Community Relations/CSRCreating value for industry & community

Wayne DunnPresident, CSR Training InstituteProfessor of Practice in CSR @ McGillwayne@csrtraininginstitute.com

Friday, Aug 15, 2015Lima, Peru

What is CSR Training Institute?HELP BUSINESS TO SERVE SHAREHOLDERS AND SOCIETY

• World Class Faculty, primarily practitioners.

• Executive Programs

• Partnering with leading Universities and Institutions

• Open registration programs

• Integrated training, advisory services and mentoring

• Corporate development

• CSR Events

Why Me? Who is Wayne?

• Saskatchewan Farm Boy

• Accidental Academic

• 2 seasons diamond drilling (Gold/Uranium),

• 2 years oil rigs

• 25+ years of practical, global CSR experience• About 100 projects (programs, policies, strategy, relationships, innovation, etc.) Many

very complex (e.g., industry HIV/AIDS strategy in South Africa and Papua New Guinea). Some great successes, at least one social license failure.

• Over 40 countries spanning all continents (urban, rural, indigenous, traditional, etc.)

• Extensive Indigenous experience in Peru and globally• Numerous awards (1st private sector winner of World Bank Development

Innovation Award, Stanford Case Study, etc.)

• Developed McGill | ISID Executive Program on CSR Strategy & Management

• Professor of PRACTICE in CSR (note – still practicing and learning!)

CSR: THERE ARE NO EXPERTS

Beware the Expert

CSR: Sometimes a bit confusing?

Graphic borrowed shamelessly from : http://flowingdata.com/2010/04/27/discuss-powerpoint-is-the-enemy/

Objective

CSR and Value – to discuss a framework and a couple of tools that MIGHT help you to be more efficient at understanding and creating value through CSR investments and activities

Gap Analysis – to explore a common gap between industry and community that often destroys value and relationships

RememberThere are no CSR ExpertsWe are all learning

Session Objectives

• To provide tools and insights for assessing and understanding CSR projects and initiatives?

• To help participants be able to think about CSR & Value in a more systematic manner.

• To discuss Industry/Community capacity gaps and bridges

CSR/Community Relationsin the OLDEN DAYS

Policies &

Good Intentions

Solving Social

Problems

Suddenly

communities

could influence

how, or if, a

project could

proceed.

Industry had a

new challenge to

figure out

CSR in the OLDEN DAYS (cont)

Community Relations Management

Framework

Plan

?Results?

System

How to think about CSR (more) Systematically

• Frameworks and systematic approaches to CSR is still an evolving area, despite a lot of progress over the last 15 years

• No one size fits all

• CSR programs and activities can be examined along many dimensions

CSR Pie, No Matter How you Slice It

CSR: If not Value, then what?

CSR: If Value, then How?

• Shareholder Value• Stakeholder Value• Environmental Value• Community Value• Distributed Value• Shared Value• Retained Value• Sustainable Value• Social Value• Cultural Value

• Organizational Value• Created Value• Lost Value• New Value• Reputational Value• Value Continuum• Value Sustainability• Value Creation• Value Proposition• Value Efficiency

CSR: What’s In It For Me?

Does CSR make sense without self-interest?

Key issue is value alignment:

Value propositions that align shareholder interests with those of other stakeholders

CSR is a SHARED RESPONSIBILITY

•Value for People

•Value for Communities

•Value for Shareholders

•Value for Governments•Value of other Stakeholders

Need to balance interests

CSR is about value creation not Charity

CSR is a SHARED RESPONSIBILITY

Effective value creation through CSR requires shared responsibility

Depending on project it may include

• Company

• Local Government

•National Government

• Traditional Leaders

•Development Partners

• International Organizations

•NGOs and other stakeholders

CSR Value Optimization: Start by Knowing

• Analysis of CSR starts with an inventory of activities and programs and then proceeds to analyze and categorize according to various frameworks

• A simple inventory of CSR activities provides insights for maximizing value – often low-hanging fruit

• Having a common and consistent method to examine and understand activities and projects helps to optimize value

• See Resource Material for example Cameco Community Relations Report

CSR: Tools & Frameworks

Value ContinuumValue distribution to value creation

Value AlignmentValue creation

Value SustainabilityExpense or Capital

Not all of these are applicable in

every project/situation and there

are others that could be

developed. What is important is

to have frameworks that help to

understand both individual CSR

initiatives and corporate/project

wide CSR

CSR Value Continuum©

• Helps to understand aggregate of project/corporate CSR activities.• CSR includes a range of activities from Philanthropy through to synergistic

value alignment (and a well-rounded and developed program would have activities along the continuum)

• Continuum of value distribution through to value creation• Shared Value should be created on all CSR projects, not just those at far

right. Level and amount of shared value/value creation changes but all are about value and shared value

Value Distribution

Value Creation

• Grants/Donations/Philanthropy

• Local organizations/governance

• Education & Healthcare

• Skills training

• Employment

• Procurement

• New products, markets, ventures

© CSR Training Institute 2013

http://www.slideshare.net/waynedunn/csr-and-value-creation-shareholders-communities-and-governments

http://www.slideshare.net/waynedunn/csr-and-value-creation-shareholders-communities-and-governments

CSR Partnerships

CSR/Community Relationsand Partners

Who/what benefits from success of this initiative?

