Acknowledgement
Major funding support was provided by the Bertelsmann Foundation (Germany) and
the Myer Foundation (Australia). Local funding was offered by Airtime Management
and Programming (Astro Radio), Alam Flora and an anonymous benefactor.
The programme was undertaken under the overall direction of Dr Michael Liffman,
Director of the Asia-Pacific Centre for Philanthropy and Social Investment, Australia.
Josie Fernandez and Rash Behari Bhattacharjee of the pro-tem Philanthropy Malaysia
were responsible for the marketing, implementation and management of the workshop
and the compilation of these proceedings, which was produced with the assistance of
Tania Jo Maliamauv. Rory Tolentino of the Asia-Pacific Philanthropy Consortium,
and Dirk Eilinghoff of the Bertelsmann Foundation provided valuable counsel, and
Brigitte Claney assisted with the promotion and administration of the workshop in
Australia and in Kuala Lumpur. Petronas Malaysia, represented by Sri Ganesh Gopal,
made a dinner presentation. Cheah Chee Ho and Yarina Ahmad also assisted during
the workshop. Acknowledgments are also due to Universiti Sains Malaysia (USM),
Malaysian Business, Alam Flora, Yayasan Sosial Indonesia Untuk Kemanusiaan,
Koichi Kaneda of Daiwa Securities Group, Japan and Dr Sandeep Deshmukh for their
materials. We thank Shah’s Village Hotel for their assistance during the workshop.
1
Executive Summary
It is a long-held view that all philanthropy is good and that giving should be done with
your gut, not your head. But as the need, scale and impact of philanthropy increases,
and calls for greater grant recipient efficiency and effectiveness become increasingly
louder, it is perhaps inevitable that many grant makers are beginning to turn the
spotlight on themselves, questioning if and how they can become better at what they
do.
In Melbourne, Australia, Swinburne University’s Asia-Pacific Centre for Philanthropy
and Social Investment has developed what is possibly one of the world’s first
graduate programmes in philanthropy and social investment. The workshop which
this report describes sought to take some of the basic ideas explored in the Centre’s
teaching programmes to an Asian audience, in order to draw on the experience and
wisdom of such a diverse and important part of the world, and to explore partnerships
which might extend this work into the region.
The programme was organised around the following themes:
The Shape of Philanthropy in the 21st Century
Various powerful forces are driving a new and invigorated philanthropy the world over. In
this session these forces are identified and their relevance to the Asian context discussed.
Private Wealth and Giving
The opportunities for individuals and families to have a real impact on their community
through their giving are greater than ever, and so are the challenges.
Diaspora and International Philanthropy
Diaspora philanthropy, whether in the form of donations from successful expatriates or
remittances from overseas workers, is an increasingly important source of resources for Asian
communities. This discussion commences with an account of the findings of a recent study
before inviting participants to discuss the Asian experience.
Corporate Philanthropy and Social Responsibility
The opportunity and expectation of corporations to recognise the triple bottom line, and to
include support for community as part of this, is transforming corporate behaviour around the
world. This session examines the Asian dimensions of this experience.
Disasters and Philanthropy
This discussion commences with a report on the recent APPC conference on ‘Philanthropy in
Disasters: Tsunami and After’ and on World Vision’s approach to the issue.
2
Professionalising Grantmaking for the 21st Century
Philanthropy and social investment are set to become major forces shaping the societies of
Asia over the coming decades. To date there have been virtually no opportunities anywhere in
the world for donors, companies, advisors and others who make decisions about philanthropic
distributions to develop the appropriate skills and understandings for effective grantmaking
practice.
This session describes the courses offered by the Asia-Pacific Centre for Philanthropy and
Social Investment at Swinburne University, and inquires into the possibilities for local
capacity-building in the Asian region.
As the following session reports show, the field is indeed ready for a greater
standard of informed, reflective scrutiny and collegiality.
3
Introduction
The first-ever workshop in Asia Pacific on Philanthropy in the New Millennium was
held from Dec 7-8, 2005 in Petaling Jaya, Malaysia. It was organised by the Asia
Pacific Centre for Philanthropy and Social Investment based at Swinburne University
(Australia) and Philanthropy Malaysia, a pro-tem network dedicated to the promotion
of effective grant-making, in association with the Asia Pacific Philanthropy
Consortium, the Sampradaan Centre (India) and Worldwide Initiatives for
Grantmaker Support (WINGS). It was supported by the Bertelsmann Foundation
(Germany), the Myer Foundation (Australia), Alam Flora Sdn Bhd (Malaysia) and
Airtime Management and Programming (Astro Radio, Malaysia).
A total of 30 participants and resource persons representing corporations, foundations,
media and grant-recipients from Australia, Cambodia, Germany, Indonesia, India,
Malaysia, Sri Lanka and Timur Leste attended the workshop.
A full list of participants is appended.
4
Session One: The Shape of Philanthropy in the 21st Century
1. Philanthropy Trends in Asia: An Overview
Presentation by Josie Fernandez, Convenor, Philanthropy Malaysia
Philanthropy [Greek: philos (love), anthropos (man)] is rooted in the “love of
humankind”. It is voluntary giving and receiving of time and resources, voluntary
engagement in altruistic acts of caring to benefit the community, and voluntary
association, voluntary giving and voluntary action directed towards collective good.
Grants given by foundations and corporations to the non-profit sector as well as to
communities come under the umbrella of philanthropy.
The dimensions of Asian philanthropy can be measured in terms of the targets of
philanthropic actions. These fall into three categories, viz. individuals, groups or
communities and issues. Philanthropic efforts can also be orientated towards charity,
welfarism or activism. Usually, the donors fall into several types, including:
individuals, households, foundations (family-based, corporate and community-based),
religious institutions, corporations, the elite or wealthy persons, international aid
agencies and governments.
The main influences that promote philanthropy are religion, culture, politics,
economy, education, new information technologies, disasters and emergencies.
Based on studies in Pakistan, India, Thailand, Indonesia and the Philippines, Asian
philanthropy can be said to be deeply rooted in the diverse cultural and religious
traditions of Asians, and is not as institutionalised or organised as in the United States
and Europe. However, this is changing as shown in the Asia Pacific Philanthropy
Consortium report “Giving and Fund raising in Asia” (2002)
Patterns of individual giving in Asia show a uniformly high rate of giving to religious
organisations. There is a high rate of support for individuals – 40% of total giving in
Indonesia, India and the Philippines went to individuals. A high level of importance is
given to a feeling of compassion as a motivation for giving. Support for organisations
providing services was high in Indonesia, Thailand and the Philippines.
Indians gave the most for religious purposes and less to voluntary organisations.
Door-to-door soliciting was high for Indonesia and the Philippines but low in India.
Corporate philanthropy is growing in terms of cash donations, matching staff
contributions and providing goods and services. This points to the growing role of
corporate social responsibility (CSR).
The patterns of giving among households in India, Indonesia, the Philippines and
Thailand show that individuals and religious organisations are the main recipients of
household giving. The main areas of support were for social services (welfare) and
education, and the primary motive for giving was compassion.
Local fund-raising activities in Bangladesh, India, Indonesia, Nepal, Pakistan, the
Philippines and Thailand show that non-profit organizations tapped local (indigenous)
resources successfully. Fund-raising was undertaken for a broad spectrum of social
needs, including poverty alleviation, education, health and disasters.
5
Corporate giving in Pakistan according to Philanthropy in Pakistan (2000), a report of
the Aga Khan Development Network, is extensive. A survey of 120 companies
showed that 93% of companies engaged in philanthropic activities. Some companies
made small one-time donations, while others undertook large projects with long-term
commitments of cash, company personnel and material.
A corporate citizenship report of 14 Asian countries (Corporate Citizenship in Asia
Pacific, Vacek Lori, undated) showed that corporations were involved in charitable
donations of cash/products) for community programmes, advocacy against HIV/AIDS
and environmental protection.
A study of philanthropic phenomena in Malaysia (A Giving Society? The State of
Philanthropy in Malaysia, Josie M.F and A. Rahim, USM, 2002), shows that it is
rooted in culture, ethnicity, religion and value systems. Strong religious influences are
working on philanthropy. A number of modern philanthropic institutions have also
emerged, and the type of giving is primarily welfarist. Corporations give from
company profits and through public fund-raising events. There is active use of the
mass media for fund raising.
In considering the future of philanthropy in Asia, the question arises, how will “global
philanthropy” affect Asia? Increasing numbers of private banks have started to offer
philanthropic services in direct response to a growing number of clients who want to
put something back into society. This is coming to Asia too, according to the Asian
Wall Street Journal 2002.
The roles of diaspora philanthropy, e-philanthropy and an enabling legal framework
for philanthropy need to be studied for the development of this field in Asia.
Challenges for the non-profit sector include internal and external governance. Some
aspects of these are strengthening the role of the Board, addressing issues of
accountability, financial sustainability, financial management standards, evaluation,
relationships with donors, organisational management and effectiveness. These
measures can lead philanthropy in Asia from the charity to the social investment
model.
In the words of Martin Luther King Jr: “Philanthropy is commendable, but it must not
cause the philanthropist to overlook the circumstances of economic injustice which
make philanthropy necessary.”
6
2. Philanthropy in the 21st Century
Presentation by Dr Michael Liffman, Director, Asia Pacific Centre for Philanthropy
and Social Investment
Philanthropy is relevant in some settings, but social investments give a clearer vision
as to what motivates and drives philanthropy. It is unrealistic to expect companies to
selflessly give because they have a commitment to their shareholders, the business
and so on. However, our premise is that philanthropy is like an investment, and we
would like to turn the perception of giving towards the idea that it is a form of social
investment which offers something to everyone.
It can be demonstrated that corporate involvement in giving can benefit all parties: the
recipients, in terms of improved opportunities, the society in terms of addressing the
needs of specific groups and the grant-makers in terms of improving the constituency
that they are serving, who can also be their customers.
Governments reduced role in social services is influencing the development of
philanthropy. This is seen especially in countries like the US, the UK, Australia, and
in the old USSR. The scale of funding required for social services is still enormous,
but government funds are being reduced, therefore there is a greater expectation of
community involvement in this field.
Three main trends in philanthropic activity are:
1) The government and business sectors are expected to cover major philanthropic
activities, while civil society bridges what government and business do.
2) An increased emphasis on what is expected from the corporate sector –
corporations feel there is a greater role to be played through corporate social
investment.
3) There are new patterns of wealth distribution and inter-generational transfer of
wealth. The world is seeing the largest movement of money from one generation
to the other. This reflects the demographics of the baby boomers who have
accumulated wealth through hard work and rising property values, and these are
being passed onto a new generation.
These trends show that there is a renewed capacity and interest in being philanthropic
and in undertaking social investment. This generation will do their giving in a
different way. Donors of the future want big solutions, and will give more. They are
more concerned with issues, such as the environment, and seek larger integrated
solutions. They are changing notions of giving in the 21st century as they think
globally, want to see the impact of their contributions, are themselves from the
business environment and apply the principles of the business world to philanthropy
as well. They are strategic, clear about targets and demand evaluations and reviews.
Access to information is therefore very important to meet the expectations of these
modern day philanthropists.
7
Discussion:

In an earlier generation, philanthropy was understood as an obligation to do
charitable deeds. However, the presentations show that the scope of philanthropy
is much broader than just charity, and it covers a whole range of sectors and
activities that need to be examined and engaged with for philanthropy to be truly
effective.

