philanthropy differs from McKinnon’s in that he’s come at it from the business benefits side. And that’s revealed to him some of the deep corporate rewards to be gained from initiatives around corporate giving. For example, he said, it improves performance. Compelling staff to work at their best is one of the biggest struggles facing businesses. He characterizes two general levels of staff performance. At the lower level, workers satisfy the job requirements because they feel pressured or obligated to do so. At the higher level, which is what a lot of his clients
ask him to help them achieve, employees want to work at their best because “they are linked to a common value and purpose associated with the work.” According to Reid, philanthropy is a great way to develop these shared values. Through giving programs, companies can draw staff into something more personally valuable than a paycheck. When choosing which charity to engage, said Reid, leaders often choose based on personal preferences, experiences or charity popularity. However, “if that decision is made in isolation, leaders can miss a great opportunity [for engagement].” Although the decision should align with the leadership’s view on the goals, purpose and culture of the organization, it is critical to include staff. Doing so has the effect of drawing employees’ personal values together with those of the organization, encouraging them to contribute more effectively to strategic goals. “It’s management’s job to invite people to participate at their highest level,” said Reid. “Building shared vision through corporate giving drastically changes the cultural engagement.” ■
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 14
11/15/12 11:34:13 AM
#*7 &WFOUT QSPWJEF BO PQQPSUVOJUZ GPS ZPVS DPNQBOZ UP HFU GBDF UP GBDF XJUI OFX DVTUPNFST BOE CVTJOFTT DPOUBDUT &YUFOE ZPVS NBSLFUJOH CZ BMJHOJOH ZPVS CSBOE XJUI #*7 T QSFTUJHJPVT BXBSET FWFOUT
#BIVCE02012
#IWIB
#BIV40u40
4QPOTPSTIJQ PQQPSUVOJUJFT BWBJMBCMF $BMM
For more information or to register visit:
www.biv.com/events/biv
1205 BES Philanthropy_R2.indd 15
11/15/12 11:34:13 AM
Small business thinks big Even the smallest companies can maintain a social mission if they’re dedicated and clever about their efforts
A By Sam Eifling
The SPUD Patrol potato handout that Sandi Graham and Jeffrey Armstrong organize monthly makes tangible the giving philosophy of Armstrong’s spiritual Vedic Academy of Science and Arts | COURTESY JEFFREY ARMSTRONG
16
s the owner of Silver Bullet Shredding, a three-person company in Burnaby, Bailey Jung runs into unusual conundrums. For instance: what to do with all the bankers boxes and binders left over from huge shredding jobs? What easily could be bin fodder instead allows Jung’s company to make frequent donations to charity. When he accumulates a pile of boxes, which are still usable for moving, or binders, he advertises them on Craigslist and peddles them for a dollar or two apiece. Once he accumulates $50 or $100 in the office kitty, he passes the money on to a food bank or the SPCA. “Every business has something of value, whether it’s a product or service, that they could probably turn into something for the community,” Jung said. “You don’t always see it on the bottom line immediately. But from meeting people and building trust and relationships, opportunities come.” Maybe it’s smart business; maybe it just feels good. Either way, philanthropic small-business owners in Metro Vancouver say giving back is elemental to their mission and is well within reach of anyone with pluck and ingenuity. Businesses of all sizes donate money and services to various causes. The most high-profile of those confer benefits on the donor as high-profile philanthropy becomes part of a company’s brand. But how to leverage the resources of a small company? The desire is clearly there. A recent survey of Canadian entrepreneurs by Profit magazine found that three-quarters agreed that they have a “moral obligation” to give to philanthropic endeavours. Further, the survey found, the average donation from
firms claiming annual revenues less than $500,000 was nearly $23,000. “You look at your sphere of influence, customers, suppliers, employees,” said Lloyd Bernhardt, owner of Ethical Bean Coffee. “Look at where you can make a difference. If everybody does a little bit and does what they can, it would be fantastic.” Bernhardt founded Ethical Bean with his wife, Kim Schachte, in East Vancouver in 2003, on a principle of fair trade and offering material support to the coffee’s sources. It’s no surprise, given the company’s name, that it donates money or coffee to a range of causes in Vancouver – the Dalai Lama Center for Peace and Education, the Vancouver International Film Festival, TEDx Talks – as well as infrastructure and scholarships in Guatemala. “Some businesses have always done the right things, but it’s becoming more of a focus with social media,” Bernhardt said. “If you’re not doing that kind of stuff, people are not going to be engaged in your brand.” To Bernhardt, companies have at least as much responsibility as individuals to contribute to
