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Disaster Relief, Inc. Daniel Lewis Andrew Effinger
Disaster Relief It is good that corporations are more eager to help during disasters. This article shows how much more helpful they could be if they took one of the four approaches rather than donating after the disaster.
International Relief Process First the disaster will be broadcasted on the news. Then the country affected must acknowledge what resources that are needed beyond their own and call for assistance. Only 10 percent of relief efforts in the first 48 hours for the 2004 India tsunami were international. The Indian government did not invite relief efforts until after 60 days. Most of the time the aid agencies provide resources for relief and rebuilding rather than the initial rescuing phase.
4 Different Approaches Single Company Philanthropic Partnerships Multi-company Philanthropic Partnerships Single-Company Integrative Partnerships Multi-company Integrative Partnerships
Single Company Philanthropic Partnerships This is when a corporation decides to donate to a single aid agency. Aid Agencies are cautious of gaining partnerships with corporations because they might diminish their reputations. Ex. Tobacco companies Defense companies The partnership with the aid agency should be clearly defined. What goods and services will be needed? So they are not sending useless products. Who is responsible for shipping arrangements So the supplies can be there when needed. What is the visibility of the donation, if desired. The company can reap public relationship benefits.
Single Company Philanthropic Partnerships Benefits of single partnerships Aid Agencies can keep warehouses full in case of an emergency. They give corporate employees a sense of contribution. They give corporations and aid agencies alike a better reputation. They make sure that useless supplies don’t clog up the supply chain in an emergency.
Multi-Company Philanthropic Partnership This is where many companies get together in a consortium to supply many goods and services to many different aid agencies. Two examples are Partner for Disaster Relief and the Disaster Resource Network. These corporations work as the middle man and match companies donations of money, goods , and expertise with humanitarian agencies that need these resources the most. All the corporations involved must agree on what type of events are considered disasters and worthy of relief. With the multi-company partnership they can administer larger amounts of useful aid than a single company can.
Single Company Integrative Partnerships In an integrative partnership a corporation an aid agency take advantage of each others core competencies to deliver assistance more effectively. Few exist because of the lack of trust between the corporate an aid sector. An example of one is Dutch's logistics giant TNT and the World Food Program (WFP). The WFP is known for having the UN’s most sophisticated logistics program and the TNT corporation does business in 19 of the countries that the WFP has feeding stations in. This is why it made perfect sense for them to create a partnership. They made one of the greatest impacts in the 2004 tsunami relief because of their cooperation and knowledge of how to deploy resources into affected areas.
Single Company Integrative Partnerships Risks What are the Corporations' real motives in the partnerships? Corporation actions could effect aid agencies reputations. Replacement of top management could alter relations. Huge commitment of time and resources. Benefits Increase Aid Agencies effectiveness and reach. Positively affect both the Aid Agency and Corporations reputations. TNT was rated one of the Ten best companies to work for in 2004 by Fortune magazine because of the alliance with the WFP.
Multi-Company Integrative Partnerships Multi-company partnerships bring together the collective resources and best practices of a number of different companies to improve disaster response to capabilities for a whole range of agencies. Two Examples Partnership for Quality Medical Donations (PQMD) Was incorporated in 1999. Purpose was to develop , disseminate, and encourage high standards in the delivery of pharmaceuticals and medical supplies for humanitarian purposes. Has 27 members and include over a dozen different agencies. Corporations for Humanity Multi-company partnerships increases the knowledge and trust between corporations and agencies. None of the relief efforts by the PQMD for the tsunami fund were found inappropriate by the World Health Organization.
Multi-Company Integrative Partnerships Since many Multi-Company partnerships are so complex it is common for a third party to bridge cultural differences, align expectations, and build trust. One draw back is that corporate participants do not get the social recognition as many single philanthropic donators get. Also organizations do not have the control over which resources go to relief certain areas as single partnerships would have. Partnering with many organizations gives corporations and agencies insight to expertise, core competencies, and assets of many different organizations. Multi-company partnerships also allow for systemic change.
In Closing Maintaining a commitment to systemic improvement between disasters will reduce suffering far more than a donation made after the fact. The sooner executives realize this, the better positioned the world will be to respond to global catastrophes.