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Giving Thoughts

THE CONFERENCE BOARD INITIATIVE ON CORPORATE PHILANTHROPY

The State of Global Pro Bono


by Amanda MacArthur, Vice President, Global Pro Bono and Engagement, PYXERA Global
1

Employee engagement is an oft-cited challenge for large corporations, already overtaxed by an


increasingly competitive landscape, volatile market forces, and shareholder demands. The growing
practice of global pro bono, in which companies send employees on cross-border skills-based
volunteer programs, is an effective approach to inspiring a more motivated and engaged workforce.
The generous sharing of talent also contributes to social impact and economic growth, while
developing global leadership skills and perspective for employees. This report presents survey
findings collected by PYXERA Global about global pro bono programs, their design and mission,
cross-sector partnerships, and triple-benefit impact.

Pro Bono Is Growing


Providing pro bono support to organizations addressing
community challenges is growing in popularity as a means for
corporations to build their future leadership and create shared
value in emerging geographies. PYXERA Global knows of
just under forty companies that participate in global pro bono
programs. Twenty-six of these multinational corporations
responded to PYXERA Globals Benchmarking Survey.
These companies show a consistent increase in the number of
programs being offered. Though over half of the companies
1 See, for example, Charles Mitchell, Rebecca L. Ray, and Bart van Ark, CEO
Challenge 2014, The Conference Board, 2014.

No. GT-V1N8
DECEMBER 2014

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launched their programs after 2010 (when PYXERA Global


first began benchmarking this information), by 2013, 6,000
professionals from these companies had travelled abroad
on a pro bono assignment. By the end of 2014, over 9,000
employees will have participated in such programs.

This Giving Thoughts is based on Amanda


MacArthur and Alicia Bonner Ness, Corporate
Global Pro Bono: The State of the Practice,
PYXERA Global, 2014, available at http://pyxeraglobal.org/
corporate-global-pro-bono-state-practice

Why Companies Invest in Pro Bono

Chart 1

Global pro bono program objectives

The three most commonly identified objectives for


implementing global pro bono programs among companies
in PYXERA Globals study are generating sustainable
social impact in local communities, increasing employee
satisfaction and loyalty, and improving employees
leadership skills (Chart 1).

5=very important

1=least important

14

54%

21

To generate sustainable social impact in local communities


7

14

32

43%

To increase employee satisfaction and loyalty to the company

Although more than half (54 percent) of respondents rated


sustainable social impact in local communities as their
programs most important objective, companies also use
pro bono programs to engage employees. A number of
companies offer the assignments to their top talent
employees who are at risk of being recruited away from the
companybecause of the unique development opportunity.
The programs often require employees to deliver a highquality product in a resource-constrained emerging-market
environment, working with multicultural, multiexpertise
teams under a tight deadline. Such experience is difficult
to find elsewhere and has a profound impact on the
participants and the development of their skills.

43%

25

18

To improve the employees leadership skills


32

18%

21

25

To build/improve presence and reputation


7%

21

36

14

18

To better understand how to conduct business in the emerging


markets we select
18%

21

11

25

25

To improve our ability to innovate in the markets we select


12%

19

27

23

19

To build/improve stakeholder relations


Source: PYXERA Global, 2014

IBM Corporate Service Corps

An Alternative Approach to Leadership Development


Launched in 2008, IBMs Corporate Service Corps (CSC)
sends teams of high-achieving IBM employees to provide pro
bono consulting and expertise for governments, small- and
medium-sized enterprises, and non-profit institutions in
Africa, Asia, Eastern Europe and Latin America. Projects last
for up to four weeks, and the experience cultivates global
leadership competencies and introduces the company and its
future leaders to new, less-developed markets.
IBM works with four NGO partners, including PYXERA Global,
to execute the CSC. PYXERA Global consults with IBM to
understand which countries are important to the business
and to help identify host organizations with the capacity to
receive IBM pro bono support.

