c3 and social enterprise
TRANSCRIPT
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CSR & SocEnt Shared principles and common strategies
CSR in Action April 1st, 2013
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Agenda
Introduction
Leadership and success re-defined
Strategic approach to CSR
Case study: Bain and Booz
Appendix
2 © 2012 Consult and Coach for a Cause FZ LLE
All Rights Reserved @CandC4aCause
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C3 in a nutshell
C3 is a social enterprise MOBILIZING corporate professionals to
SUPPORT SOCIAL ENTREPRENEURS on volunteer basis
130+ volunteers
100+ soc ent supported
IN ONE YEAR!
INTRODUCTION
Network of partners Word of mouth
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1st Social Enterprise Week in the Region
© 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved
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SOCIAL MISSION
IMPACT
BUSINESS KNOW-HOW
C3 vision and mission
UNLOCK the potential of
SOCIAL VENTURES and help them MAXIMIZE their IMPACT on the
community
INTRODUCTION
Maximize Social Impact
Maximize Performance
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What’s next
INTRODUCTION
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MEMBERSHIP PROGRAM
for Social Entrepreneurs
Social Impact EXPERTS NETWORK
for SMEs and CSR Divisions
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Leadership and success redefined
'I want to work for a company that
contributes to and is part of the
community. I want some-thing I believe
in.‘
ANITA RODDICK,
Founder The Body Shop
‘Business benefits 0f [social responsibility] are hard measures of growth and margin improvement. It’s a
no-brainer. ’
PAUL POLMAN
CEO Unilever
‘Businessmen who focus on profits wind
up in the hole. For me, profit is what
happens when you do everything else
right.’
YVON CHOUINARD
Founder Patagonia
‘The most powerful and enduring brands
are built from the heart. The companies
that are lasting are those that are
authentic’
HOWARD SCHULTZ CEO
Starbucks
LEADERSHIP AND SUCCESS RE-DEFINED
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13%
20%
30%
31%
6%
The socially conscious consumer
Play limited role in the community
Just make money
Change the way they operate to align with greater social needs
Support larger issues with
donation & time
Support larger issues with donation & time AND advocate for change
Global consumers think that THE ROLE OF BUSINESS IN SOCIETY is:
Source: The 2011 Cone / Echo Global CR Opportunity Study
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LEADERSHIP AND SUCCESS RE-DEFINED
© 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved
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The role of social media
Online Information’s Impact on Purchase Decisions
80%
87%
85%
68%
80%
81% After getting a recommendation, I go online to do ADDITIONAL research before deciding whether to purchase it
2010 2011
NEGATIVE information online has made me change my mind about purchasing a recommended product / service
POSITIVE information online has reinforced my decision to purchase a recommended product / service
Source: The 2011 Cone Online Influencer Tracker
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LEADERSHIP AND SUCCESS RE-DEFINED
© 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved
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From linear marketing…
company
consumer
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LEADERSHIP AND SUCCESS RE-DEFINED
© 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved
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… to Square MarketingTM
prosumer
employee
social responsibility
& social media
company
consumer
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LEADERSHIP AND SUCCESS RE-DEFINED
© 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved
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Arabs’ interest in social causes
Interest in Social Causes (Post Arab Spring)
67%
67%
63%
59%
60%
52%
MENA
Interest in Volunteering
63%
65%
68%
49%
52%
62% UAE
KSA
Qatar
Kuwait
Bahrain
Oman
In Improving Communities
68%
60%
Source: Social Entrepreneurship: Why is it Important Post Arab Spring? Online Survey Report - March 2012 - Stanford University, Bayt.com, YouGov
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LEADERSHIP AND SUCCESS RE-DEFINED
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Social media in the Arab world
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LEADERSHIP AND SUCCESS RE-DEFINED
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Glocal Issues
Heading towards
> 2°C
Climate
40% of
global shortfall by 2030
Water
Middle East Population
x2 by 2050
Population
1:10 Obese
1bn Hungry
Inequality
Next
40 years supply =
Past 8,000 years
Food
Middle East Hazardous Waste
>600 kg per person
Waste
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LEADERSHIP AND SUCCESS RE-DEFINED
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Companies’ shift towards social responsibility
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LEADERSHIP AND SUCCESS RE-DEFINED
© 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved
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A strategic six-step approach
STRATEGIC APPROACH TO CRS
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Well-designed CSR strategies can maximize social impact while unlocking business performance
Align Social & Financial
Performance
Choose a feasible
Biz Model
Make sure you don’t
HARM
Unlock $$$
Benefits
Include All Stake-holders
Measure Social Impact
1 2 3
4 5 6
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Doing Good vs Not Doing Harm
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CSR as Contingent Benefit
Source: Berkeley Haas School of Business – California Management Review
Past CSR activities make stakeholders perceive an
adverse event as ‘ bad luck’ rather than ‘bad management’
Saving the company money, regulatory scrutiny and brand
value
Doing Good
Not Doing Harm
Savings in firm value
after product recall if
compared to
+3.6%
+1.6%
+2.0%
STRATEGIC APPROACH TO CRS
1
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UNGC – The 10 principles
Source: UNGC
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HUMAN RIGHTS (P1/P2)
Ethics / Equality /
Discrimination
LABOR RIGHTS (P3-P6)
Policies / Protection / Health & Safety
ENVIRONMENT (P7-P9)
Impact / Strategy/
Responsibility
ANTI-CORRUP-TION (P10)
Transparent / Fair /
Accountable
STRATEGIC APPROACH TO CRS
1
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For-purpose organizations’ business models
Source: Brookings, Silatech
For-Purpose Organizations Charitable Commercial
Financially sustainable non-profit organization
Relies entirely on strategic partnerships
Generates some revenues
Financially sustainable through its own income-generation activities (Hybrid model)
Sustainable Non-Profit
Organization with a social mission (and a for profit legal entity)
Reinvests 50% or more of its returns back into social causes
Social Business
Organization with a social mission (and a for profit legal entity)
Social Responsibility at the core of business strategy
CSR-Focused Business
Social Enterprise
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STRATEGIC APPROACH TO CRS
2
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Social and financial alignment
Beneficiaries
Suppliers / Distributors
Employees
Customers
Maximize Social Impact
Maximize Financial
Performance
19 © 2012 Social Enterprise Advisors FZ LLE
All Rights Reserved @CandC4aCause
STRATEGIC APPROACH TO CRS
3
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Stakeholders
Shareholders Employees
Suppliers / Distributors
Con/Pro-sumers
Partners Community
Stakeholders
Company Environment
SOCIAL BUSINESS IDEA TM
Source: ‘Who cares wins’ by David Jones
Stakeholders’ alignment for scalability
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All Rights Reserved @CandC4aCause
STRATEGIC APPROACH TO CRS
4
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Potential benefits of a social mission
Potential Benefits Focus Areas
Competitive advantage / sales edge
Customer consciousness preferences
Marketing savings Social media / viral marketing
HR - recruiting / retention savings and productivity increase
Employee consciousness preferences
Capital’s wider access and lower cost
Social impact measurement (outcomes)
Reputation insurance Authenticity / transparency
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STRATEGIC APPROACH TO CRS
5
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Measure your social impact
What you cannot MEASURE,
you cannot MANAGE
What you cannot MANAGE,
you cannot CHANGE!
