In recent months, the spotlight has fallen on ‘business’ to look to itself as a power for social good. Deputy prime minister Nick Clegg, Lord Mayor of the City of London Nick Anstee, along with former chairman of Lloyds banking group and philanthropist Victor Blank, are among many who have publicly called on corporations to search their souls and explore how they can better support their communities

The government too has targeted business as a source of greater funding and as part of the DCMS strategy to boost philanthropy, 2011 has been nominated the Year of Corporate Philanthropy. While business and the arts have enjoyed a long relationship, and with many notable successful examples, particularly in London and the South East (see case studies), recent figures show that the recession has taken its toll. Arts&Business’ recent cultural audit, published at the end of January shows in 2010 business investment in the arts fell to 2003/04 levels; 12% down on the previous year to £144m, less than a quarter of the £658m donated privately to the arts in 2010. It is the third consecutive fall. While giving in kind has seen an increase there is a strong sentiment that commerce should take a new approach, putting social responsibility at the heart of its operations.

Research commissioned by the City of London Corporation, from Oxford Economics calculated that the UK’s Financial and Professional Business Services firms’ Corporate Community Involvement amounted to a value to UK communities of £820m in the financial year 2009-10.

As Anstee said in presenting the winners of the 2010 Dragon Awards that mark Corporate Community Involvement in the City of London: “The mark of a successful city is not only its economic prosperity, but also its social contribution; this should be a fundamental part of the calculation of a city’s success. Although the climate for business is tough, giving staff time to get involved in Corporate Community Involvement is clearly a good investment – it pays dividends for the community, for staff and organisations alike.”

Here Jonathan Tuchner, director of press for Arts & Business, which has been active in creating fruitful partnerships between commerce and culture for more than 30 years, gives his view on the approaches needed to promote sponsoring partnerships between arts and business. Two case studies, featuring winners from the 32nd Arts& Business Awards, illustrate the mutual returns arts organisations, businesses and the public gain when they come together.

 Jonathan Tuchner, director of press, Arts & Business, writes

“Only the foolish believe that business is hardwired to give to the arts. Over the recent recession, the number of business/arts partnership and the value of those partnerships has fallen year on year. Arts & Business knows from our 36-year history that it is always hard to convince business to work with the arts; to convince them when times are tight is harder.  But it also knows that if you get the arguments right; if you focus on the needs of the business, they will return. The government has named 2011 as the Year of Corporate Philanthropy – collectively we need to make this a game-changer.

We need to take this year to both inspire businesses to collaborate with the arts not just because it is a worthwhile endeavour but because there is a clear business rationale for doing so. We plan to continue to play our part, knocking on doors, selling the cultural offer, analysing the right business solution, celebrating their partnerships and best practice (the Arts & Business Awards) and proving the benefit of engaging with the arts. Be clear most of this activity and amplification is about benefit; it is sponsorship.  

Arts & Business understands the myriad ways companies engage in the arts to enhance their brand and marketing, improve staff productivity and develop innovation.  Alongside this the arts can also play a vital role in terms of corporate social responsibility; using the arts to help change the communities that matter to those businesses.  But throughout both partners have to recognise that a business rationale must be developed, objectives set and a quantifiable return on investment measured. This is the fundamental difference between corporate partnerships in the US and those in the UK.  In American they do it because they feel they ought to.  In the UK by focusing on the business benefits, Arts & Business has helped businesses in the UK to recognise that they should do it because it is good for business – and that, we believe, is the only route to sustainability.

Arts & Business has undertaken a cultural audit of the UK-based FTSE 100 - around 20% of businesses have dynamic arts strategies.  Convincing other businesses to join them in working with the arts is not child's play. It is for fundraising professionals who understand business thinking and needs, understand the different budgets and stakeholders and understand how the arts can help. Exhorting individual bosses to personally give is all very well - but they run businesses that are answerable to shareholders and they have to be convinced as well. We know that convincing the business sector is time-consuming and labour intensive.

The motivations for cultural philanthropy are different. They are led by passion, interest or need. But whatever cause they are supporting, they still have objectives, still have hopes that need to be fulfilled and those need to be addressed by their arts partner.

Whatever the type of private sector money, individual or corporate, there is no magic bullet – only tenacity, confidence and skill will grow private investment in culture.”