BUSINESSMEN AND PHILANTHROPISTS ACT IN A MORE COORDINATED WAY AND JOIN EFFORTS IN PROVIDING SPECIFIC CAUSES, SUCH AS FIGHTING HUNGER AND UNEMPLOYMENT AND ASSISTANCE FOR NEEDY CHILDREN
BY ADRIANA CARDILLO GAZ
Philanthropy is experiencing a new phase. If until some time it was centered on those who donated large amounts to humanitarian causes, today it works in a much more strategic way, both for individuals and companies. According to the Doação Brasil 2020 survey, carried out by the Institute for the Development of Social Investment (Idis), the causes that currently raise awareness are, in order, combating hunger and poverty, assistance to needy children and adolescents, guaranteeing health and combating unemployment and lack of income. The study also provides data that shows that the perception that donation is good for the donor has grown significantly, from 81% to 91% of the population.
“Before there was a greater focus on sectoral causes, such as education, health and the environment. Now, social investors are starting to look at more specific and structural issues, such as racial equity, democracy, combating climate change (rather than the environment) and refugee issues, which have gained increasing attention around the world.” , evaluates Paula Fabiani, CEO of Idis.
The collaborative and long-term perspective is another facet that has stood out in the world of philanthropy and private social investments. The perception that joining forces to help solve problems and find solutions is an efficient path is general. “I see a group of businesspeople and philanthropists acting in a more coordinated way, with investments minimally parallel to public policies or trying to innovate models to inspire and engage governments. Resources must be joint, especially because there is no money from philanthropy or private social investment in the world that alone can solve problems”, says Carola Matarazzo, executive director of Movimento Bem Maior, an organization founded by Elie Horn, CEO of Cyrela, Rubens Menin, CEO of MRV and Eugênio Mattar, CEO of Localiza.
In four years of operation, MBM has already directed R$99.6 million in philanthropic investments, supporting a total of 152 social organizations across the country. In the wake of collaboration, Estímulo 2020 also comes. Created two years ago by major Brazilian leaders, the low-interest financial support project emerged to avoid the closure of small businesses affected by the pandemic. “We raised more than R$60 million in donations and have already offered around R$125 million in financial support and training to small entrepreneurs, impacting 24 thousand jobs and families”, says Fabio Lesbaupin, CEO of Estímulo 2020. Among the donors are Abilio Diniz, Eugênio Mattar, Eduardo Sattamini, Luciano Huck, Roberto Marinho Neto, Romeu Domingues, as well as other important names in the business world. In total, more than 100 leaders invested at least R$50,000 to make the project viable.
To date, one of the largest donors to Estímulo 2020 has been Santander. According to Lesbaupin, the bank made a contribution of R$10 million. “We believe that this is an important private social investment model, as it does not focus on assistance, but on the positive impact for an important portion of the population, which are small entrepreneurs. In addition to turning the economy around, the investor receives a return on value”, states the CEO. The success of the operation allowed Estímulo 2020 to grow beyond emergency support during the pandemic. With the arrival of new donors and fundraising models, they intend to offer a total capital of R$300 million by 2024.
S OF ESG IN THE SIGHTS
If some time ago it was a good idea for large companies to invest in their own foundations or institutes as a way of generating positive social impact, the scenario is now more mature. With this, corporations have already realized that seeking and investing in innovative projects beyond their surroundings can bring benefits in all spheres. “Entrepreneurs are more aware of the needs and relevance of their role, not only in the financial aspect, but in terms of their positioning as an organized civil society that can make a movement and show ways to help solve the problem. Capitalism needs to find a balance, and I see a worldwide movement towards responsible social investments. All with very clear goals of what needs to be done”, evaluates Carola Matarazzo, from MBM.
Among the big brands that seek innovative projects to solve problems such as the perpetuation of poverty are Ambev and Bayer. The two already invest, for example, in social technology, which is a long-term model capable of offering solutions to social problems built in a participatory manner with local communities, combining scientific and technological knowledge and the wisdom of the people who experience the issue. Among the differentiators of this model are points such as effectiveness, scalability, sustainability and the full protagonism of communities.
“An important trend is the emergence of projects that seek to reconcile traditional philanthropy – which promotes important social impacts, but does not generate financial returns and may not be economically sustainable – with more traditional investment models, which can positively impact society and the environment. environment and also generate financial returns that contribute to the economic sustainability of the projects”, assesses Jaime Oliveira, director of public affairs, science and sustainability at Bayer in Brazil.
