Emergency and Resilience: philanthropy strengthening communities

By Beatriz Barros, project intern at IDIS

Social investment is about people. Prevention and care are also about people. At the 13th Brazilian Philanthropy Forum, with the theme ‘Interlaced Philanthropy’, the session ‘Emergency and Resilience: philanthropy strengthening communities’ discussed the imminent climate and sanitary crisis, talking about how emergency funds and donations can ease and prevent possible disasters. Present in the session were Giuliana Ortega (Sustainability Director at RD – Raia Drogasil), Karine Ruy (General Coordinator of the Gerações Foundation) and Marijana Sevic (Head of International Strategic Partnerships at Charities Aid Foundation), as well as Vinicius Barrozo (Social Value Analyst at Globo and responsible for the donation platform ParaQuemDoar) as the moderator. 

 

Watch the entire session

 

 

The discussion about the recent climate and sanitary actions, besides the increase in armed conflicts, highlighted the urgency of creating plans, strategies, and investments that can prevent possible crises. Karine Ruy talked about the work made by Gerações Foundation in the floods that hit Rio Grande do Sul – a Brazilian state – in May of 2024, leaving 497 municipalities impacted and 150,000 people displaced. The institution created ‘Fundo Comunitário Porto de Todos’ to aid those affected by the event. She emphasized the importance of listening to the demands of the community for the reconstruction and mitigation of risks, as she says in her speech:

“We understood that our role at that moment was to be a coordinating organization, building bridges between different actors in the ecosystem that had this operational capacity, but mainly identifying – through a very careful hearing process – what were the demands of the communities and territories”, she said.

Another relevant aspect commented was the role of Charities Aid Foundation (CAF) in countries such as Ukraine and Morroccos, that faced different types of emergencies: the first, an armed conflict, and the second, an earthquake. Marijana Sevic commented on the demand for donations in these cases, which are quick and must be met efficiently and safely, an activity CAF has expertise in operating in more than 170 countries.

Another highlight was the actions taken by RaiaDrogasil during the COVID-19 pandemic. Giuliana Ortega shared that, at the time, the company created an investment fund, together with the Institute for the Development of Social Investment (IDIS), to offer infrastructure to small and medium hospitals, ensuring that those structures would endure long after the crises. The company also supported  mass vaccination in different cities through the ‘United for Vaccination’ movement. These actions led RaiaDrogasil to reflect on the donation of their own resources which made them establish their own Theory of Change, highlighted by Giuliana:

“Since 2021, we have established a policy and started investing 1% of our net profit in health actions in communities and society in general. […] Therefore, we had these new resources to think about and so we decided to institute our Theory of Change because the resources were increasing. We were going to channel this effort, and our main goal was to promote health”.

Further on in the session, Vinicius Barrozo presented the platform Para Quem Doar (For Whom to Donate, in english), which had a key role in integrating and directing donations during the pandemic and the floods in Rio Grande do Sul. The app connects donors  and organizations simply and securely. In order to encourage giving culture, a partnership between Globo, IDIS, and Instituto MOL was announced through the ‘Find Your Cause’ campaign, which helps the donner identify the areas most aligned with their own values and convictions. 

However, there are still some loose ends to interlace, such as the lack of commitment to donations and the delay of the planning and creation of emergency lines for climate and sanitary crises. It is crucial to encourage a giving culture that goes beyond disasters; to have a strategic view for the middle to long-term  reconstruction period, when the initial commotion subsides and, therefore, so do the investments; and to highlight  the crucial role of communication in emergencies, announcing in a clear and captivating way the purpose of the donation. These paths can help to untangle some resistant knots and strengthen ambition and strategies. 

 

Photos by: André Porto and Caio Graça/IDIS.

Brazilian companies are not prepared to respond to emergency situations

By Andre Hanai, project manager at IDIS, and Paula Gonçalo, project coordinator at IDIS

About 25% of the deaths caused by rain in Brazil in the last 10 years occurred in 2022, and social investors must prepare more than ever for emergencies.