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 16
11/15/12 11:34:18 AM
community. One benefit for employers, he said, comes in attracting and retaining employees who are motivated by that prospect. “People really need that,” Bernhardt said. “Work is such a big part of life. They want to know their hard work is going beyond profits and shareholder expectations and making a difference in the world.” The intrinsic motivation that comes with charitable works moves Sandi Graham, who along with her husband, Jeffrey Armstrong, organizes a monthly baked potato handout on Vancouver’s Downtown Eastside. They’ve run the SPUD Patrol for 15 years, timing the event to the full moon. “In the beginning, [volunteers] think they’re doing it for the street people,” Graham said. “But believe me, the heart does more for the person giving the potato, in a way. People need to have that graciousness of giving and helping.” On a typical night, they and others might give away more than 500 home-baked, foil-wrapped, buttery potatoes. December’s handout — arriving when many volunteers feel moved by the Christmas season — runs somewhere around five times that number. The couple have enlisted plenty of interested parties over the years, including many of the students at
Armstrong’s online spiritual school, the Vedic Academy of Science and Arts, who are drawn to putting compassion into action. “You cannot do yoga as a lifestyle unless you see all living entities are connected,” Armstrong said. “You have to act as if all life is sacred. It’s got to be demonstrated in your life.” Perhaps not all philanthropic ventures so literally mirror a business’s philosophy. But to hear entrepreneurs tell it, almost any small business can help the community simply by doing what it does best. Beyond selling the leavings from his business, Jung and Silver Bullet also hold shredding events with their mobile trucks, often setting up in a Rona parking lot and obliterating folks’ accumulated tax records and medical bills and such in exchange for donations. Proceeds tend to go small non-profits in Metro Vancouver (one recent recipient was the Pacific Assistance Dogs Society) for which a $1,500 donation may represent a relatively rich haul. “Nowadays customers and people want to align themselves with companies that give back to the community,” Jung said. “If we can’t write the big cheque, maybe we can offer our services and offer our time.” ■
Silver Bullet Shredding owner Bailey Jung leverages his services and his spare supplies to help charities around Metro Vancouver | DOMINIC SCHAEFER
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 17
17
11/15/12 11:34:24 AM
The perks of charity Philanthropy offers the hospitality industry a boost in its social equity – and its bottom line
18
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 18
11/15/12 11:34:28 AM
work
Tim Tindle, general manager of the Pan Pacific, says philanthropy is a core value of the hotel’s management and staff, boosting morale while increasing the hotel’s profile throughout the community | DOMINIC SCHAEFER
A
by Stephen Smysnuik
ny way you slice it, philanthropy can boost a profile and drive business. Tim Tindle, general manager of the Pan Pacific Vancouver, knows these perks as well as anyone, but said providing charities with facilities and the financial resources can be a big drain on financial resources. He offers as an example the Pan Pacific’s Christmas Wish Breakfast, an annual toy drive that attracts between 4,000 and 5,000 people every year and serves families in need across Metro Vancouver. The upshot is the event comes with a hefty price tag. “It does cost us a lot to put it on, but it’s worth the overall goodwill it creates,” he said, adding that the additional PR is always a plus. He said charity work is a core value of the hotel’s management and staff. The hotel supports three charities year-round – Canuck Place, Covenant House and the BC Hospitality Foundation – by offering services, staffing and other support for events whenever they need it. All employees have the opportunity to offer automatic monthly support payments to these organizations. About 25% of employees, Tindle said, take part in the program. Tindle estimates that they contribute “several thousand dollars” in hard cash to these charities every year, and the equivalent of about $30,000$50,000 annually for services given to the charities whenever they throw an event. “It’s just a good business practice,” he said. “We’re in business here. We get lots of benefit from the community for being in business here and, you know, we just want to give back when we can and when it will help out. It’s no more complex than that.” Philanthropy is a common practice within the hospitality industry, but it varies from business to business. Mark Brand, owner of Save-On-Meats, and BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 19
19
11/15/12 11:34:30 AM
