Editors Note: What social responsibilities do private entities have to our communities and how are they executing those responsibilities? How can a corporate entity execute its business requirements and still share community values? Forefront sat down with Nikki Salzillo, Bank of America Corporate Social Responsibility Market Manager for Austin and San Antonio to explore the history, progress, and challenges of Bank of America's philanthropic programs in Austin and San Antonio—and the impact of corporate philanthropy in social advancement.
Forefront (FF): What do you think are the responsibilities of public companies to address social problems?
Nikki Salzillo (NS): Increasingly we are seeing corporations adopt social responsibility programs that move beyond traditional philanthropy to more comprehensive approaches that interweave business operations with community needs. This idea of "shared value"—coined by Michael E. Porter and Mark R. Kramer of the Kennedy School of Government—in which corporate policies and the financial bottom line are aligned to improvements in the communities in which they operate is gaining a foothold among private entities such as G.E., IBM and Samsung.
This evolution by other corporations affirms the philosophy and values that have guided Bank of America historically. The idea of "shared value" is imbedded in our DNA, if you will, and naturally shapes our connections with the communities in which we operate.
A bank and its community must have a symbiotic relationship. As a bank, you want a healthy, vibrant local environment and we all know that it requires education to achieve that. Small businesses and families need access to loans and infrastructure that allow them to buy homes and establish their livelihoods. Communities must be educated, healthy and stable to participate actively in our economy.
As a result, we have a strong history and legacy of investing in our communities. In some ways it's an extension of our bottom line—educated, healthy families and businesses use our products—but, more importantly, it's part of our value system as a company.
That's why, even as the economy has recently offered plenty of reasons why Bank of America should reduce our philanthropic programs, we recognize that the quickest path to recovery for all of us—the people in our communities and our shareholders—is to ensure the delivery of core health care, job training, hunger relief and shelter programs that will keep people above water economically. The decision to keep our philanthropy at historic levels of $200 million symbolizes the values shared by our business goals and our community—the revitalization of our economy.
FF: Are corporations accountable for their impact on the communities in which they operate? If so, how should they be held accountable?
NS: As a national entity, Bank of America has aligned our foundation programs along four pillars: education, health and human services, community development and arts and culture. We are accountable to to the communities in which we operate and each one has very different needs—distinctions that are even more apparent during the current economic crisis.
Locally, corporate philanthropy managers are able to identify programs in the immediate area that will target that "shared value". Based on the needs of community, we tap a combination of philanthropic investments, community investment programs and volunteer involvement to move the needle sustainably on behalf of the cities and towns in which we live and operate.
Several years ago, we focused on investing in healthcare infrastructure—projects such as the Dell Pediatric Research Institute and Dell Children's Medical Center —to create institutions that could move the needle for Austin in a big way. These grants and programs reflected a need for improved health services capacity throughout the region.
As the full impact of the economic downturn emerged, we recognized that the best way to help Austin recover sustainably is through supporting basic needs. So we shifted our philanthropic investments towards safety net programs, institutions such as food banks and job training programs that deliver basic needs and efforts to get people back to work.
Ultimately the community should hold companies accountable for meeting community needs. For example, you can see a shift in our arts and culture funding. The economic and social health of a community is integrally connected to its cultural vibrancy. But the role of the arts changes in a time of economic uncertainty. Where traditionally we may have made grants to an art event—such as our long-time support of Ballet Austin’s The Nutcracker—we are moving towards support for arts education that will improve communities long term. We recently started supporting a Ballet Austin program that is using dance to teach math to ESL students. We will see the returns on that investment in improved educational attainment that will improve the economic capacity of Austin.
FF: How can a corporate entity execute its business requirements and still share community values?
NS: Bank of America has practiced shared value through its corporate social responsibility programs in shared practice as well. As a financial institution, we value the investment in programs today that will produce measurable and sustainable improvements long after the check has been written. Rather than making one-time grants, we are investing in measurable activities that produce value for all.
Our Neighborhood Excellence Initiative [7] programs, for example, are philanthropic investments in organizations and people that are getting neighborhoods, programs and people on the road to improvement and recovery. We are identifying the innovators and agents of change, providing financial support today so that they can continue making a difference well into the future. And programs such as Bank on Central Texas [8] are providing individuals the financial foundations upon which they can build long-term financial capacity. BOCT is about more than providing a bank account to an individual—it’s teaching skills to invest in long-term financial stability and growth.
Likewise, a few years ago we funded the creation of Luminaria, an arts festival in San Antonio, the largest metropolitan area not to have a dedicated arts festival. Today, the event attracts over 300,000 attendees and is presented by Rackspace Hosting. We made that initial investment and now it has spun into an independent venture benefiting all of San Antonio.
Bank of America’s philanthropic investments and community involvement priorities will continue to evolve as needs change and new challenges emerge. At the same time, conversations about shared value and corporate social responsibility will mature throughout the corporate world.
But no matter how much the industry or priorities change, Bank of America will remain a financial institution whose priorities and values are rooted in the communities we serve.