The Role of Business in Community Capacity Building: An Alternative Approach

Business organisations keen to contribute to community well being as part of a social responsibility strategy should give consideration to involvement with Community Capacity Building

Dr John Murphy	Barrie Thomas
Mornington Peninsula Community Connections	The Body Shop New Zealand

Despite the formidable achievements of modern, Western industrialised society, it has become clear that the current social, economic and political order has been unable to meet two of the most basic pre-requisites for human civilisation - the need for people to be able to live in harmony with their environment, and the need for them to be able to live in harmony with each other. If these two needs cannot be met, in the long term the achievements and benefits of modern society will be transitory.

The inability of the dominant order to meet these needs can be seen in the crises currently facing not only Western industrialised societies, but all societies. The world is characterised by increasing instability - whether ecological, economic, political, social or cultural - and existing institutions seem only able to provide solutions which in the long term, and even in the short term, make things worse.

In this context, the need for alternative ways of doing things becomes critical.

Professor Jim Ife (1997)
University of Western Australia

Acknowledgement
In preparing this paper reference has been made to the thoughts and ideas, not necessarily published, of Mark Glazebrook, David Birch, Darren Quirk, Willis Harman, Saul Alinsky, Robert Theobald, Eva Cox and Robert Putnam.

Introduction

Business organisations keen to contribute to community well being as part of a social responsibility strategy should give consideration to involvement with Community Capacity Building.
Professor Jim Ife's belief in alternative ways of doing things is well justified given the failure of Australian governments and the community organisations that they fund to successfully address the serious problems in our communities.
Current social programs are having minimal impact on major community problems such as poverty, long-term unemployment, family breakdown, youth suicide, illegal drug abuse, youth homelessness, problem gambling, child abuse and crime. The findings of recent research have indicated that as the living circumstances of more people deteriorate through poverty, they are becoming pessimistic and depressed. This is seriously affecting morale and productivity in some communities.
More people are becoming dependent on the welfare system and this is an increasing burden for the economy. As society is being forced to prioritise more of its resources to address social problems and to care for the disadvantaged, societal development as a whole will suffer, especially business development. This view is prominent in the corporate citizenship literature.
The Federal government's current attempts to encourage partnerships between business and community groups is simply an attempt to get business to become an additional source of financing for community services as government's own coffers are becoming increasingly stretched.
It is clear that governments do not have the answers to most of our current social problems, and while many of their social programs give the impression that something is being done, in reality they achieve very little. At best, they stop some problems from becoming worse.
In recent times governments have led communities to greater passivity by not listening to community opinion and by not including communities enough in government decision-making processes. Voluntarism is down in many areas of community activity. One of the reasons for this is a declining sense of community, including a growing belief among community people that they can do little to overcome the current problems.
Interestingly, however, in some communities people still rally in times of major environmental crises such as bushfires, floods and droughts. During these times community spirit is very strong. Community Capacity Building aims to reproduce this type of spirit to address other issues and problems, and to build stronger and more caring communities

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What is Community Capacity Building?

The main way that governments and communities address a social problem is to implement a support service of some sort for the people affected by the problem. In most instances, services are responsive rather than proactive in that they are introduced after a community problem has gotten out of hand. Few social services could be described as proactive or preventative.
Many services are expensive to operate because of professional staffing costs, but commonly they have limited outcomes. Because of the serious nature of their problems, many people very quickly become dependent on support services, especially those which dispense handouts. Handouts in the form of money and food are the easy option for vulnerable and troubled people whose motivation is low and who are seeking only temporary relief from their problems.
Community Capacity Building, on the other hand, adopts a very different approach. It is proactive and is based on an assumption that communities which have an active and spirited citizenry will be robust, vibrant, more caring and have fewer social problems.