Vance Campbell, former CEO of Canvas Lounge Inc., says catering to charity events is a win-win for businesses and charities by increasing the bottom line for both | DOMINIC SCHAEFER
20
co-owner of two Gastown restaurants – Boneta and the Diamond – provides assistance for residents of the Downtown Eastside by employing barrier employees – those with addictions, mental health issues or other barriers that prevent them from finding employment – through what he calls the “informal economy. Philanthropy is good business, he said, because people (particularly, he’s noticed, people between 25 and 45 years old) are eager to revitalize their city and help those in need. They’re loyal to businesses that have aligned with their own values. “It’s social equity,” he said. “People stay with us,” he said. “It’s like, ‘My god, I’m part of this machine that does this thing,’ and there’s real metrics on it.” Save-On-Meats has created a program where several employees are tasked with co-ordinating barrier staff – the street sweepers, maintenance workers and window washers, etc. – in order to enforce regimented staffing to ensure they have a successful product. Save-On-Meats has also partnered with Atira Women’s Resource Society for a meal program, providing one nutritional meal every day for Atira’s residents. Atira funds a majority of the program while Save-On-Meats executes it using barrier employment and kicking in extra money from the butcher shop and diner whenever it’s needed. The program has grown from serving 80 people when it was launched in fall 2011 to just under 500 people at all seven of Atira’s hotels. Brand said he’s working on increasing
that number up to 1,500 by the second quarter of 2013. Vance Campbell, former CEO of Canvas Lounge Inc. and current operations specialist for Rising Tide Consultants, also understands the benefit of philanthropy to business. “There’s a commercial aspect to it, in the sense that you get pretty good community optics from doing those kinds of things,” he said. For one, there’s the press that often comes along with charity work. Then there’s the profile boosted among a charity’s board of directors, many of whom are successful business owners or CEOs that are often loyal to businesses that have provided excellent service in the past. Before it shut down earlier this year, Campbell estimates 70% of Canvas Lounge’s business was charityrelated. Through that, he said this helped drive incremental off-charity business through the contacts he’d made during charity events. Canvas Lounge and Canvas Catering would often host Christmas parties for high-profile companies. The lounge was kept very busy as a result of these contacts. But Campbell is quick to note that the financial benefits, great as they can be, are practically an afterthought for many philanthropic hospitality workers. “The people in the hospitality industry really do have a bent toward helping others,” Campbell said. “That’s the business that we’re in. We’re in the business of taking care of people, right? From an organic perspective, it’s in our soul to be that way.” ■
BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 20
11/15/12 11:34:37 AM
Innovation or bust Constant, consistent forward movement is needed for any organization to survive
W By Emma Crawford
ith ever-changing consumer demands and an endless stream of new technology, innovation is so critical to the survival of any business that it should be built into your com-
Rick Kroetsch, program head of entrepreneurship, BCIT School of Business: “A culture of innovation does not happen overnight”
pany’s culture. This was the message delivered by Rick Kroetsch, program head of entrepreneurship, British Columbia Institute of Technology (BCIT) School of Business, in a Learn, Network and Grow event hosted by the Vancouver Board of Trade. Both donor companies and non-profits alike need to be prepared to continually adapt and alter their business models in order to stay alive, but it isn’t as simple as just keeping up with the competition. In order to have a chance of sticking around, Kroetsch explained, there are several key points to keep in mind:
1. Ask yourself, “What can we do a little differently?”
This is the first step in determining what will lead to the creation of better products or more effective processes or services. It is your job to know the future and see what customers want before they realize it. 2. Innovate more, invent less
Innovation is not the same as invention, and it is not necessary to change the world in order to make a contribution. Small differences can produce big results, and it would be a mistake to assume you need to reinvent the wheel to be successful. 3. Forget market surveys
You don’t even know your future market. If you rely on customers to tell you what they are looking for, they will want something else by the time you give it to them. Kroetsch quoted the adage commonly attributed to Henry Ford: “If I had asked people what they wanted, they would have said faster horses.”