What sort of partners would fit with this initiative? (if any)

What value would they receive? Create? (for project and for company) Quinoa production (Dept of Agriculture, Food

Security, etc.)

CSR/Community Relations Projects as a Catalyst

• CSR projects can act as a catalyst to bring key partners to the table

• Why do this?• Increases available resources (financial,

human, organizational, political)• Increases sustainability• Reduces risk

Value Proposition

• What Value Gets Created – For Who?

• Who else might benefit?

• Avoid Zero-Sum situations when possible

Value Distribution

Value Creation

ValuePropositionAlignment

• Grants/Donations/Philanthropy

• Local organizations/governance

• Education & Healthcare

• Skills training

• Employment

• Procurement

• New products, markets, ventures

it’s all shared

value Every CSR investment and

activity should create value for the

company & for one or more

stakeholders.

1 1 3

CSR Value Alignment Framework©

© CSR Training Institute 2013

Value Sustainability

CapEx or OpEx?Does the initial investment continue to

provide value beyond the investment timeframe

• Community Sports Event

• Local Supply Chain Development

© CSR Training Institute 2014

Value Sustainability©

Current

Value

Medium Term Value

Long Term Value

• Grants/Donations/Philanthropy• Local organizations/governance• Education & Healthcare• Skills training• Employment• Procurement• New products, markets,

ventures

Does a CSR investment continue to produce value over time

Social Value Creation / ROI

Millennium Development GoalsFramework for Public/Private development collaboration

PovertyHealthEducationEqualityEnvironment

Common ground between private sector CSR investments/activities with ODA/Govt priorities

The Industry/Community Capacity Gap

We’re all TryingBut, often its not working

Industry Efforts Community Efforts

Clear roles & responsibilities

Organizational

Structure/Vehicle

Cultural Understanding

Adequate Resources

Execution Capacity

Governance

Partnership Strategy

Politics/Business separation

Etc.

Metrics, Monitoring & Managing

Framework

Plan

?Results?

System

Metrics, Monitoring & Managing

• Can you manage it if you can’t measure it?

• What metrics would you measure/monitor?• Why?• How?

• How can it fit within your existing management systems?

Social License

• Industry Social License

• Corporate Social License

• Project/Site Social License

Industry Social License

•Oil Sands - Alberta•Uranium Mining – Saskatchewan•American chefs signing up to boycott Canadian

seafood because of the seal hunt•Nov 4, 2013 - Newfoundland bans fracking pending

more research

CSR: Tools & Frameworks

Value ContinuumValue distribution to value creation

Value AlignmentValue creation

Value SustainabilityExpense or Capital

Not all of these are applicable in

every project/situation and there

are others that could be

developed. What is important is

to have frameworks that help to

understand both individual CSR

initiatives and corporate/project

wide CSR

Questions

For follow-up and more informationCSR Training InstituteWayne DunnProfessor of Practice in CSRwayne@csrtraininginstitute.com

Extra Slides for HandoutThe following are extra slides that readers may find useful

Gathering & Organizing Information on CSR Activities

ABC CSR Program

Description Short description of the program

Objective Stated and/or understood objectives

Type of Activity (Where does it fit on the CSR Value Continuum)

• Grants and Donations• Community Social & Development• Training and Education• Local Institutional Development• Local Infrastructure• Employment• Procurement• Community Health• Other

Responsibility & Management What dept./position is responsible for the program?How is it currently managed and how does the management integrate with other corporate management systems?Does the success/failure of this program affect the manager’s annual evaluation? How?

Consultation and History What, if any, local involvement was there in the design and development of the program?Any other notes on history – when it started, how it came about, successes, failures, developments, etc.

Budget Current budget including how it is derived (i.e. 3% of something). Also any recent or expected changes to the budget.

Value Proposition What groups, individuals, stakeholders benefit from this activity, directly and indirectly? Is there a way to help more to benefit from it?

Partners Are there any partners that aren’t covered in the value proposition discussion?How are partners involved? What are their roles and responsibilities?Are they capable of meeting them?

Community Benefits What are the benefits to the community?Can they be quantified? How?

Company Benefits What are the benefits to the company?Can they be quantified? How?

Other Beneficiaries Are there other benefits from the program?Who benefits? How?Can they be quantified? How?

Success Indicators, Metrics,Measuring & Monitoring

How is the program measured and monitored? Does it connect to management and corporate objectives? Is the program’s success linked to the management evaluation program?What other, if any, success indicators are there?How is the program reported? To who? Frequency

Other Think Abouts • Value Sustainability

• Social Value Return on Investment

• Communications

• Metrics

• CSR as a Catalyst

For Additional InformationWayne Dunn

Professor of Practice in Corporate Social Responsibility

CSR Training Institute

wayne@csrtraininginstitute.com

www.csrtraininginstitute.com

Desk: +1.250.743.7619