Community Capacity Building involves:

• Is innovative and optimistic. It is based on a belief that it is possible to create and maintain a better community. Aligns with the aim of business to search for constructive and creative solutions.
• Is based on a belief in the worth of all individuals and a respect for their differences.
• Improves the quality of life in communities.
• Contributes to sustainable human progress in communities.
• Contributes to the generation of economic activity in communities.
• Will be mutually beneficial to business and the community.
• Applies its values, skills and experience in a wide range of circumstances.
• Is based on respect for the natural environment.
• Is underpinned by the principles of sustainablity.
• Is about sharing experiences and best practices.
• Increases the professional capabilities, personal development and company pride of staff.
• Contributes to the creation of a more versatile and capable workforce for the company.
  

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Community Capacity Building: The Theory

Community Capacity Building is based on a number of theories about community development. Most recently, however, it has been influenced mainly by the contemporary research on social capital. Social capital is a community's people assets built up through people coming together regularly to work voluntarily for their community and to support one another through building strong relationships.
The medium through which social capital is built is the range of grass-roots groups in a community in which people come together to work for their community in an organised and co-ordinated way. Grass-roots groups include citizens advice bureaus/community information centres, self-help groups, service clubs, playgroups, sporting clubs, craft and hobby groups, arts and cultural groups, conservation groups, and so on.
Social capital is a modern name for social cohesion. Social capital is seen as a kind of 'social glue' which holds society together.
Recently the writers of this paper co-authored a chapter in the Australian Institute of Family Studies book Social Capital and Public Policy in Australia (2000). The chapter focussed on the role of business in building social capital to strengthen communities.
Social capital theory espouses the view that the active and voluntary participation of the people who live in a community are the mainstays of community development and social cohesion. An interested and active citizenry makes for an interesting, active and strong community.
The most effective strategies for community building and community problem-solving need to come from communities themselves. People in communities need to be given strong encouragement and opportunities to take greater responsibility for community well being.
Governments have failed to acknowledge that local people are so strongly connected to their communities that they understand community issues and problems in ways that governments never can.
Unlike some obscure and user-unfriendly social theories, the fundamentals of social capital theory are straightforward and make sense.

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Community Capacity Building: A Departure from Philanthropy

An examination of the overseas literature on corporate citizenship reveals that the level of interest by business in addressing social problems in their communities is moving beyond traditional corporate philanthropy.
Case studies presented in the literature reveal that the involvement of overseas businesses with communities is taking the form of large-scale, strategic projects which utilise businesses' own human resources as well as their financial resources. There is some indication that businesses in Australia are beginning to follow the lead of their overseas counterparts in this regard, albeit very slowly.
The involvement of business groups in Community Capacity Building projects inevitably will mean a business group forming a strategic partnership with a community group. This will involve the two developing a strong working relationship, developing trust for one another, and ultimately achieving a mutually beneficial relationship.
Each group involved will contribute a range of their resources to the partnership. In most instances, the arrangement will entail the partners making a longer-term commitment to the relationship and to a community project so that something substantial can be achieved. Rarely can major community projects be accomplished successfully by short-term efforts or one-off grants of money.

There are some important characteristics, or essentials, of effective partnerships:

• Good partnerships are those where the partners understand, appreciate and respect one another's organisations and one another's needs.
• Although organisations in partnership might not be the same size, it is important that there is a spirit of equality between them. Good partnerships are those where there is a willingness to be open and accountable. Partners need to listen to one another other and feel free to speak out when necessary.
• And related to this, is that good partnerships need to be based on trust and honesty. Trust is something that is built up over time.
• Each partner needs to recognise and accept their responsibilities in the partnership and to be prepared to commit themselves to the long term.
• In a partnership there needs to be a commitment to mutual benefit for all partners. It needs to be a win-win situation for partners.
• Forming a partnership should be seen as a routine part of a community group's core activities rather than as a special, one-off event.

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Community Capacity Building: How to Do It

The outcome sought through Community Capacity Building is a mobilisation of community people's knowledge, skills, financial resources, personal networks and enthusiasm for the development of their community.

