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Welcome to the EY Think Ecosystem podcast, a series exploring the intersection of technology collaboration and innovation. In each episode, we orchestrate insights, stories and perspectives from across the EY partner ecosystem, our client base and leadership team to address the important issues and challenges of today.
Gillian Hinde
This is the EY Think Ecosystem podcast, and I am your host, Gillian Hinde, EY's Global Corporate Responsibility Leader, leading a program called EY Ripples, which aims to positively impact the lives of one billion people by 2030 by focusing on scaling impact entrepreneurs, supporting the next generation and the environment. In this episode, we'll be discussing how large organizations can join forces to create a greater social impact together rather than working independently. We'll look at why this is so important, some examples of ecosystem impact that's in play right now and talk about how it works in practice. Today, large organizations have developed the scale and influence that in previous times only sat with national governments. Many of the world's largest organizations are even bigger than entire countries. So the levers that large businesses such as EY can pull, what we buy, where we invest, who we help, how rapidly we decarbonize, these levers have an enormous impact. That's why clients, consumers and employees have such enormous expectations of companies like EY. They know that large organizations, especially when we work in concert, can have a profoundly positive impact on the world. So today, we're lucky enough to have a guest who lives and breathes this work. And before I introduce them, please remember that conversations during EY podcasts should not be relied upon as accounting, tax, legal, investment, or other professional advice. Listeners must consult their own advisors.
And now let's meet our guest. Joining us from Seattle, Washington, Kate Behncken. Kate is the Corporate Vice President and Global Lead of Microsoft Philanthropies, which helps to realize Microsoft's mission to empower every person and organization on the planet to achieve more by empowering non-profits and communities to leverage the potential of digital and AI technology to drive inclusive economic growth. Kate leads Microsoft Philanthropies, a global multidisciplinary team that brings together corporate social responsibility, sales and engineering functions to empower non-profits and communities with digital and AI capabilities to expand opportunities for people around the world. Microsoft Philanthropies invests in digital transformation for non-profits and IGOs, advances digital and AI skills for the AI-enabled economy, and programs that support resilient communities such as disaster response and affordable housing. Kate and her team focus on local and global initiatives in close partnership with non-profits, IGOs, governments and the private sector to develop sustainable and scalable solutions. Welcome, Kate. It's great to have you with us today.
Kate Behncken
Thanks so much, Gillian. It's a pleasure to be here.
Hinde
So, Kate, let's start with a big picture. Could you tell us about Microsoft Philanthropies and how and why it has evolved?
Behncken
Sure. Philanthropies has always been a part of Microsoft since the company was formed, although it has changed names and the work has evolved quite a lot over the years, as the company has evolved, as technology has evolved, and as societal issues also continue to evolve. Our mission today is to empower non-profits and communities with digital and AI capabilities to drive inclusive economic growth and expand opportunities for people around the world. And we do that through core priorities. Firstly, we accelerate digital transformation for non-profits and IGOs, and we currently serve about 325,000 non-profits around the world. Secondly, we help people get the skills to leverage that technology. So, we invest in initiatives to advance digital and AI skills for this increasingly AI-enabled economy. We activate the first two priority areas through selected communities, through the non-profit community and also through our own employee community and communities in different regions around the world. We're certainly in an era of AI, and Microsoft is in perhaps the most important transition ever. And we see enormous opportunity for non-profits and communities to benefit from these emerging generative AI technologies in so many different ways. And ultimately, our goal is to democratize access to AI. So, how do we help enable more people and organizations to benefit from this incredibly powerful technology and help create a more equitable and inclusive society? And I think Microsoft Philanthropies can play a critical role in helping ensure that AI serves humanity well.
Hinde
That's fantastic. And I'm so glad you touched on AI, and I think it's just a topic that's really captured widespread attention, just based on its pace in the field of generative AI. We see Microsoft as really being at the forefront of this innovation. So, Kate, in your view, what potential does AI hold for social impact in that space? And how is Microsoft Philanthropies really embracing this transformative AI era?
