Download - Societal Expectations | Shareholder Value: pragmatic innovation to drive alignment (and value)
Societal Expectations | Shareholder Valuepragmatic innovation to drive alignment (& value)
Presented by
Toronto June 1, 2015
Wayne [email protected]
Professor of Practice in CSR (McGill)President & Founder
Recognizing progress, not lamenting imperfection…
Objective
• Explore some global examples of value alignment (shareholder, societal, environment)
• Stimulate more creative value propositions to align shareholder, societal and environmental value (hopefully!)
Recognizing progress, not lamenting imperfection…
Managing societal expectations& creating shareholder value
Framework
Plan
?Results?
System
Recognizing progress, not lamenting imperfection…
Social value imperativeapplies across industry, sector & geography
Recognizing progress, not lamenting imperfection…
What is the role of business?
Shareholder value
Societal value
And?Or?No?
Growing societal expectations around social value and environmental performance
Recognizing progress, not lamenting imperfection…
How much water did that Strawberry Cost?
• Global commons costs are internalizing
• Improved natural capital management– Shareholder value
– Societal value
– Resource usage
Recognizing progress, not lamenting imperfection…
You want Green with that Slapshot?• Environmental impact (green
power & 20% energy use reduction)
• Industry leadership• Cost managementEveryone wins!
– Shareholder value– Societal value– Reduced GHG
Good hockey too (Leafs?)
The NHL's commitment to use 100 percent renewable energy is a hat trick for clean air, our health, and our climate," said EPA Administrator Gina McCarthy
Recognizing progress, not lamenting imperfection…
Solving input costs & forex risktransforming communities & agriculture• Forex risk (Ghana
Cedi:USD)• Input costs (local
content)• Market differentiationEveryone wins!
– Shareholder value– Societal value– Reduced GHG
Good beer too
Recognizing progress, not lamenting imperfection…
Extracting the resourcesproviding the resources
• Lundin Group (11 extractive sector companies)
• Lundin Foundation– VC approach to investing– Sustainable support to local enterprise
& development– Leverage other opportunities
Everyone wins!– Lundin Group (and all the companies)– Local communities & economies– Lundin Foundation– Other development partners
Recognizing progress, not lamenting imperfection…
Get the beerreduce the waste
• Zero Landfill target• Beer from can/not
container• Reduced waste• 2,500 hours pouring
time saved!Everyone wins!
– Reduced cost, cleanup & disposal
– Less packaging/waste
Recognizing progress, not lamenting imperfection…
Triple header impactlimited promotion! (yes, this is that Nike)
• Support to community athletics & athletes
• Support to hi-performance athletes
• Support to communities where products are made
• Limited communication and promotion!
Recognizing progress, not lamenting imperfection…
I’m hungry, you’re hungrysupporting community & social causes
• Company wide support (2,000 locations)
• Leverages customer support
• Waste Value (waste=fuel)
Everyone wins!– Shareholder value– Societal value
Recognizing progress, not lamenting imperfection…
Get your caffeine fixenergize a rural community
• Ethical trading
• Responsible growing
• Increasing focus on community, society & environment
Everyone wins!– Shareholder value
– Societal value
– Sustainable farming
Recognizing progress, not lamenting imperfection…
Amazing productIncredible impact
• Social purpose venture
• Linking end-user to product source
• Direct support to women, children, families & communities– Shareholder value
– Societal value
– Supply chain value
– Reduced deforestation
Recognizing progress, not lamenting imperfection…
Creating an Industrytransforming an economy
• Robust social licence• Building supply chains
& local economies• Relationships drive
acceptance and operational efficiencies– Shareholder value– Societal value
Recognizing progress, not lamenting imperfection…
No rocket sciencePlenty of sweat, commitment & innovation
Industry/Sector Company Shareholder Value Societal Value Environment
Agriculture Driscoll’s Market positioning Cost
Water (scarce & shared resource)
Water use
Extractives Cameco Societal acceptance HR Costs
Employment Supply Chain Education
Beverages (Guinness) Guinness Input costs Forex risk Market positioning
Poverty reduction Agriculture development
Reduced GHG
Professional Sports League NHL Reduced operational cost Reduced GHGReduced overall energy usage
Restaurant Panera Bread Market positioning Customer loyalty
Foodbank support Reduced waste
Facilities Management Vancouver Canucks Reduced cost Less packaging & waste
Sports & Entertainment Arena OpsCanucks/Beer
Foundation Lundin Foundation Lundin Group Economic development
Social Purpose Venture Baraka Supplies Product positioning Customer loyalty
Women & development Education
Athletic Equipment & Supplies Nike Marketing Image resilience (potential)
Community sports Community Development
Recognizing progress, not lamenting imperfection…
Discussion, Debate, Challenges, Questions, Jokes, Improvisation….
More informationWayne Dunn