Competitive applications
At the same time, IBM administers a competitive application
process to assemble employee teams from geographies
around the world. Each team member participates in an
intensive three-month virtual training that addresses topics
such as scenario planning, the consultative approach, value
realization, cultural immersion, project briefings, and security.

giving thoughts The State of Global Pro Bono

Developing an effective initiation process for participants,


as well as achieving strong executive support and vision, has
helped IBMs CSC to become the worlds largest global pro
bono program with deep impact. By the end of 2014, 3,000
IBM participants from 58 countries will have participated in
more than 1,000 CSC projects in 37 countries, generating
more than $100 million in value for host organizations over a
six-year period. The CSC has worked on services consumed
by over 33 million people worldwide and built the capacity
of more than 14,000 people. It has also helped community
and public organizations raise over $14.4 million of funding to
implement important projects in Turkey alone.
The program has reinforced IBMs future leadership potential
by creating a strong talent pipeline. In a survey of 900 CSC
alumni, 90 percent reported that the program had increased
their leadership skills and 82 percent said it increased their
desire to continue their career at IBM. In a survey of 500
managers of alumni, 89 percent said the participants under
standing of the developing world increased and 64 percent
reported that the employee is now contributing to the company
in more valuable ways.

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Typical Pro Bono Program Structures


Team assignments versus individual fellowships

Geographic focus

Typical pro bono assignments are team-based. Many


corporations strive to make their teams global, ensuring
that no one team is dominated by people from a particular
country. Often, teams reflect the geographic spread of the
companys employee base.

Corporations use their pro bono programs to mobilize


their employees for social impact in countries around the
world. The 26 companies surveyed sent teams to a total
of 80 countries worldwide, focusing on emerging and
frontier markets.

A clear majority of companies (67 percent) send employees


on team-based pro bono assignments, and 44 percent send
participant teams of at least ten employees from across
the organization. Only 11 percent of companies send
individuals to work within a host organization. Enhancing
employees abilities to work in multicultural team with
colleagues who have different expertise is a clear benefit
of team-based programsand one that is increasingly
important to companies.

Africa (29 percent) and Asia (25 percent) combined represent


over half of the geographies targeted by companies with their
pro bono programs. However, Latin America (23 percent)
and Europe (16 percent) are also important destinations.

Though most pro bono programs are structured in teams,


the duration of assignments varies. Forty percent of
companies place employees in the field for between three
and four weeks, close to one-third place participants on
assignment for less than two weeks, and the remaining
third of companies place participants on assignments
lasting from four weeks to five months.
Chart 2

Chart 3

Pro bono global reach


Australia [1%]
North America
Middle East
Central
America

4 3
10

Africa
29%

South
America
13
Europe
16

Asia
25

Is your program team-based, individual, or both?


Percentages do not add up to 100 due to rounding.

Both
22
Individual
11

Source: PYXERA Global, 2014

Team-based*
67%

* Two or more people in the same location


Source: PYXERA Global, 2014

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giving thoughts The State of Global Pro Bono

Support from local implementing partners


Implementing partners are nonprofit or for-profit
organizations that have expertise about less familiar local
market climates, cultures, and operational realities. Often
a nonprofit (like PYXERA Global or Emerging World)
will partner with a company and take full responsibility for
in-country logistics for employees (housing, transportation,
etc.) and identification of the local client organizations for
which employees will work. Such organizations also often deal
with local client satisfaction and impact evaluation, so they
are vitally important to the success of pro bono programs.
With such a strong focus on the emerging or frontier markets
for pro bono projects, its little surprise that the majority of
companies (64 percent) work with an implementing partner.