Behncken
It really is a transformative era, and I just think there's a huge impact. There's just enormous potential for AI to transform nearly every aspect as an example of the work that non-profits do on a day-to-day basis and to help them do more with less. Technology and solutions can help non-profits and IGOs, help humanitarian organizations, and build more capacity to help them address some of the world's greatest societal challenges. That technology must be tailored to their needs. It has to be affordable, and it has to be accessible. And we're seeing that emerging AI technologies just have incredible potential to help organizations in so many ways, whether it's to be more efficient or to save money. But also, as another example, we're seeing potential to help organizations and communities prepare and respond to disasters. We're investing in different tools that support efforts to prepare for and respond to the impacts of disasters. We have a partnership with a World Meteorological Organization with Early Warnings for All, which is using Microsoft AI technology and predictive models to improve early warning systems for natural disasters. Our AI for Good lab and our data science team are doing some really incredible work in partnership with planet, leveraging satellite data imagery and AI tools to analyze images that are captured before and after disasters. We've done work in Ukraine, Turkey, Syria, Maui. What this does is help streamline the understanding of these events and help organizations that are on the front line respond to them. It can significantly reduce the time needed for aid deployment, and it can save a lot of dollars, and it can save a lot of lives. As one personal example, I was recently in Kenya, and I had the opportunity to go to Dadaab, a refugee camp that is 90 km from the Syrian border. There are about 3,000 refugees there. It's a desperate situation. It was an overwhelming experience. I really found myself there thinking, “Gosh, what's the role that a company like Microsoft can play here?” We're not equipped to help on the ground in a refugee camp. There are lots of organizations that are doing that amazing work. But where a company like Microsoft can help as a technology company is if we could help organizations like IOM or other first responder humanitarian organizations be even 1% more efficient, that can translate into millions and millions of dollars that can be used for other urgent priorities. I'm very excited about the opportunity that AI can bring in terms of helping organizations save money, leverage data more efficiently to design their programs and save lives.
Hinde
Thanks, Kate. Those are fantastic examples that really start to bring to life what organizations can do in terms of, as you say, capacity building, efficiency and resilience. I think, yeah, I mean, just broadly, how almost fascinating it is to explore how the latest technology advancements are impacting the social impact space, so to speak, with such tangible examples. And if we think about how this space is evolving, I'm curious from your perspective because Microsoft has clearly had a focus on philanthropy and CSR for decades. Are you experiencing different expectations from employees, customers and stakeholders? Just on how the role of corporate philanthropy is playing, I mean, I think just what you've described in terms of impacting the entire value chain, both upstream and downstream, is so compelling.
Behncken
Absolutely. Over the last five years, even since COVID, we've seen shifting expectations from employees, the government, customers, and shareholders on the role that the private sector plays and the role of corporate philanthropy. I think social impact initiatives really can't exist in a corner of the business. They really need to be foundational to the business model and tied to a company's strengths. I think more and more, that's what gives companies the license to operate as a company. Stakeholders, more and more, are looking at companies' environmental practices and their social practices much more closely and holistically these days. It's no longer a nice to have. I think it's a must-have if you want to run a successful business and feel good about it. I always feel very fortunate to have the role that I have because Microsoft has had a Philanthropy Department, or it's been called different things since it was formed. It's really in the DNA of the company, and I'm very grateful for that. We're a technology company, so of course, we see the huge opportunities that technology can bring, and we also see the challenges that technology can bring. We see how technology can help people, organizations and communities in so many ways, and we feel a responsibility to help ensure that people can access that technology and know how to use it. In some ways, you could say that our work and the way that Microsoft thinks about social impact work are baked into the company's mission. The mission of the company is to empower every person and organization on the planet to achieve more. But if we relied on Microsoft's business model and market economics alone, we wouldn't reach all the people and communities that we want to reach. And so, there is a need for targeted intervention, which is why we have Microsoft Philanthropies. I think Philanthropies can play a really important role in helping to de-risk solutions to address societal challenges and some of the challenges that we're seeing around the world today. Also, with employees, we have almost 200,000 very energized employees around the world. And I've seen the level of energy and interest opinions that employees have on the social impact work that Microsoft does increase dramatically, in my view, since COVID. And then, over the last few years, given we've had what seems to be, or feel like, an increasing number of disasters around the world. And I think that presents a real opportunity for those of us in corporate philanthropy because we want to tap into that energy. We want to tap into the generosity of employees who give both dollars and time. I hear more and more about how employees look at what a company's social impact, investment principles and approach look like. It's also important for recruitment because more and more employees are looking at prospective employers more holistically as well. And I think the last thing I'd say there is also from governments. There are increasing expectations, I think, from governments. To address some of the societal challenges, you really need government and, non-profit and private sectors to come together. We partner with governments because that's what really helps drive scale and more sustainable solutions. And these challenges are so big that no one can really go it alone. And so it's really important that we think about partnerships in new and different ways.
