ebbf2013 creating shared value - elizabeth sobhani walker

From Concept to Reality: Creating Shared Value

Elizabeth Walker Sobhani

From Concept to Reality: Creating Shared Value

EBBF ConferenceOcotober 2013

Elizabeth Walker Sobhaniwww.lotusconsultingasia.com

Creating Shared Value – focus areas

1. Why? The Changing Landscape

2. What? The Evolution from Philanthropy

3. How? The Lessons Learned

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Framing the Situation

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Businesses

Public SectorCivil Society

SOCIETYAffordable Housing

Lack of Healthcare

Global Warming

Unemployment

Access to Education

Inequality

Violence /Abuse

Pollution

Global Water Crisis

Poverty

From Externalities to Internalities

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Businesses

Public SectorCivil Society

SOCIETY

Affordable HousingLack of Healthcare

Global WarmingUnemployment

InequalityPollution

Poverty

The good news…

93% of CEO’s believe the issues of sustainability will be critical to their business - Accenture and UN Global Compact

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The recent pool of top gradates see more fulfillment in life….“Man’s merit lieth in service and virtue and not in pageantry of wealth and riches.”

- Baha’i Writings

However, CEO’s are looking for a new model…

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“CEOs’ initial optimism has given way to the belief that the constraints of market structures and incentives prevent them from embedding

sustainability at the heart of their business”

- Accenture and UN Global Compact 2013 CEO Study on Sustainability

The evolution of thinking… from philanthropy to CSR to CSV.

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Philanthropy

• Providing grants and donations to nonprofits

Corporate Social Responsibility

• Ethical standards and compliance

• Cultural shift to “sustainability”

• Increased citizenship activities

Creating Shared Value

• Integrating societal improvement into economic value creation (Porter/Kramer)

• Societal benefit and business benefit (profit creation)

• Why? Scalable and sustainable

The formula:

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Investments in long-term business

competitiveness…

Wealth Creation Creating Shared Value

Enhancing the well-being and prosperity

of society

…that simultaneously address social and

environmental objectives

The key is the scale of impact on both spectrums

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Creating Shared ValueSocial Enterprises

Philanthropy Socially Responsible Business

DEGREE OF BUSINESS IMPACT

DEG

REE

OF

SOCI

AL IM

PACT

How? There are three methods but this is still evolving…

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Reconceiving Products and Services

1Redefining Value

Chains

2

Companies can improve the quality, quantity, cost, and reliability of inputs and distribution while they simultaneously act as a steward for essential natural resources and drive economic and social development.

Strengthening Local Clusters

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Companies do not operate in isolation from their surroundings. To compete and thrive, they need reliable local suppliers, a functioning infrastructure of roads and telecommunications, access to talent, and an effective and predictable legal system.

Companies can meet social needs while better serving existing markets, accessing new ones, or lowering costs through innovation.

Novartis

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Coca-Cola Brazil

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Bermuda – Lack of university educated labour pool

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How? It starts from the top.

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4. Measure and Modify

Communicate and Implement 3. Implement

Budget, Human Resource Plan, Implementation Plan

Research

Strategy and Goals2. Develop the Strategy

Initiatives Initiatives Initiatives

Business Definition

1. Set the Vision

Mission and Vision

Business can instigate, but civil society and often the public sector are needed from the outset

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Public SectorCivil Society

SOCIETY

Businesses

Social Innovation

Important Values to Drive the Shift:

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Empathy

Service

CreativityHumility

TrustValues and

Culture

Lessons Learned and Advice

1. Takes time to discuss and educate the leadership team, but a shift is possible due to the dual goal which includes bottom line benefits

2. Redefining the clear social purpose is the bedrock for the strategy

3. Change champions help shift the culture to align with the redefined purpose

4. Research is critical – we need to really understand the societal problems to bring business solutions to bear

5. Partnerships make a stronger model – NGO’s, government, other distributors or companies. Bring them to the table at the outset and co-create.

6. A learning culture is important as we are charting a new path

7. Measurement is not easy, but critical –even starting with outputs and outcomes versus social impact

8. We should not be embarrassed to communicate our social impact even while making a profit

9. The greatest social benefits will come with scale17

The Challenge for each of us…

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Challenge: How can we infuse the concept of

simultaneously creating shared value (social and business value) in our companies and redefine the way business has traditionally

been done?

Within civil society, how can we leverage the concept of shared value to partner with

companies to have greater social impact?

From Concept to Reality: Creating Shared Value

Thank-you!

Elizabeth Walker Sobhaniwww.lotusconsultingasia.com