Many companies deeply value these relationships, and


one company in particular reported that its implementing
partner was crucial to integrating the program into the
company strategy.
Chart 4

Do you partner with organizations to implement


and manage your program?
Yes, we partner
with a nonprofit
organization(s)
64%

Yes, we use
both nonprofit
and for-profit
partners
18

Yes, we partner
with a for-profit
organization(s)
4

14

No
Source: PYXERA Global, 2014

Dow Chemical Company

Pioneering a New Virtual Consulting Model


In 2013, The Dow Chemical Company launched itsLeadership
in Action (LIA) pilot program in Accra, Ghana, where 36
employees spent five days in an intensive collaboration.
This followed several months of virtual consulting work.
LIA is a unique partnership between Dow Sustainability Corps,
the companys skills-based employee engagement program,
and its human resources talent development arm.
The program is an extension of the companys virtual
consulting model, developed through Dow Sustainability
Corps, which allows employees to remain engaged in their
daily professional lives, while still participating in a pro bono
assignment. Dow has found that the virtual consulting model
still engenders global leadership qualities, as it demands
a deeper level of listening for context and cultural nuance
during remote communications. For LIA, the Dow teams
spend several months consulting virtually (part-time) before
arriving in-country to meet their host clients and present their
findings. The virtual consulting resumes for approximately
five months upon return home to ensure a successful project
completion. For other Dow Sustainability Corps programs,
work is entirely virtual.

giving thoughts The State of Global Pro Bono

One of the learnings that came out of this is what can


constitute new business opportunities in emerging markets,
said Ross McLean, president of Dow Africa. These projects
enabled our emerging leaders to appreciate and better
manage some of the unexpected challenges of doing business
in Africasuch as the underdeveloped infrastructure,
the interruption of communications, and the criticality of
relationships (instead of time)and to realize that its worth it.
LIA has moved beyond the pilot phase, and in 2014 Dow sent
a cadre of 41 employees to Addis Ababa, Ethiopia. This group
was separated into subteams to work closely with nonprofits,
government, and universities on demand-driven projects.
Assignments included:

Helping to create and launch a learning academy for the


Ethiopian Chamber of Commerce to help entrepreneurs and
business owners strengthen their ideas and practices; and

Identifying sustainable practices to convert waste into


fertilizer for Population Services International.
In total, the teams provided pro bono service for eight host
clients in areas spanning agriculture, education, business
planning, hygiene, and sanitation.

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Program Participants and Their Development


Almost all program participants attend an orientation course
or session and a majority attend a skills training course or
session prior to arriving. The format of predeparture training
depends heavily on program constraintsincluding available
employee time and program funding. Programs are typically
module based; each week the team or individual is required
to learn about a specific topic relevant to their deployment.
Chart 5

Predeparture training topics


96%

Program policies and procedures

96

Logistics

93

Cross-cultural attitudes or behavior

89

Safety and security


Country-specific information
Alignment with corporate strategy
or business plans
Media and communications

Skills development
Employees develop a wide range of skills through global
pro bono programs, but the majority of companies surveyed
ranked leadership development as the most important
(69 percent), with cultural adaptability next (42 percent).
Fewer respondents rated teambuilding, the development of
professional skills, and entrepreneurship as very important.
In addition to improving the skills of participants, pro
bono programs increase employee satisfaction. A majority
of respondents reported that the opportunity for employees
to use professional skills (in a new and different way) and
improve their cross-cultural competencies were the most
important drivers of program satisfaction. Respondents
also noted that employees benefited from a broader network
within the global company and increased visibility and
potential for promotion.