Can the emergence of CSR be seen as a failure of market economics and the
inability of governments to meet the basic needs of citizens, and what is the
literature on this?
Philanthropy is often described as a result of the failure of government. There is
an upsurge of philanthropic activity when government fails to provide adequately
for its citizens’ needs. Pundits predict that philanthropy will play a bigger role in
future, but the scientific data on the size of the gap between philanthropy and
government has to be sought.

Three trends in philanthropic activities can be seen: One, 20 years ago the world
saw the birth of social entrepreneurs. These were people on the ground who
invested in the capacity-building of communities. For example, the Ashoka
Foundation in the US (http://www.ashoka.org/home/index.cfm), has created about
4,000 entrepreneurs. Two, with the technology boom, many young people have
become multi-millionaires in their 20s and 30s, and bankrupt by 30. Some of the
new rich realised the limitations of such wealth-creation, and began to ask what
more there is to achieve. This led them to inquire how they could contribute to
society. Three, there has been a growing awareness of the resources of the baby
boomers. This is a huge resource available worldwide, which organisations such
as RSVP (Retirees Social Volunteer Program) have harnessed.

Tracking altruism is very difficult. If it is defined as giving without expecting
returns, then much of corporate giving would not qualify, because these activities
typically are meant to earn goodwill and mindshare. If a corporation gives to
generate brand recall, is that philanthropy or a marketing activity?

In Malaysia, government-linked companies tend to give back a lot to society, as a
result of government encouragement. Government policies influence companies’
patterns of giving. This raises the question of the purpose of giving: Is it from the
goodness of the heart or because of government policy? In the west, the corporate
sector has developed its philanthropic activities, but in this part of world, it is a
recent phenomenon. The telco Maxis has supported the indigenous communities
of Sabah.

One view is that if altruism benefits society, it does not matter whether the
motives are unimpeachable.
8
Session 2: Foundation Philanthropy: New Roads Ahead
By Steve McCoy, CEO, Force of Nature Aid Foundation, Malaysia
Malaysia is lagging in philanthropy management and therefore this regional workshop
is very timely. The Force of Nature Aid Foundation (FoN Foundation) was born from
the Asian tsunami, which created a huge wave of support for tsunami victims.
Prominent people and celebrities wanted to do something, so the Force of Nature
concert was held to raise money. The money raised was used to set up a fund to
disburse aid.
It is too easy to set up another organisation, but competence and professionalism are
important. The FoN Foundation focuses on natural disasters which are beyond the
ability of the local community to cope with. Post-disaster responses can be
categorised into several phases: emergency (rescue, burials), early (water, supplies),
mid-term (roads, hospitals) and long-term recovery phases. Fund raising tends to get
worse as time goes along. FoN has positioned itself close to the two terms: “natural
disasters”, and “long-term aid”.
Emergency aid is the most forthcoming, and even mid-term aid is fairly appealing,
because the results, such as hospitals and roads, are tangible. But long-term aid, which
can include rebuilding the economic capacity of the community, is more difficult. We
can prepare for natural disasters by building early warning systems, stepping up
disaster preparedness, etc. These are not difficult, it just takes resources. However, the
reality is different. Poverty is the most significant factor that makes a community
vulnerable to a hazard. In long-term disaster management, the issues are made more
complicated and challenging by poverty and long-standing bloody conflicts. The
examples are Hurricane Katrina, the Kashmir earthquake, and Aceh and Sri Lanka
after the tsunami. Aceh is working towards peace, while Sri Lanka is heading for
serious war. In such situations, the operational environment for foundations is
challenging in the long-term.
In addition to the challenges posed by natural disasters, the FoN Foundation has set its
own challenges. It wants to be the best organisation dealing in this field, worldwide.
This is the benchmark. The Foundation is supported by private wealth, good
government contacts and support from celebrities. However, its greatest asset is
integrity and trust. Transparency and accountability are very important values in the
organisation.
The foundation recognises the need to behave like a full-profit organisation, in the
sense that they have a clear goal, make profits and increase value for stockholders.
The end goal is the same but the strategy is different. All organisations whether
government, corporations, or civil society all need to have the same drive as
corporations. Non-profit organisations need to increase their value year after year by
being effective and efficient.
9
Three core activities of the foundation are fundraising, grant-making and awareness
raising. Evaluation is important, including internal evaluation. It is the central
organising principle of the foundation. With natural disasters compounded by poverty
and civil conflict, operational costs balloon when transparency, accountability and
evaluation are added on.
Discussion:
 How do you evaluate where the money is going? The Foundation has very
specific goals. It operates on restricted funds – i.e. the tsunami, the earthquake in
Pakistan and Hurricane Katrina funds. This is money that has been entrusted to us
for dedicated purposes only.

The Foundation funds projects, not individuals or organisations. It works on the
ground with a project and tries to get other funds on board. Each partner has
different responsibilities and different reporting structures. If things don’t go right
there are mechanisms to correct this.

Three ways to operate as a foundation are:
- Give money and leave project implementers to do the work;
- Look at the project and work closely to control it;
- Spend money on strong reporting for transparency and accountability.

Transparency about administrative costs is not generally practised in projects
funded through philanthropic giving. Some institutions charge 90 per cent as
administrative costs, which is ridiculous. However, one cannot have a specific
percentage because it varies from one project to another.

While getting funds is one challenge, managing it is another. So external auditing
would help and should be made a legal requirement. However, statutory audits are
only one part of the picture; measuring effectiveness has to be a continuous
process.

Transparency and evaluation need not be expensive. It is possible to have
continuous evaluation with the use of technology. With a mobile phone, a relief
official can record details even where there is no connectivity, and transmit them
later. However, urgent emergency situations are not amenable to auditing and
reporting.

Tele-evangelical NGOs were required to submit to auditing after the scandals
involving a few of them in the US. This was done so that donors can see what
purposes their contributions are used for. This is a role that Philanthropy Malaysia
could play. The Pakistan Philanthropy Centre, for example, does accreditation of
charities.

While transparency is desirable, over-reliance on measurement needs to be
avoided. In the business sector, corporate governance is a by-word, yet there are a
many issues related to credibility. Standards are important, but internal values are
indispensable. External monitoring has its limits.
10

NGOs have been asked to move up to corporate standards, because NGOs have
their Enrons too. So, minimum standards for NGOs too are necessary.

In the FoN Foundation, the organisational culture is that integrity and trust are its
greatest assets. When accountability issues are raised, NGOs tend to become
defensive. Accountability should be the hallmark of any organisation, without the
need for an external auditor. “I want to know in order to do better next year”
should be the maxim. This culture must be embedded in organisations from the
beginning.

NGOs have to be accountable to the public too. They also need to learn how to
fund-raise for long-term work. In Aceh, NGOs are doing capacity building, and
donors support such projects, but the public lacks understanding of this, and needs
education.

Fundraising must be matched with needs for the greatest efficiency. Once that is
in place, it is a matter of disseminating information on the usage of the funds.
Celebrities are useful as a vehicle for conveying messages to the public. For
example, the FoN Foundation does a quarterly video documentary on its project in
Sri Lanka, where the Malaysian celebrity Ida Narina is sent to record the progress
of psychological rehabilitation work. The video is released to the public through
media partners to tell people how their money is being used.

The Bertelsmann Foundation has 25 years of experience in dealing with
accountability. It was once asked by a living donor to show what had been done,
but the foundation struggled to prove the effectiveness of its work. In examining
accountability, the limits of the business analogy are soon apparent. Philanthropy
is unlike selling soft drinks, which are countable. Long-term issues like poverty
are big in relation to the available resources. You cannot use the business analogy
to measure change in the community over 15 years.

Philanthropy should have transformational goals

One point for discussion is that if philanthropy is measurable, why can’t it be
monitored? Evaluation becomes much more tricky if the goals are broad. If they
are focused, they are easier to measure, e.g. if the goal is reducing teenage
pregnancies.

Each NGO needs to sort out for themselves the standards of accountability that are
relevant to them. A lot of work of NGOs is about providing hope and love. In
desperate cases of victimisation and helplessness, providing a sense of hope to
victims is very important. How do you measure this?

An example of NGO philosophy is that the donor benefits more than the recipient.
So the giver bows to the recipient, thanking him for the opportunity to serve.
Instead of focusing on NGOs concerns, we are narrowing our attention to the
donor’s requirements.

