industry, communities & engagement: who is responsible
TRANSCRIPT
Industry, Community & EngagementWho is responsible?
Wayne DunnPresident & FounderCSR Training InstituteProfessor of Practice in CSR @ [email protected]
Community Engagement Forum
Nairobi Process /
Institute for Human Rights in Business
Wednesday, Feb 11th, 2015
Nairobi, Kenya
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Should business
serve society?
We help it to do both. Simultaneously
ConsultingAdvisory servicesTrainingCSR events
StrategyProject reviewCSR diagnosticsCustom workshops
Partnership developmentStakeholder engagementExecutive programsCSR communications
Should businessserve shareholders?
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Aligning InterestsValue for shareholders AND society
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Over the last two days I’ve learned
• Great work being done, but lots more to do
• Progress is being made
• Frustrations (are they growing, static or shrinking?)
• Need for shared responsibilities (industry, government, community, civil society)
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Session Objectives
• Look at some Frameworks that might be helpful: Value and self-interest, (not selfish interest) the sustainable common denominator for all stakeholders
• Group Work/Case Study• Interests, Roles, Responsibilities
& Action Plans
• Discussion
Value for shareholders
ANDsociety
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
CSR Knowledge Centrewww.csrtraininginstitute.com/knowledge-centreEverything is available online (free!)
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Industry, Communities & engagement: Simple, but never easy
Sometimes even confusing
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Enlightened Self-Interest
What’s in itfor me?
Aligned with
What’s in itfor you?
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Selfish Interest
What’s in itfor me?
And more
What’s in itfor me?
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
It is about Interests!What’s In It For Me?Does engagement make sense without self-interest?
Key issue is value alignment:
Value propositions that align shareholder interests with those of other stakeholders
Industry, Communities & engagement: Simple, but never easy
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Effective stakeholder engagement/empowerment
What’s in it for me
What’s in it for you
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Download from
CSR Knowledge Centrewww.csrtraininginstitute.com/knowledge-centre
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
What about “Shared Value”
The ‘Shared Value’ 4 bucket model
Do Nothing
Bad
Philanthropy
BetterBut not good
CSR
OK..Sort of
The Best
SharedValue
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
CSR Value Continuum©
• Helps to understand aggregate of project/corporate CSR activities.
• CSR includes a range of activities from Philanthropy through to synergistic value alignment (and a well-rounded and developed program would have activities along the continuum)
• Continuum of value distribution through to value creation
• Shared Value should be created on all CSR projects, not just those at far right. Level and amount of shared value/value creation changes but all are about value and shared value
Value Distribution
Value Creation
• Grants/Donations/Philanthropy
• Local organizations/governance
• Education & Healthcare
• Skills training
• Employment
• Procurement
• New products, markets, ventures
© CSR Training Institute 2013
All Good - All the way
it’s all shared value Every CSR investment and activity
should create value for the company & for one or more stakeholders.
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Value Distribution
Value Creation
ValuePropositionAlignment
• Grants/Donations/Philanthropy
• Local organizations/governance
• Education & Healthcare
• Skills training
• Employment
• Procurement
• New products, markets, ventures
1 1 3
CSR Value Alignment Framework©
© CSR Training Institute 2013
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Value Sustainability
•CapEx or OpEx?• Does the initial investment continue to
provide value beyond the investment timeframe
• Community Sports Event
• Local Supply Chain Development
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Value Sustainability©
Current
Value
Medium Term Value
Long Term Value
• Grants/Donations/Philanthropy• Local organizations/governance• Education & Healthcare• Skills training• Employment• Procurement• New products, markets,
ventures
Does a CSR investment continue to produce value over time
Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Who is responsible for good CSR(or community engagement)
Shared Value Creation requires Shared Responsibility:
Whose Responsibility is Corporate Social Responsibility?
Corporate Social Responsibility is not something a company does to or for communities, governments or others.
All partners are in the same boat.
If the boat floats all will benefit.
If it sinks everyone gets wet.
Community Engagement: Shareholder AND Societal Value
Nairobi, Kenya, Feb 11, 2015
CSR Roles & Responsibilities
Read the Case
• Pick a stakeholder
• What are your interests
• What are your responsibilities
• What is your action plan
• Report it back
Community Engagement: Shareholder AND Societal Value
Nairobi, Kenya, Feb 11, 2015
Questions, Discussion & Followup
Follow-up
Wayne DunnPresident & FounderCSR Training InstituteProfessor of Practice in CSR @ [email protected]