Social Value and Effective Altruism - how to improve your organisation’s charitable giving
Your organisation may have already committed to making charitable donations, fundraising and volunteering as part of your social value offer. But how did you decide what commitments to make, and how effective are these commitments in the scheme of things?
You may or may not have an approach already. In this article, we will introduce an approach called ‘effective altruism’, explore what it is, and its relevance to social value - specifically to fundraising, donating, and volunteering. We’re also going to outline some useful questions you can ask yourself to apply the principles of this philosophy to your social value commitments.
“Effective altruism is about asking, “How can I make the biggest difference I can?” and using evidence and careful reasoning to try to find an answer. It takes a scientific approach to doing good. Just as science consists of the honest and impartial attempt to work out what’s true, and a commitment to believe the truth whatever that turns out to be. ”
The common problem
Many organisations want to do good but often don’t realise that some ways they try to do good aren’t always the most effective or the best use of time, resources, or money. Organisations can fall victim to this at the corporate level when setting social impact or CSR objectives or in the specific contractual commitments to social value they make.
What is Effective Altruism?
Effective Altruism (EA) is a philosophical and social movement which advocates using evidence and reasoning to work out how to generate as much benefit for others as possible. EA as a philosophy was coined by the students of Professor Peter Singer at Oxford University.
Peter Singer authored a book called The Life you Can Save. In the book, Singer talks about the idea that we are more likely to give to “identifiable figures”: those we see and those close to us. Rather than those who are miles away and whose lives we wouldn’t touch otherwise or causes that don’t directly impact us.
While this may be human nature, it can mean that many vital causes are often neglected because out of sight often means out of mind.
The Child in the Pond
Read by Harry Shearer. Scripted by Nigel Warburton
Singer refers to the example that if you were in a park and saw a child drowning in a pond, you would (and should) jump into the water to save them, even if it meant ruining your shoes. He makes the case that if you are prepared to jump into the pond, save the child, and sacrifice your shoes, then you should, in principle, also be prepared to donate the value of your shoes to another worthy cause. This should still stand even if somebody else had already jumped to the child’s rescue.
In this scenario, it does not make sense for you to follow the person who jumped in, as the child will already be saved. That part seems clear, but this is a challenge many organisations face when deciding what social value commitments to make. It is obvious that the child must be saved, but it isn’t always obvious that you could donate the value of your shoes to another worthy cause now that the original cause is covered. In this way, many organisations don’t think outside the box, don’t engage with local stakeholders before they commit to supporting the third sector and the local community, which means that they can often fail to drill down and identify areas where they can make a real difference.
Applying the perspective
EA, as a philosophy, focuses on maximising good by using evidence and reason to figure out what ‘good’ acts look like. This can be beneficial for organisations to increase their social value, set more precise goals, and become better philanthropists by thinking carefully about the best way to do good and integrating these decisions into our organisations’ day-to-day. We can all do more to tackle some of society’s biggest contemporary problems.
By looking at social value through the lens of an effective altruist, you can evaluate whether the initiatives you undertake and your commitments are genuinely effective and will make a difference.
Three questions based on effective altruism that you can ask yourself
1. Is this a neglected and essential issue, or did we choose this for convenience or personal reasons?
It’s easy to default to our values and lived experiences. At the same time, people often get more satisfaction from contributing to causes that matter to them. However, this isn’t always the most effective way to use your time or resources. Similarly, it is understandable that organisations may opt for convenience, be that location or the nature of the action itself. Instead, by considering issues that may be neglected in your local area or looking beyond geography, your organisation may find a cause desperate for support. You can find out what these areas are by talking to local stakeholders.
2. What work do the organisations we could support do? What are their values, and is there evidence of deliverables?
Researching organisations you would like to support is an excellent way to understand their impact on society. However, by reaching out to them, asking for what support they need, or how your business can help in a practical way, you can be sure that your contributions will make a real difference.
It’s also important to note here that ‘doing good’ isn’t just about your contribution's monetary ‘value’ but the greater, lasting impact your contribution makes. So, for example, if you are an IT business, is the most effective action to paint a community hall? Or could you offer voluntary IT support to a charity in need? We recently spoke to Caroline McKenna, CEO and Founder of Social Good Connect, about this on our podcast, ‘Let’s Talk Social Value’.
3. Is this the most effective action we can take?
Setting objectives or targets for your organisation in this area must be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). But they should also be based on the most effective action you can take. To achieve this, take a skills approach to commit to the neglected areas. For example, if you are a recruitment agency, is delivering a career talk for a secondary school class as valuable as reviewing their CVs? Or could you give interview advice or set up mock interviews with the feedback they will apply in their job search? Making them more confident in finding work.
A critique of the philosophy
One criticism of EA is that it encourages you to weigh different causes against each other when surely all social problems are equally important. They impact different people in different ways.
Take EA with a pinch of salt.
We aren’t suggesting that you should view one cause as more important than another. The idea is not to devalue other social problems but to understand the most critical issue that your organisation can effectively support. Ensuring you make specific outcome-related commitments.
Whether you’re looking to score highly for social value in your bid responses or create a robust social value strategy, both require you to engage with local communities. So how can you benefit the community where the contract is being delivered?
By engaging with and listening to stakeholders in the community, you will learn what people need and therefore deliver good social value.
In summary
By looking at your organisation’s approach to social value through the lens of an effective altruist, you can evaluate whether your initiatives and commitments are the best use of your resources and have a considerable, positive impact on the community you work in.
The best thing you can do to ensure that your organisation delivers good social value is to ensure that the local community needs your commitment. Don’t just commit for the sake of ticking a box.
You can make sure that you deliver good social value by asking yourself these key questions and looking at the skills within your organisation. But the first step should always be starting conversations with local stakeholders. Take time to talk, and don’t just research from behind a screen. This way, you can find ways that your skill set can be utilised effectively in the community and develop a robust strategy for engaging with communities and VCSEs.
How we can help
At Samtaler, we understand the importance of your social value commitment. You’re here because you care about your business's impact on society and want to be better. We want you to succeed, and we know from experience that achieving social value requires skill, strategy, and support.
To find out how we can help, send an email to hello@samtaler.co.uk
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