A company’s main contribution to society is that it exists, treating its employees and customers fairly and creating wealth for society at large. Though this is a major contribution in itself, many businesses go one step further. There are many ways to do this and all a company has to do is to find the right solution.

Which is better: setting up a non-governmental organization (NGO) or supporting an existing one?
The important thing is to feel the call to build a better world, to alleviate inequalities or insecurity. This might be done by either creating an NGO or joining one – but that’s beside the point. All wellmeaning activities carried out with sincerity and a desire to make a difference are equally good.
What leads a senior executive like you to work with an NGO?
There is a wide variety of motivations ranging from the most private and sentimental to mere fads. Some people might have suffered from poverty or illness. Others believe that working with a charity brings a company closer to its employees. The goal is to provide the company with yet another way of expressing its solidarity. Finally, there are other more extrinsic reasons, such as how it benefits the company’s image. But these are very frail and in the long term do not bring the credibility that comes from participating in NGOs for heartfelt motives.
How do executives get involved in an NGO?
First of all, by lending their time and knowledge. Secondly, by getting their company involved in a variety of ways such as monetary donations. The company can make sure that its employees receive information that may inspire them to support a charity. It can donate, for example, part of its logistics or surplus capacity. Or it can channel the NGO’s messages and materials via the company’s communication and distribution networks. There are many different ways.
What are the main constraints that NGOs currently face when approaching companies?
I think there are three major constraints. Firstly, there are many charities and we’re all knocking on the same doors. The second is that companies are formalizing and prioritizing what they choose to focus on and what not. And thirdly, NGOs are being asked to present themselves in a highly professional fashion.
Does this mean we’re witnessing the professionalization of NGOs?
Fortunately, nowadays the majority of NGOs are highly professional and rigorous in their communication with the public, on a par with the non-NGO sector. However, in the case of NGOs, the"consumers'" compensation is not material. The reward is intangible: the satisfaction of having helped out; a clear conscience, information, personal satisfaction, prestige. For this reason, it is vital that NGOs are profesionally managed and that they execute programs professionally and creatively, detecting needs, connecting with society. And, just like in any other company, our major challenge is to attract and retain talent.
What other challenges do NGOs face?
In a company, the yardstick of success is a positive bottom line sustained over time, even though that’s obviously not the only one. In an NGO, we have to take into account both the bottom line and non-financial factors such as our accountability to those we aim to serve and with those who want to help out. That is, you also have to know how to manage and maintain credibility, keeping
the volunteers, donors, sponsors and all stakeholders onboard. An NGO has a very particular management structure in that it requires not just volunteers but also professionals, but also a great deal of dedication and talent, just like any company.
What is the most difficult part?
The most difficult part of managing an NGO is choosing what not to do, what Peter Drucker called “organized abandonment.” This means that we have to transform good intentions into something that truly provokes change. This is coupled with another difficult part of management which is rigorous service. We NGOs must be top-notch at this. The quality of service and managing time and expectations are key. Therefore, in addition to finance and accounting we have to know how to make things tangible in an impeccable way. We have no excuse for being any less rigorous just because we’re an NGO. We can’t confuse volunteerism with a lack of rigor. NGOs have to work extremely hard because we’re using resources that people have trusted us with.
How can we gain the trust of people or companies that decide to work with an NGO?
The only way of being accountable is by disclosing information, and obviously by complying with all the requirements determined by tax and civil entities. In the case of our foundation, for example, we provide donors with written and personal information, we explain what we do with their money, we give them periodic updates, we send them our annual reports and they can find information
on the website. As NGOs, we are accountable to our donors and our beneficiaries, and we must obey the relevant tax and civil regulations.
Finally, what do you personally get out of working in an NGO?
Just like IESE, NGOs aim to improve people’s lives. This does not make us better or worse people than those working in other sectors. Therefore, I find it very satisfying to think that my job can actually positively influence other people’s lives. It’s a privilege. However, business people must also feel proud of creating and keeping jobs, since this is also a major contribution to society.
Without companies that create wealth, there is no wealth to distribute
or share with others.

Julie Butler and Aïda Rueda

Gratitude: A Formidable Force

It continues to fuel star tenor José Carreras’s passion to make leukemia completely curable.
Grateful for the love and support the Catalan-born opera singer received when he himself suffered and survived the cancer , 20 years ago he set up a leukemia research foundation.
As IESE Prof. Johanna Mair observed in a recent interview with Carreras, marketing experts would have expected donor fatigue to set in but the now international foundation thrives.
What keeps people opening their hearts and purses?
“I think that one of the reasons...is that we present to the public in a very transparent way what we are doing with the donations we receive. I think we have a certain credibility that means that through the years the people still trust us and help us,”
Carreras said.
“I think also that people respond when somebody presents himself in front of the audience saying ‘Look, I know what I’m talking about because I went through such and such a disease and I have been fortunate enough to win the battle so let’s all try together to achieve certain objectives’.”
“Artists in general have the right sensitivity for social causes and for problems that affect other people.”
“In my case I have to say that these displays of affection from people around the world were so strong that I thought I really had to do something significant and not just sing a couple of concerts during the year ...but establish a foundation.”
Prof. Mair, a leading researcher on social entrepreneurship, asked his advice for those mounting similar projects but Carreras said he was not one for counseling anyone, not even singers.
“The only thing I can say is the obvious: enthusiasm, determination, energy, believing in what you are doing. What we all need for our activities,” he said.
Perhaps we should add impatience given his parting words:
“I hope, and we know that it will happen, that leukemia is going to be eradicated one day. But better tomorrow than the day after tomorrow.”

20 Years
FIGHTING LEUKEMIA

The José Carreras International Leukemia Foundation was founded 20 years ago. Today, the foundation works in four countries (Spain, Germany, Switzerland and the United States). It employs 30 people and handles a budget of around €24 million. Antoni García Prat explains that the road has not been easy. He acknowledges that for José Carreras “it is a huge personal effort, but he believes that he must do it, and he is pleased to be doing it.” Currently 40 percent of the foundation’s revenues are raised by José Carerras himself through his concerts, which bring in a total of around €1 million per year.
Antoni García Prat looks back at the foundation’s two decades and expresses his satisfaction at how it has evolved over time. Though the foundation can still be improved, it has managed to become a united, effective and attractive entity for those who support it. In contrast, “from the standpoint of our mission,” said García Prat, “we have to accept that we are fighting a disease, and until the day comes that it is curable across the board we cannot rest on our laurels.”
The foundation works day in and day out to reach places where the welfare state does not. “We try to stay one step ahead of the welfare state by investing in research,” he comments. “We help whoever falls through the welfare state's safety net, and we work with the welfare state in order to achieve bone marrow donors for patients who need it.” García Prat dreams that in its next 20 years, the foundation will focus its efforts on research and development.