Stakeholder Analysis Paper

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CommunityStakeholder1.ppt

The Community as a Stakeholder

I The Business-Community Relationship

II Philanthropy & Corporate Community Development

III Building Local Living Economies

Is this a community? Why or why not?

Is this a community? Why or why not?

How does this contribute to community?

Or this?

How does this contribute to community?

Or this?

How does this contribute to community?

http://www.youtube.com/watch?v=aq33c6FhRes

What kind of community is this?

What kind of community is this?

Is this a space that builds community?

The firm and its communities…

Site community: geographical location of a company’s offices, operations, or assets

Fenceline community: immediate neighbors receiving the positive and negative effects of company’s activities

Impact community: anyone affected by externalities from the firm

Cyber community: anyone that uses the internet to learn about or communicate with the company

Community of interest: stakeholders with a real interest in the company

Community of practice: those who engage in similar activities or practices

Employee community: those who work or live near the facility

http://www.phila.gov/phils/Docs/otherinfo/pname1.htm

What Community wants from Business

  • Support for art & cultural activities
  • Support for traffic management
  • Participation in urban planning and community development
  • Support of local health care programs
  • Support of schools
  • United Way Campaign support
  • Assistance for the less advantaged
  • Support for pollution control http://www.epa.gov/epahome/commsearch.htm
  • Participation in emergency planning
  • Support of local recycling programs

http://www.volunteermatch.org/

What Business wants from Community

  • Education and cultural resources that appeal to employees
  • Family recreation facilities
  • Public services – police & fire protection; sewer, water, & electric services
  • Taxes that are equitable and do not discourage business operations
  • Business participation in community life
  • Adequate transportation systems
  • Public officials who operate honestly and with integrity

Sunoco’s Marcus Hook Facility

http://www.dep.state.pa.us/dep/deputate/minres/oilgas/2011PermitDrilledmaps.htm

5

Department of Environmental Protection Bureau of Oil and Gas Management Marcellus Shale Formation

The Issues

Mariner 1 project reuses existing pipes

Much of the pipe dates from 1932 – 82 years old

Pressure to increase pressure from 800 to approximately 1,500 psi

18 new pump stations and 17 valve control stations

Scheduled for use for middle of 2015 for 70,00 barrels/day pure propane

No financial benefit to impacted communities, as 90% committed to shippers

Mariner 2 announced and has committed shippers

Official filings with the DEP as of April 2015

Increased demands for infrastructure buildup in the southeastern PA region

Scheduled to carry 275,000 barrels/day pure liquid ethane by 2016

20

Chester County Pipeline Congestion

Sunoco Facility

The Issues

Sunoco proposes a pump station in a residential zoned district that is highly populated

Plan to construct a building to house the pumping equipment

Purpose is to protect machinery

Reduce noise

The facility will have a 30 foot combustion unit

  • Residents told flare will operate sporadically; actual proposal is 24/7
  • Also used for maintenance purposes
  • Local zoning versus Public Utility Commission (PUC)

8

http://www.sunocologistics.com * Sunoco’s 3rd quarter earnings call * West Goshen Township zoning hearing

19

1

0.45%

3

1.36%

6

2.71%

9

4.07%

27

12.22%

74

33.48%

101

45.71%

Pipeline Incidents Since 2006

1-All Other Causes .45% (unspecified)

3-Outside force damage 1.36% (intentional)

6-Natural force damage 2.71%

(temp, flood, earth, unspecified)

9-Excavation damage 4.07% (3rd party)

27-Incorrect operation 12.22% (installation, overfill, overpressure)

74-Material/Equipment Failure 33.48% (construction, welds, pumps, malfunction)

101-Corrosion 45.71% (internal/external)

http://primis.phmsa.dot.gov/comm/reports/operator/OperatorIM_opid_18718.html?nocache=1263#_Incidents_tab_4

Corrosion

Material Failures

Corporate Philanthropic Contributions

Factors Influencing Corporate Giving Priorities

  • Aligning closely with business needs
  • Limits on budgetary resources
  • Directions from the CEO and/or the Board
  • Strengthening the brand
  • Costs of responding to natural disasters
  • Being more responsive to stakeholders
  • Changes in the workforce
  • Employee needs/requests
  • Community needs
  • Global giving

Strategic philanthropy:
good citizenship, good business

Pure

Philanthropy

Business

Sponsorship

Strategic

Philanthropy

(blends pure philanthropy

& business sponsorship

approaches)

Community Benefits

Assistance to:

  • Arts & culture
  • Health & social services
  • Civic & community projects
  • Education

Business Benefits

  • Public relations
  • Goodwill
  • Cause marketing
  • Political access

Creating Community Development Programs

“Philanthrocapitalism encompasses not just the application of modern business techniques to giving, but also the effort by a new generation of entrepreneurial philanthropists and business leaders to drive social and environmental progress by changing how business and government operate. At its broadest, the term refers to the growing role for private sector actors in addressing the biggest social and environmental challenges facing the planet.”

Problems with the Philanthrocapitalist Model

Heralds the wealthy as saviors, preventing deeper questioning of the neoliberal capitalist system.

Allows the wealthy to appoint themselves to highly political positions for which they may not be qualified.

Imposes a stark corporate vision and vocabulary on the charitable world, constantly demanding proof of ROI, turning the world into one vast market: money, markets, measurement, management.

Fragments and weakens global governance structures.

Built on unstable financing via market-based financial instruments.

Problems with the Philanthrocapitalist Model

Lacks public monitoring and social accountability mechanisms.

Can offer overly simplistic solutions for complex global problems.

Increasing portion of philanthrocapitalist dollars go to for-profit enterprises, never reaching the impoverished.

Revolving door among employees between philanthrocapitalist foundations and big pharma, big agriculture, and privatized education.

Maintains the dominant economic model that allowed the philanthrocapitalists to gain obscene wealth at the expense of social and environmental concerns.

Undermines democratic process.

Solutions?

Demand more transparency from philanthrocapitalists.

Raise taxes on wealthy and on corporations so that there’s more $$ in the public coffer to solve domestic social and environmental problems.

Encourage philanthrocapitalists to fund citizen-led social justice movements and partner with social activists.

Measure philanthrocapitalist success by its capacity to question the dominant economic model.

“Money should be spent trying out concepts that shatter current structures and systems that have turned much of the world into one vast market. Is progress really Wi-Fi on every street corner? No. It’s when no 13-year-old girl on the planet gets sold for sex. But as long as most folks are patting themselves on the back for charitable acts, we’ve got a perpetual poverty machine.” - Peter Buffett

Why Local Business Networks?

Local businesses stick around and generate income for years and generations.

Dollars spent at local businesses tend to circulate in the local economy longer.

http://www.yesmagazine.org/issues/go-local/the-local-multiplier-effect

Local businesses have a size and character with what is consistent with what makes a community flourish.

Local businesses have a smaller carbon footprint.

Principles of Local Economies/Networks

Scale

Alternative to “growth” – expanding creativity, knowledge, consciousness; deepening relationships; increased happiness & well-being

Ownership

Community- & employee- controlled organizations; dispersion of ownership; keeping capital within community

Place

Organizations tied to the fabric, geography, and makeup of the community

Cooperation

Building partnerships & sharing of ideas rather than competing to dominate the national marketplace

Philadelphia Sustainable Business Network

http://sbnphiladelphia.org/

http://www.buylocalphilly.com/

Our Mission:

SBN helps local, independent businesses thrive while they build an economy that values people, planet and prosperity for all.