5. Don’t just look at what the competition is doing
Realize most of the change affecting your company will come from outside your industry. 6. Get the entire organization on board
Organizations can adapt only if everyone is on board, and it takes strong leadership to change a company’s culture to one that allows for innovative thinking. Spread the message internally and be very clear and consistent. 7. Understand that a culture of innovation does not happen overnight
Customers love change, but businesses often don’t. Many employees may be able to accept new ideas but find it hard to let go of old ones. Be prepared for real change to take some time. 8. Give people the freedom to fail
Your employees need to feel free to generate and share new ideas without the fear of negative consequences if their suggestions don’t always hit the mark. Penalizing them for failure will prevent future creativity and lead to disengaged staff. 9. Watch out for what may kill your innovation
Among the pitfalls, Kroetsch said, is to avoid getting any new ideas stuck in Legal or Accounting; they will never get out. 10. Realize your business has no future without innovation
Most known products, services and methods will ultimately be overtaken by new ones. It is no longer good enough to keep doing what you are doing simply because it has worked for you in the past; it is critical to keep moving. Any given innovation is always temporary, and it is important to realize there will never be a point where your company is able to stop trying to evolve. A successful organization will keep looking and moving forward every single day.
4. Be prepared to be hated
Get ready to be told you are wrong. Resistance is inevitable, and you must try to be immune to rejection. When you make mistakes, admit them quickly and move on to the next step.
Kroetsch emphasized that small changes can have huge results, and focusing on four small areas of innovation can be more effective than one large one. “It doesn’t have to be the God particle.” ■ BUSINESS IN VANCOUVER BUSINESS EXCELLENCE SERIES
1205 BES Philanthropy_R2.indd 21
21
11/15/12 11:34:38 AM
#VTJOFTT &YDFMMFODF 4FSJFT ."3$)
MFBEFSTIJQ 4BMFT QMBZT -JTB .D/BCC LFZT JO PO SFDSVJUJOH SFXBSET BOE SFTJMJFODZ UP MFBE IFS UFBN BU $BOVDLT 4QPSUT BOE &OUFSUBJONFOU
