Integrating social and business value through the SDGs

©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

mailto:[email protected]



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


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

http://bit.ly/CSR-SignUp


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


Caution: Language is ‘under development’• Corporate Social Responsibility (CSR)

• Sustainability

• Corporate Responsibility

• Social Responsibility

• Environment, Social and Governance (ESG)

• Shared Value

• Social License

• ????


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


Echo Chamber of Social Media


Sustainability Investing/Indexes

* Morgan Stanley Institute for Sustainable Investing


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.


Social value imperativeapplies across industry, sector & geography


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



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


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


Adopted unanimously by the United Nations in a Special Assembly

September 2015

Sustainable Development Goals


What are the SDGs



Jamaica’s commitment to SDGs


Part of Apple’s Response


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


SDG & Business ImpactGuinness Ghana Video


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


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


Guinness GhanaSDG framework aligned interests


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


…

…

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


…

…

SDG Impact Analysis (Current)

17

Business & Activities




















SDG

Imp

act Areas

17 SDGs

Which of the SDGs does your business impact now


…

…

SDG Impact Analysis

(Strategic)

17

Business & Activities




















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


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


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


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


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


The future is now


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


CSR and Value: Levis Strauss


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


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