Over the last three years, the company has allocated around R$25 million annually to social investments in general. One of the most innovative projects supported by Bayer is the Institute for Research in Technology and Innovation (IPTI), located in Santa Luzia do Itanhy, in the interior of Sergipe, one of the cities with one of the worst Human Development Indexes (HDIs) in Brazil.
Co-founded in 2003 by Saulo Barretto, one of the greatest experts in social technology in the country, IPTI is a non-profit art, science and technology institution that generates innovations capable of promoting human development through the creation of social technologies in the areas of education, entrepreneurship and basic health. “It no longer makes sense in today's world for companies not to come together, even if they are competitors in the same sector, to solve a global problem like poverty. Everyone wins with a better, fairer and more equitable society”, says Barretto.
As a way to enhance the S of the ESG agenda in a modern way that allows for consistent, long-term results, Ambev also targets social technology to leverage efficient investment strategies for
positive social impact. “IPTI is an example that investing in technology and innovation is an important path. We can only grow if Brazil grows, which is why we share our social investments throughout the country and not just in our surroundings”, explains Carlos Pignatari, director of social impact at Ambev. According to the executive, the company has already invested around R$1 million in the institute since 2018. Ambev does not release general data on investments in social impact actions, but today it is one of the biggest supporters of projects involving productive inclusion, diversity, water, plastic and carbon.
According to the Group of Institutes and Business Foundations (Gife), which maps private social investment in the country, the pandemic boosted the number of donations from private institutions by 71%, which reached R$5.3 billion in 2020. Organizations make varied individual contributions: while 39% invested up to R$6 million, 20% allocated more than R$20 million. “Betting on these organizations is betting on the social development of territories. There is no need to be so surgical in private social investment; a good network of trust, with other partners, listening to the territory and innovating in the way of donating is enough to generate impact”, believes Cássio França, general secretary of Gife.
Finally, focusing on social impact is also an interesting way to attract the attention of stakeholders and generate authority and increase the brand's reputation. The Brasil Giving Report 2019, which presents a portrait of giving in the country, showed that 74% of Brazilians believe that companies should develop causes and support the society in which they operate. “The ESG agenda has brought a path towards greater awareness and perception among investors that, in fact, it is necessary to find solutions that have an impact and are more effective. Greenwashing and socialwashing have forced companies to change their mentality and become more attentive and careful about the projects they develop and the way they report this”, explains Barretto.
THE EFFECTIVENESS OF VENTURE PHILANTHROPY
Venture philanthropy, which is usually translated as strategic philanthropy, is one of the current approaches to donation and investments that prioritize social and environmental impact over financial return. “Strategic philanthropy is more than a type of social investment. It is a long-term structured support approach that, in addition to providing financial support, has pillars of non-financial support and monitoring of indicators. We believe that the adoption of this concept by companies strengthens and enhances the third sector, increasing the potential for social impact, analyzes Elizabeth Mac Nicol, superintendent of B3 Social, which is the non-profit association responsible for B3's private social investment and volunteering fronts. .
The projects supported by the association are based on evidence, with systemic action in education networks, and aim to achieve social impact and reduce inequalities, according to the executive. In 2022, support is divided between 28 education projects that impact approximately 6 million people.
“In the last three years, we have had public education as our focus of action and investment, with an annual allocation of around R$50 million through direct donations and incentivized funds. In addition to private social investment, we have volunteering, which also contributes to the supported organizations. Every year, we engage over a thousand employees in social mobilization actions”, says Elizabeth.
BILLIONAIRES
_ The ten richest men in the world have doubled their fortunes, while more than 160 million people have been pushed into poverty. Worldwide, billionaires' wealth increased by a staggering $3.9 trillion between March 18 and December 31, 2020. The world's ten richest billionaires saw their wealth collectively increase by $540 billion during that period. In Brazil alone, ten new billionaires have emerged in Brazil since March 2020.
Aware that it is no longer possible to ignore the negative impacts of global social problems, they are increasingly using their influence, knowledge and focus on relevant causes to contribute to contemporary philanthropy, whether in the form of large donations, private social investment, creation of movements and organizations and even influence on governments. One of the examples that resonated most recently came from Bill Gattes, one of the richest men in the world. In July of this year, he announced one of the most significant donations in the history of philanthropy: US$20 billion will go to the foundation he founded with his ex-wife, Melinda French Gates.
“It is very clear, given the socioeconomic crisis we are experiencing, that the solution is in the hands of civil society, companies and us individuals, since the government alone is not capable of facing all of society's problems. Collaboration is a more complex path, but it is certainly the most promising”, concludes Paula Fabiani, from Idis.
Text originally published in Forbes
