The global satellite industry is usually viewed as an extremely competitive and sometimes cutthroat business. Market share; revenue growth; market capitalization; and EBITDA compete for the attention of owners, management, and the investor community. However, there is a revolution going on supporting the idea that you can “do well by doing good;” that these measures of business success can be positively impacted by a thoughtful commitment to Corporate Social Responsibility (CSR).
But does it really work? Is there a sufficient benefit derived from embracing a CSR strategy across an entire corporation? What kinds of CSR programs have been implemented by satellite and satellite-related companies?
Corporate social responsibility has many definitions. For the purpose of this article we’re defining it as “A conscious effort or program on the part of a business or organization to operate ethically and in socially responsible ways with respect to its stakeholders (i.e. employees, customers, investors, vendors, and the communities in which it does business).” In this context businesses take actions that are not directly profit motivated, but that ultimately contribute to long-term corporate financial health and sustainability. These activities contribute to a positive corporate reputation and enhance the company’s branding in the markets that it serves. In most cases CSR programs are separate and apart from corporate philanthropy.
CSR actions and programs take many forms. Typical forms (not always identified as CSR) include corporate support of staff volunteerism in the community; environmentally sensitive policies such as paper conservation, recycling, and so-called “green” energy programs. Reaching outside a company there are programs that deploy corporate assets, services, and technology to help communities and populations improve health, safety, social welfare, and education programs.
Whatever a company does to employ CSR is valuable on at least two broad fronts. On one front - taking the action is beneficial to all stakeholders internal and external to the company. On the other - telling people what you are doing leverages your good and beneficial work by using it to build your brand and reputation across the range of stakeholders that have an interest in your company. Additionally, companies are finding that CSR programs are of great interest to their employees and that employees take pride in working for a company that demonstrates that it values its communities and its employees.
Let’s us see what three satellite operators and a network technology provider are doing with their CSR programs.
Intelsat
In addition to internal programs such as a commitment to employee health programs; a continuing education program; and a CEO Awards program celebrating outstanding individual and team performance; Intelsat invests in SSPI’s scholarship program to support the development of new talent for the industry; provides leadership in the Satellite Operators Interference Reduction Working Group benefitting the entire industry; and in partnership with iDirect Intelsat has supported the Children’s National Medical Center telemedicine program in Morocco with annual donations of satellite capacity since 2008. During the Haiti earthquake, Intelsat and other commercial satellite carriers contributed satellite capacity to establish communications links during the days immediately following the earthquake. As the world’s first international satellite carrier over the years Intelsat has contributed satellite capacity and networking expertise in response to many natural disasters and in support of numerous non-governmental organizations (NGOs) involved in disaster response, international aid and international development.
SES Group
SES World Skies and its sister companies has been actively engaged in numerous CSR activities, intentionally focused on an education theme. They strive to have their CSR investments contribute to the development of a communications-based society and a knowledge-based economy:
· International Space University: Continuing scholarship support
· Society of Satellite Professionals International (SSPI): Ongoing support of SSPI’s scholarship program
· St. Gallen Symposium 2009: Program support
· IDATE Foundation: Active membership in this strategic decision-making assistance entity. Active contribution of satellite capacity in support of international agencies responding to disasters and managing international development.
Thaicom
As a regional satellite carrier in Thailand, Thaicom and its sister company Lao Telecom focus many of their CSR programs on education and children. “Thai Kids Thaicom” is centered on the donation of 999 DTV sets (satellite dishes and TV sets) given to remote schools across the country to give them access to 10 educational TV channels. Wat Tabong School in Ayulthaya, Thailand gets broadband access via the contribution of an IPSTAR system. Corporate support of Children’s Day and “The Miracle in Our Universe” book shelf in school libraries across the country highlights science and satellite technology topics.
Cisco
Cisco’s president and CEO John Chambers drives Cisco’s commitment to CSR through his personal support of a companywide program that is good for business and society. Cisco’s CSR programs are designed to provide long-term benefits to employees, customers, shareholders, partners, and individuals in communities around the world. As an example, here is a excerpt from a recent Cisco press release:
"...A YouTube video shows a group of youngsters chanting "Victory, victory, victory," in an impromptu celebratory sing-along. So far, so normal; but this is no average bunch of college kids toasting a team win. Instead, these are shanty town dwellers from Nairobi, Kenya: youths for whom there have traditionally been as few reasons for celebration as there are opportunities to get onto websites like YouTube.
What has changed for them is the arrival of Cisco’s Networking Academy, which trains local inhabitants and gives them a chance to break out of their challenging circumstances. "Cisco has come to remove us from computer illiteracy to computer literacy," recite the YouTube singers. 'It has come to enlighten our minds, to give us hope, and our future.'...."
For many in this shanty town the Cisco training is a ticket out of poverty and a chance at a better life
What can we conclude?
CSR is an important part of each company’s strategy for community engagement and brand management. We know that each company promotes CSR by observing their ongoing messaging. We also know from conversations with two of the cited companies that large-scale cash investments are difficult to justify. At this time we don’t know how they are measuring their return on investment without engaging them in a follow up dialogue, which may be an outcome of this article based on reader interest. In general, we know that each company has a good reputation and a positive brand and leadership image in the marketplace.
Recent research issued in June 2010 conducted by the Center for Creative Leadership (www.ccl.org) indicates that “companies have enormous potential to affect change in their communities and the environment by investing in CSR initiatives…” and that employees value a company’s CSR involvement and commitment; “…but not more than basic job satisfaction.” CCL goes on to conclude, “Though immediate benefits might be few, it is likely that the importance of CSR will increase in years to come as people become more interested in the social and environmental effects of corporations. Leaders who stay aware of CSR and the implications for their organizations will be able to make the most informed decisions.” CSR is not a panacea for addressing corporate challenges; it is a long-term investment in building brand, reputation, and in doing the right thing for stakeholders and shareholders. However, this writer believes that corporate leaders must take steps to implement and grow their CSR programs at a pace that stretches their organization financially and intellectually, while remaining responsible stewards of the total corporate agenda. As with any investment, measuring performance and returns should be an important element guiding a company’s future investments in CSR.
To our readers
What are your views on CSR and its value to the satellite industry and the communities it serves? What are the successes achieved and challenges encountered by companies that you know that have implemented CSR programs, particularly during these economically challenged times? What should we do to enhance our CSR efforts for the benefit of our communities and our companies; or should we? Send your comments and case studies to: Stephen Tom at stephengtom@gmail.comandwatch for follow-up articles in future issues.
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Stephen Tom is an international business development consultant. In sales and management positions for Bonneville Satellite, Keystone Communications, WIT (Washington International Teleport), and Pacific Telecommunications Council his focus has been on growing revenues and value. Most recently he was Director, Business Development, Asia-Pacific, for Intelsat. As a consultant he develops growth strategies for companies looking for new revenue opportunities; he provides teleport valuations; and he advises “Technology Consulting in the Global Community” at Carnegie Mellon University. He can be reached at stephengtom@gmail.com