22 © 2012 Social Enterprise Advisors FZ LLE
All Rights Reserved @CandC4aCause
STRATEGIC APPROACH TO CRS
6
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Case Study – CSR through C3
CASE STUDY
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All Rights Reserved @CandC4aCause
Knowledge & Skills
Volunteering Time
Speed Consulting Sessions
Pro-bono for C3 and C3 members
Speed Consulting Sessions
Soc Ent Week Sponsorship
Community Relevance
Hands-on Experience
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Thank you!
www.consultandcoachforacause.org
www.facebook.com/consultandcoachforacause
@CandC4aCause
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RISE* Social Venture Rubric
Social
* Research Initiative on Social Entrepreneurship – Columbia Business School
BUILDING BLOCKS
Financial
Mission Context &
Theories of Change
Social & Financial Alignment
Social Impact Metrics
Scalability / Social Impact
Legal Form & Financing
Market Potential
Products and Services
Competitive Advantages
Cash Flow & ROI
People
APPENDIX
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All Rights Reserved @CandC4aCause
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Theory of Change (1/2)
Source: Global Social Venture Competition
The Theory of Change describes WHY the activities of the venture lead to the desired social outcomes.
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All Rights Reserved @CandC4aCause
APPENDIX
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Theory of Change (2/2)
KEY QUESTIONS
1. Who are you seeking to influence or benefit?
2. What benefits are you seeking to achieve?
3. When will you achieve them?
4. How will you and others make this happen?
5. Where and under what circumstances will you do your work?
6. Why do you believe your theory will bear out?
2. Results
3. Time Period
4. Activities, strategies, resources
5. Context
6. Assumptions
1. Target Population
Source: Stanford Social Innovation Review
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All Rights Reserved @CandC4aCause
APPENDIX
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Social and financial alignment
Beneficiaries
Suppliers / Distributors
Employees
Customers
Maximize Social Impact
Maximize Financial
Performance
28 © 2012 Social Enterprise Advisors FZ LLE
All Rights Reserved @CandC4aCause
APPENDIX
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Stakeholders
Shareholders Employees
Suppliers / Distributors
Con/Pro-sumers
Partners Community
Stakeholders
Company Environment
SOCIAL BUSINESS IDEA TM
Source: ‘Who cares wins’ by David Jones
Scalability / Social Impact
29 © 2012 Social Enterprise Advisors FZ LLE
All Rights Reserved @CandC4aCause
APPENDIX
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Impact Value Chain (1/2)
Source: Global Social Venture Competition
The Impact Value Chain illustrates HOW the venture’s activities lead to the desired outcomes and impact.
Inputs
What is put into
the venture
Outputs Outcomes Goal
Alignment
What would have
happened anyway
IMPACT
Venture’s primary activities
Results that can be
measured
Changes to social systems
Activity and goal
adjustment
Activities
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APPENDIX
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Impact Value Chain (2/2)
Source: Global Social Venture Competition
The Impact Value Chain illustrates HOW the venture’s activities lead to the desired outcomes and impact.
Outputs Outcomes
What would have
happened anyway
IMPACT
Results that can be
measured
Changes to social systems
E.G. NUMBER OF TRAINEES / YEAR ATTENDING BACK
TO BASICS TRAINING COURSES
E.G. DELTA % OF DOMESTIC
INCIDENTS B/W
HOUSEHOLDS EXPOSED TO
B2B TRAINING vs NORMAL
HOUSEHOLDS
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APPENDIX
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Why measuring?
What you cannot MEASURE,
you cannot MANAGE
What you cannot MANAGE,
you cannot CHANGE!
by Alex Lemille
32 © 2012 Social Enterprise Advisors FZ LLE
All Rights Reserved @CandC4aCause
APPENDIX
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Social Impact Indicators
Source: Global Social Venture Competition
Specific operational metrics (OUTPUT MEASURES) that a venture can utilize to assess whether they are
progressing towards their social benefit objectives.
Choose the ones that most strongly correlate to desired outcomes.
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APPENDIX