All stakeholders should sign an MoU that spells out their different roles and
responsibilities, including the public. Then all these challenges become easier.
11
Session 3: Disasters and Philanthropy: Recent Experiences
1. Aid Giving in the Tsunami Disaster of 2004 and its implications on the Role
of Philanthropy in Disasters
Presentation By Emma Williams, World Vision, Australia
The Tsunami Disaster that occurred in the Indian Ocean on December 26, 2004 has
been described as the most disastrous tragedy in the region in the last 40 years and the
worst since Sumatra in 1883. The magnitude of the destruction caused an outpouring
of assistance from all sectors of society around the world, including multilateral and
government aid, NGO action, corporate support, and private philanthropy. The aid
came quickly, spontaneously, and through ingenious methods: it created its own
momentum, encouraging ever more fundraising and ever more giving.
Tsunami Aftermath – Statistics
The following is an overview of the APPC & CAF Conference on Philanthropy in
Disasters: Tsunami and After held from November 28 -30, 2005 in Phuket, Thailand
covering the issues faced by the countries affected by the tsunami. This presentation is
taken directly from “Aid Giving in the Tsunami Disaster of 2004 and its implications
on the Role of Philanthropy in Disasters: An Internet-Based Review of Literature” by
Eugenio Caccam Jr. and Erna Witoelar. I hope it will assist us in our discussions
around the role of philanthropy in disasters.
The tsunami was caused by the second largest earthquake ever recorded. Six million
people were affected, including 232,101 people dead or missing and 500,000 injured.
About 1.7 million people were internally displaced and 11 countries and 5,000 miles
of coastline were affected. Over two million jobs were lost and 410,000 houses were
destroyed or damaged. Some two million people more are likely to fall into poverty.
The countries worst affected are Indonesia, Sri Lanka, India and Thailand. The major
areas of concern for donors and NGOs are food and livelihood, logistics, water and
sanitation, public health, shelter and security.
The philanthropic response to the tsunami was unprecedented. Aid came in various
forms from practically all countries and peoples of all religions and walks of life.
Even societies normally at the receiving end of aid efforts helped with small financial
contributions or humanitarian missions, foodstuff, medicines, and the like.
To some, this has ushered in a new era in philanthropy, both in terms of the swiftness
and the magnitude of the response. While disasters have often brought philanthropic
responses, the massive response to this tragedy is opening new avenues for a more
focused and strategic philanthropic involvement in disasters and other emergencies in
all their stages: prevention, mitigation, relief, rehabilitation, and long-term
development.
Tsunami aftermath – costs
The Center for Excellence in Disaster Management and Humanitarian Assistance
(COE-DMHA), in its report of April 6, 2005, reported the following costs of the
disaster: Indonesia needs US$4.5 billion, Sri Lanka US$3.5 billion, India US$2
12
billion, Thailand US$235 million and Maldives US$1.3 billion. The total cost is
estimated at US$13.6 billion.
The Center adds: “The world’s largest reinsurer, Munich Re, estimates the total cost
of the disaster will exceed US$13.6 billion.” (COE-DMHA, April 26, 2005)
Economists and political leaders alike agree that, disastrous though it was, the tsunami
was not likely to heavily damage macro-economic plans, as the areas affected are
chiefly the poorest rural areas and not the urban centres or business districts.
It is at the micro level where the effects are most felt – loss of livelihoods and
incomes, homelessness, loss of infrastructure for health and education, trauma, etc.
These are the aspects of life in which the victims need most help. Ironically, while
there is a surfeit of funds, much of the aid cannot be accessed due to geography, with
many of the victims living in areas not easily accessible to the operations of relief
agencies, most of whose operations are in urban centres. Other problems, such as
religious discrimination and political conflict, also hinder access to aid.
Impact on Millennium Development Goals (MDG)
Poverty is the most significant ongoing problem that is created or compounded by this
disaster. Many of the victims were already the very poor or marginalised, even before
the tsunami struck. The United Nations fears that poverty alleviation might backslide
and the MDG might not be met.
Philanthropic responses to the Tsunami
Levels of giving to the Tsunami victims have transformed the terrain of private
philanthropy and disaster relief work. As of September 2005, financial contributions
alone have reached more than US$11 billion, either pledged or committed.
Government and multilateral agencies have pledged around US$9 billion in aid.
Global private donations amounted to almost US$5 billion.
It has been hoped that the enthusiasm to help can be replicated in other areas of
human tragedy, such as the famine and drought in Africa, or the human impact of
conflicts in Congo and Darfur. The magnanimous giving has led some to wonder if
this has affected giving to other charities. But donations to a broad array of US
charities soared in the 1st quarter of 2005, putting to rest fears that donors would
bankroll tsunami relief to other causes.
United Nations Secretary General Kofi Anan said in the first few weeks of the
disaster: “The generosity and support we have seen over the past few weeks have set a
new standard for our global community.” The challenge for philanthropists, NGOs
and governments alike is to ensure this giving is effective.
Role of Philanthropy – International NGOs (INGOs)
AlertNet records that, as of September 2005, US$11 billion has been given or
pledged, and that about half of this has come from the private sector. The following is
a brief discussion on the contributions of the non-government sector.
13
INGOs –
As of September 25, 2005, these groups have raised $1,808,309,504. (AlertNet, COEDMHA). They continue to appeal for more support in rehabilitation efforts as well as
on-the-ground assistance. Their financial aid is complemented by their work in
reconstruction, rehabilitation, provision of basic services, training, and advocacy for
human rights and welfare of children as well as displaced and indigenous peoples.
Those who have the expertise and the capability to do so, monitor the disbursement
and usage of funds while others sit on various disaster management councils and
planning committees.
Corporate –
Besides making cash donations and matching staff contributions, companies have also
provided goods and services in kind. The total amount raised from corporate
foundations and charitable foundations was US$2.5 billion. In many cases they gave
more than the government of their countries. Examples include: Offering warehouse
facilities and vehicles to UN agencies to ease logistical problems, rebuilding shattered
networks, and providing medicines and food aid. Some of these companies are
members of the Disaster Resource Network (www.weforum.org), a network started
by members of the World Economic Forum in 2002 to mobilise the resources of the
international business community in times of either manmade or natural disasters.
Individual/Private Philanthropy –
People gave in various ways but obvious features to note about the response to the
tsunami other than the sheer scale of giving were the spontaneity with which
donations were made, on the one hand, and the ingenuity behind fundraising efforts,
on the other. Both high net-worth and non-high net worth individuals gave. The
amount raised was approximately US$1.2 billion.
Volunteer groups, communities, celebrities and other groups all came forward to raise
funds through concerts, dinners, tsunami aid ringtones and wristbands, T-shirts,
recordings, contests, rodeo games, sailing contests, sports fests, liquor licensing,
allowing their fringe benefits to be taxed, media fundraising, volunteering
partnerships between local and off-shore schools and offices, etc.
Thousands of people have flocked to the Tsunami-hit zones and volunteered to help
wherever they could — from identifying the dead and carrying body bags, to repairing
homes, schools and boats. Medical personnel, some of whom happened to be in
Tsunami-hit countries on business or private trips, raced to the scene to treat injured
survivors.
It is now acknowledged by most experts and lay people that the massive relief to the
tsunami victims came about largely as a result of the influence of the media and the
Internet. All countries affected report in their websites that media played a major role
in rescue, relief, and fundraising. Media provided the means to give the tragedy a
human face, arouse emotions, and encourage concern appropriate for a tragedy of
such magnitude. Their dramatic footage aroused peoples’ concern and pity and
brought about a sense of immediacy and urgency. Blogs and websites told people
where to give, where to look for the missing, or how to access other sites. Indeed the
14
roles they played should serve as lessons on how to tap them for similar disasters and
epidemics.
Television, radio, and newspapers not only reported the event itself, but also made
dramatic appeals for help, acted as advocates, raised funds, and served as referral
agencies to donor organisations. The world’s biggest media networks reported on the
event daily and supplemented their reportage with emotional images that moved
viewers to give.
The Internet, for its part, also proved invaluable, supplying aid, money and
information in the aftermath of the Indian Ocean tsunamis. Media coverage of
bureaucratic barriers can pressure government officials to tackle or circumvent them
and reports by journalists on the ground inform survivors of offered government aid
and compensation for which they are eligible, as well as bureaucratic procedures to
claim the assistance. This is especially vital in rural areas and within the fishing
community, where victims may have little access to information. It also helps the
State, which often has limited resources, to deliver services more effectively
Challenges for donors
1. A particular issue that affected donors was the degree of accountability around
how and where their money was used. A constant problem seen in the literature
reviewed was that there was a general lack of coordination among international
aid bodies and donors. It appears that despite their efforts to coordinate, these
organisations end up acting on their own, pressured probably by their own
mandates and deadlines. Consequently, there is a lack of centrality of information;
data are disseminated randomly and, especially where financial data are
concerned, it is difficult to say whether there is double-counting or not. Worse,
some international organisations have not been willing to share information with
others.
2. There is reluctance among international organisations to work with local ones.
Probably because of the pressure from their supporters or primary stakeholders to
show results as quickly as possible, many international organisations have been
reluctant to work with local organisations, a process they might presume to be too
time consuming. They may also be doubtful of the local organisations’ capability
to respond on a grand scale or to demonstrate accountability. Many local relief
organisations have been complaining for some time about work becoming
inefficient because expatriates who know less of the situation, dynamics, and
culture, as well as the real and felt needs of those affected, perform work that
could be done by local groups.
3. The new standard of compensation and training that the international NGOs give
to their staff either draws skills from the local organisations or leaves those
remaining feeling demoralised.
15
4. Locals complain that aid, particularly financial, has not moved as fast as it should
have due to stringent bureaucratic procedures. In fact, some residents have said
they have not received a single cent, prompting them to suspect that the money is
in the vault of foreign governments or in an administrative quagmire within the
aid agencies. Some of the reasons cited are the unprecedented funds (“glut of
money”), poor coordination (the article says, “the vast amount of funding meant
aid agencies could afford to hire their own helicopters and boats and make
individual assessments and distribution arrangements rather than co-ordinate with
one another and through the United Nations.”), failing to consult survivors, and
aid mismatch (e.g., “surplus of doctors and lack of midwives,” or heavy sweaters
sent to India where this is useless in the tropical heat).
Challenges for beneficiaries
1. Distributing aid to the right victims. Many reports show that aid is not going to
the right victims. Some victims are considered geographically unreachable and
most donors and NGOs work in the urban centres.
2. Timeliness and appropriateness of aid. Many of the victims have complained that
aid has come too late or, worse, that they have not yet received help either from
their governments or the aid agencies. Others complain that the assistance, for
example, the types of housing, clothing, medicines or other material relief given to
them, are not appropriate.
3. This sentiment is shared by some advocacy groups, which also blame the global
capitalist system for the manner in which funds are raised or distributed.
4. Human rights and gender. Advocacy groups insist that aid should not be
patronising and should be seen in the context of human rights as enshrined in the
UN Declaration of Human Rights and other internationally agreed documents.
These include the rights of children, women, disabled persons, indigenous/
displaced peoples, migrants and migrant workers, refugees, etc. Of course these
include the basic human rights to health and sanitation, education, shelter,
livelihood and participation as expounded in the Human Development Index and
elsewhere. These issues have been raised particularly because of cases of
discrimination and selectivity in the giving of aid in some of the countries.
5. Lack of capacity and managerial capabilities of locals in both government and
non-government organisations. Donor organisations have noted that there is a
dearth of conduits that have the necessary capabilities to deliver aid, in terms of
either service delivery, governance structures, or accountability.
6. Corruption and lack of accountability among local governments.
Donor organisations, advocacy groups and citizens’ organisations have also
complained about rampant corruption among some governments, national or local.
These are documented in several articles available on the Internet. However,
recent reports suggest that this is being attended to via independent auditing by
16
multinational auditors. Other problems have been identified such as the
unwillingness of government to work with partners, failure to put survivors at the
centre of the planning and execution of reconstruction and an inability to adopt an
approach consistent with human rights documents.
Future role
While philanthropy contributed much to alleviating the problems created by the
tsunami, it might be too early to assume that philanthropy has reached new
heights. “We haven’t even got half of the very modest appeals we’ve asked for
Burundi, for Chad. Bump it up.” Certainly, more conclusive studies have to be
carried out on why the tsunami generated so much aid while other long-lingering
disasters have not. But the experience itself, the issues being raised, and societies’
needs now and in the future, should make philanthropists rethink or rechart their
contribution and role in disasters and development. The following areas of
concern need attention:









