Briefing Comment What to do with poverty and the inner cities? The question is as old as corporate community involvement itself. Even at today’s time of unprecedented national prosperity, pockets of deprivation and disadvantage remain, both geographic and demographic. Does it matter? If so, what should be done?
Morally and in terms of economic lost opportunity, yes to the first question. But on the second, frankly the old Marks & Spencer adage that healthy high streets need healthy back streets won’t wash any more. That is trickle down economics and doesn’t work. Nor will ‘sticking plaster’ solutions do more than ameliorate the symptoms of the problem. Healthy high streets are driven by much more powerful national and global forces and no company can afford to make decisions about where to invest or divest and who to hire or fire based on sentiment.
That’s why Michael Porter’s City Growth Strategies approach is so welcome. By turning problems into competitive advantages, there is an economically viable way up and out. We think companies should be seeking a similarly entrepreneurial approach. Within community investment, look to see how your money can generate a return, an impact measured in additional resources attracted. And within core products and services, challenge the assumption that no viable business can be done in deprived areas – redlining hurts profits. That leaves governments with responsibility for those areas where problems will stubbornly remain problems, and sticking plaster is the only response.
Related news
Community regeneration news (April/May)
Building through business The private sector, in particular small business, is to play a pivotal role in the government’s latest set of blueprints for urban regeneration, the City Growth Strategies, which launched on March 22.
Private sector champions will lead work with local sector bodies to generate enterprise in some of the most disadvantaged areas and under-represented communities in ten British cities.
The strategies are based on a US model developed by Harvard University professor Michael Porter and the Initiative for a Competitive Inner City (ICIC). The programme views disadvantaged communities as untapped sources of enterprise with big economic advantage – an available workforce, strategic locations and under-served retail markets. It represents a shift from a view of regeneration as poverty reduction, to the creation of economic advantage. Contact Chris Turner, DTI 020 7215 5614 www.dti.gov.uk
New communities and local govt department for UK The government announced on May 5 the launch of the Department for Communities and Local Government, to be headed up by former secretary of state for education and skills, Ruth Kelly. DCLG will be the successor department to the Office of the Deputy Prime Minister (ODPM). It is an expanded department with a new remit to promote community cohesion and equality, as well as responsibility for housing, urban regeneration, planning and local government. Women and Equality Unit and the new Commission for Equality and Human Rights will fall within this department. Contact ODPM 020 7944 4400 www.odpm.gov.uk
No small triumph Barclays launched on March 27 its second annual awards scheme to recognise people who have “triumphed against the odds” to set up a small business. The Barclays Trading Places Awards, which form part of the company’s local business community programme, encourage individuals who have overcome personal challenges and obstacles such as long-term unemployment or physical disability to set up their own enterprises. Contact Barclays www.barclays.co.uk
Flying the flagship Barclays launched the latest flagship site in its £30m Spaces for Sports programme on April 20. A £600,000 investment from Barclays and the Football Foundation has transformed derelict areas in a recreation facility in Southampton into a multi-use games area, four mini soccer pitches, two refurbished football pitches, an 11 station trim trail, a skateboarding area and a basketball court. Contact Richard Mackey, Barclays 020 7116 6153 www.barclays.com
More for the poor UK banks should be subject to a Universal Service Obligation to ensure that they meet the basic transactional needs of the poorest, think tank nef said on March 3. As HSBC announced record profits of £11.9bn, nef accused banks of “only paying lip-service to tackling financial exclusion”.
It said they were failing to offer services suitable for the poorest, who were as a result “marginalized from mainstream financial services, paying more for everyday goods and with no option but loan sharks for credit”. Contact Ruth Potts, nef 020 7820 6357 www.neweconomics.org
Tackling fuel poverty ExxonMobil is to work with three charities in a project to tackle fuel poverty, it announced on March 23. The company is working with Community Service Volunteers and two energy efficiency and fuel poverty charities – National Energy Action and Energy Action Scotland – to identify and train 150 volunteers from CSV’s Retired and Senior Volunteer Programme. The volunteers plan to visit 3,000 vulnerable households and 450 community venues, offering tips on ways to conserve energy and keep homes warm.
Commenting on the programme Robert Olsen, chairman of ExxonMobil International Limited, said: “ExxonMobil recognises that global energy demand is growing and that informing people now about energy efficiency will help meet the challenges ahead. This initiative aims to be a sustainable response by helping those most in need to become more energy efficient.” Contact Keith Aubrey, ExxonMobil 01372 222 105 www.exxonmobil.co.uk
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