86
Chart 6
82

The most important skills gained by participants,


rated by companies

79
5=very important

1=least important

Source: PYXERA Global, 2014


15

69%

12

Leadership development
42

42%

Cultural adaptability
38%

31

19

Professional skills
31%

42

15

4 4

Teambuilding
12%

38

19

19

12

Entrepreneurship
Source: PYXERA Global, 2014

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giving thoughts The State of Global Pro Bono

Impact: The Triple Benefit


Program managers often speak of the triple benefit of
global pro bono, which includes impact on participants, local
communities, and the company. A majority of companies
(54 percent) identify the social impact on local communities
as the most important benefit of global pro bono programs,
while 41 percent emphasize employee skill development.
Chart 7

Pro bono program impact


7=most important
6

1=least important

Chart 8

19

54%

The importance of different measures of local


client impact

12

5=very important

Generating sustainable social impact in local communities


15

19

11

41%

11

Developing employee skills (leadership development, teambuilding,


entrepreneurship, etc.)
26%

26

15

19

Improving the capacity/capabilities of local clients


30

15%

11

44

Increasing employee satisfaction


4% 12

15

15

31

15

Meeting human resource management targets (recruitment,


staff retention, etc.)
4% 11

19

19

30

Improving the effectiveness of the local clients who host


participants is a major element of pro bono programs
social impact. Such organizational improvements include
training and building the capacity of local staff, improved
access to resources they would not otherwise have, and
an increased ability to offer their services to their local
constituents. A large percentage of respondents reported
that these measures of local client impact were either very
important or most important.

42%

1=least important
12

38

Training and capacity building for the staff


35

46%

Access to resources that they could not otherwise get


46%

27

19

Ability to provide improved services or products


to their local constituents
Source: PYXERA Global, 2014

42

38

15

19

12

11

Identifying new business opportunities (understanding


new markets, learning about customer behavior, etc.)
Source: PYXERA Global, 2014

giving thoughts The State of Global Pro Bono

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Meeting dual strategic objectives


Beyond the benefits to the local community and participants,
global pro bono programs deliver returns to the company
at a strategic level. Respondents emphasized the way in
which the programs helped them meet both corporate social
responsibility (CSR) and human resources (HR) goals
within the company.
Chart 9

Most important CSR objectives met through


pro bono programs
5=very important

1=least important

73%

12

12

Substantial improvements in the welfare of the local communities


23

65%

4 4 4

Ability to actively engage employees in the companys CSR strategy


42%

35

12

Conclusion

Percentages may not add up to 100 due42


to rounding.

15

Source: PYXERA Global, 2014


19

38

12

Most important HR objectives met through


pro bono programs
5=very important

1=least important

63%

29

Improve leadership competencies


54

38%

4 4

Evidence that the company cares about the


employees and are willing to invest in them
42%

50

4 4

Increased employee motivation & commitment


25%

29

Improved staff retention


8%

38

Although companies typically manage pro bono programs


through their CSR function, most respondents also
identified clear benefits for HR departments and talent
development. Over 90 percent of companies identified
increased employee motivation and commitment as very
important or the most important HR objectives to have
been met through the programs. Eighty-seven percent of
companies recognized the programs impact on improved
staff retention as at least a somewhat important HR
objective that was met through these assignments.

Enhancement of the companys image

Chart 10

Seventy-three percent of companies considered improvements


to local communities the most important CSR objective met
through pro bono programs. The programs ability to engage
employees in the companys CSR strategy was also highly
valued, with 65 percent of companies considering it the most
important objective, while 77 percent valued an enhanced
corporate image as either very important or most important.

38

19

33

33

Global pro bono programs are unique corporate investments


that yield multiple returnsamong them leadership develop
ment, employee loyalty, and sustainable social impact.
A growing number of companies are embracing these
programs, and a number of opportunities will emerge
to improve cooperation and ultimately extend the social
impact they can have.
At present, too few companies are engaged in global pro
bono for the practice to have developed a measurable
collective social impact, though many companies feel
that they have strong evidence of their programs positive
effectiveness through qualitative testimonials. An important
element to support the growth of the model will be to
improve the sophistication of impact measurement across
the triple benefit spectrum of participants, communities,
and the company.

