building the business case for csr & sustainability engagement webinar

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V a l u t u s

Building the Business Case for

Sustainability & CSR Engagement

Mark Bissell – VP, Customer Success

Daniel Aronson – Researcher & Consultant

Dec 10, 2014

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Presenters

Mark BissellVice President,

Customer Success

WeSpire

Daniel AronsonSustainability Consultant

& Founder

Valutus

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About WeSpire

Cloud-based environmental,

social, and business impact

through:

• Behavior Science

Foundation

• Social & Game Mechanics

• People-Centric Design

• Customized Content

• Active Learning

Empowering employees to impact positive business outcomes.

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A Holistic Platform for Engagement

• Zero Waste

• Water Conservation

• Energy Efficiency

• Health

• Custom

Sustainability Projects

CSR Projects

• Social Responsibility

• Citizenship

• Volunteering

App-based model for creating employee engagement programs.

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About Valutus

Valutus provides consulting and tools to help organizations realize more

value—for their business and for the world—from their sustainability and

responsibility efforts.

Valutus does this through helping:

• Uncovering submerged value to make visible the full benefit of

sustainability & responsibility (3x-10x as much as previously believed)

• Creating tools that reduce the time required to do things like set

targets by 95% or more

• Helping communicate benefits to finance and business executives

Latin ('val-yü-tis): Value, Values

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Agenda

• The Premise and the Disconnect

• Understanding Submerged Value

• Prove the Value

• Improve the Value

• Questions

• Final Word

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The Premise and the Disconnect

| V a l u t u s

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Premise

• It is possible to simultaneously drive

improvements in sustainability,

engagement and business results

• Direct business benefit

• Raises employee engagement

– Participating employees

– “Bystander” employees – “pleased or proud”Quote: Andy Savitz

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Engagement Leads to Revenue

Bain & Company Research shows:

“Companies with highly engaged workers

grow revenues two and a half times as much

as those with low engagement levels”

“Employees increasingly view their company’s

sustainability agenda as a critical factor in

engagement.”

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Understanding Submerged Value

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Disconnect!!

Despite the value provided - professionals

in CSR and Sustainability say things like:

“I wish the business better understood what we

do in Sustainability & CSR and how it matters!”

“It would be nice if more people appreciated

the value of what we do”

“Sometimes, I feel separated from the core business.

I would like to be more involved.”

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Business Case: Direct Value

• Articulate future direct business value

• $84/year per employee in certification project at

Sony Electronics

• As program evolves – report back

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Business Case: Direct Value

Share widely for brand benefit as well as engaging “bystander employees”

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Business Case: Engagement Value

The impact of improved

employee engagement can

quickly surpass “direct

value”

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Prove the Value

| V a l u t u s

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Changing the Question

What if we could change the questions…

FROM

Should we be more

sustainable?

How do we know how much

to do?

TO

How should we be more

sustainable?

Are we investing enough?

Where could we shift

investments to improve

results?

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A Starting Point: Proving the Value

Should we be more sustainable?

How do we know how much to do?

There is real value in sustainability and CSR, much of it

submerged.

When you uncover the submerged value, the total value is

much more than expected

How should we be more sustainable?

Are we investing enough?

Where could we shift investments to improve results?

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Prove

To stakeholders

To the market

To customers

To executives

To employees

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Actions Create Engagement

Which creates results!

Taking

Sustainability

& CSR

Actions

Becoming

More

Engaged

Business

Results

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The Value of Engagement is Submerged

e.g., Attrition Costs

e.g., Customer

Relationship

e.g., Brand

e.g., Brand Clarity

e.g., Organizational

Execution

TANGIBLE INTANGIBLE

e.g., Energy Conservation

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Engaged Employees Are Less Likely to Leave

Likelihood to Leave (Index)

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…And Work Harder

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…And Affects Lots of Outcomes

Negative:

• Attrition

• Absenteeism

• Shrinkage

• Safety Incidents

• Defects

Positive:

• Productivity

• Innovation

• Customer Service

• Profitability

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Once Identified…

Human Capital Value Element Explanation

New Hire Comp Premium as Percent of Total CompensationNew hires are willing to accept lower premium at a company with strong CR program

Value from Recruitment Premium Savings in new hire premium

Productivity with Engagement Effects Productivity effect of more engaged employees

Value from Productivity GainThe (minimum) amount it's worth to have more work done by the same number of employees

Attrition RatePercentage of the organization's employees that leave every year

Average Productivity of New EmployeesProductivity of someone new (Where's the bathroom? How do I do this?)

Turnover DifferenceNumber of employees that do not leave a company due to CR program

Average Recruiting & Training Cost as Percent of Total Compensation

The cost of recruiting, interviewing, training a new employee, as a % of their comp

Retention Savings from Vacancy The savings from not having vacant positions

Retention Savings from New Employee ProductivityThe savings in productivity from not having new (less productive) employees

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…These Benefits Can Be Quantified

For more information about this

calculator, please contact Daniel

Aronson directly:

daniel@danielaronson.com

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Process Case Study: 100,000+ Person Company

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Prove

To stakeholders

To the market

To customers

To executives

To employees

Sharpen discussion

Enable experimentation

Support tools

Link to continuous

improvement

Im

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Improve: Targeting Investments

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Improve: Added ContentE

mphasis

/ Investm

ent

Diffuse:

Some higher-return initiatives,

some lower ones

Focused:

Fewer, higher-return initiatives

with more investment behind

them

| V a l u t u s

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Improve: Targeting Investments

That Raise the Floor

| V a l u t u s

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Improve: Targeting Investments

That Affect Locations Differently

| V a l u t u s

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Improve: Targeting Key EE & Groups

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Employee Group

Engaged

Partly Engaged

Disengaged

Engagement

2013

Engagement

2014

| V a l u t u s

Recap

| V a l u t u s

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Recap: Business Case/ROI

Consider the full impact of program

Map out intended business results in addition to

external benefits

Define plan to assess, track and report impacts

As you achieve success – jointly analyze

Sustainability/CSR program participation and

HR data

Questions

| V a l u t u s

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Final Word

| V a l u t u s

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Improve:

Supporting Company Strategy

Execution DisciplinesF

inance

Sale

s &

Mark

etin

g

HR

Susta

inability

& C

R

Overall Corporate Strategy

Opera

tion

s

1

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Improve: Support a Service-Oriented

Strategy

“The correlation between high employee

engagement and high customer satisfaction

scores at Vi is no accident. Our attention to

giving employees best-in-class training leads to

a dedicated workforce that keeps our residents

happy.”

— Judy Whitcomb, Vice President of Human Resources, Learning &

Organizational Development

2

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Or an Innovation-Focused One3

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V a l u t u s

Thank you!

mark@wespire.com

daniel@danielaronson.com