The business case for developing a Reconciliation
Action Plan (RAP)
Successful RAP organisations know that reconciliation is good for business, good for the
economy and good for the nation.
In 2008, Access Economics estimated the economic impact of closing the gap by 2029:

Gross Domestic Product (GDP) would increase by $10b or 1 per cent

Government revenue would increase by $4.6b (increased employment =
greater income=payroll tax)

Government expenditure would fall by $3.7b (reduced demand for
social/health services).
Therefore the RAP program is focused on long-term, sustainable activities that will have a
mutual benefit for the community and the organisation—rather than philanthropy. These
benefits are outlined below.
1.
Efficiency and effectiveness

Developing an inclusive and confident customer base–Aboriginal and Torres
Strait Islander customers are generally the least confident and trusting in
engaging with businesses due to past experiences.

Capable and confident customers engage more deeply and are likely to
develop a broad-based relationship where needs are met more fully and
interactions are more efficient.
2.
Improved market access

Developing new markets and better penetrating existing markets by more fully
meeting the needs of the fastest growing part of the Australian population.

Employing a workforce that is representative of the community in which
organisations operate helps to develop trust and better engages Aboriginal
and Torres Strait Islander customers.
RAP resource: The business case for developing a RAP
3.
Workforce efficiency
Attracting, motivating and developing talented local staff who are connected to
vibrant local communities:

Generates stronger links with Aboriginal communities

Brings in new perspectives

Broadens the talent pool of labour

Overcomes costs and challenges associated with recruiting, transporting and
accommodating staff from other locations and the high turnover rates of these
positions.
4.
Meeting changed customer preferences

Gen Y (post-1980) has a greater connection to social and corporate
responsibility.

Purchasing choices are increasingly influenced by organisation reputation and
community orientation.
5.
Staff engagement and satisfaction
Existing, new and future staff are increasingly aware of and interested in social
responsibility of their employer and want the opportunity to play a meaningful role
through their workplace in closing the gap.
6.
Improving compliance
Very few frontline staff in large organisations could say that they have a strong
understanding of Indigenous customers’ needs. Customer needs may be unmet or
inappropriately met, involving breaches in consumer protection and other laws. For
example, banks are obliged to know the customer and fully understand their needs
before offering a financial product.
7.
Shaping public and industry policy
Having good relationships with Aboriginal and Torres Strait Islander people has led to
trusted companies being consulting and included in discussions to develop policy on
employment, regulation, consumer affairs, health, tax, and so on.
8.
Value alignment
In today’s world, it is important for companies to act in alignment with organisational
values such as:

Community trust

Customer focus

Inspiring people
RAP resource: The business case for developing a RAP

Being bold

Creating sustainable shareholder value.
RAP resource: The business case for developing a RAP