Ensuring that aid goes to the right parties (effectiveness, efficiency,
accountability)
Donor coordination and partnership
Working with international donor organisations
Centralising information
Making philanthropic contributions more focused and targeted
Reconstruction and preventing future disasters
Long-term approaches to philanthropy
Developing local capabilities
Promoting basic/ human rights
In summary, philanthropy does, can, and must make a contribution to disasters and
emergencies. Considering the nature and purpose of philanthropy, a particular area on
which it could make an impact is in working with the other sectors — both
government and the broad civil society — to set standards for giving — from the
“how much” to “how it should be distributed and used.” The articles reviewed
strongly suggest this is what donors want to know, and what survivors cry for.
17
2. The Sri Lankan Experience
Presentation by M.A. Harold, President, Transparency International, Sri Lanka
The tsunami was followed by another man-made disaster – corruption, but the public
has no information about the actual situation. Corruption thrived immediately after the
pouring in of aid from governments, private organisations, businesses and individuals.
Procedures for accountability have to be relaxed when immediate aid must be given in
a disaster.
Trust is the most important thing during this period, particularly because normal
procedures would hamper the delivery of emergency aid. After the initial relief phase,
procedures need to be put in place, although they may need to be modified to suit the
situation. Special committees are needed to help ensure the proper management of
funds and projects.
Nine months after the tsunami, the lessons learnt are that there was no proper
planning of the rebuilding efforts and the needs of the victims were dealt with
unprofessionally. Professional institutions such as those of accountants and engineers
were not consulted. Donations were transferred without undue restrictions, with the
government claiming that it had the mechanisms for accountability. While the World
Bank included a condition that accountability for the transfer of funds be built in, the
government claimed that it was already in place. Many donors give funds without
requiring accountability.
There are weaknesses in depending on the Auditor-General’s report for
accountability, because it comes 10 months after the disaster. This is obviously not
effective. A special parliamentary committee is required to review the management of
donations and implementation of projects continuously, perhaps once or twice a
month.
The reluctance of the public to openly criticise the mismanagement of tsunami funds
is due to the fear that it may stop the flow of funds. Therefore regional committees
were established to hear public complaints. Donors did not follow up on how the
funds were being utilised and whether the work done was according to the donors’
expectations. This led the government to accuse organisations of not doing the work
that was expected of them. This situation arose because no proper damage and needs
assessments were done. For example, all villagers were given boats, so they are all
boat owners, but there are no fishermen to man the boats. A committee should have
been set up in each village to manage a number of boats.
There was a restriction on building within 100 meters from the high tide mark, but the
government relaxed this ruling within one week, causing friction between the central
government and local authorities, which were from different political parties. Such
actions raise issues of the government’s credibility. This kind of conflict could have
been avoided if there was dialogue between the donors, implementing agents and
government. The local community should be empowered and allowed to participate in
18
the planning, implementation and accountability processes. Accountability includes
explaining the true situation to the people. Often, only the government is asked to be
accountable and others are not. However, most rehabilitation activities following the
tsunami are being undertaken by civil society.
The concept of government accountability is two-prong, consisting of horizontal and
vertical accountability. Horizontal accountability involves public institutions of
accountability, such as the legislature, judiciary, commissions, etc. Vertical
accountability involves civil institutions of accountability, such as the electorate,
organised civil society, labour unions and other interest groups.
Integrity is another important area that needs attention in order to give coherence to
society in a post-disaster situation. National integrity should include reference points
such as sustainable development, rule of law and quality of life indicators. These
require greater public awareness, and the nurturing of social values.
Discussion:

In looking for a model country to emulate in disaster management, in terms of the
areas of expertise required, and a reference nation for support services, it is
difficult to identify one because the tsunami was unprecedented. But now, with
the experience from this disaster, those involved can formulate procedures for the
management of aid and rehabilitation programmes.

The government is ultimately responsible for all funds raised, even by NGOs. The
government claims there is a statutory mechanism for accountability while it
accuses NGOs of having no such accountability so they are free to do as they like.
For example in Sri Lanka, government leaders have accused NGOs of lacking
accountability and being corrupt.

Transparency International, Sri Lanka advocates that all organisations publish
their accounts on their website, but none has done so. Now is the time to push for
this, because with increased accountability, no government agency can remain
opaque.

There is a need for a local administrator to be in charge of rehabilitation, because
such a coordinator can facilitate the work of NGOs for more effective results. For
example, India has the panchayat (village council) system.

Beneficiaries should be provided information so that they are aware of what to
expect from donor projects. For example, if they are given the specifications for
the houses that will be built, including details such as whether the roof will be of
asbestos, etc, the recipient and NGOs can verify that the aid provided was as
specified. This will prevent contractors from cheating the recipients.

In UN projects, assessments showed financial performance at 98 per cent but there
is no assessment of the physical performance. Therefore in project reviews, the
physical performance must be covered.

When contracts are given to the politically connected, this displaces local
businesses that existed before the disaster. A parallel economy develops.
19
Session 4 : Diaspora and International Philanthropy
Presentation by Dirk Eilinghoff, Bertelsmann Foundation, Germany
The study of philanthropy in Europe has not been as extensive as in the United States,
where the project by the Kennedy School of Government is seen as a landmark study.
The Bertelsmann Foundation is one example of foundation philanthropy in Europe. A
study done at the end of the 1990s noted that there were 100,000 foundations in
Europe, although some just give to family members. Another half a million limited
companies and half a million charitable associations engage in philanthropic work.
Eighty per cent of foundations do not have professional staff. As there is very little
research done on philanthropy in Europe and there is no university research institute
on this subject, there are few benchmarks, and standards for reference for this activity.
Bertelsmann Foundation has some features in common with foundations in Europe.
Some foundations only make grants, but about two-thirds have an operating division,
which spends money generating their own projects.
Most foundations do not work internationally, and are restricted to local causes.
Bertelsmann Foundation works with a fairly limited number of institutions, mostly
European. In Europe, most foundations have a link to a parent company.
Bertelsmann Foundation has 55% non-voting stock in Bertelsmann AG, the family
owns 20%, and outside investors, 25%. The Foundation is not allowed to run the
company.
A study done on the effectiveness of philanthropic foundations in Europe drew on 55
experts in 25 countries and resulted in a publication for which people in Bertelsmann
Foundation’s network wrote the articles. The study made the observation that after 45
years of philanthropic work by the Foundation, there were no final answers to the
challenges that were being addressed.
It should be noted that the corporate sector is more homogenous than the foundation
sector. It has been said that if you know one foundation, you know one foundation. In
view of its global business, the foundation wanted to have an international network,
drawing on its pool of contacts to find additional experts in different regions,
including Michael Liffman in Australia, and others in Brazil, etc.
Discussion:
 Diaspora philanthropy became a topic of discussion just five years ago. The
discussion is still on-going, as not even the term is agreed upon. A more definitive
term is being sought. The common understanding is that it refers to a group
originating from one country that is supporting people in their home country, as
stated in the Kennedy School of Government study.
20

A paper on diaspora philanthropy provides a definition of diaspora as people who
still have contact with communities from which they have originated. Examples
include the Mexican community in the US, sending remittances to Mexico, or
Chinese in the US giving to causes in China. At the root of this activity is a sense
of attachment to the country of their origin.

Diaspora remittances amounted to US$80 billion in 2002, according to the World
Bank, reflecting the importance of this movement. This is a substantial amount,
and in some countries, it is comparable to FDI and private lending. This provides
a stable fiscal environment for some receiving countries.

The significance of diaspora philanthropy for NGOs in receiving countries has not
been researched well. There are legal and taxation issues, such as double taxation.
But even in the EU the rules are not clear. Sometimes, local governments can
suddenly impose taxes on donations. It can sometimes become a political issue,
e.g. if you support human rights in a country where the government does not
support these rights. The other issue is that it is not clear whether money sent
home to families is part of diaspora philanthropy.

Preliminary research by Universiti Sains Malaysia on the philanthropy
phenomenon showed that during the colonial period, Chinese and Indians raised
money for causes in their countries of origin. Migrant workers in Malaysia and
elsewhere save up for investing in businesses in their home countries.

In Indonesia it is common to raise money from the community for religious
purposes. But it is more difficult to collect funds for issues like human rights,
consumer rights, etc. It is the same in Germany and other countries. It is not easy
to raise money for such things as human rights, but easier to save an opera house
or community facilities.

On the other hand, foundations like NOVIB in the Netherlands, etc support human
rights in the developing world, using taxpayers’ money. The public do not object
to this, in fact, support such causes. Some 8 to 9 percent of the tax goes to
churches, which they contribute to causes.
21
Dinner Presentation: Whose Earth is This Anyway?
By Sri Ganesh Gopal, Manager, Corporate Affairs Policy and Planning, PETRONAS,
Malaysia
The dinner presentation was focused on the philanthropic activities of Malaysia’s
national oil company, PETRONAS. Established 31 years ago, this company has a
presence in around 30 countries in the world. PETRONAS, which is also a Fortune
500 company, believes that natural resources of oil and gas are entrusted to it for the
benefit of the people. It believes its profits must be shared with the people. The
philanthropic activities have a social objective and go beyond charity.
The company invests in building the human and social capital in the countries where
its businesses are located. Its investments in education, economic and social
opportunities are for the long-term. Further as a responsible corporate citizen,
PETRONAS adopts healthy, safe and environmentally benign management practices.
PETRONAS also contributes to culture and the arts, such as support for the Malaysian
Philharmonic Orchestra. “Prosper thy neighbour” is the PETRONAS principles for
ventures in host countries. This means that it contributes to socio-economic
development in countries like Vietnam, Sudan and South Africa.
The presentation was ended with a poem entitled Whose Earth is This?
Whose earth is this anyway?
These rivers of sand so eager to escape my fingers,
When they fall and form the land…
Can I really call this sea of soil mine?
Can the ground that has seen a million years,
belong to someone who has barely seen seventy?
If I call this earth mine, why is that when I go,
I will not take it with me, but instead, it will take me?
Whose earth is this anyway? Who is the ultimate master?
O Lord of the universe, Your earth will never be mine,
But give me leave to take from its whispering rivers, its silent
oceans,
its temperamental sky, its intemperate people, its impalpable
energy…
And give me the wisdom not just to take but also to give
With integrity, humility and compassion
my industry and the fruits of its labour
The energy I receive
With energy I must return.
May others aspire to do the same
May others ask the question
Which has long since answered itself…
Whose earth is this anyway?
Source: Whose earth is this? The essence of PETRONAS (2001)
22
Session 1 : Corporate Philanthropy and Social Responsibility
By Yazdi Jehangir Bankwala, Director, Arpitha Associates
A key objective of this presentation is to show how corporate language has begun to
reflect the case for a values-based business approach to ensure well-rounded and
sustainable growth.
Examples of current trends in ethical business conduct, reflected in the mass media,
are:
 A dispute between Indonesia and Singapore about sand mining arising out of the
official condoning of unsanctioned extraction. (Fortune magazine, Sept 16, 2002)
 Public-listed company Chartered Semiconductor allegedly misleading investors
that it did not need to raise funds shortly before announcing a rights issue for that
very purpose. This caused small investors to lose money.
 Ethical Corporation magazine, published to provide information about corporate
social responsibility practices.
 A Malaysian Business magazine cover story focusing on unresolved issues in
corporate governance.
 A global survey of 60 companies showing that corporations see graft as a greater
risk than terrorism, according to the Economist Intelligence Unit.
 Three officials of a pilgrimage fund run by the Malaysian government being
charged with cheating the board of over Ringgit Malaysia (RM) 400 million
(US$107 million) in 2000.
 Transparency International Malaysia awarding National Integrity Medals to three
long-departed public figures as a message to Malaysians on the high standards of
ethical behaviour demonstrated by these recipients (implying the lack of
candidates currently in the public arena).
 Global indexes for fund managers using investment criteria like economic
freedom, global competitiveness, legal framework, business environment,
standard of corporate governance, justice system and level of corruption.
 A report on corporate governance that rated Malaysian companies saying that in
five years from 1997 to 2001, the public listed companies it surveyed fell by 40%
in its assessment
 Management trends in progressive organisations including: corporate governance,
corporate social responsibility, balanced score card, social accountability 8000,
triple bottom line (profit-people-planet), ethics (ethical investing, SRI), culture,
values, stakeholders, in the European Union (finance - limited liability)
 A study by Social Investment Forum in 1997 showing that over US$1.2 trillion is
invested using some social criteria and 9% of professionally managed funds were
assets in socially responsible portfolios.
 Financial Market Trends: From its inception in 1990 till end 1998, the DOMINI
400 Social Index has outpaced the S&P 500 with a total return of 442% compared
with 336% with S&P index. (Source: Investing with your Values, Feigeub B & B)
 The emergence of new methods of measuring employee fulfillment. Employee
fulfillment occurs when the culture of an organisation supports individuals’
physical, emotional, mental and spiritual needs.
23




