Going Global: Game Changing for Corporate Philanthropy

Kraft Foods has humble philanthropic beginnings dating back to Chicago in the 1920s. Early on, most involvement was U.S. based and purely charitable and responsive to a wide variety of needs—the alms giving that is noble in intent, for example, but unclear in sustainable impact. As 21st century philanthropy evolved, so has the business response. Kraft Foods and other multinationals are thoughtfully evaluating issues areas, their global footprint, and how to best leverage an expanded mix of corporate resources to address complicated problems.

At Kraft Foods, we’ve strived to stay true to our core competency, which is food. To that end, we’ve elected to center our giving on fighting hunger and promoting healthy lifestyles as well as the convergence between the two areas, which is the issue of malnutrition. Overconsumption of empty calories leads to issues of overweight and malnutrition. Simultaneously, inadequate and infrequent access to nutritious foods that are affordable and rich in protein also leads to malnutrition. Because food is at the center of our business, we are better equipped to think through an integrated response to these issues that combines cash with intellectual and political capital. We can build on the good work of philanthropy to include a business role for food science, operations, product development, sustainable agriculture, and public policy.

For example, the Kraft Foods Foundation philanthropic strategy in Indonesia supports a community based posyandu model to deliver programs to combat malnutrition among children and families. Simultaneously, the company has embraced “affordable nutrition,” a platform designed to introduce affordable products that meet the vitamin and mineral gaps of the developing market consumer. In many markets like Indonesia, consumers might spend less than four dollars per day on food and other household items.  In this regard, the underlying issues of access, affordability, and poverty can be addressed from both a social and business perspective.

As our company continues on a growth trajectory, we are expanding our business to new markets and getting products in the hands of new consumers. For example, one way we might enter a new market is by bringing cream cheese with Philadelphia roots to new consumers in Australia and Mexico.  The new markets have expanded our global footprint and this has been a game changer—not just for business but also in terms of how we define philanthropic strategy and community.  As we enter, we are also sensitive to the cultural dynamics of these new consumers, in new communities, facing unique social challenges. Our business is nimble and so must our philanthropy.

To that end, we’ve re-calibrated our giving by aligning it with our international business markets, including the developing markets of Indonesia, Brazil, China, Ghana, and the Philippines. This alignment has dramatically shifted our grantmaking allocation from one that was historically U.S. based to one that is predominantly global. And as our business grows to include markets like India and South Africa, so will our philanthropy.

To help elevate our presence in these markets, we’re increasing grant size and extending multi-year commitments. And along the way we are sensitive to the potential cultural, social, political, and legal challenges.

Our philanthropic strategies have also influenced the ways we engage our employees, many of whom have the zeal and passion for individual philanthropy. This notion was validated most recently during Kraft Foods’ first ever global week of service. More than 12,000 employees in 33 countries volunteered at community-based organizations around the world. Our community presence was made evident from Argentina to the Netherlands to Ukraine. We often refer to employees who played a lead role in this effort as Kraft Foods ambassadors. I’d suggest they are also ambassadors of our humanity, ensuring that America’s humanity has a place alongside capitalism and economic freedom.

Going forward, growth through global expansion will continue to raise our business profile, but also pave the way for redefining philanthropy in a “game changing” way.  Admittedly, we are ambitious in our goals and early in efforts, so there is indeed much to learn as we expand. I have no doubt we will continue to refine our approach in ways that nurture our global and local communities and yield sustainable solutions to our collective global challenges.

Nicole Robinson is the director of the Kraft Foods Foundation.

Developing International Relations

Maybe the most surprising thing about the Cleveland Foundation’s international relations strategy is that we have one at all. After all, we’re a community foundation. Community foundations generally use local leadership and local money to meet local needs and advance local agendas.

Yet in a global economy, the concept of what it takes to promote “local” interests starts to lose its old meaning and gain a newer, broader meaning. Technology and transportation have shrunk the world so much that events and realities thousands of miles away can benefit a local community, such as the one our foundation serves.

There are great opportunities to bring jobs and wealth into Northeast Ohio by doing two things: luring overseas investment capital and human capital here and sending more local goods abroad by cultivating new foreign markets for our products and services.

It’s easier, cheaper, and faster than ever to communicate globally. But nothing replaces personal relationships and cross-cultural understanding. That’s how I fit in. I have lived, studied, and done business in many cultures and countries around the world, and I speak five languages.

Today, we are working in Latin America and Asia, but our first focus is on the 27 countries of the European Union (EU). The EU is the largest direct investor in the U.S., at about $90 billion a year. Companies are eager to set up headquarters to reach American markets, and the weak dollar creates incentives for European firms to manufacture and distribute products in the U.S. rather than exporting them.

Our collaborative arranged a trade mission to Brussels in 2008 for Cleveland’s mayor, Frank Jackson, and other state and local dignitaries. That paid off by bringing to Cleveland the U.S. headquarters of the SME Union, a sort of chamber of commerce for Europe’s small- and medium-sized businesses. We expect that ongoing program to open doors for companies on both sides of the Atlantic.

The foundation also invested $1 million toward helping Greater Cleveland attract investment from Europe. It helped Team NEO, a business-recruiting nonprofit for Northeast Ohio, to establish a European office. We’re partnering with foundations and consultants there to tell Cleveland’s story and highlight the advantages to European business leaders. Just a few of the advantages are: We’re within a day’s drive of half the U.S. population; we’re far cheaper than New York or Chicago; and Europe’s business day overlaps ours in the Eastern time zone, but it doesn’t overlap the West Coast’s.

We also recognize Cleveland’s world-leading strengths in health care. European and Latin American leaders are excited about studying how the Cleveland Clinic, University Hospitals of Cleveland, and Case Western Reserve University deliver, administer, and research health care. And European health-products firms have shown interest in using Cleveland as a point of entry into the U.S. market.

Together with Mayor Jackson, we also went to Costa Rica to meet with President Oscar Arias and key business leaders. The first success from that trade mission is that Costa Rica’s oldest coffee company, Volio, decided to enter the U.S. market from a warehouse in Cleveland.

Even amid a historic recession, we’ve been proving it can work. We’re demonstrating that our connections can attract foreign companies. We’re working with foreign foundations to develop best practices and strategies for business collaboration and connections. And we’re linking locals with foreign leaders, so Cleveland can show off its many advantages.

We trust our local partners, their knowledge and abilities, and we recognize their needs. Our strongest contribution is to be not only a funding tool but a bridge, so that our businesses—particularly small and medium size ones—can have a softer landing in foreign markets.

Some might contend our focus on international economic development detracts from our grantmaking and leadership in the arts, social services, education, the environment, neighborhoods, and other local missions. Our answer is that improving our economy benefits every one of those areas. A stronger tax base enriches our education system and government services. Greater collective wealth translates into improved social services, appealing neighborhoods, a healthier environment, and a richer civic life–one that maintains our artistic and cultural treasures. Global Cleveland is here to stay and the Cleveland Foundation is proud to be leading the charge in this area.

Yes, we realize we’re trying something new and risky. But the risk of not taking chances is just as great because of missed opportunities. As we pursue those opportunities, we will learn and adapt and keep looking for new opportunities on the cutting edge. In this field, the only constant is change.

Jorge Delgado is director of International Relations at the Cleveland Foundation.