Hinde
That's so right. I think that you mentioned, firstly, that social impact is a must-have. It's becoming a real business imperative. I mean, you speak about that it also brings about the challenges, and you're absolutely right. We've got to play, whether it's Microsoft Philanthropies, or EY CSR. It's about being this targeted intervention and the role that we play in that. I think it also yields a lot of opportunities in terms of helping the organization navigate disruption, even ensuring tomorrow's markets. And that, to me, is where it plays such a fundamental role in terms of the rising inequality and the climate crisis, which puts long-term business imperatives at risk. So, if I think about talking a bit more about the context that CR finds itself in, with the world experiencing all these multiple crises, global pandemics, social injustice, overconsumption of resources, and climate change, we really need to, as corporations, rethink value creation when it comes to social impact. That means there's a real difference in the way we think about impact. I think it used to be that big corporations really approached corporate responsibility in a fairly traditional way by giving away products, services, or dollars. And we still do that at some level, and that part is very important. What you're describing at Microsoft, you're pouring your energies, whether it's the employees, the ecosystem, systems, et cetera, into areas where technology can really benefit the future of humanity, supporting inclusive growth, addressing climate change, protecting human rights, responding to disasters, even from a preventative perspective. That's a very long way from donations of cash or assets, etc. The way I see it today, a positive social impact must be a central component of the corporate strategy, which is exactly what you've said. It's a business imperative rather than just a byproduct of success. If I think across regions and different industries and different businesses, should we be asking what they can build on top of their core operations and missions to ensure a more prosperous, equitable and sustainable world? Certainly, some organizations are a lot further along in their thinking than others, and some are striving to catch up or join larger ecosystems to do so. I guess what I'd like to touch on next is how they should actually approach that.
At Microsoft, you're highly successful in terms of the scale of your impact. You're partnering right across the ecosystem. I guess just to punctuate the point that you made that Microsoft has over 220,000 employees, but you partner with well over 400,000 partnership organizations or partner organizations too. Ultimately, that means employing more than 22 million people. So you just look at the multiplier effects of that, and that's huge to really affect change. Kate, I wonder if you could tell us a bit more about your approach to partnering for greater impact. What are the tangible benefits for large organizations to collaborate? And it's essentially what can we achieve together that no organization can achieve alone?
Behncken
Well, just picking up on one of the earlier points you made, which was such an important point that corporate philanthropy has changed so much. And we're a long way from writing a check or donating products and services. I think one of the things that needs to evolve, it has evolved, but I think it needs to evolve further, is organizations, non-profits, IGOs and governments looking at the private sector as more than a donor. We look for strategic partnerships. For us, the dollars that we bring to the table it's the least value of what we bring to the table. We're a technology company, so we bring technology, we bring expertise around technology, and that's really the way that we feel like we can add the greatest value. I think organizations should look at the private sector as strategic partners and not simply as donors. Our societal challenges and what we're seeing around the world today are issues too big for any one organization or company to go it alone. Partnerships are more and more critical, and there's such an opportunity to bring together the strengths, competencies, and skill sets of different organizations in different sectors to do more together. We were involved with the Partnership for Central America, which, out of the US administration, really focused on how to stem the flow of migration from Central America. And I think the model that they use there is one that we've learned a lot from, and I think it was really effective in a number of ways. What they did was they had a very small team, actually, that was doing the due diligence and looking at a number of different companies. Microsoft was leading on the digital inclusion pillar. You had Mastercard as financial inclusion and a number of other companies. The Partnership for Central America team was doing the due diligence to really look at the core strengths of private sector companies and then figure out how to bring these companies together to help address the problem that we were all collectively trying to solve. And it was so helpful because it made it easier for us to come to the table and not duplicate efforts but really complement. We could all try to complement what each other is doing. And I think there's an opportunity for more of that collaboration. I do think one of the important things with partnerships, too, is, particularly when you have partnerships between the private sector and public sector, that there's often a real difference in cultures. It's so important to take the time to understand that culture, what's important, and what the different pressures and stresses that each organization might have to be able to have a more effective partnership are.