Profiles of 100 Best Companies To Work For, which show that outstanding
performance is closely linked to high morale and employee fulfillment. The
Average Annual Shareholder Returns over 10 years show that the 100 Best earned
23% for shareholders, while The Russell 3000 showed 14%. Source: Fortune
Magazine, January 1998
The evolution of Business Paradigms is postulated as: Agrarian Age, Industrial
Age (Quality and Skilled Labor), Information Age (Intellectual Capital), and
Consciousness Age (Cultural Capital).
“Spirituality and Ethics in Management”, published 2004, indicates growing focus
on this area of study.
Survival in the 21st Century: Who you are and What you stand for are becoming
just as important as What you sell.
The two routes to Corporate Governance:
Practical Approach
Reflective Approach
Basis
Economic Rationality
Focus
Goals
External - Corporate
Image
Shareholder Value
Who are we ... what we
stand for
Internal - what we want to be
Instruments
Stakeholders
Profits (a means to serve)
Attitude
Defensive/reactive
Proactive (as serving)
Promoted
by
Public relations
experts, management
consultants
NGOs, Media,
employees
Public relations,
advertising, surveys
Visionary Leaders & spiritual
seekers
Pressure
from
Tools
Stakeholder Value
The voice within
Dialogue, social & ethical
accounting, reflection
practices
Source: Prof Dr Peter Pruzan, Copenhagen Business School
According to Prof Dr Peter Pruzan, the Reflective approach need not be in
opposition to the Practical approach. The Reflective approach is supportive of the
Practical but not vise versa. The question that arises is what is the current state of
ethical business practices?
Another opinion that sheds light on this is given by Peter Drucker: “Whether a
business should run for short term results or with a focus on the long term is a
question of values. This is … not a disagreement about economics. It is
fundamentally a value conflict regarding the function of a business and the
responsibility of management.” (Peter Drucker, Harvard Business Review, MarchApril 1999)
24
In “Built to Last”, by J Collins & I Porras, a survey on practices of Visionary
Companies found that: “Visionary companies articulated a core ideology defined
as: Consistency of Core Values and Purpose”. This validates the ethical approach
to business.
More corroboration is found in a survey of corporate headhunters:
The Characteristics Organizations look for in their Managers:
1. Strategic Vision
2. Excellent people skills
3. Knowledge of Market needs
4. Innovativeness/openness to new ideas
5. Good understanding of technology
6. International Knowledge
7. Honesty and Integrity
8. Management Experience
9. Functional Knowledge of Business
10. Deal making ability
11. Communication Skills
12. Financial knowledge
13. Management education
14. Other
(60% of respondents – the highest score – said “honesty and integrity” were
critical in selecting people for managerial positions, followed by 50% each for
“excellent people skills” and “communications skills”.)
Source: Economist Intelligence Unit, March 2005
In the Malaysian context, integrity has become a national issue that has been
championed by the new Prime Minister Abdullah Ahmad Badawi. The
government’s National Integrity Plan sets a 5-year target 2004-2008. The targets
include: enhancing corporate management and business ethics, conducting
research and education and training pertaining to integrity
Do business ethics pay? The following examples provide some answers:
• In a sample of FTSE 350 firms, “ethical” companies outperformed those
which made no such claims on three out of four financial measures (market
value added [MVA], economic value added [EVA] and price/earnings ratio).
•
Between 1997 and 2001, “there is strong indicative evidence that large UK
companies with codes of business ethics/conduct produced an above-average
performance when measured against a similar group without codes”.
•
A report by the UK’s Institute of Business Ethics (IBE) claims to have added
substantially to the evidence that virtue pays.
A historical example from the East is illuminating. The founder of the TATA
Group of Companies Jamsetji Tata said in “The Creation of Wealth”, 1895: “We
do not claim to be more unselfish, more generous or more philanthropic than other
people. But we think we started on sound and straightforward business principles,
considering the interests of the shareholders our own, and the health and welfare
of the employees the sure foundation of our prosperity.”
25
Some TATA firsts in welfare:
Enforced by Law
8-hour working day
Introduced by
TATA
1912
Free medical aid
1915
1948
Committee for
complaints service
Provident fund
1919
1947
1920
1952
Leave with pay
1920
1948
Technical training
institute
Maternity benefit
1921
1961
1928
1946
Profit sharing
bonus
Retiring gratuity
1934
1965
1937
1972
1948
Comments from presenters at the Managing Ethics in Organizations course
provided by the Ethics Officers Association and the Center for Business Ethics,
June 2001 suggests that the most successful programmes are those:
• Based on values rather than on compliance with a set of rules.
• In order to be effective, these values must be an integral part of how the
company operates. Enron reportedly had good statements of values but it is
questionable whether they really lived the values they expressed.
• Adhering to an organisation’s values sets the tone for daily operations and
establishes the company's culture. By acting consistently within its values, a
business demonstrates its concern with all the relationships it develops and
maintains.
• A successful business conveys these values in its activities and reaps the
reward for doing the right thing.
(See Ethics Officers Association: www.eoa.org)
Some noteworthy initiatives are:
a) Bridging Corporate and Social Agendas
b) “A Giving Society? The State of Philanthropy in Malaysia” by Josie
Fernandez and Abdul Rahim Ibrahim
c) Our Malaysia : www.valuesinitiative.org
Some reflections to guide CSR are:
 Assessing the importance of connecting with the Corporate World …
Where am I?
 How convinced am I about the need for Social Investment?
 Is Philanthropy a Value that I cherish?
26
Session 2: Arguments For and Against Corporate Social Investment
Presentation by Dr Michael Liffman
Charity is a gift made with no expectation beyond the immediate alleviation of need.
Philanthropy implies a more thoughtful or strategic approach. The donor may want to
correct the causes of need, rather than just relieve problems. Strategic philanthropy
implies an even more considered approach. Social investment introduces the notion
that the donor gets a reward, as well as the recipient.
According to Stan Mather, Australian Shareholders Association, philanthropy is not
the business of corporations. Investment is normally made for the purpose of
generating gain or wealth. Directors of companies are appointed by shareholders to
look after the interests of the shareholders. The shareholders may well want to be
philanthropic but that’s their choice and it should come out of the income that has
been delivered to them.
However, Leon Davis, chairman of Westpac Bank, holds a different view.
Communities can and will punish organisations that fail to meet modern expectations,
he opines. But the biggest and most enduring benefit of all lies in their heightened
appeal to potential employees. The best people – the people that companies want to
attract and keep – are the people who like to feel proud about going to work every
day. They come to work to earn a living – but they also want to feel good about it.
Those corporations that fail to adapt will fail to succeed. Corporations that embrace
this new era will be rewarded by employees, customers and investors.
This view finds support in Peter Singer, who says: “We need to challenge the idea that
you can live a morally decent life just by looking after your own family and not
actually causing harm to others. We need to develop a sense that if we have
abundance, we are actually doing wrong if we don’t share it.”
Several centuries ago, Maimonides discusses the various levels of giving:
1.
2.
3.
4.
5.
6.
7.
8.
To give sadly. (To give for purely self-interested commercial reasons.)
To give less than is fitting, but with good humour. (To make a token donation.)
To give only when asked. (To respond to individual fundraising approaches.)
To give before being asked. (To have a programme of strategic philanthropy or
CSI.)
To give so the donor does not know who the recipient is. (To give nonjudgementally.)
To give so the recipient does not know who the donor is. (To give without seeking
publicity or other external benefit. [But internal stakeholders might know and
react]).
To give so that neither the donor nor the recipient knows the identity of the other.
(To give without any conditions or expectations.)
To give a loan or a job rather than a gift, so preserving the recipient’s self-respect
and encouraging self-help. (To give as part of a programme of strategic social
investment, which has been developed in consultation with stakeholders, is
consistent with other aspects of the corporation’s conduct, and is informed by a
wider vision of sustainable social improvement.)
27
Session 3 : Philanthropy as a Catalyst in Appropriate Technology
Adoption
By Joseph Antony, Trustee, Bitsunami Foundation, India
In the present global economy, the key drivers of change can be seen as the
development of the market system, the advent of technology and the invention of the
corporate limited company. Today, we are seeing the effects of technology being
driven by corporations, some of which is good and some bad. Already, the people are
responding to the negative effects of technology as driven by corporations.
Observing that a belt of casuarinas trees protected a coastal hamlet where other
villages were wiped out by the tsunami, alumni of the Birla Institute of Technology
and Science, embarked on a project to plant these trees as protection against future
disasters. The local area administrator who is an alumni of the institute was
instrumental in endorsing the project, giving it the support necessary for
implementation. Without his clearance, the proposal would have been trapped in a
jurisdictional morass and would in all probability not have seen the light of day.
The foundation was started as a reaction to the tsunami of Dec 26, 2004 by the alumni
of Birla Institute of Technology and Science, Pilani (BITS). It was formed almost
fully over the internet with participants from all over the world.
A ‘quick’ medium term plan was drawn up after BITS alumni realised that they could
raise fairly substantial funding from within India and outside India through their
alumni network. It was decided not to focus on immediate relief but on longer term
rehabilitation. Furthermore, the effort had the active backing of BITS, Pilani
University.
The plan covered the Pushpavanam and Naluvedapathy villages, and involved
agricultural land rehabilitation, provision of boats and nets, planting of casuarina trees
in the coastal belt, dairy farming, community infrastructure, housing, scholarships and
endowments and village knowledge centres. The total cost of these projects was
Rs42.6 million, towards which Rs7 million had been spent and a further Rs23.9
million pledged. This left a shortfall of Rs11.6 million.
Agricultural land reclamation had to be done because the tsunami had washed up
debris up to 1km inshore, and where there is a river up to 2-4km inland. Nothing
could be cultivated as the land had become saline. The government said it would take
up to five years to rehabilitate the land. However, BITS alumni did a soil analysis and
found that the salinity had penetrated only 6 inches deep. This was removed in one
week by tractor.
Boats that were repaired hastily by other quarters did not inspire confidence in the
fishermen who saw that they would spring leaks after a short while in the water. So
bitsunami made custom-built ones according to the villagers’ specifications.
Twelve schools were upgraded or constructed in the two villages. It was found that
after age 14, there was a 100% dropout rate in these schools because of the lack of
toilet facilities. The Trust has constructed toilet blocks for girl students in each of the
28
12 schools and is in the process of constructing toilet blocks for boy students in all the
schools. This is the beginning of a major sanitation initiative for the whole village.
The Trust is constructing 37 houses of 300 square feet each in Naluvedapathy village
where many villagers living along the coast had lost their houses to the fury of the
tsunami. A disaster relief community centre is also being built.
At another coastal belt, the villagers wanted a coastal buffer, so 254,462 trees were
planted in 24 hours. (The previous Guinness record of 80,244 trees in 24 hours was
achieved in 2003, incidentally, also in Tamil Nadu.)
Village knowledge centres are being built as an initiative of the M.S. Swaminathan
Trust. The centre has a Malaysian connection, namely that one person called the
centre to warn of the tsunami. The message was relayed by megaphone to villagers
and no lives lost to the tsunami in this village. Village Knowledge Centres are on the
anvil for both the villages that will disseminate valuable information to the villagers.
Also in the works are Dairy Farm Units, designed to be an alternative means of
livelihood for the agriculture-dependent villagers.
In terms of financial performance, the Trust has kept administrative costs 3%, as all
volunteers pay their own expenses. Accountability is ensured by directly monitoring
of projects by the Steering Committee. Donors can actively monitor the projects on an
on-going basis and can have varying levels of involvement:





