Harvard Case - Canadian Cancer Society: Fundraising Controversy
"Canadian Cancer Society: Fundraising Controversy" Harvard business case study is written by Jana Seijts, Paul Bigus. It deals with the challenges in the field of General Management. The case study is 8 page(s) long and it was first published on : Oct 17, 2011
At Fern Fort University, we recommend the Canadian Cancer Society (CCS) embark on a comprehensive strategic overhaul to address the fundraising controversy and restore public trust. This involves a multi-pronged approach encompassing organizational change, enhanced transparency, and a renewed focus on stakeholder engagement.
2. Background
The case study centers around the Canadian Cancer Society's (CCS) fundraising practices, specifically the allocation of funds and the perceived lack of transparency. The controversy erupted when a whistleblower revealed that a significant portion of donations was not directly used for cancer research and patient support, leading to public backlash and a decline in donations. This situation highlights the critical need for the CCS to rebuild trust with donors and the public.
The main protagonists in this case are:
- The Canadian Cancer Society (CCS): A non-profit organization dedicated to fighting cancer through research, prevention, and support programs.
- The Whistleblower: An individual who exposed the CCS's fundraising practices, triggering the controversy.
- Donors and the Public: The primary stakeholders affected by the controversy, who rely on the CCS to effectively utilize their donations.
3. Analysis of the Case Study
The case study can be analyzed using the following frameworks:
- Stakeholder Analysis: This framework helps identify the various stakeholders affected by the controversy and their respective interests. The key stakeholders include donors, patients, research institutions, employees, and the public.
- SWOT Analysis: This framework helps evaluate the CCS's internal strengths and weaknesses, as well as external opportunities and threats.
- Strengths: Strong brand recognition, established network of volunteers, extensive experience in fundraising.
- Weaknesses: Lack of transparency, potential for public distrust, inefficient allocation of resources.
- Opportunities: Increased awareness of cancer research, potential for new fundraising initiatives, collaboration with other organizations.
- Threats: Negative media coverage, decline in donations, competition from other charities.
- Porter's Five Forces: This framework helps understand the competitive landscape for the CCS.
- Threat of New Entrants: Moderate, as new charities can emerge.
- Bargaining Power of Buyers (Donors): High, as donors have many options for charitable giving.
- Threat of Substitutes: Moderate, as other organizations may offer similar services.
- Bargaining Power of Suppliers: Low, as the CCS relies on a diverse range of suppliers.
- Competitive Rivalry: High, as the CCS competes with numerous other charities.
4. Recommendations
To address the fundraising controversy and restore public trust, the CCS should implement the following recommendations:
1. Enhance Transparency and Accountability:
- Publish a detailed annual report: This report should clearly outline the allocation of funds, including the percentage spent on research, patient support, and administrative costs.
- Implement an independent audit: An external audit will provide assurance to donors that funds are being used effectively and ethically.
- Establish a transparent grievance process: This process should allow donors and stakeholders to voice concerns and receive prompt and fair resolutions.
2. Redefine Fundraising Strategy:
- Shift focus from fundraising to impact: Emphasize the tangible outcomes of the CCS's work, such as lives saved, research breakthroughs, and improved quality of life for cancer patients.
- Develop innovative fundraising initiatives: Explore new avenues for fundraising, such as online platforms, social media campaigns, and corporate partnerships.
- Engage with donors and stakeholders: Conduct regular surveys and focus groups to understand donor needs and preferences.
3. Implement Organizational Change:
- Strengthen leadership: Appoint a CEO with a proven track record in ethical leadership and transparency.
- Review and revise organizational structure: Streamline operations and ensure efficient allocation of resources.
- Develop a robust ethics program: This program should provide clear guidelines for employees on ethical behavior and conflict of interest management.
4. Leverage Technology and Data Analytics:
- Implement a comprehensive data management system: This system will help track fundraising efforts, donor engagement, and program outcomes.
- Utilize AI and machine learning: Analyze data to identify trends, optimize resource allocation, and personalize donor communications.
5. Foster a Culture of Transparency and Accountability:
- Promote open communication: Encourage employees to openly discuss concerns and ideas.
- Reward ethical behavior: Recognize and reward employees who demonstrate integrity and commitment to transparency.
- Develop a strong internal communication strategy: Ensure that all employees are informed about the CCS's mission, values, and fundraising practices.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with the CCS's mission to fight cancer and support patients.
- External customers and internal clients: The recommendations address the concerns of donors, patients, and employees.
- Competitors: The recommendations aim to enhance the CCS's competitive advantage by improving transparency and effectiveness.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to improve donor trust, increase donations, and ultimately lead to greater impact in the fight against cancer.
- Assumptions: The recommendations assume that the CCS has the resources and commitment to implement the necessary changes.
6. Conclusion
The Canadian Cancer Society faces a critical juncture in its history. By embracing transparency, accountability, and innovation, the CCS can rebuild trust with donors and the public, reaffirm its commitment to fighting cancer, and continue to make a meaningful difference in the lives of those affected by this devastating disease.
7. Discussion
Alternative approaches to address the fundraising controversy include:
- Ignoring the controversy: This option would be highly risky and could lead to further damage to the CCS's reputation.
- Issuing a public apology without significant change: This option would be perceived as insincere and could further erode public trust.
The recommendations presented in this case study solution are based on the assumption that the CCS is committed to regaining public trust and improving its fundraising practices. If the CCS is unwilling or unable to implement these changes, it may face significant challenges in the future.
8. Next Steps
The CCS should immediately implement the following steps:
- Form a task force: This task force should be composed of senior executives, board members, and external experts to oversee the implementation of the recommendations.
- Develop a detailed implementation plan: This plan should outline the specific actions, timelines, and resources required for each recommendation.
- Communicate with stakeholders: The CCS should proactively communicate with donors, patients, and the public about the changes being made.
- Monitor progress and measure impact: The CCS should track the progress of implementation and measure the impact of the changes on donor trust, fundraising, and program outcomes.
By taking these steps, the CCS can demonstrate its commitment to transparency, accountability, and effectiveness, paving the way for a brighter future in the fight against cancer.
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Case Description
On Wednesday, July 6th, 2011, the communication director, for the Canadian Cancer Society (CCS), in Toronto, Ontario, was faced with a challenging situation. The Canadian Broadcasting Corporation (CBC) had just released an online article that focused on the 2011 CCS budget, more specifically how the CCS allocated millions of dollars each year. Furthermore, the CBC article provided details on how the proportion of donation money the CCS spent on cancer research each year had decreased from 40 per cent in 2000 to under 22 per cent in 2011. With the CBC report circulating in both television and online media, public speculation into CCS's financial management of public donations was starting to grow. It was clear that the CCS communication team would need to respond. A communication strategy would need to be developed for the CCS to follow moving forward, along with a press release to be posted the next day on the CCS website.
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