12

13

Impact on staff recruitment


Percentages may not add up to 100 due to rounding.
Source: PYXERA Global, 2014

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giving thoughts The State of Global Pro Bono

About the Author


Amanda MacArthur is vice president of global pro bono and
engagement at PYXERA Global. MacArthur leads the organizations
global pro bono and MBAs Without Borders programs, as well as The
Center for Citizen Diplomacy. In this capacity, MacArthur designs and
implements corporate social responsibility programs for the public
and private sector focused on skills-based volunteerism in emerging
markets, leadership development, and sustainable economic impact.
Most recently, she played a key role in designing IBMs Corporate
Service Corps, while overseeing Global Pro Bono programs for
PepsiCo, Pfizer, FedEx, and several others.

About Giving Thoughts


Giving Thoughts is a public forum in which The Conference Board
engages experts from the disciplines of corporate philanthropy,
impact investment, and social innovation in an open dialogue about
issues of concern to member companies. Subscribe for free to the
Giving Thoughts report and blog at www.conference-board.org/
givingthoughts.
The opinions expressed in this report are those of the author(s) only
and do not necessarily reflect the views of The Conference Board.
The Conference Board makes no representation as to the accuracy
and completeness of the content. This report is not intended to
provide legal advice, and no legal or business decision should be
based solely on its content.

About the Series Director


Matteo Tonello is managing director of corporate leadership at The
Conference Board in New York. In his role, Tonello advises members
of The Conference Board on issues of corporate governance, share
holder activism, corporate sustainability, and philanthropy. He
regularly participates as a speaker and moderator in educational
programs on governance best practices and conducts analyses and
research in collaboration with leading corporations, institutional
investors, and professional firms. He is the author of several
publications, including Corporate Governance Handbook: Legal
Standards and Board Practices, Sustainability in the Boardroom,
Institutional Investment, and the annual US Directors Compensation
and Board Practices report. Tonello served as the co-chair of The
Conference Board Expert Committee on Shareholder Activism
and the Technical Advisory Board to The Conference Board Task
Force on Executive Compensation. He is a member of the Network

Participating companies
Accenture, BD, Celanese, CitiCorp, Credit Suisse, The
Dow Chemical Company, Eli Lilly and Company, EY, FedEx
Corporation, Google, GSK, IBM, Intel, John Deere, JPMorgan
Chase, La Caixa Foundation, Mars, Medtronic, Merck & Co.,
Inc., PepsiCo, Pfizer Inc., PIMCO Foundation, PwC, SAP AG,
Sidley Austin, LLP, and Symantec.
for Sustainable Financial Markets and the Advisory Council to the
Sustainability Accounting Standards Board (SASB). Prior to joining
The Conference Board, he practiced corporate law at Davis Polk
& Wardwell. Tonello is a graduate of Harvard Law School and the
University of Bologna.

About the Executive Editor


Alex Parkinson is a research associate in the corporate leadership
division of The Conference Board, specializing in corporate
philanthropy and sustainability. Before joining The Conference
Board, Parkinson worked as a senior consultant in London and
New York for corporate social responsibility (CSR) consultancy
Context. He has advised some of the worlds leading multinationals
on CSR communications and strategy development. His clients
included Bloomberg, Brown-Forman, BSkyB, Burts Bees, Cisco,
HP, International Paper, PepsiCo, Roche, Standard Chartered,
Syngenta, Teva Pharmaceuticals, and Vodafone. Parkinson spent
two years as a reporter and sub-editor for UK-based financial media
companies VRL KnowledgeBank and Vitesse Media. He holds a BSc
in economics and international development from theUniversity of
Bath, United Kingdom.

About The Conference Board


The Conference Board is a global, independent business membership
and research association working in the public interest. Our mission
is unique: to provide the worlds leading organizations with the
practical knowledge they need to improve their performance and
better serve society. The Conference Board is a nonadvocacy, notfor-profit entity, holding 501(c)(3) tax-exempt status in the USA.

For more information on this report, please contact:


Alex Parkinson, research associate, corporate leadership at 212 339 0382 or alex.parkinson@conferenceboard.org
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