&OHBHJOH EJTDVTTJPOT &MMFO 1FLFMFT LFFQT MJOFT PG DPNNVOJDBUJPOT PQFO BU 7BODJUZ UP SFEVDF XPSLQMBDF GSVTUSBUJPO
5IF SJHIU EJSFDUJPO &SJO $IVUUFS SFEVDFT HSPVQ DPOGMJDU UISPVHI HPBM BMJHONFOU BOE BQQSPQSJBUF MFBEFSTIJQ TUZMFT BU 1VHFU 7FOUVSFT
.VUVBM TVQQPSU .JDIBFM -BOTLZ KPJOT QFFS NFOUPSJOH TFTTJPOT XJUI 5&$ UP IFMQ IJN NBOBHF IJT 5FSSB #SFBET CBLFSZ DBGÌ DIBJO
13*/5*/( 1"35/&3
-FBEFSTIJQ "U JUT TJNQMFTU EFGJOJUJPO B MFBEFS JT TPNFPOF XIP JOGMVFODFT B MBSHFS HSPVQ PG JOEJWJEVBMT UP BDIJFWF B DPNNPO HPBM 4P XIBU EPFT JU UBLF UP CF BO JOTQJ SBUJPOBM BOE FGGFDUJWF MFBEFS )PX EP ZPV NBOBHF TUBGG JO B XBZ UIBU BMMPXT UIFN UP IBWF B GVMGJMMJOH DBSFFS XIJMF HFUUJOH UIF SFTVMUT ZPVS DPNQBOZ OFFET )PX EP ZPV EFWFMPQ ZPVS PXO MFBEFSTIJQ TUZMF "OE XIBU FYBDUMZ JT UIF EJGGFSFODF CFUXFFO MFBEFS BOE B NBOBHFS 'PS NPSF PO MFBEFSTIJQ BOE NBOBHFNFOU WJTJU #*7 DPN OFXT IS PS DIFDL PVU UIF $PMVNOJTUT QPSUBM PO #*7 DPN GPS MPDBM FYQFSUT
410/403
.":
TVTUBJOBCJMJUZ
4VTUBJOBCJMJUZ
" DMPWFS JEFB 8PSL QSPNPUJPOT %FOJTF 5BTDIFSFBV IFMQT DPNQBOJFT BMJHO NBSLFUJOH TUSBUFHJFT XJUI HSFFO WBMVFT
4BMPO PXOFS +FOOJGFS 8BOEFSMFJK BUUSBDUT DVTUPNFST JOUFSFTUFE JO B TIPQ XJUI B NJOJNBM DBSCPO GPPUQSJOU
" GPDVT PO TVTUBJOBCJMJUZ JO DPNQBOZ QSPEVDUT BOE QSBDUJDFT IBT QSPWFO UP CF B HBNF DIBOHFS GPS NBOZ PSHBOJ[BUJPOT PGGFSJOH UIFN UIF TUSBUFHJD BE WBOUBHF UIFZ OFFE UP TFU UIFN BQBSU GSPN UIFJS DPNQFUJUJPO #VU IPX EP ZPV NBJOUBJO PS MBVODI JOUP iHSFFOJOHw B CVTJOFTT JO B XBZ UIBU FMJDJUT QPTJUJWF SFTQPOTFT CVU EPFTO U CSFBL UIF CBOL
$VMUVSBMMZ TJHOJGJDBOU 4VDDFTT GPS .JDIBFM %SJFEHFS DPNFT GSPN B QIJMPTPQIZ PG HPPE EFTJHO BOE TPDJBM SFTQPOTJCJMJUZ
(FU XJUI UIF QSPHSBN &OWJSPONFOUBM QSPKFDUT BOE FBSUI GSJFOEMZ QPMJDJFT OFU BXBSET GPS .JDIBFM ,FOOFEZ BOE 4UBOUFD
13*/5*/( 1"35/&3
'PS NPSF PO 4VTUBJOBCJMJUZ WJTJU #*7 DPN OFXT FOWJSPONFOU PS DIFDL PVU UIF $PMVNOJTUT QPSUBM PO #*7 DPN GPS MPDBM TVTUBJOBCJMJUZ FYQFSUT
410/403
-< %2( 1%8', 3+)8,)6 *36):)6 !45.2, )9*57.6.2, 6 3' !(-0<*(-*5 6**6 &2 *2) 73 7-* 6*4&5&7.32 3+ 2*: &2) 75&).7.32&0 6*59.(*6 .2 &) &,*2(.*6
)6732%0 +3%07 "5&(< &00&6 (3 +382)*5 "37&0 !7&++.2, !3087.326 &003:6 67&++ 73 &((*66 7-*.5 3:2 63(.&0 1*).& 73 033/ +35 (&2).)&7*6
;-8',-2+ ',%22)07 2 *1*5,*2(< 6-87)3:2 3+ 7-*.5 3++.(*6 -&) 1.(532 6 *9 77+.*0) &2) .00 "8(/*5 7*67.2, ).++*5*27 0.2*6 3+ (31182.(&7.32
