integrating social and business value through the sdgs
TRANSCRIPT
©2017 CSR Training Institute
Investing for Impact
Presented by
Wayne Dunn & Laurel Sabur
CSR Training [email protected]@csrtraininginstitute.com
Eden Gardens ResortJanuary 27th, 2017Kingston, Jamaica
Integrating social and business value through the SDGs
From CSR to Social Stock Exchange
©2017 CSR Training Institute
Program Outline
•World changed – increasing pressure on business to create social value
•How business responded
• Framework for integrating business, social and environmental interests
•Case study/group work on SDGs and business
•Primer on measuring social impact
©2017 CSR Training Institute
Who/What is
• Canadian based with global delivery (focus on Gulf Region and Africa)
• Global faculty team of 45+ professionals and experts
• Trained hundreds of executives, leaders and practitioners in CSR Strategy and Practice
• Focus on CSR strategy, Value Creation and Impact
• Public programs and customized corporate and organizational programs
• Consulting and strategic assignments
• National/regional partnerships in Ghana, Greece, UAE, Zambia, East Africa, India
• Upcoming programs in Dubai, Africa and globally
• Newsletter & Updates http://bit.ly/CSR-SignUp
Wayne Dunn• Founder & President of CSR Training Institute
• Start-up CEO (raised $20+mm capital)
• Master of Science in Management, Stanford Business School
• Stanford University Sloan Fellow
• Former Professor of Practice in CSR, McGill University
• Chairman of Ta’atheer 2016, MENA CSR & Social Impact Summit
• 25+ years of practical CSR experience (40+ countries, every continent, public and private sector
• 10+ years of CSR training
• Extensive writings on CSR
• Frequent speaker at events worldwide
• Numerous awards (1st private sector winner of World Bank Development Innovation Award, Stanford Case Study, etc.)
• Advisor to corporations, governments, NGOs and international organizations worldwide
• Consulted across industries, geographies and sectors on CSR, sustainability, strategy and operations
©2017 CSR Training Institute
Who/What isLaurel Sabur• 10 + years Investment Banking
Professional
• Impact Investment and Social Impact Evaluator Consultant
• Consultant to NGO’s, Corporations and Governments
• Masters of Science , Applied Mathematics in Finance
• Bachelors of Science , Actuarial Science
• Certificate, Community Economic Development
• Jamaican-Canadian
©2017 CSR Training Institute
Caution: Language is ‘under development’• Corporate Social Responsibility (CSR)
• Sustainability
• Corporate Responsibility
• Social Responsibility
• Environment, Social and Governance (ESG)
• Shared Value
• Social License
• ????
©2017 CSR Training Institute
The world changed
• Isolated world gave more power and influence to large institutions (government, business, etc.)
• More focus on local issues, standards and expectations
• Globalized inter-connected world • Emerging global standards and norms• Increased democratization of power and
influence
• Anywhere is everywhere
©2017 CSR Training Institute
Sustainability Investing/Indexes
* Morgan Stanley Institute for Sustainable Investing
©2017 CSR Training Institute
Increasing societal expectations and influence
0
50
100
150
200
250
300
1975 1980 1985 1990 1995 2000 2005 2010 2015
Soci
etal
Exp
ecta
tio
ns
& In
flu
ence
Applies to organizations of all types, but especially business
*directionally indicative data derived from SWAG analysis
Miss expectations.Prepare to be punished.
©2017 CSR Training Institute
Evolution of CSR
• Beads & Trinkets Era: Throw money at social issues
• Zero Sum: Philanthropy & Charity
• Value Optimization: Strategic CSR:Integrating social, business and environmental value
©2017 CSR Training Institute
CSR = Value for shareholders and society
CSR is more than charity and philanthropy
It is NOT simply about organizations giving to society
Corporate Social Responsibility is about creating business
value AND social value. About aligning and balancing
shareholder, societal and environmental interests.
Effective CSR balances the interests of shareholders, society
and the planet, making stronger and more sustainable
©2017 CSR Training Institute
CSR Value Analysis
• Identifying business value is generally reasonably straightforward and universal
• Social and environmental value analysis can be more difficult
• Need a robust framework and qualitative metrics that can be understood and accepted by majority of stakeholders
©2017 CSR Training Institute
Adopted unanimously by the United Nations in a Special Assembly
September 2015
Sustainable Development Goals
©2017 CSR Training Institute
Apple and the SDGsfrom the video only
1. No Poverty2. Zero Hunger3. Good health & well-being4. Quality education5. Gender equality6. Clean water & sanitation7. Affordable & clean
energy8. Decent work & economic
growth9. Industry, innovation &
infrastructure
10.Reduced inequalities11.Sustainable cities &
communities12.Responsible production &
consumption13.Climate action14.Life below water15.Life on land16.Peace, justice & strong
institutions17.Partnerships for the goals
Did Apple impact any SDGs
©2017 CSR Training Institute
Guinness Ghana impact on the SDGs
1. No Poverty2. Zero Hunger3. Good health & well-being4. Quality education5. Gender equality6. Clean water & sanitation7. Affordable & clean
energy8. Decent work & economic
growth9. Industry, innovation &
infrastructure
10.Reduced inequalities11.Sustainable cities &
communities12.Responsible production &
consumption13.Climate action14.Life below water15.Life on land16.Peace, justice & strong
institutions17.Partnerships for the goals
Which SDGs did Guinness’ local sourcing impact
©2017 CSR Training Institute
Guinness Ghana
Increasing local raw materials resulted in:
Reduced forex exposure / managing cost
Lower input costs (theoretically)
Provide value to communities
Provide differentiation in the marketplace
Provide connection with communities and consumers
Support national and community economies
Provide framework for further community investments
Overall brand and reputational capital value
©2017 CSR Training Institute
SDG Analysis Frameworks
SDG alignment and engagement should be based on a systematic and strategic analysis around value and fit.
