the shared values economy is here
TRANSCRIPT
The shared values economy is here.How CSR professionals can employ a purpose-driven framework to drive success in their companies & their communities.
Shared Value:Value created through partnerships for the benefit of both parties—typically a company and a nonprofit—that helps one another achieve their respective goals.
A brief look at terminology2
Ethics, beliefs, convictions, support for social or environmental causes, and other opinions shared by customers, employees, and stakeholders of a given company or nonprofit.
Shared Values:
Evolution of Purpose in Business
Corporate Philanthropy
Workplace Giving
Creating Shared Value
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Cause Marketing
Corporate Social Responsibility
1960s
2010
s
Creating Shared Value
4
Corporate Philanthropy
Workplace Giving
Cause Marketing
1960s
2010
sWe are here
Evolution of Purpose in Business
Corporate Social Responsibility
Creating Shared Value
Corporate Philanthropy
Workplace Giving
1960s
2010
s
These are now just prerequisites for existing today
5Evolution of Purpose in Business
We are here
Corporate Social Responsibility
Cause Marketing
Purp
ose
Orie
nted
Impa
ct S
cale
Corporate Social Responsibility Cause Marketing Workplace Giving Corporate Philanthropy
Creating Shared ValueNew Opportunity
No Longer Optional
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The magnification of social impact is greater now
than at any point throughout history.
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This extends to companies, too.
Experts say this is the
“There’s a fundamental opportunity for business to address and impact social problems, and this opportunity is the largest opportunity we see in business today.”
business model of the future.
Michael PorterAuthor of 18 booksHarvard ProfessorEconomic Theorist
Business Strategy Leader
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Headlines like these are becoming more and more common 10
50% of millenials:
Source: Deloitte 2016
Welcome to the new reality. In the shared values economy, this is the cost of entry. Here’s why…
Have turned down a job offer on the basis of an organization’s expressed values
Have declined to undertake a work task that’s been
assigned to them if it’s at odds with their
personal values
Have ruled out ever working for a
particular employer because of its
convictions and positions (or lack thereof) on social
issues
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And the effects of this reality are now prevalent across many different demographic & psychographic segments.
Number of consumers who are just as likely to purchase as they
are to boycott.
Number of consumers who are likely to switch
brands to one associated with a good cause.
Consumers who would buy from unknown brand if it had stronger
social or environmental commitments
Percent of people who would pay
more money for a responsible product.
Percent who would take a pay cut to work
at a responsible company.
Would purchase product of lesser quality if company
showed greater commitment to social issues
Source: Cone Communications 2015
89% 9 in 10 4 in 5
71% 57% 61%
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This represents a monumental shift in society that we all know cannot be ignored.
The question now is: how do businesses actually go about
creating shared value?
To create shared value, companies must seek to operate from within the shared values of their communities.
Employee Values Customer Values
Stakeholder Values
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Shared Values Methodology
Identify Operationalize Measure
To do this, teams can leverage the 15
The Shared Values Methodology
3. Measure Impact
1. Identify Shared Values
2. Operationalize Strategy
In Practice
Plan strategy, approve budget, set benchmarks
Execute programs, initiatives, campaigns, partnerships
Learn, iterate, adjust course, realign with shared values, plan
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The Shared Values Methodology Step 1
Identify Shared ValuesPurpose-oriented professionals must develop a deep, comprehensive, holistic understanding of the convictions shared by their 3 primary communities: employees, customers, and stakeholders. Successful strategy operates from the “common convictions” intersection of those three core groups.
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The Shared Values Methodology Step 2
Operationalize StrategyOnce a thorough understanding of the three core communities’ shared values is established, the purpose-oriented team is now tasked with identifying opportunities in the market that can fulfill their organization’s objectives as well as their commitments to their communities.
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The Shared Values Methodology Step 3
Measure ImpactAs strategy is executed, the team must now seek to understand how those various programs, partnerships, initiatives, and campaigns are both a) hitting their benchmarked social impact goals, as well as b) driving various key performance indicators within the organization, namely sales & revenue, employee retention & engagement, and customer loyalty & satisfaction.
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To make the greatest impact on both social and business progress, leaders must become shared values oriented or risk missing the mark.
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The Shared Values Methodology provides a blueprint for success in a shared values economy.
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Learn more at http://two42solutions.com or contact Mo at [email protected]
The shared values economy is here.