There are many strategies which can be utilised to pursue Community Capacity Building through citizenship development. They include:

• Promote community volunteering within the community.
• Provide supportive environments where people can come to discuss and debate community issues, to develop a sense of community spirit and mutual purpose.
• Provide information about community services, activities and events to connect people to their community and its networks.
• Acknowledge and celebrate the presence of diverse cultural groups in the community.
• Assist people interested in participating in their community to identify community issues, projects and services compatible with their interests and capabilities.
• Provide opportunities for people already participating in their community to enhance their knowledge, skills and personal growth, and to assist with their educational and vocational goals.
• Work with local schools in education about good citizenship, and facilitate wider and stronger links between teaching organisations and their communities.
  
• Facilitate, co-ordinate and support local events which promote good citizenship and community spirit.
• Provide a research focus for community issues and support the efforts of tertiary and other institutions in their research on community themes.
• Provide management advice and mentoring to grass-roots community groups with their development.
• Develop funding sources for grass-roots community groups which acknowledge their uniqueness, capabilities and autonomy. 'Promote the development of productive links and egalitarian partnerships between community groups, business groups and government.
• Provide a showcase of community achievements, eg. with community events, social programs, education and environment projects to inspire and motivate people about what can be achieved in their community.
• Provide opportunities to learn about, connect with and celebrate the community's past through an exhibit and information on the community's history.

These strategies can be implemented individually or collectively, on a small or larger scale by one group or by different groups in a community. The strategies are mostly universally relevant and can be adapted to suit any community.
Currently the authors are involved with the Mornington Peninsula Shire and local community groups in the planning of a project, a Centre for Community, which aims to promote citizenship development and community building encompassing most of the above strategies.

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How Can Businesses Become Involved in Community Capacity Building?

There is a range of strategies that businesses can adopt to become involved in Community Capacity Building. They include:

• Identify Community Capacity Building projects in communities and support them.
• Form partnerships with community groups to develop Community Capacity Building initiatives.
• Encourage staff to become involved in Community Capacity Building projects and activities in the communities in which they live.
• Encourage staff to share with the company their knowledge and experiences in Community Capacity Building to assist the company to build its knowledge and resources on the topic, as well as to help the company identify potential projects with which it might become involved.
• Encourage communities to become more involved in Community Capacity Building through offering incentives such as funding, other company resources, commendations and awards.
• Encourage other business organisations to become involved in Community Capacity Building.
• Promote citizenship participation (volunteering in welfare, environmental preservation, State Emergency Service, Country Fire Authority, etc.) in the media.
• Facilitate and support community forums, conferences, seminars and workshops on Community Capacity Building.
• Support research on community capacity building, with a proviso that research be undertaken in partnership with community groups, and that research outcomes are clearly linked to Community Capacity Building strategies.

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Engaging With Communities: The Barriers

Should businesses choose to pursue involvement in Community Capacity Building, engaging with communities will be the most challenging aspect of the process.
Engaging with a community from outside the community is not a straightforward task. People living in disadvantaged communities, for example, have had to endure generations of experimental programs designed by 'experts' from outside their communities, which have been full of promises but ultimately not living up to expectations. Because they create cynicism and distrust, these failed community programs make it more difficult for subsequent individuals and groups to connect with the communities despite their good intentions.
Of all the groups which may want to engage with communities, big business will be treated with the most cynicism and distrust. The history and objectives of big business are seen as more likely to damage and exploit communities rather than to support and build them.
Also, many people involved with community groups give of their time and resources freely and with humility. They find it distasteful when business groups boast very publicly about their support for communities. Often the amount of boasting by business groups is disproportionate to the degree of involvement or support provided.
Cash-strapped community groups desperate to locate funding commonly resent but begrudgingly accept the conditions imposed by business groups which offer financial support on the proviso that the company's logo be prominently displayed by the group, or that the business group must have a controlling role with a community project. Often the conditions imposed by the business organisation are not in proportion to the financial support offered.
Business groups need to be aware of how they may be perceived by the communities they may attempt to engage. It is not uncommon for business groups to be over-confident about the extent of their community engagement skills. Often the smiling faces of community members being offered a financial windfall by a business group mask a serious lack of respect for and distrust of business.
Attempts to buy in to a community with an up-front financial enticement is unlikely to lead to the kind of genuine engagement with communities necessary to develop effective Community Capacity Building strategies. Money inducements will lead to an engagement of sorts, but it will be more along the lines of a superficial and hypocritical relationship.