Hinde
No, those are such great tangible examples, and I suppose it's a nice segue into the next question in terms of just around strategic partnerships that do require patience and bringing complementary skills to the party. And how do we shift to become a more strategic partnership, as opposed to, especially in the public-private space, as opposed to just donor funding, et cetera, and maybe quite a remote experience and opportunities to drive much greater impact when it comes to galvanizing workforces, and so forth. So, if I think about the specific examples that both of us have been working on, EY and Microsoft have several shared objectives in our social impact work. One of them is to increase social equity in the digital economy. We recently announced that we will support millions of people to enter and re-enter the workforce and build new businesses by 2025. We're definitely going to be delivering on that objective and vision by harnessing our existing resources, people, et cetera, in both companies and developing these new programs together. Already, we're witnessing how that is morphing into new programs and projects in terms of different geographies. I think if I think of EY Ripples and Microsoft, where we are running the future skills workshops already in over 50 countries and really targeting disadvantaged youth communities and those that are excluded from the workforce, getting them job-ready. We're leveraging the amazing platform from Microsoft, the community training platform, as a way to share this content more readily with non-profits around the world, running successful pilots in Latin America. It's ultimately these joint initiatives these that support the mission of both organizations to help the world work better. So maybe we can talk a little bit about this alliance and almost bring it to life in terms of the context and the challenges that organizations face. And if, Kate, you could potentially expand on some of the work and the partnership programs that we're driving, how does it work, and what tangible benefits are you seeing?
Behncken
Well, I think it's been a terrific partnership. As you say, I think you start with one initiative, and then you learn how to work together and understand each other's strengths, and that can often lead to more opportunities to partner, which is great. What I like about the partnership with EY is we have both breadth programs and depth programs as well. And you mentioned the depth program where we're really partnering to go deep together with a shared partner with both financial, in kind, co-investment with Trust for the Americas, which is a fabulous non-profit that we've worked with for many, many years. And I think that goes back to actually where we started with how technology is evolving and AI and how important it is for people to get the skills that are needed to leverage these new technologies to be able to secure in-demand jobs or to be able to build businesses, but ultimately to improve livelihoods. So, I think that's a huge area of focus for us, and it's been really fantastic to partner with EY on that initiative. The other one is the Green Skills Passport. As we know, LinkedIn actually did a report earlier this year, the Global Green Skills Report, which shows that green skills are increasingly in demand. We're seeing a huge increase in the number of job postings that are requiring green skills. Around the world, we see that only one in eight workers has one or more green skills. It's both an opportunity for people to get these new skills to secure in-demand roles. And I think that we both recognize that we are confronting a huge sustainability skills gap. And so I love that we're joining forces to launch the Green Skills Passport, which is this new online curriculum that is focused on sustainability, green jobs, and upskilling young people around the world. We're targeting young people who are disconnected from the workforce. And what it also does, which is important in any skilling initiative, and certainly something that we focus on, is it's not just about helping people get the skills, but it's also the so-called soft skills as well. It's helping people get the confidence to seek employment. It's helping with a lot of those other skills that we know are incredibly important for young people around the world.
Hinde
Kate, this whole benefit of acceleration through collaboration with other organizations, and it's about scaling that impact, et cetera. I think businesses are often trying to address impacts that can also be outside of their control. So, as we mentioned before, upstream or downstream in their value chain, they don't necessarily have a direct influence. That's why convening this whole ecosystem approach can be so beneficial around a common purpose. It becomes such a powerful recipe for a more holistic approach to addressing these really hard, entrenched, systemic issues. You mentioned earlier that collaboration allows different organizations or partners to bring unique expertise, skills and resources, combining different cultures and having the patience to work that through. But when we're deliberate about the orchestration of it, it starts to become something pretty special, quite remarkable in action. And as you've mentioned through some of your examples, where we've brought our two organizations together, even if I think of how we're addressing ocean conservation, it was amazing to see how both cohorts of employees were brought together to work on a variety of citizen science projects around ocean conservation and even the whale population around the world. We know we are going to need a whole of industry solutions to address climate change, and biodiversity loss and building these connections through the value chain. Even traditional competitors can have a tremendous impact on how we affect change. If I think about just moving on slightly in terms of how we also need to be honest about our work with social impact entrepreneurs, it is not always easy. It doesn't work like magic. There are two very different entities, and it's not always plain sailing. If we take a step back, social entrepreneurs are really people at the front line of meaningful change, and it's sometimes very challenging for them to deal with large organizations that potentially have complex processes to onboard, et cetera. How do we support these entrepreneurs through those challenges? Or how do we ensure that we bring the best of both? Where large organizations can scale, but entrepreneurs have such innovative solutions on the ground. And it reminds me of the work that Microsoft does around entrepreneurship for positive impact, where I think this is one of your flagship programs in really supporting impact-first tech entrepreneurs. So we are empowering these change-makers with coaching, mentoring tools, resources. And EY has joined this campaign to help these startups as well with virtual workshops and help them address how do they address these barriers to growth? How do we get them investor-ready and so forth? So all these aspects, it's about bringing the best and the most competent attributes to a partnership. And if I think about the capacity-building aspect and about the metrics for non-profits and social impacts, so we can truly say we are driving impact in communities. We've spent in our organization quite a bit of time in terms of looking at how more critically we measure impact and how we define it. It's clear that we must understand what we're measuring and why in a very meaningful way. What are some of the most effective ways to measure success and impact?