No value | No sense doing anything
Some SDG Value and Fit Analysis Frameworks
• Current status
• Applicability to industry and operations
• Company’s ability to have an impact
• Importance to key stakeholders
• Value impact on business
• Local significance
• Other
©2017 CSR Training Institute
…
…
The Sustainable Development Goals and Torex
17
Torex Business & Activities
Goal 1 End poverty in all its formseverywhere
Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Goal 3 Ensure healthy lives and promote well-being for all at all ages
Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Goal 5 Achieve gender equality and empower all women and girls
Goal 6 Ensure availability and sustainable management of water and sanitation for all
Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Goal 10 Reduce inequality within and among countries
Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 12 Ensure sustainable consumption and production patterns
Goal 13 Take urgent action to combat climate change and its impacts*
Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertifcation, and
halt and reverse land degradation and halt biodiversity loss
Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels
Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development
SDG
Imp
act Areas
17 SDGs
©2017 CSR Training Institute
…
…
SDG Impact Analysis (Current)
17
Business & Activities
Goal 1 End poverty in all its formseverywhere
Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Goal 3 Ensure healthy lives and promote well-being for all at all ages
Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Goal 5 Achieve gender equality and empower all women and girls
Goal 6 Ensure availability and sustainable management of water and sanitation for all
Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Goal 10 Reduce inequality within and among countries
Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 12 Ensure sustainable consumption and production patterns
Goal 13 Take urgent action to combat climate change and its impacts*
Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertifcation, and
halt and reverse land degradation and halt biodiversity loss
Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels
Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development
SDG
Imp
act Areas
17 SDGs
Which of the SDGs does your business impact now
©2017 CSR Training Institute
…
…
SDG Impact Analysis
(Strategic)
17
Business & Activities
Goal 1 End poverty in all its formseverywhere
Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Goal 3 Ensure healthy lives and promote well-being for all at all ages
Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Goal 5 Achieve gender equality and empower all women and girls
Goal 6 Ensure availability and sustainable management of water and sanitation for all
Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all
Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Goal 10 Reduce inequality within and among countries
Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable
Goal 12 Ensure sustainable consumption and production patterns
Goal 13 Take urgent action to combat climate change and its impacts*
Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertifcation, and
halt and reverse land degradation and halt biodiversity loss
Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels
Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development
SDG
Imp
act Areas
17 SDGs
Multi-dimensional assessment of strategic importance of each SDG
Applicability to industry and operations
Company’s ability to have an impact
Importance to key stakeholders
Value impact on business Local significance Other
©2017 CSR Training Institute
Business Case for SDG engagement
some value propositions
• Ease of communication – globally accepted framework
• Better social and business ROI
• Prioritize investment and impact areas
• Ability to attract partners and collaborators
• Government and regulatory agency relationships
• Stakeholder relationships
• Framework for Public/Private and NGO partnerships
• Objective criteria for engaging / not engaging
• Connects business directly to global development priorities
• Will becoming increasingly important around finance and risk areas (Equator / IFC 2, etc.)
• Internal & external communications (simple and easy stories to tell)
• Helps to rationalize CSR strategy and programs
©2017 CSR Training Institute
Measuring Social Impact
Why Measure Social Impact?• Enrich the dialogue with stakeholders
• Enhance performance management
• Can supports SDG analysis
• Enhance attention to the social, economic and environmental valuecreated
• Risk Mitigation
Resource Inputs
Business/Program Activity
Outcomes Impact
Impact Value Chain
©2017 CSR Training Institute
Snapshot ofMeasurement Approaches
IMPACT METHODS: Track outcomes while using outputsto measure such outcomes. This supports correlationanalysis and helps to determine the real social valuecreated.
PROCESS METHODS: Assess the effectiveness andefficiency of outputs , key variables and indicators. Thisrequires actively tracking outputs.
MONETIZATION METHODS: Applies dollar value to theoutcomes
©2017 CSR Training Institute
Example
Monetization Approach
Training and job placement for marginalized group
Inputs : Time, Resources
Outputs : Up to 16 hours work experience per week, Updated CV, Increased Skills and qualifications
Outcomes : Training and opportunity to move on, Improved recovery and mental well-being, improved social networks
Indicators : Attendance, Increased earning potential, medical costs saved,
Financial proxies: reduction in hospitalisation , secondary mental health services
©2017 CSR Training Institute
Summary
•World changed – increasing pressure on business to create social value
•How business responded
• Framework for integrating business, social and environmental interests
•Case study/group work on SDGs and business
•Primer on measuring social impact
©2017 CSR Training Institute
Wayne DunnPresident & Founder, CSR Training InstituteFormer Professor of Practice in CSR, McGill Universitywayne@csrtraininginstitute.comwww.csrtraininginstitute.comWhatsApp +1.250.701.6088
Thank you for listeningQuestions & Follow-up