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Engaging With Communities: Overcoming the Barriers

If business groups want to maximise their exposure for the purpose of public relations and marketing, the selection of high-profile community groups and causes to receive financial support from the company is likely to be the most effective and simple way forward. There is no shortage of resource-deficient community organisations which would be pleased to accept financial support from a business group and accept any conditions that the company may require in relation to public relations.
If on the other hand, if a business wishes to venture into Community Capacity Building which will involve forming strong strategic partnerships with community groups, it will need to be aware that while the latter is a possible way forward, it will not be a simple way forward.
On a positive note, Community Capacity Building strategies themselves are not new, so the risks associated with undertaking them can be calculated. The writers are associated with a number of community organisations which are currently engaged in Community Capacity Building, although none as comprehensively as outlined here.

The actual process of engaging with communities will be the most challenging task.

The first step might be to identify a range of process partners who can provide the company with advice and support about engaging with communities. They could form a small reference or advisory group. Appropriate process partners would be individuals and groups who are already strongly connected to communities and who possess knowledge and skills in community engagement and Community Capacity Building.

A second step might be to identify one or a number of trial Community Capacity Building projects for the company to develop or support in partnership with selected communities.

It would seem that among key selection criteria for Community Capacity Building projects with which nationally-based companies might become involved would be their suitability for application in other communities in Australia. This does not preclude projects with a universal application emphasis having sufficient flexibility to be adapted to suit the unique character and needs of individual communities.

Ongoing monitoring and evaluation would be important aspects of trial projects. It would be important, however, to develop evaluation methods suited to Community Capacity Building initiatives. This would involve a greater emphasis on qualitative rather than quantitative methods. The former would be more interested in people's experiences and impressions rather than on the actual amount of people using or benefiting from a project.

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The Authors

John Murphy

John is responsible for the operations of Mornington Peninsula Community Connections. Community Connections is an independent, non-profit and free management advisory service for small, non-profit community groups on the Mornington Peninsula. John worked for 10 years in the printing industry prior to obtaining a Bachelor of Social Work with Honours in 1981 and a PhD in 1992, both from Monash University.
He worked for seven years as a lecturer in the Department of Social Work and Human Services at Monash University where he taught management and community work. During this time he maintained a close association with local communities and worked in a voluntary capacity in a number of grass-roots community groups.
Mornington Peninsula Community Connections was established in 1997 by John and Barrie Thomas, formerly a director of The Body Shop in Australia. Barrie is now a director of The Body Shop in New Zealand and continues to support Community Connections.

Barrie Thomas Dip. Tech. Soc. Work

Barrie graduated in social work from the South Australian Institute of Technology in 1973 and moved to New Zealand where he worked for three years in the drug and alcohol field before returning to Adelaide. After working with the South Australian Royal Commission into the Non-Medical Use of Drugs, he travelled to England in 1979 where he commenced a new career in franchising. He returned to Australia in 1981 and with a business partner took on the head franchise for The Body Shop retail chain in Australia and New Zealand.
In November 1999 Barrie disposed of his interests in The Body Shop in Australia to further develop his interests in The Body Shop in New Zealand.
Barrie's background in social work and business gives him a strong belief in the social responsibilities that corporations should bear, and he is Adjunct Professor attached to the Corporate Citizenship Research Unit at Deakin University.

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