Societal Expectations | Shareholder Value: pragmatic innovation to drive alignment (and value)

Societal Expectations | Shareholder Valuepragmatic innovation to drive alignment (& value)

Presented by

Toronto June 1, 2015

Wayne [email protected]

Professor of Practice in CSR (McGill)President & Founder

mailto:[email protected]

Recognizing progress, not lamenting imperfection…

Objective

• Explore some global examples of value alignment (shareholder, societal, environment)

• Stimulate more creative value propositions to align shareholder, societal and environmental value (hopefully!)


You think business is easy?


Managing societal expectations& creating shareholder value

Framework

Plan

?Results?

System


Social value imperativeapplies across industry, sector & geography


What is the role of business?

Shareholder value

Societal value

And?Or?No?

Growing societal expectations around social value and environmental performance


How much water did that Strawberry Cost?

• Global commons costs are internalizing

• Improved natural capital management– Shareholder value

– Societal value

– Resource usage


You want Green with that Slapshot?• Environmental impact (green

power & 20% energy use reduction)

• Industry leadership• Cost managementEveryone wins!

– Shareholder value– Societal value– Reduced GHG

Good hockey too (Leafs?)

The NHL's commitment to use 100 percent renewable energy is a hat trick for clean air, our health, and our climate," said EPA Administrator Gina McCarthy


Solving input costs & forex risktransforming communities & agriculture• Forex risk (Ghana

Cedi:USD)• Input costs (local

content)• Market differentiationEveryone wins!

– Shareholder value– Societal value– Reduced GHG

Good beer too


Extracting the resourcesproviding the resources

• Lundin Group (11 extractive sector companies)

• Lundin Foundation– VC approach to investing– Sustainable support to local enterprise

& development– Leverage other opportunities

Everyone wins!– Lundin Group (and all the companies)– Local communities & economies– Lundin Foundation– Other development partners


Get the beerreduce the waste

• Zero Landfill target• Beer from can/not

container• Reduced waste• 2,500 hours pouring

time saved!Everyone wins!

– Reduced cost, cleanup & disposal

– Less packaging/waste


Triple header impactlimited promotion! (yes, this is that Nike)

• Support to community athletics & athletes

• Support to hi-performance athletes

• Support to communities where products are made

• Limited communication and promotion!


I’m hungry, you’re hungrysupporting community & social causes

• Company wide support (2,000 locations)

• Leverages customer support

• Waste Value (waste=fuel)

Everyone wins!– Shareholder value– Societal value


Get your caffeine fixenergize a rural community

• Ethical trading

• Responsible growing

• Increasing focus on community, society & environment

Everyone wins!– Shareholder value

– Societal value

– Sustainable farming


Amazing productIncredible impact

• Social purpose venture

• Linking end-user to product source

• Direct support to women, children, families & communities– Shareholder value

– Societal value

– Supply chain value

– Reduced deforestation


Creating an Industrytransforming an economy

• Robust social licence• Building supply chains

& local economies• Relationships drive

acceptance and operational efficiencies– Shareholder value– Societal value


No rocket sciencePlenty of sweat, commitment & innovation

Industry/Sector Company Shareholder Value Societal Value Environment

Agriculture Driscoll’s Market positioning Cost

Water (scarce & shared resource)

Water use

Extractives Cameco Societal acceptance HR Costs

Employment Supply Chain Education

Beverages (Guinness) Guinness Input costs Forex risk Market positioning

Poverty reduction Agriculture development

Reduced GHG

Professional Sports League NHL Reduced operational cost Reduced GHGReduced overall energy usage

Restaurant Panera Bread Market positioning Customer loyalty

Foodbank support Reduced waste

Facilities Management Vancouver Canucks Reduced cost Less packaging & waste

Sports & Entertainment Arena OpsCanucks/Beer

Foundation Lundin Foundation Lundin Group Economic development

Social Purpose Venture Baraka Supplies Product positioning Customer loyalty

Women & development Education

Athletic Equipment & Supplies Nike Marketing Image resilience (potential)

Community sports Community Development


Discussion, Debate, Challenges, Questions, Jokes, Improvisation….

More informationWayne Dunn

[email protected]

mailto:[email protected]

Societal Expectations | Shareholder Value: pragmatic innovation to drive alignment (and value)

Business

environmental value

alignment value

creative value propositions

imperfection objective

imperfection im hungry

sustainable support

nike support

reduced cost