Between January 2013 and April 2022, natural disasters caused losses of R$341.3 billion throughout Brazil, according to data from a survey conducted by the National Confederation of Municipalities (CNM). The study also shows that in just the first three months of 2022, about eight million Brazilians had already been affected by some type of environmental disaster.

Speaking of numbers, another alarming fact on the subject comes from the government transition report released in late December 2022. It shows that the public money reserved for “support for emergency mitigation works for disaster reduction” was reduced from R$2.57 million to a mere R$25,000, becoming one of the budgetary bottlenecks for 2023.

In this context, solidarity has moved individuals and companies around emergency campaigns that seek to help communities most affected by natural disasters through the donation of food, clothing, medicine, etc., with Private Social Investment being a complementary alternative to public resources. The reduced volume of financial resources available and, mainly, the lack of coordination and strategic planning of actions show that there is a huge gap between social demands and the capacity of private social investors to respond to these tragedies, which increase in frequency and severity every year.

By definition, according to the ISDR – International Strategy for Disaster Reduction, a “disaster” is a “serious disruption of the functioning of a community or society, with impacts on people, goods, economy, and the environment, that exceeds the capacity of those affected to deal with the situation through the use of their resources.” The Covid-19 pandemic, a disaster of global proportions, has revealed the important role that companies can play in efforts to address emergencies, for example.

According to the 2020 Corporate Giving Ranking produced by IDIS – Institute for the Development of Social Investment, the ten companies that made the most donations and sponsorships in the world in 2020 allocated more than US$4 billion to Covid-19 response actions – equivalent to about R$20 billion. Meanwhile, in Brazil, the top ten corporate donors have given more than R$3 billion to the fight against the pandemic.

Floods in the State of Bahia in December 2021. Photo: Isac Nóbrega/PR

On the other hand, these numbers contrast with what had been observed as a trend in private social investment by companies focused on situations caused by disasters. According to the study Measuring the State of Disaster Philanthropy, conducted by Candid & Center for Disaster Philanthropy in 2019, although 70% of companies reported that disaster response is significant, the amount allocated to this type of action has been decreasing year by year, demonstrating that companies see this type of philanthropy as not very strategic.

The same study shows that philanthropy and private social investment could be more strategic. More than half of the resources aimed at emergencies are directed toward immediate response and relief of the initial shock caused by the disaster. At the same time, only 20% of donations support communities in becoming more resilient, promoting risk reduction and mitigation, and preparedness and readiness for emergencies.

The study “A purpose-action Framework for Corporate Social Responsibility in Times of Shock”, developed by Francisco Javier Forcadell and Elisa Aracil, corroborates these data. It analyzed the performance of 218 companies in Spain during the first weeks of Covid-19 in the country and classified them into 4 categories (symbolic, selective, reactive, and supportive), based on the company’s performance in the two main dimensions considered critical to the effectiveness of corporate interventions in emergencies: the scope of the intervention and response time.

Companies classified as symbolic or reactive have a very slow response time but differ in the scope of their actions, with the symbolic being quite restricted and the reactive being quite broad, with a greater sense of social responsibility. The selective and supportive classifications categorize companies with a quick response time to emergencies. The selective is restricted in terms of the scope of intervention, generally preferring to act only when there is an immediate need for support, while the supportive looks broadly at the scope of intervention, allowing for greater flexibility and fostering proactivity and innovation. According to the research, 42% of companies had a “selective” performance, meaning they acted quickly but with a significantly reduced scope and less strategic approach, limiting the potential impact of actions on the beneficiary public.

The City of Petrópolis in February 2022 after landslides | Photo: Clauber Cleber Caetano / PR

Companies must broaden their view of emergencies, rethinking their private social investment strategy to support society. There is room for greater impact in the medium and long term, not only to assist communities in times of tragedy but also to seek their resilience and preparedness to face these tragedies, as well as their recovery and reconstruction. To do so, companies need to ensure clear structures, policies, and governance that operate quickly in emergency cases, ensuring that actions are effective and response times are shorter.

It is a fact that we must act to prevent the disastrous consequences of floods, collapses, or fires. But it is also a fact that they will come, and will have disastrous consequences in the lives of thousands of people. Are you prepared to do your part?