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Oneplus.org.ukPromoting charitable giving amongst small businesses in the UK
March 2017
Oneplus.org.uk Ɩ Intro Ɩ 2017
Micro Businesses(with 1 to 9 employees)
MediumBusinesses(with 50 to 249 employees)
SmallBusinesses(with 10 to 49 employees)
LargeBusinesses(with 250+ employees)
Micro and Small Enterprises in the UK:Definition and some stats...
5,010,000 enterprises
8,276,000 employees
£655b turnover195,000 enterprises
3,807,000 employees
£515b turnover31,000 enterprises
3,075,000 employees
£477b turnover7,000 enterprises
10,070,000 employees
£1,874b turnover
In 2014, micro and small businesses in the UK employed over 12 million people
and had a combined turnover of £1,170,000,000,000
Figures taken from House of Commons standard note SN/EP/6078, 9th December 2014, M.Ward & C. Rhodes, “Small businesses and the economy”
Oneplus.org.uk Ɩ Intro Ɩ 2017
Meanwhile, Corporate Social Responsibility climbs up the agenda of consumers - and therefore large businesses
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In the new millennium, Corporate Social Responsibility (CSR) has emerged as a key driver of consumer behaviour and brand growth.
Brands that behave ethically, that show a commitment to the environment and behave a in a “good way” towards non-commercial causes, benefit in many (tangible) ways (Daye, 2013*)
Increased sales and market share
Strengthened brand positioning
Enhanced corporate image and clout
Increased ability to attract, motivate, and retain employees
Decreased operating costs
Increased appeal to investors and financial analysts
The brand is what you buy. The corporate reputation is what you believe in and trust. It’s not an
either/or. You need both.
http://www.brandingstrategyinsider.com/2013/03/corporate-social-responsibility-and-growth.html#.VXXtv40cGUk
Businesses must make a strong positive contribution to addressing the challenges the
world is facing.
Paul Polman,CEO, UnileverDr. Joseph Plummer,
Advertising Research Foundation
Oneplus.org.uk Ɩ Intro Ɩ 2017
Small businesses lack the internal resources of larger companies to develop and implement CSR programs. However – they can still show CSR through charitable donation
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Charitable donation is a simple commitment to CSR
Donation of a portion of profit to charitable causes is a viable way for small businesses to show commitment to CSR
It is straightforward, and requires very little resource within the business to implement
It can be focused towards causes that align with company brand values
It can also be focused at a community level for businesses that operate within specific regions
BUT THREE BARRIERS TO CHARITABLE DONATION AMONGST SMALL BUSINESSES:Small businesses may not know what is a reasonable proportion of profit to donate
Charitable donation at a level affordable to most small businesses is unlikely to garner direct publicity, therefore it may go unnoticed by customers (and so the business sees few of the external benefits)
Customers have to take businesses at their word that they have made contributions to charity
• For smaller businesses without mass awareness and reputation, there may be little to reassure consumers
Oneplus.org.uk wants to remove these barriers to charitable giving
Oneplus.org.uk Ɩ Intro Ɩ 2017 5
Oneplus.org.uk:Our mission is...
To instil a cultural norm amongst small businesses in the UK to donate 1% OR MORE of their pre-tax profits to charitable causes
Oneplus.org.uk Ɩ Intro Ɩ 2017
Oneplus.org.uk:The size of the prize...
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Take a 7% average profit margin amongst smaller businesses. Based on turnover of £1.17 trillion, this gives about £82,000,000,000 (£82 billion) profit.
We have a 5 year goal to sign up 1 in 50 businesses in the UK – which would give an estimated profit pool of £1.64 billion.
1% of this equates to
£16.4 million in donations per year from 2022
Oneplus.org.uk Ɩ Intro Ɩ 2017
A simple visual device for helping us to achieve our mission
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Most people in the UK are familiar with the concept of a hallmark. All precious metal jewellery has one, and the famous BSI kitemark has been recognised as a symbol of quality since 1903.
We propose the administration of a Oneplus.org.uk hallmark as a system of certification of charitable donation
This would remove the three barriers to charitable donating amongst smaller businesses
The expected standard for behaviour is made explicit – at least 1% of pre-tax profit should be given to charity
The hallmark can be used on many forms of company communication – and so is noticed by customers – and yet avoids having to make overt reference to specific charitable donations (which can result in scepticism and even negative consumer reaction)
Independent administration of the hallmark gives consumers who have not heard of the business reassurance that the charitable donations are legitimate
• The Oneplus.org.uk website and endorsement from professional bodies will provide further credibility
The Oneplus.org.uk hallmark
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Oneplus.org.uk Ɩ Intro Ɩ 2017
The Oneplus.org.uk hallmark:
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Thanks to logodesign.co.uk for designing the Oneplus.org.uk hallmark for free!
2016
Oneplus.org.uk verifiedAudited accounts confirm this company
has contributed 1% or more of its pre-tax profits in 2016 to charitable causes
Oneplus.org.uk Ɩ Intro Ɩ 2017
Verification process for Hallmark approval
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Oneplus.org.uk retains a qualified independent accountant to verify charitable donations equal 1% of pre-tax profits
i. Small business submits a copy of audited accounts with financial year ending on a date in 2016
ii. Small business also submits copy of audited accounts for previous financial year ending on a date in 2015
iii. “Donations” line in 2016 accounts must equal or exceed 1% of the “Operating profit” line of the 2015 accounts
iv. Any other commercially sensitive information may be redacted by the submitting business
Process for a 2016 hallmark
Oneplus.org.uk Ɩ Intro Ɩ 2017
Oneplus.org.ukBusiness model
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The service will be free, and all costs will be met by the privately owned company Bonamy Finch Marketing Services Limited (BFMS)
BFMS has been the first company to submit its annual accounts to Oneplus.org.uk for charitable donation verification, and received the hallmark for 2015
There is no model!
Oneplus.org.uk Ɩ Intro Ɩ 2017
Oneplus.org.ukNext steps
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1 Hallmark to be designed
2 Independent accountant appointed
3 Oneplus.org.uk formed as not for profit business
4 Develop marketing plan, including seeking potential collaborations with •Federation of Small Business•Institute of Directors•Businesses for Social Responsibility
5 Design and launch of website
Oneplus.org.uk Ɩ Intro Ɩ 2017
Dr. Leigh MorrisCPsychol CSci CMRS AFBPsSManaging DirectorBonamy Finch Ltd
Office +44 (0)1932 918988Mobile +44 (0)7908 619876
bonamyfinch.com
Coveham House, Downside Bridge Road, Cobham, Surrey, KT11 3EP, United Kingdom
Oneplus.org.ukContact
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Oneplus.org.ukPromoting charitable giving amongst small businesses in the UK
March 2017