.BSLFUJOH )PX EP CVTJOFTTFT QSFTFOU UIFNTFMWFT UP UIF XPSME 8JUI TP NBOZ BEWFS UJTJOH BOE NBSLFUJOH PQQPSUVOJUJFT CPUI POMJOF BOE PGG JU DBO CF PWFS XIFMNJOH UP GJHVSF PVU XIFSF UP QVU ZPVS SFTPVSDFT 8IBU DBO MBSHF DPSQP SBUJPOT EP UIBU XJMM CF GSFTI BOE NFNPSBCMF "OE IPX DBO TNBMM CVTJOFTTFT DPNQFUF XJUI UIFJS MJNJUFE CVEHFUT
27*,5&7.32 3+ 75&).7.32&0 &2) 2*: 675&7*,.*6 2*7 &6/*2 &57.2*&8 &2) 1&5/*7.2, ).5*(735 0&.5 .00 &2 .2)8675< &:&5)
'PS NPSF PO .FEJB .BSLFUJOH WJTJU #*7 DPN OFXT NFEJB PS DIFDL PVU UIF $PMVNOJTUT QPSUBM PO #*7 DPN GPS MPDBM .BSLFUJOH FYQFSUT
www.biv.com/publications
1205 BES Philanthropy_R2.indd 22
11/15/12 11:34:45 AM
#VTJOFTT &YDFMMFODF 4FSJFT
"O PQQPSUVOJUZ GPS ZPV UP FYDFM #VTJOFTT JO 7BODPVWFS T #VTJOFTT &YDFMMFODF 4FSJFT JODMVEFT B RVBSUFSMZ NBHB[JOF GPMMPXFE CZ B CSFBLGBTU FWFOU GFBUVSJOH BO JOUFSBDUJWF QBOFM EJTDVTTJPO PG UIF TFMFDUFE CVTJOFTT UIFNF #VTJOFTT &YDFMMFODF 4FSJFT F NBHB[JOFT DBO CF GPVOE POMJOF BU CJW DPN QVCMJDBUJPOT BOE UIFO TDSPMM EPXO GPS #VTJOFTT &YDFMMFODF 4FSJFT JO UIF EJSFDUPSZ %VSJOH XF DPWFSFE UIF UIFNFT PG MFBEFSTIJQ TVTUBJOBCJMJUZ NBSLFUJOH BOE DPSQPSBUF QIJMBOUISPQZ 5PQJDT GPS XJMM CF
%JHJUBM .BSLFUJOH *T ZPVS CVTJOFTT SFBEZ UP VTF UIF MBUFTU EJHJUBM UPPMT UP NBSLFU TFMM BOE DPNNVOJDBUF UP DVTUPNFST BOE QSPTQFDUT 'JOE PVU CFTU QSBDUJDFT BOBMZTJT PG UIF PQQPSUVOJUJFT BOE DIBMMFOHFT UIBU NBZ FYJTU
-FBEFSTIJQ /PU KVTU GSPN UIF UPQ CVU MFBEFST DPNF GSPN BMM MFWFMT 'JOE PVU IPX UP CVJME JOGMVFODF GJOE ZPVS MFBEFS T WPJDF BOE EJTDPWFS PUIFS CFTU QSBDUJDFT VTFE CZ FGGFDUJWF MFBEFST JO PVS CVTJOFTT DPNNVOJUZ
5IF 5PQ -JOF 3FWFOVF HSPXUI JT JNQPSUBOU GPS FWFSZ PSHBOJ[BUJPO 8IBU EP TVDDFTTGVM CVTJOFTTFT GPDVT PO 0SHBOJD HSPXUI . " TBMFT USBJOJOH QMBOOJOH QSPDFTTFT DVTUPNFS TFSWJDF BOE PS QSPEVDU EFWFMPQNFOU 'JOE PVU CFTU QSBDUJDFT GSPN MFBEJOH TBMFT PSHBOJ[BUJPOT JO PVS CVTJOFTT DPNNVOJUZ
3FDSVJUNFOU 3FUFOUJPO )JSJOH BOE LFFQJOH UPQ UBMFOU JT B DIBMMFOHF GPS NBOZ DPNQBOJFT 'JOE PVU CFTU QSBDUJDFT JO FNQMPZFF FOHBHFNFOU VUJMJ[JOH JNNJHSBOU UBMFOU USBJOJOH EFWFMPQJOH DVMUVSF BOE EFNBOET GPS JODSFBTFE GMFYJCJMJUZ
4QPOTPSTIJQ PQQPSUVOJUJFT BWBJMBCMF $BMM
1205 BES Philanthropy_R2.indd 23
11/15/12 11:34:46 AM
PRINTING PARTNER
1205 BES Philanthropy_R2.indd 24
SPONSORS
11/15/12 11:34:48 AM