Westpac, an Australia-based financial services and banking company, has been working with the Cape York indigenous people who face a life expectancy of less than 50 years, have an average annual income of $8,600 per annum, and fewer than 10% of their working age population are in unsubsidized employment. The 10,000 people living in 17 Cape York communities face an epidemic of substance abuse, a breakdown of law and order, and dysfunctional governance structures. Westpac’s involvement represents an innovative way to contribute to capacity building while expanding the company’s customer base.
Westpac’s approach includes Family Income Management (FIM), Business Hubs and an assist in the development and implementation of the Computer Culture educational project. In addition, three twelve-month Westpac Fellowships have been established in strategic positions in the regional organizations to help build their capacity to roll out their strategies. Westpac has been named and ranked among the most socially responsible companies in Australia.
Innovation
Reduced welfare demands, increased employment and a growing indigenous economy are the cornerstones of the social development being achieved as a result of the Indigenous Enterprise Partnerships (IEP) model that has been deployed in Cape York. The approach IEP has developed is holistic, linking education, health, IT, economic development and youth. This multifaceted partnership represents a substantial long-term investment from community organizations, businesses and philanthropists, involving indigenous leadership and direct engagement with local indigenous people. Owned by the indigenous people of Cape York, Balkanu Development Corporation represents the needs of the Cape York community and is the primary facilitator of philanthropic contributions and corporate resources provided through IEP. Lead by The Myer Foundation, philanthropic grants into Cape York total more than $2 million. Corporate involvement includes The Body Shop, Boston Consulting Group and Westpac.
The three parts of Westpac’s community involvement strategy are equally at work here: 1) staff involvement in the form of secondments; 2) partnership with Cape York community organizations to build their capacity through Business Plan Facilitation; and 3) Family Income Management (FIM) assists families to work together to manage their finances and achieve savings goals while covering their everyday necessities. Savings goals have included refrigerators, washing machines, cars, headstones and potential business assets. Acquisition of these items has markedly improved the living conditions of participating Cape York residents. The introduction of whitegoods in households has resulted in improved hygiene, and motor vehicle ownership has enabled residents to access supermarkets for more economical food supplies as well as work in neighboring towns.
The Business Plan Facilitation provides business aspirants with the support to translate their business ideas into profitable ventures. Over three years, Westpac is providing a full-time project manager, six twelve month fellowships and 150 staff, each for one month, to apply their skills and experience with business enterprise and family finances. Supporting the concerns of the stakeholders is an important aspect for Westpac of achieving goals. Its staff involvement program, community partners and capacity building tools make up a balanced approach that demonstrates its long-term commitment to community involvement.
The FIM project has been operating in three communities - Aurukun, Coen and Mossman Gorge in Cape York, Northern Queensland, since 2002. Negotiations to establish FIM in two more Cape York communities have since occurred. The project has focused on improving living standards and family functioning by helping Indigenous families to budget and save. FIM was designed by indigenous people to help build financial literacy and implement budgets, stabilize family functioning, improve living standards and reduce household and individual debt in a culturally sensitive and practical way. It is run by local people in each location and overseen by a working group comprising representatives from each community, Australian Government agencies, Westpac and Cape York Partnerships. Westpac employees work alongside local financial management workers for one month every quarter.
Local facilitators and resource workers in each site assist families and individuals to negotiate budget and savings agreements, set up direct deductions from accounts and provide bill-paying and purchasing assistance. FIM provides employment and skills development opportunities for local people and contributes to building local consumer capacity which helps the viability of local small enterprises.
Together with other strategies, FIM is contributing to building a more stable and peaceful environment for individuals and families leading to a general change in orientation from daily survival to long term planning.
Westpac has formed a partnership with the Indigenous Enterprise Partnerships (IEP) organization through its Corporate Responsibility Program. Westpac provides the project with in-kind secondees to assist with project management, IT functions, business requirements and web development. The partnership has recently been renewed for another three years.
Westpac is also serious about managing and reporting on its social and environmental impacts. Its annual Social Impact Report sets out progress against 25 community and social capital related performance indicators. In 2003, Westpac was rated the global sustainability leader in the banking sector by the Dow Jones Sustainability Index for the second year running and was the only company to receive a AAA rating in the Reputex Social Responsibility Ratings. It has also been recognized by the Prime Minister’s Community Business Partnership for impact on the community.
Impact
Outcomes from FIM include debt reduction and debt management, better coverage of essential living costs, increased spending on food and reduced spending on alcohol and gambling, better access to medication, reduction in stress and conflict, and the ability to purchase whitegoods, furniture, TVs, videos and other household items for the indigenous community. Some participants have also purchased cars and boats, and set up small businesses. Arrangements with local stores, schools and pharmacies facilitate payment for food, education costs and medications.
After two years of operation, the partnership has made significant progress toward its long-term objectives:
1: The creation of a private sector economy in Cape York has resulted in 50 jobs for Aboriginal people and seven successful business start-ups with 40 in incubation. Social indicators are positive, with trauma cases significantly down at the Aurukun Health Centre and school attendance sharply up.
2: The successful breaking down of the welfare economy through empowering individuals and families to take responsibility for their financial well-being and economic security has resulted in over 500 people signed up to FIM.
3: Building the skills and capacity of the next generation of indigenous leaders has resulted in Cape York experiencing improved social and organizational capacity of projects championed by indigenous individuals, families and organizations. At present, there are noticeable trends in the Cape York community that indicate growing awareness and understanding of the importance of business enterprise and family savings. In this welfare-driven economy, this represents significant progress.
Inspiration
Westpac has continued to maintain total community contributions above the accepted best practice level of one per cent of pre-tax profits. It is intent on strengthening its strategic components to build on its culture of community involvement and increasingly, it sees itself as focused on providing deeper support for financial literacy in the community.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
