II Philanthropy & Corporate Community Development

The Community as a Stakeholder
I The Business-Community Relationship

II Philanthropy & Corporate Community Development

III Building Local Living Economies

Is this a community? Why or why not?

Is this a community? Why or why not?

How does this contribute to community?

Or this?

How does this contribute to community?

Or this?

How does this contribute to community?

What kind of community is this?

What kind of community is this?

Is this a space that builds community?

The firm and its communities…
Site community: geographical location of a company’s offices, operations, or assets
Fenceline community: immediate neighbors receiving the positive and negative effects of company’s activities
Impact community: anyone affected by externalities from the firm
Cyber community: anyone that uses the internet to learn about or communicate with the company
Community of interest: stakeholders with a real interest in the company
Community of practice: those who engage in similar activities or practices
Employee community: those who work or live near the facility

http://www.phila.gov/phils/Docs/otherinfo/pname1.htm

What Community wants from Business
Support for art & cultural activities
Support for traffic management
Participation in urban planning and community development
Support of local health care programs
Support of schools
United Way Campaign support
Assistance for the less advantaged
Support for pollution control http://www.epa.gov/epahome/commsearch.htm
Participation in emergency planning
Support of local recycling programs

http://www.volunteermatch.org/

What Business wants from Community
Education and cultural resources that appeal to employees
Family recreation facilities
Public services – police & fire protection; sewer, water, & electric services
Taxes that are equitable and do not discourage business operations
Business participation in community life
Adequate transportation systems
Public officials who operate honestly and with integrity

https://www.bloomberg.com/news/videos/2017-03-13/quicktake-pros-and-cons-of-the-fracking-boom

Sunoco’s Marcus Hook Facility

http://www.dep.state.pa.us/dep/deputate/minres/oilgas/2011PermitDrilledmaps.htm

5
Department of Environmental Protection Bureau of Oil and Gas Management Marcellus Shale Formation

The Issues
Mariner 1 project reuses existing pipes
Much of the pipe dates from 1932 – 82 years old
Pressure to increase pressure from 800 to approximately 1,500 psi
18 new pump stations and 17 valve control stations
Scheduled for use for middle of 2015 for 70,00 barrels/day pure propane
No financial benefit to impacted communities, as 90% committed to shippers
Mariner 2 announced and has committed shippers
Official filings with the DEP as of April 2015
Increased demands for infrastructure buildup in the southeastern PA region
Scheduled to carry 275,000 barrels/day pure liquid ethane by 2016

http://www.philly.com/philly/business/281752211.html

20

Chester County Pipeline Congestion

Sunoco Facility

http://citypaper.net/news/whats-at-stake-if-philly-becomes-an-energy-hub/

The Issues
Sunoco proposes a pump station in a residential zoned district that is highly populated
Plan to construct a building to house the pumping equipment
Purpose is to protect machinery
Reduce noise
The facility will have a 30 foot combustion unit
Residents told flare will operate sporadically; actual proposal is 24/7
Also used for maintenance purposes
Local zoning versus Public Utility Commission (PUC)

8

http://www.sunocologistics.com * Sunoco’s 3rd quarter earnings call * West Goshen Township zoning hearing

19

1
0.45%

3
1.36%

6
2.71%

9
4.07%

27
12.22%

74
33.48%

101
45.71%
Pipeline Incidents Since 2006
1-All Other Causes .45% (unspecified)
3-Outside force damage 1.36% (intentional)
6-Natural force damage 2.71%
(temp, flood, earth, unspecified)
9-Excavation damage 4.07% (3rd party)
27-Incorrect operation 12.22% (installation, overfill, overpressure)
74-Material/Equipment Failure 33.48% (construction, welds, pumps, malfunction)
101-Corrosion 45.71% (internal/external)

http://primis.phmsa.dot.gov/comm/reports/operator/OperatorIM_opid_18718.html?nocache=1263#_Incidents_tab_4

Corrosion
Material Failures

Corporate Philanthropic Contributions

Factors Influencing Corporate Giving Priorities
Aligning closely with business needs
Limits on budgetary resources
Directions from the CEO and/or the Board
Strengthening the brand
Costs of responding to natural disasters
Being more responsive to stakeholders
Changes in the workforce
Employee needs/requests
Community needs
Global giving

Strategic philanthropy:

good citizenship, good business

Pure
Philanthropy
Business
Sponsorship
Strategic
Philanthropy
(blends pure philanthropy
& business sponsorship
approaches)
Community Benefits
Assistance to:
Arts & culture
Health & social services
Civic & community projects
Education

Business Benefits

Public relations
Goodwill
Cause marketing
Political access

Creating Community Development Programs

“Philanthrocapitalism encompasses not just the application of modern business techniques to giving, but also the effort by a new generation of entrepreneurial philanthropists and business leaders to drive social and environmental progress by changing how business and government operate. At its broadest, the term refers to the growing role for private sector actors in addressing the biggest social and environmental challenges facing the planet.”

Problems with the Philanthrocapitalist Model

Heralds the wealthy as saviors, preventing deeper questioning of the neoliberal capitalist system.

Allows the wealthy to appoint themselves to highly political positions for which they may not be qualified.

Imposes a stark corporate vision and vocabulary on the charitable world, constantly demanding proof of ROI, turning the world into one vast market: money, markets, measurement, management.

Fragments and weakens global governance structures.

Built on unstable financing via market-based financial instruments.

Problems with the Philanthrocapitalist Model

Lacks public monitoring and social accountability mechanisms.

Can offer overly simplistic solutions for complex global problems.

Increasing portion of philanthrocapitalist dollars go to for-profit enterprises, never reaching the impoverished.

Revolving door among employees between philanthrocapitalist foundations and big pharma, big agriculture, and privatized education.

Maintains the dominant economic model that allowed the philanthrocapitalists to gain obscene wealth at the expense of social and environmental concerns.

Undermines democratic process.

Solutions?

Demand more transparency from philanthrocapitalists.

Raise taxes on wealthy and on corporations so that there’s more $$ in the public coffer to solve domestic social and environmental problems.

Encourage philanthrocapitalists to fund citizen-led social justice movements and partner with social activists.

Measure philanthrocapitalist success by its capacity to question the dominant economic model.

“Money should be spent trying out concepts that shatter current structures and systems that have turned much of the world into one vast market. Is progress really Wi-Fi on every street corner? No. It’s when no 13-year-old girl on the planet gets sold for sex. But as long as most folks are patting themselves on the back for charitable acts, we’ve got a perpetual poverty machine.” – Peter Buffett

Why Local Business Networks?

Local businesses stick around and generate income for years and generations.

Dollars spent at local businesses tend to circulate in the local economy longer.

http://www.yesmagazine.org/issues/go-local/the-local-multiplier-effect

Local businesses have a size and character with what is consistent with what makes a community flourish.

Local businesses have a smaller carbon footprint.

Principles of Local Economies/Networks

Scale
Alternative to “growth” – expanding creativity, knowledge, consciousness; deepening relationships; increased happiness & well-being

Ownership
Community- & employee- controlled organizations; dispersion of ownership; keeping capital within community

Place
Organizations tied to the fabric, geography, and makeup of the community

Cooperation
Building partnerships & sharing of ideas rather than competing to dominate the national marketplace

Philadelphia Sustainable Business Network

Home

http://www. localphilly.com/
Our Mission:
SBN helps local, independent businesses thrive while they build an economy that values people, planet and prosperity for all.