Behncken
Well, I wonder if we've cracked the nut on the best way to measure success and impact. It's really difficult, but it's absolutely critical. Firstly, it's important to move from pledges to progress, and that means careful measurement. It means using the power of data to achieve a level of accountability for shareholders, for customers, and for our partners. There can often be challenges with consistent and reliable data in the social impact measurement field. We rely a lot on our non-profit partners, but it's difficult. We invest a lot in skilling initiatives and helping people get the skills to use new technologies. And what you need to do is measure both the output and the outcome. The output is much easier. You can say we're going to have 1 million people complete learning pathways, and you can track that and measure that. It's harder to measure the outcome of that work. Like, if you helped 1 million people complete learning pathways, how many of those people secured employment and were able to improve their livelihood? That's something that we're continually working on and focusing on. There will be opportunities for AI to help with measuring and evaluation. One of the things that we have looked at, and we published a report last year looking at the critical skills and workforce development needed to support the global sustainability transition. We saw that not only is there insufficient reliable climate data in the global south, but also a significant lack of data scientists to work with the data available. So it's important to think about the capacity of the organizations that are on the front line of dealing with whatever issue it is, whether it's helping to combat the climate crisis or whether it's organizations focused on helping refugees around the world. But what capacity do they have to actually leverage data? Our research shows, as an example, that there are about five data scientists in the Global North for every one in the Global South. That means there's a significant gap in the ability of the Global South to turn climate data into insights for decision-making and action. And I was recently in Africa at the Climate Summit, and in Africa, the gap is wider still. There is one data scientist for 14 in the global north. We've tried to do some investments to help with that. We expanded our AI for Good research lab into Egypt and Kenya and established an AI Innovation Council. But it is just important to think about, as technology is evolving, as organizations are increasingly getting access to more data, we also need to think about the skill sets that those organizations have to leverage that data and get insights from that data that will be helpful.
Hinde
I think that's a great point, Kate, in terms of when we think about capacity building, et cetera, it's access, but then interpretation too. Those are quite alarming stats. Whether it's through the collaboration and convening of organizations like EY and others, it's also the opportunity actually to drive some deliberate focus in that area. Even if I think of the open data framework for social impact that you've created, that's to me, just one example of an incredible tool that... But then you need to ensure that these organizations, especially the Global South, are equipped to work with tools like that and interpret and then how do they use them. And the same applies in the context of disaster response in terms of real preventative measures within these communities. I know that we're almost out of time, and I must say I feel like I could talk for some time with you, but I guess maybe my final question is, what advice would you give organizations who are looking to integrate social impact practices into their business? Yes, it takes leadership and senior champions and empowerment about supporting these impact entrepreneurs, for example, on the front line and understanding their pain points and pressure points. What are your thoughts, Kate?
Behncken
It's important that the core business model focuses on creating a solution for the challenges of people and planet. Unfortunately, there is a long list of opportunities for organizations to choose from. It's more powerful when organizations can stick to their core strength also as a business. For us, it's technology. That's where we try to lean in because we know that we can add the greatest value. Secondly, don't go it alone. Partnerships are critical. Think about partnering and really take the time to listen and learn from stakeholders across the community, across governments, private sector, which can help design programs and investments and help define what success looks like. And thirdly, focus on systemic change and really invest and commit to it for the long haul. Societal issues are not quick fixes, and it's hard. You might not get it right the first time, but it's always been important. And it's even more important for private sector to find new ways to invest to help people and communities all around the world.
Hinde
So, thanks, Kate. That's a fantastic way to conclude this conversation, and it has been informative and inspiring. It's amazing to see the work that you and the team are doing, Kate, and that Microsoft is doing around the globe that is really driving an impact in communities and hard-to-reach communities. Thank you for joining us today, and I hope that this conversation inspires other organizations to adopt a collaborative approach, regardless of the challenges that we will work through together. It really does help to accelerate systemic change. So, thanks very much.
Behncken
Thanks so much, Gillian. I really appreciate the conversation, and thanks so much to EY for the partnership.
Hinde
And a quick note from the attorneys: the views of third parties set out in this podcast are not necessarily the views of the global EY organization nor its member firms. Moreover, they should be seen in the context of the time in which they were made. I'm Gillian Hinde. I hope you'll join us again for the next edition of the EY Think Ecosystem podcast. Thanks so much.