Direct and active involvement (e.g. WeP has hands-on involvement at the village
level within the Bitsunami framework).
Partial involvement (e.g. Wipro)
Contributions only (e.g. HP, Allsec Technologies, iSOFT R&D, Redhat India and
Sugal & Damani)
All major financial decisions are directly cleared with the donors.
Total transparency in accounts. All accounts are also put up on the net
(www.bitsunami.in)
In educational efforts, two projects have been started. In Practice School I, students of
BITS Pilani are involved in the village as part of their academic curricula. In Practice
school 2, GIS-based resource mapping is used to identify water surplus areas that are
being developed as fish hatcheries for bigger suppliers. A paying sanitation and water
resource plan and information structures for village knowledge centres are also in the
pipeline.
Village knowledge structures with several key components are being developed.
These include a Village Knowledge Centre, vernacular website for the village, the
development of development benchmarks for the village and the implementation of
monitoring mechanisms
Future plans include:



An integrated, holistic and sustainable development of the two villages over a
medium term horizon.
Village development plans that can boost and transform every sector of the village
economy.
Development of village economy intervention models from direct experience –
that are replicable across rural India and elsewhere.
29
The use of technology to enhance Philanthropy has several advantages. Technology
can help in the establishment of clear benchmarks, such as in facilitating measurable
progress. Immediate and direct monitoring can be undertaken. For example, with a
mobile phone, a volunteer can take an image, enter relevant data, and send the report
to the coordinating centre when connectivity is possible. The technology is nonintrusive and easy to use. Furthermore, philanthropy directed at appropriate
technology can have a transformational impact. Technology also multiplies benefits
through its network effects. There are many technologies that can be harnessed for
philanthropic uses.
The use of technology in disaster management can involve such avenues as call
centres, web-based initiatives, mobile phones and community radio. Even worldwide
networking is made easy and extremely effective as was seen when the actor Vivek
Oberoi did a show and raised Rs14 million for tsunami victims in a week.
(Contributions were made via short-message-service(SMS) costing each contributor
Rs10.)
Technology can bring about rural transformation through applications like
telemedicine, ‘upgrade and recycle’ programmes (such as the Goonj model) where
older equipment is refurbished for target groups that are lower down the technology
ladder. GIS-based mapping systems for resource use and GIS-based systems for
fishermen can enhance incomes and help communities bounce back from disasters
more quickly. Rural automated teller machines (ATMs) and village triple play
systems (tv, phone, data) in one line, are other benefits.
Discussion:

Technology should benefit the poor, but it is necessary to ensure that the scientist/
inventor is rewarded. There are pros and cons when ownership shifts from the
inventor to the private sector, e.g. when a bank buys the technology for ATMs, it
can use its resources to spread the benefits quickly, but access to the technology is
restricted.

Reconstruction should benefit rebuilt communities so that villagers can continue
living there. Reconstruction should not make people leave. An interesting
development is that jobs that had shifted from Chicago to Chennai are now
moving to villages as a result of the reconstruction work. Relief groups are now
trying to upscale.

It is important to get the consensus of villagers on their needs. However, there can
be aberrations, including non-appropriate requests for such things as electrical
goods which are a luxury, and dowry for weddings, which is illegal and
oppressive.

It is good to allow small NGOs to pioneer reconstruction activities to avoid the
burdensome bureaucracy of official aid. The government’s role is to replicate the
projects through smart partnerships.
30

Donors can play the role of technology infusers. An example is the L-CDI’s job
training schools started by Raj Ridvan Singh in Cambodia. The resources are
indigenous, the schools have trained a total of 26,000 students, and the idea is now
being taken to East Timor.

Philanthropy has a role in the start-up phase of a project. The project design must
factor in capacity building, so that it can stand on its own. So the project must
yield measurable results, such as the number of people trained, number of students
educated, so that the project would be more attractive to funders.

A question arises whether the philanthropic support from the developed world will
be phased out. There is a growing inequality between those with surpluses
(corporations) and those without. A crisis is developing, and philanthropy is the
effort to bridge the gap. But is the gap closing? There is no indication that it is.

Malaysian companies, such as the telco Maxis and waste management firm Alam
Flora are moving from community relations to CSR. So Alam Flora is in transition
from its core programme, viz. recycling, to environmental education, with the
support of the housing ministry. It has produced a book for children on the
environment, because there is no existing publication. CSR is a quantum leap for
the company. Maxis believes in capacity building for children through its
computer lab project in schools.

Endowment funds have been operating in Indonesia for some 35 years. They
primarily give towards children’s programmes. Such funds give mostly towards
“safe” causes which do not question the status quo. Silent donations have been
provided to support political prisoners and other human rights causes.

