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Home > Brief News > 2015

2015

Opportunities and Challenges

Cooperation between Social Organizations and Enterprises-2
 
 
II.  Bases of Social Organizations in seeking of Cooperation with Enterprises
 
The social organizations also look for cooperation with business, but what could be the benefit of this cooperation?
 
1.       Donation and support from corporations is a considerable part of funding resources for social organizations. Taking the United States for example, in 2014, the donation from top 10 enterprises amounts to 3.3 billion USD, flat with the 3.4 billion USD in 2013. According to the report from China News (Apr. 29, 2014), the China Philanthropy Ranking, in 2013, the total amount of those enterprises whose donation is over 1 million, amounts to 7.475 billion RMB; It is true that in the fundraising of social organizations, the resources from enterprises remain a considerable big part. There are two parts of funds from business, the first is the donation to social organizations as supporting their normal operation; the other part is the donation to certain area, certain organization, or certain group through a social organization. Overall speaking, the donation from enterprises plays a rather important function to development of social organizations. 
2.       The social organizations may recruit professional volunteers from enterprises. The volunteers normally come from universities, research institutes, individuals, government, retired people, and enterprises. Among all these resources, volunteers from enterprises are more professional and important. For instance, the finance professionals from enterprises may help the social organizations in better utilization of its resources. This requires professional and practical techniques, which cannot easily acquired from written materials.
3.       The social organizations learn advanced techniques and knowledge for management from business. For example, the strategic planning, financial management, marketing strategy, human resources mobilization, those business experiences will influence the internal management of social organizations at different level. The motivation mechanism could also be used in raising fund for social organizations. The way of thinking, tools and methods of business strategic planning also apply in social organizations.
4.       The cooperation with enterprises will also build up the celebrity and brand of social organizations while they also need marketing. Some big organizations also make advertisement in TV while the cooperation with enterprises plays the same role in making the public and society aware of the needs and competence of social organizations.
5.       The cooperation of social organizations with enterprises also creates new employment to provide complete network for social service. The business pay tax and create employment, social organization create employment as well. Such as the social service to old people, social organizations care completely capable of taking this responsibility. The donation from enterprises plus the service provided by social organizations, this has been proven to make clear effect in practice.
6.       The cooperation with enterprises, on one side will bridging the communication, on the other side will also play the function of supervision on bad conduct of enterprises. The social organization needs supervision from the society. The cooperated enterprises also need supervision from society. The more professional cooperation can objectively reveal the negative impact and real problems. In this way, the supervision from social organizations is more effective.
III. Causes Analysis of Cooperation between Social Organization and Enterprises
 
The social organizations and enterprises have many differences, including beneficiaries, products and pattern of services, influence of clients to organizations, professionalism and specialty of employees, and difference of values and cultural background.
 
The cooperation between social organizations and business is based on mutual trust, but there are aspects of reasons needs to be studied in advance.
 
First of all, the influences of enterprise reform and reconstruction. Let’s take the China state-owned enterprises for example. As we all know that reform for state-owned enterprises are further deepening towards a healthy development. The state-owned enterprises are facing the challenges of national economy transition and overall establishment of social security system. The past 14 years after China entered WTO, the trading between China and the other countries are continuously increasing while more trade conflicts occur as well. The state-owned enterprises are facing huge challenges, they need to adjust, merge and reconstruct, those changes will influence their cooperation with social organizations, in other words, which means the operation status will objectively revealed in the cooperation tendency with social organizations.
Secondly, the social value represents the common vision of people. Besides the consideration of benefits for both sides, the cooperation of social organizations and enterprises will also need the share of common social value, similar mission and objectives. This will facilitate the mutual cooperation; otherwise the cooperation cannot be sustained even if it starts.
The third aspect is the influences from new normal economic policy. Especially when the government point out the slow down the GDP increasing speed, from 2012 to 2014 the national GDP remains 7.4% due to the influences from macro economic policy and regulations. For example, the government tax policy will be a lever. Currently the tax administration has big pressure of accomplishing tax indicators; therefore it is impossible to expect that they will transfer part of the tax from enterprises to social organizations. They only take it as individual case and approve one by one when social organizations ask them for free or reduction of tax for corporate donations. The clauses in Philanthropy Donation Law cannot be put into force in practice. Under the big pressure for tax indicators, the tax administration takes only responsibility for their superior departments and put aside those impractical laws.