Corporate America Ill-Prepared to Support Disaster Relief Efforts According to Latest Study by LBG Associates
While the horrific events of September 11th were tragedies of such epic proportions that no one could have possibly foreseen or prepared for them, how many companies are actually prepared to respond to crises of any magnitude, such as earthquakes, floods, hurricanes and tornadoes, as well as acts of terror? Not many, and this needs to change. Companies need to approach disaster relief in a more proactive manner by supporting and promoting initiatives that work to lessen the affects of a disaster through education, preparedness, prevention and mitigation; establishing relationships with relief groups and other grantmakers prior to disasters occurring, and developing internal disaster grantmaking and community outreach policies, guidelines and procedures before they are needed.
STAMFORD, CT -- Mar. 27, 2003 -- A new study released today by LBG Associates -- Corporate Philanthropy in Times of Crisis -- finds that while four-out-of-five companies are willing to provide support to U.S. communities ravaged by natural or man-made disasters, the overwhelming majority (nearly 75%) do so in a haphazard, knee-jerk," non-strategic fashion.
Over the past decade, there have been more than 500 major disasters and national emergencies that have tragically affected communities in every U.S. state and territory, says Dr. Linda Gornitsky, president and founder of LBG Associates. While the horrific events of September 11th were tragedies of such epic proportions that no one could have possibly foreseen or prepared for them, how many companies are actually prepared to respond to crises of any magnitude, such as earthquakes, floods, hurricanes and tornadoes, as well as acts of terror? Not many, and this needs to change."
According to LBG Associates, companies need to approach disaster relief in a more proactive manner by supporting and promoting initiatives that work to lessen the affects of a disaster through education, preparedness, prevention and mitigation; establishing relationships with relief groups and other grantmakers prior to disasters occurring, and developing internal disaster grantmaking and community outreach policies, guidelines and procedures before they are needed. When disasters occur, companies also need to be patient with relief organizations during the response and recovery phases, and be flexible with their grantmaking so that immediate/emergency needs, as well as short- and long-term recovery needs, are addressed," says Jared Skok, vice president of LBG Associates and primary author of Corporate Philanthropy in Times of Crisis.
The 140-page report takes a first-ever, in-depth look at how Corporate America supports domestic disaster relief efforts and provides guidance on how companies can better respond to future disasters by working more closely and more proactively with local, state and national emergency management agencies and disaster relief organizations. Some of the reports key findings include:
| | - Three-out-of-four companies (72%) provide support to relief agencies and organizations only after disasters occur.
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| | - For major disasters and national emergencies, companies determine (and often make) their response within 24 -- 72 hours of the disaster happening.
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| | - 26% of corporate grantmakers provide funds exclusively to the American Red Cross for disaster relief purposes.
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| | - The three main factors that may trigger virtually any companys philanthropic response to a disaster: Employees, Location and the Scope, Magnitude and Impact.
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| | - When selecting their disaster non-profit partners, many companies will take the following criteria into consideration:
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· Pre-existing Relationships
· Reputation
· Capabilities
· Experience
· Communications/Accountability
· Response Time
· Local Recommendations
· Approach & Fit
Compiled from interviews with nearly 100 corporations and disaster relief agencies -- including FEMA, American Red Cross, The Salvation Army, NVOAD, Home Depot, Verizon, Citigroup, FedEx and others -- Corporate Philanthropy in Times of Crisis:
| | - Presents views from the public, private and non-profit communities on Corporate Americas roll in domestic/U.S. disaster relief, from choosing non-profit partners, to determining the level of assistance and budgeting for disaster relief;
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| | - Documents corporate community outreach programs and initiatives related to disaster response and recovery;
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| | - Highlights corporate philanthropic trends and practices covering cash, product and in-kind contributions, as well as employee giving and volunteerism;
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| | - Introduces some of the lesser known" volunteer organizations active in disasters and outlines their rolls in the response and recovery processes;
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| | - Identifies the true needs of disaster relief and volunteer organizations; and
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| | - Provides clear and distinct recommendations on how companies can be more proactive in their approach to disaster relief, especially through mitigation, preparedness and education.
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This report was made possible through the generosity and support of the following corporations: Altria Group, Verizon Communications, Alabama Business Charitable Trust, AOL TimeWarner, Bank One, Citigroup, FedEx, Hewlett-Packard, Home Depot, IBM, International Paper, Pfizer, Pitney Bowes, UST, 3M, Advanced Micro Devices, The Boeing Company, CIGNA, ExxonMobil, Moodys, PG&E, Prudential Financial, Northrop Grumman, RBC Financial, Shell Oil and Walt Disney.
For more information on Corporate Philanthropy in Times of Crisis contact Dr. Linda Gornitsky at (203) 325-3154, or Jared Skok at (703) 248-0226, or visit the LBG Associates web site at www.lbg-associates.com
LBG Associates is a woman-owned consulting firm specializing in the design, implementation and management of corporate citizenship programs and initiatives, such as corporate contributions and foundation giving; employee giving and volunteerism; strategic partnering and relationship development; strategic communications development; sponsorships and cause-related marketing; research and benchmarking capabilities; program evaluation; and training and staff development. Founded in 1993 by Dr. Linda Gornitsky, LBG Associates is committed to providing clients with creative and innovative solutions in a personal, professional, cost-effective and timely manner.
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