There is a need to examine the use of technology in the development of CSR, such
as measuring companies CSR commitments through a share index on CSR. The
magazine Malaysian Business gave corporate governance awards for five years,
and in 2006, it will be giving for the first time a CSR award. Bursa Malaysia, the
Kuala Lumpur bourse, had given out CSR awards in the past, but withdrew the
awards when it became a public-listed company.
Session 4 : Professionalising Grantmaking for the 21st Century
Moderated by Dr Michael Liffman
31
Towards professionalising grant-making, postgraduate courses in the subject are
offered at the Asia-Pacific Centre for Philanthropy and Social Investment, Swinburne
University of Technology, Melbourne, Australia. The centre is pioneering the
education of the Australian community in these areas, and now offers courses from
Graduate Certificate to PhD level.
The programmes offered are directed at a diverse range of individuals and employers,
including personnel in public affairs, marketing, sponsorship and investment in major
corporations, solicitors and legal advisers, fund managers and trustees, commercial
entrepreneurs and investors, foundation personnel, accountants, community workers,
social planners and public servants, as well as students planning careers in these fields
and individuals who are in a position to make personal benefactions to the
community.
The topics they study include the history, purpose and achievements of philanthropic
giving, in Australia and beyond, and some of the key forces driving the future of
philanthropy. They consider the benefits of social investment for their business or
their family, their workforce, the community, and for themselves.
Other subjects deal with the various mechanisms through which an intelligently
managed giving programme can be run, and the organisational and personal dynamics
which it will encounter, whether in a personal, family or corporate setting. Questions
of ethics are discussed. Technical matters, including tax - where change is currently
occurring - are covered. Participants are introduced to success stories featuring
rewarding instances of personal philanthropy, and win/win examples of partnerships
between community or cultural not-for-profits and businesses. They learn of the
vision, achievements and hopes of some of those community leaders who are taking
Australia into the future.
Programmes offered are:
• Graduate Certificate of Social Science (Philanthropy and Social Investment)
• Graduate Diploma of Social Science (Philanthropy and Social Investment)
• Master of Social Science (Philanthropy and Social Investment)
The programmes develop management and administrative knowledge, and the
conceptual and analytical skills required for effective and strategic grant-making. The
knowledge bases involved are diverse, ranging from public policy and management
through to values and ethics, and family dynamics.
Further details are available at:
http://www.sisr.net/philanthropy/teaching.htm
Comments:
Future efforts should concentrate on building capacity and ethical standards, by
enhancing transparency and accountability. Moral education is one way to raise the
profile of ethics in grant-making.
32
The guiding principles of philanthropy should include sustainable development so that
resources that are used to produce harmonious growth and efforts do not aggravate
socio-economic imbalances and degradation of natural resources.
A regional framework for philanthropic work should be developed as many problems
have international dimensions.
Philanthropy Malaysia should develop a register of philanthropic organisations to
serve as a database of NGOs operating in this field. It should produce a directory of
grant-makers at the national level.
33
This paper prepared for this workshop was circulated as the author was unable to
attend.
The Opportunities And Challenges For Giving Of Private Wealth For
Philanthropic Purposes In India And Its South Asian Neighborhood: An
Overview
Dr. Sandeep Deshmukh,
Sampradaan Indian Centre for Philanthropy, New Delhi, India.
Email: icp@ndb.vsnl.net.in
A paper prepared for the workshop in Philanthropy in the New Millennium in
Asia-Pacific Region (7th – 8th December 2005, Kuala Lampur)
Dear colleagues in the august audience, first let me take the opportunity to thank the
Asia – Pacific Centre for Philanthropy and Social Investment, Swinburne University,
the Asia-Pacific Philanthropy Consortium and fellow sponsors of this workshop to
create an opportunity for me to present my views and exchange with the learned
persons participating in this workshop. Indeed an opportunity to me is certainly an
opportunity to my country and perhaps to the entire South Asian region to relate our
experiences and thoughts on the subject ‘private wealth and giving’ to the wider AsiaPacific community of nations. Our colleagues from the Pakistan Centre for
Philanthropy have expressed inability to attend this event as they are fully engaged in
the gigantic task of relief and rehabilitation along with the government of Pakistan,
the no-profit sector in that country and the international community.
I. The complex form of Philanthropy in South Asia
I would propose to look at the opportunities and challenges of sharing private wealth
for public benefit in a cross-sectional ‘historical-functional’ perspective. When I am
saying ‘historical’, it essentially means the historical conditions of the past and
present that have created the opportunities and challenges for giving to society. While
using the concept ‘functional’ I am alluding to the systemic function philanthropic
giving performs or can perform in the contemporary South Asian society. Someone
may wonder, why such a complex approach to perhaps an apparently simple act like
voluntary giving of wealth to society?
Let me explain the reason behind the broad perspective. The complexity in approach
basically stems from the complexity of form of giving and complexity of the
problems that form the context of this giving. Perhaps, charitable giving happens in a
much more – desirably – simpler and straightforward manner in many parts of the
world where philanthropy is a strong institutionalised form of giving. The situation in
India and generally in the South Asian region is different from this. Philanthropy in
this part is complex in form and substance. One, both formal and institutionalised
giving and informal giving coexist in that society even today in comparable
proportion. Second, in spite of many of my distinguished colleagues in India
preferring to distinguish between ‘religious’ and ‘secular’ motives behind giving, I
think one needs to adapt to the inseparable connection between ‘religious’ and ‘social’
aspects of giving behavior in that part of the world.
34
Perhaps an example would illustrate my point. Let us compare the two categories of
giving in India called as daan and dakshina.1 Daan is generally translated as donation
in English. When a daan is made to a brahmin the traditional priest in Hindu society,
the daan becomes his property. The donor looses his emotional, legal ties with it. This
act of giving has a strong spiritual aspect to it. A daan could be either for religious
fame (given in public and to attain heaven after death) or it could be undisclosed (for
moksha, salvation). Daan given to a Brahmin ranks highest among preferred
traditional ways of giving. The same social class also receives dakshina on the
performance of certain religious rituals, say officiating a puja or a marriage. A
dakshina differs from daan though it is given to the same class of persons. It is an
honorarium paid to the priestly class in lieu of their ritualistic services. It is not fixed
and cannot be negotiated. Basically both are acts of giving, to the same category of
people but serving two different functions in spiritual-social life of a person giving
daan and dakshina. At the same time the strong spiritual value attached to both binds
the two varying forms of behaviour together. So, there is a unity of opposites among
certain forms of giving in a typical Hindu society through principles and rules
underlining them. Third factor that adds to the complexity is the transitional nature of
class and caste based relations in the contemporary Indian society.2
Though caste is to be found mainly in India, and not present in the same form and as
strongly in other countries of the region, there are other cultural, ethnic identities that
are subject to similar dynamics. The post-independence social change in the region
has been strongly influenced by industry-based modernisation, redistribution of land
(thus, affecting the traditional land based social hierarchy), and increasing use of the
coercive power of the State for negotiating interests by competing social groups. The
last factor definitely marks the erosion of traditional community based mechanisms of
negotiation and arbitration. The class, caste and other social identities and social
relationships based on them are in a flux. The fourth factor that compounds that act of
giving is largely of an institutional nature and that is the uncertain relationship
between the State and the no-profit sector.3 The no-profit sector is only lately showing
signs of becoming a truly sector-based force and at the same time the State has also
started taking cognizance of the presence of the no-profit sector. This was evident
during the recent earthquake in Pakistan, where the role performed by no-profit
organisations in relief and the authorities in that country have accepted rehabilitation.
The Pakistan government, to implement an impressive credibility programme, has
engaged the Pakistan Centre for Philanthropy, a national level grant-maker support
institution. In India also the Planning Commission of India, the planning arm of the
Indian State, has started formulating the National Voluntary Sector Policy (2004),
which tried to articulate the perception of the State vis-à-vis the no-profit sector. But,
if we do not want to deceive ourselves, efforts in this direction will take long time to
realise the fruits. The example is the debate raging in India about the proposed
Finance Management and Control Bill proposed by the Home Ministry of the Union
Government of India. Opinion leaders in the no-profit sector of India view this move
by the government as a means of further tightening the belt around the necks of the
no-profit organisations.
Agrawal, Sanjay; Daan: A Tradition of Giving, Sampradaan, July – August 2005; Number 45
Lalit Kumar; Emerging Ethnic Enclaves as an Ensemble for Nation building; Journal of
Social Sciences, 1(2): 137 – 141 (1997)
3 Lalit Kumar; Shifting Relationships between the State and Nonprofit Sector – Role of
Contracts Under the New Governance Paradigm; paper presented at the sixth International
Conference of the International Society for the Third – Sector Research (ISTR) held at the
Ryerson University, Toronto, Canada during July 11-14, 2004
1
2
35
For a philanthropy movement to grow and evolve in a complex political social and
cultural environment like the one discussed here, it is an exciting opportunity in the
form of a challenge. There is no doubt that philanthropic instincts among the people
in the region are strong and this behavior is deeply rooted in their ethos. Indeed
people have created myriad forms of giving of private wealth for public benefit in this
society.4 They share wealth, time, knowledge, and skills for both religious and
‘secular’ subjects. The challenge to promote philanthropy in the region is double-fold.
One, there is a need to sustain a nourishing cultural, political, and operative
environment for plural forms of sharing of private wealth to exist and grow, and at the
same time the need is also to turn sharing of private wealth more strategic. The
challenge in the form of strategic philanthropy will have essential ingredients of
partnership between public and private resources, State accepting the necessity of
private wealth and other voluntary resources in bringing goals of sustainable
development closer, and the no-profit sector attaining mature qualities of
professionalism, effective governance, transparency and sectoral solidarity.
II. Opportunities for sharing of private wealth for public benefit:
Private wealth exists in the form of food; land, water bodies, property, money and
business assets in South Asia since long periods in history. In the agrarian society of
the region, land, water bodies, and property are still dominant forms of wealth and
food in the form of grain is still used as a medium of payment in certain instances.5
Thus, any attempt at innovating new forms of sharing of wealth would benefit
maximum from taking these forms of wealth as equally important to money. On the
other side, the urban centers in the region show predominance of money and business
assets as the dominant form of wealth. Basically this bipolar model of wealth serves
as a heuristic model of comprehending the situations on ground with their inherent
complexities. This would finally help in devising better strategies for use of private
wealth for public benefit. For example, in urban centers that exist as administrative –
market centers of a mainly rural agrarian hinterland, there may be a composite pattern
of giving involving money and grain in a transactional form. For example, in Mewat
area in the north - west part of India, members of the predominantly Muslim, ethnic
Meo community donate to the mosques and Islamic seminaries (madrassa) in fixed
amount of grain. If a family in a particular year is unable to pay in grain, they donate
money in ash equivalent in value to the grain. Grain so donated to the religious
institutions in Mewat, is by custom converted by the clerics and other trustees in cash
assets. This money is supposed to be used for the benefit of the local community.
The opportunities for use of private wealth for philanthropic purpose exist in plenty in
the region. This is evident in the richness of form and purpose for which private
wealth has already been put to use to. One can find traditional forms of philanthropy
that are strikingly similar to some modern forms of philanthropy. For example, the
ancient and still existent tradition of Temple Trust (sthanattar)6 or the democratic,
community based institution of village assembly (gaonki).
4
Majumdar, R.C.; Corporate Activities in Political Life in Corporate Life in Ancient India; 3rd
edition; Firma K. L. Mukhopadhyaya; 1969
5 Bloch, Maurice; Marxism and Anthropology – The History of a Relationship; pp.38-39;
Oxford University Press; 1985
6 Sampradaan Idian Centre for Philathropy; For God’s Sake – Religious Charity and Social
Development in India, Ed. Pushpa Sundar; 2001
36
Both these forms of philanthropy have striking similarity in characteristics and
functions to modern forms like a Community Foundation. On the other hand, the
recent natural disasters like the 2004 Tsunami saw young Information Technology
professionals mobilizing massive financial resources through networks (blogs) within
unusually short amount of time.
Let us look at some of the opportunities for giving private wealth for public benefit in
the South Asian region in details.
(a) The emergent urban, upper and middle class: The decline in State
regulation of economy and augmentation of local and foreign investment
flows for creation of more wealth has created an enormous potential for
giving. It is especially in the form of the Middle Class, which is better
educated and aware of social issues that deserve assistance. A short –
represented but detailed study conducted by Sampradaan Indian Centre for
Philanthropy indicated that 96% of upper and middle class households in
urban area donate for a charitable purpose.7 The estimated amount donated for
philanthropy was USD360 million in one year. Another middle class source
of giving is in the form of the South Asian Diaspora. I strongly believe that if
there is a marked improvement in the governance of charitable activities both
by the State and the no-profits then the chances are increased that the upper
and middle class donors would give more from their private wealth.
