Wealth and Philanthropy: A New Role in the Post Crisis Period?
Stelios Haji-Ioannou, CEO, easyGroup; Founder, Stelios Philanthropic Foundation

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"I talk of myself as a serial entrepreneur; another way of saying I am unemployable..." says Stelios Haji-Ioannou who recently institutionalized his philanthropic activities under the umbrella of the Stelios Philanthropic Foundation, with a focus on the 3 E's: Education, Entrepreneurship and the Environment.

Stelios may not describe himself as a self-made businessman, but he is certainly a self-made philanthropist, having felt a duty to give back to the society which purchases and uses the products that made him the success he is. Interestingly in both philanthropy and business, he says, the same principles of entrepreneurship and risk apply.

The bedrock for Stelios' philanthropic work was set by reflecting on some challenging questions which ultimately involve making tough tradeoffs:

Do I take a high profile or discreet approach to my giving?

Stelios chose to follow a high profile approach, which has inherent multiplier effects. Indeed, by ensuring the visibility of his actions, Stelios feels he is able to inspire more of his peers to consider philanthropy as a field to engage in.

Do I act closer to home, or do I go to the world's poorest?

With over one billion people living with under $1 a day, there is a lot to do. However at the end of the day, with limited resources, Stelios chose to act closer to home where he has a better understanding of the people and issues at stake. In Cyprus, where his parents were born, Stelios launched a program - the Stelios Award for Business Cooperation in Cyprus - to support interaction and communication between the divided north and south of the island. He saw business as a means to bridge the divide between the two communities. To break the stigma from doing business with the other side, Stelios devised this Award to promote entrepreneurial business cooperation between the Greek-Cypriot and Turkish-Cypriot communities, providing a 50,000EU funding boost to each of the winning bi-communal teams. Although his support might appear small relative to government schemes and NGO spending in the area, Stelios hopes to have a significant impact on peace and rapprochement between the two communities by breaking down the barriers to doing business across the border.

Do I support the brightest or the neediest individuals?

Stelios opted for supporting the brightest as this, once again, provided the opportunity for a multiplier effect to kick in when the brightest reach their potential and engage and thrive in society. The first thing he did was to return to his alma maters, the London School of Economics (LSE) and the Cass Business School, and their alumni networks to discuss how he could help support promising students to attend these institutions. These contacts laid the groundwork for setting up the Stelios Scholars program to support select students attending either institution.

Building on his strong belief in entrepreneurship, Stelios also partnered with the charity Leonard Cheshire Disability, not to give money but to create a new project supporting entrepreneurship among disabled business people. This partnership of equals, Stelios contributing his entrepreneurial experience and Leonard Cheshire their understanding of the disabled and the challenges they face, led to the creation of The Stelios Award for Disabled Entrepreneurs in the UK. Why? Well nearly half of the disabled population is self-employed so supporting entrepreneurship is a powerful force of change for the community. So far, three awards of £50,000 have been conferred to three exceptional entrepreneurs with disabilities.   Partnering with the charity was crucial for ensuring the success of the award; indeed Stelios felt it was important to benefit from the expertise and credibility of an experienced partner to ensure he had a positive impact on the disabled community and that his actions were not counter-productive. 

Do I give in my life time or should I plan for longer term?

This final question is another difficult one, with no easy clear-cut answer. However, in Stelios' case, he chose to give in his lifetime because he wanted to enjoy and see the results of his giving.

The audience challenged Stelios on why he chose the role of philanthropist rather than that of an investor in light of the entrepreneurial and business nature of the projects he supports. Acknowledging that this could also have been a route to take, Stelios explained how the payback from philanthropy was much more fulfilling than dividends. The opportunity and pleasure from interacting with and monitoring the progress of beneficiaries, how their business evolves and how they can become inspirational for others is not as possible when building a relationship as an investor.

On the issue of risk, although all the projects which have benefited from Stelios' support so far have fared well, it is only a matter of time before one fails. However as Stelios concluded in his presentation this is to be expected: taking risks is all part of the game of being a philanthropist, even more so when you seek to support entrepreneurship.