measuring social return on investment (sroi)
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ROI in the CSR Context.
Does it Matter?
Dr. Sherif Tehemar
BDS/DDS, MSC, PhD, FACOMS, CSSGB
Sustainability Reporting Certified (GRI)
CSR Certified (World Bank)
CSR Consultant
SM
AR
T
Performance Indicators O
utc
om
e
Input
Impact Output
Target
Return on Investment
Social Measure
Valu
e Percentage
Monitor
Plan
De
ve
lop
Formula
Sustainability
Stakeholders
CSR
Points to Consider
Businesses have the RIGHT to earn profits.
CSR is NOT a philanthropic activity.
Businesses have COMMITMENTS toward society.
Implementing CSR programs by Businesses SHOULD improve their TBL.
ETICAL profits of the Company should have an impact on the
PROSPERITY of the society.
The role of CSR in improving the COMPETETIVE ADVANTAGE of the company should be well realized and appreciated by all stakeholders.
Important Statistics
Employees at green companies are 16% more productive
NG Survey: 80% of US workers want to work for an
organization which makes the environment a priority
DSFH: 6% Decrease in employee turnover after 2 years
2012 Neilsen survey: 66% customers prefer to buy from
companies that give back to society
-62% want to work for these companies
-59% want to invest in these companies
Financial Data
IBM: “We earn a 3:1 return on our investment in Corporate Citizenship’
Westpac CEO, Morgan, 2006: “Benefits from reducing our
employee turnover are $50 million of avoided costs per annum”
DSFH: 150% reduction in SR in stationery after GO Green campaign & digital environment (over 3 years)
Jumeirah Group: $ 870,000 Saved through energy efficiencies in the last quarter of 2008
Wal-Mart: $2.4 million per year saved from eliminating excessive packaging in ONE toy line
Branding
Increase by 200% in brand recognition after year 1
(reference: Scandic)
Brand recognition, reputation and loyalty, reflect on profits
starting year 2
DSFH: Brand Audit DSFH ranked 1st brand in healthcare for
two years in a row.
Studies: UAE(2012)
The driving forces are
Preserving the environment.
Better image and reputation,
Developing and sustaining better relationships with
the government,
Increases productivity and contributes to employee
loyalty.
Dubai Chamber of Commerce and Industry (Dubai Chamber) funded by the Emirates Foundation for Philanthropy (2012)
Why we measure ROI?
Improved program management
More effective planning
More effective evaluation
Increased understanding of the impact of your work
Stronger communication of the value of your work to ‘the
people that matter’ (internal and external stakeholders)
Enhanced attention to the social, economic and
environmental value created by your business or
organization
KPI in the CSR Guidelines
GRI: Performance indicators in the GRI Guidelines.
IIRC: Integrated Reporting
SROI Network: Mandatory Indicators
Maximize your ROI Believe and be committed (Being Good by Doing Good)
Engage with your stakeholders & build your Communication Model
Understand the need
Develop you CSR strategy with SMART goals
Build solid data management process
Link your CSR initiatives to your
core business
Raise awareness
Be transparent
Continuously review your process
& measure performance
Report
Challenges in Healthcare
Sectors
Retain highly professional employees
Access to care for poor people
Brand
2008
2009
2010
2011
Brand Audit
2
2
1
1
Overall Staff Satisfaction
45.90% 49.90%
55.70% 57.20%
2008 2009 2010 2011
36% Int. Benchmark
Employee’ Satisfaction
International rate of hospital turnover 17.5 %to 19.4%
DSFH overall turnover in 2011 13%
International nursing turnover 17.1 %to 25.2%
DSFH nursing turnover 2011 13%
Employees’ Loyalty
2009 2010 2011
13%
19%
16%
Total Patients Visit
443993 472307
599259 641938
2008 2009 2010 2011
Patients’ Visit
Charity Office
Deduction of 1 SR from each hospital bill.
Free Treatment for 10,000 patients
We live by ethics & we grow by knowledge
S. Tehemar
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