(b) In India there is a rural parallel to the urban middle class phenomenon. The
phenomenon commonly known as ‘Green Revolution’ in India augmented the
productivity of agriculture sector in many parts of the country. The GR
phenomenon was made possible due to breeding technology, redistribution of
land, spread of basic education among farmers, establishing of market
facilities, and a wide spread network of agricultural universities and extension
centres. Conducive external environment for farming sector was matched by
the innate entrepreneurship among farmers of the GR parts of the country.
This upwardly mobile segment of the peasantry tried out cooperative and
other forms of professional organization, and now it is capable of even trying
out corporate mode of production and marketing. Remarkably these changes
have created forces that are capable of either strengthening or breaking of
social fabric in the rural society. Indeed it would be a great opportunity for
donor educators to tap the wealth of the emerging rural middle class for
strategic purposes.
(c) India changed its policy of highly regulated economy in the early 1990s. It
has moved since then towards practice of liberal economy. The story since
then is a fairly well known one that is of rapid economic growth with
diversification of manufacturing and service sector. Especially the story of the
phenomenal growth of the Information Technology sector is a well-known
fact. Therefore, it is not a surprise to find that some of the outstanding and
large sized development related programs are supported in a big way by the
IT industries in India. There is no doubt a need to match the private resources
within the purview of the State by the private resources of the corporate
sector. In the past there have been many examples of business houses
7
Sampradaan Indian Centre for Philanthropy; Giving and Fund Raising in India; New Delhi;
2001
37
patronizing causes like heritage conservation, arts education, spread of
science and technology.8 For example, one of the finest world-class centers of
research in mathematics and pure sciences, the Tata Institute of Fundamental
Research, was borne out of the vision of the Tata House in 1940s.
One more form of business prevalent today is a community development program.
Many big and medium sized companies are either running or supporting no-profits
managing these programs. The rural communities covered in the CD programs often
end up as islands of prosperity and over – dependence.
Sharing of wealth accumulated through profit is a precondition for economic growth
of the South Asian region, which hosts a huge population marked by hue disparities of
wealth and social opportunities. This is not to suggest even slightly that the rich
people should be divested of their private wealth. Rather it is to suggest that a
partnership between State and business with a focus on poverty alleviation, health and
education would boost the productivity and economic growth of the local population.
In other words, proactive role of the business community could set off a positive cycle
of growth, better quality of life and productivity.
Sharing of wealth by companies could happen in more than one ways. Corporate
sector can donate to the high performance path related activities in education, health
and agriculture sector. They could also assist in developing governance, management
and service in rural sectors. For example, they could patronize rural youth in
undertaking enterprising projects with potential for creation of wealth and satisfying
the needs of the bigger population. This is easier said than done. To properly evolve
this patronizing relationship into fruition, a support system of education, training,
marketing and credit will have to be created. Another important domain mentioned
above needs little elaboration and that is agriculture sector. The last decade has a
steady decline of contribution of agriculture to GDP of India. This is paralleled by a
proportionate rise in the contribution of manufacturing and service industry to the
GDP. Every development has pros and cons. The positive part of the story is that the
industrial performance of India has got disconnected with the performance of
monsoon and agriculture. It has got connected with the larger global economy. The
depressing angle to the story is that the agriculture and allied sectors that are mainstay
for more than 70% population of that country is starved of the much needed inner
energy, support and reform. Why cannot the business sector think of investing in the
agriculture sector of India? Why cannot we connect it with the industrial sector on the
one hand and on the other hand, create an internal market for quality agriculture
produce?
The corporate sector can at least help in building the knowledge society that would
enable achieve all that is expected of the agriculture sector in South Asia. I cannot
stop myself from mentioning the PURA model at this point. The word pura in Hindi
means ‘accomplishment’ ‘whole’ denoting a thing in entirety and not in parts. The
word PURA here is an acronym for the model of development advocated by India’s
President, Dr. APJ Abdul Kalam. The acronym PURA stands for a conceptual model
called ‘Providing Urban Amenities in Rural Areas’. The model is being tried out in
Madurai district of South India. In his words, “The PURA model suggests designing,
developing and deploying the high technology tools and methods in agriculture sector.
Lala, R.M.; The Heartbeat of a Trust – The Story of the Sir Dorabji Tata Trust; Tata McGraw
Hill Publishing Company Limited, New Delhi; revised third edition 1998
8
38
The direct outcome of this model will be twofold – an increase in productivity and
release of surplus person power from traditional agriculture sector. The benefits of
higher productivity can be converted into wealth with establishment of agro-based
industries. The surplus person power can be upgraded with proper education and
training and be re-deployed in agro-based and other industries and service sector
including IT” (address to the delegates of the Confederation of Indian Industries,
2001).
Private business need to take a risk by investing in these kind of path-breaking
projects, which could only bring benefits to not only India or the South Asian region
but also to the larger Asia – Pacific polity. This is not philanthropy for the sake of
philanthropy. It implies much more than that. It implies that sharing of wealth is a key
to create more wealth. This way the corporate sector could create stakes in investing
for development.
III. Thinking of new forms of giving in South Asia:
The problem of sharing of private wealth for public benefit is analogous to a Network
wherein goods, information, knowledge, emotions keep flowing from point to point.
A network could be actually much complex than what meets one’s eyes. There could
be unidirectional or bi-directional flows between points, flows of varying magnitude
and innate properties of network that control its behavior.
Sharing of private wealth for public benefit is a network problem. However, we need
to move beyond the conventional concept of unidirectional donor-centered network.
We need to think about a network of donors and their partners, which is based on the
principles of equity and responsibility. This network will (a) create more opportunities
to create private wealth; and (b) achieve balance between costs expended on sharing
of private wealth with social, economic and environmental returns.
The challenge of sharing of private wealth for maximum public benefit calls for a
variety of forms of giving. To recollect the statement in the first part of the paper, the
traditional forms of giving need to be preserved, nourished, and new forms of giving
need to be explored. Three models of philanthropy that could help in meeting the
goals of sustainable development in South Asia have been discussed briefly here.
(a) Community Foundations: As a model of resource mobilization and social
distribution it has been successfully implemented in North America,
Western and Central Europe. I understood from the WINGS
communication that it has made inroads in developing societies of Latin
America and Eastern Africa. It already has a noticeable presence in the
developed economies of Southeast Asia and Pacific region. This is still a
relatively new term introduced in the philanthropy and development
repertoire of South Asia. This is still a relatively new term introduced in
the philanthropy and development repertoire of South Asia. It is
conspicuous by its near absence in the region. There are only four
mentionable CFs in India. The question at stake is whether Community
Foundation could emerge as an alternate model of development support –
an alternative to models based on external support? Le me briefly inform
the new initiative by Sampradaan Indian Centre for Philanthropy in an
action-research mode to promote CF in Mewat area near Delhi. This is
one of the economically most backward areas of the country. It is
39
fragmented into three big states though the people share ethnic history,
language and culture. Alwar district (total population of 3 million) in part
of Mewat in Rajsthan state is worst off economically and socially in the
entire Mewat zone. The small upper-middle class section (13%) is
concentrated in four Blocks out of total 12 in the district. We are trying to
build a network of members of this segment of the population along with
the dominant local Muslim clergy (controlling the local donations) who
would take up establishment of a CF in a project mode. At the second
level, we are planning to link up the local network and their CF with
external Foundation donors, government agencies and corporate donors as
a leveraging strategy. The implementation of this project is based on
certain anthropological presumptions. The outcomes of this project will
be shared with the larger philanthropy and development community in the
region for the purpose of replication.
(b) Community assets through endowments: in the pre-colonial period, the
typical agrarian community in south Asia was bestowed with assets in the
form of buildings, land, water bodies, forest and cattle. The use of these
assets for community benefit was delicately intertwined in the social
fabric of the community. It was enmeshed in a complex of rights, duties,
privileges and rituals. The government protected it. This pattern of
philanthropy consisting of myriad forms is now almost extinct. For
example, the extinction of the community institution of ‘sacred grove’ is
almost complete from most parts of the country since the colonial days. A
sacred grove used to serve as a platform for community philanthropy in
the traditional society. The sacred grove formed a major link in the social,
economic relationships in the community.
Therefore, we need a bold approach to philanthropy and study the traditional forms of
giving in South Asia from the point of view of social sciences and developmental
concerns. It may be possible to revive some of these asset - based forms of
philanthropy. These may have the key to some of our worst developmental problems.
© Grain Bank: India achieved self-sufficiency in food production in the last decade of
last century. Ironically, one still encounters large pockets of inadequate nutrition in
the country in spite of the declared self-sufficiency. The solution to the problem of
under nutrition in large pockets is through (i) improving the performance of the Public
Distribution System; and (ii) establishing community based Grain Banks. A Grain
Bank is not a solution to the nutrition problem alone, but it could also prove to be a
key for much wider development too. Village Darphal is located in a drought-ravaged
part of Maharashtra state in Western India. The village established a Grain bank in
1961. Today the collection of the Bank runs into many thousands of kilograms of
grain. The village has financed its own development projects, including the school,
instead of depending upon the government and other external sources.
These examples are only indicative and definitely not the last ones of private wealth
for philanthropy. Nevertheless, they have a strong feasibility and cultural appeal to
them that should help spread them on a large scale.
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IV. Summary:
The philanthropy in South Asia is complex in form and rich in substance due to
particular pattern of historical evolution. The pluralistic values have always
dominated the evolution of philanthropy in this part of the world. The nature of noprofit sector and its unsteady relationship with the State is one of the major constraints
in the evolution of the philanthropy as a strategic form of social intervention in the
region. The future endeavors to develop philanthropy in a strategic manner ought to
take into account the peculiarity of forms of wealth in urban and rural areas and even
between regions. The future endeavors in strategic philanthropy in South Asia need to
integrate the ‘vertical’ (corporate donors) as well as ‘horizontal’ (Community
Foundation, Grain Bank) forms of sharing of private wealth.
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Programme
WEDNESDAY, 7 DECEMBER
8.00 – 9.00
Registration
9.00 – 10.00
Welcome and Introductions
10.00 – 10.30
Coffee Break
10.30 – 12.00
The Shape of Philanthropy in the 21st Century
Philanthropy Trends in Asia: An Overview
 Josie Fernandez
Convenor, Philanthropy Malaysia
 Dr Michael Liffman
Director, Asia-Pacific Centre for Philanthropy and Social
Investment, Swinburne University, Australia
Various powerful forces are driving a new and invigorated
philanthropy the world over. In this session these forces will be
identified and their relevance to the Asian context discussed.
12.00 – 13.00
Foundation Philanthropy: New Roads Ahead
Steve McCoy
Force of Nature Foundation, Malaysia
13.00 – 14.00
Lunch
14.00 – 15.30 Disasters and Philanthropy: Recent Experiences
 Emma Williams,
World Vision, Australia
This discussion will commence with a report on the recent APPC
conference on ‘Philanthropy in Disasters: Tsunami and After‘ and
on World Vision’s approach to the issue.
M. A. Harold,
Transparency International Sri Lanka
15.45 – 16.00
Coffee break
16.00 – 17.00
Diaspora Philanthropy
Dirk Eilinghoff
Bertelsmann Foundation, Germany
7.30
Diaspora philanthropy, whether in the form of donations from
successful expatriates or remittances from overseas workers, is
an increasingly important source of resources for Asian
communities. This discussion will commence with an account of
the findings of a recent study before inviting participants to
discuss the Asian experience.
Welcoming Dinner and Address
Sri Ganesh Gopal, Petronas, Malaysia
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Programme
THURSDAY, 8 DECEMBER
9.00 – 10.30
Corporate Philanthropy and Social Responsibility
Yazdi Jehangir Bankwala
Director, Arpitha Associates, Malaysia
The opportunity and expectation of corporations to recognise the
triple bottom line, and to include support for community as part
of this, is transforming corporate behaviour around the world.
This session will examine the Asian dimensions of this
experience.
Arguments For and Against Corporate Social Investment
Dr Michael Liffman
11.00 – 11.15
Coffee Break
11.15 – 1.00
Philanthropy as a Catalyst for Technology
Joseph Antony
Trustee, Bitsunami Foundation, India
1.00 – 2.00
Lunch
2.00 – 3.30
Professionalising Grantmaking for the 21st Century
Dr Michael Liffman
Philanthropy and social investment are set to become major
forces shaping the societies of Asia over the coming decades. To
date there have been virtually no opportunities anywhere in the
world for donors, companies, advisors and others who make
decisions about philanthropic distributions to develop the
appropriate skills and understandings for effective grantmaking
practice.
This session will describe the courses offered by the Asia-Pacific
Centre for Philanthropy and Social Investment at Swinburne
University, and inquire into the possibilities for local capacitybuilding in the Asian region.
3.30 – 4.00
Reflections and Conclusion
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