csr value continuum: another way to think about shared value
DESCRIPTION
CSR and Shared Value are explored using several innovative frameworks. Lecture argues that all CSR is Shared Value. Presents concept of CSR Value Continuum (Value Distribution Value Creation). Follows recent article on similar title - http://www.slideshare.net/waynedunn/csr-value-continuum Lecture delivered to the Canada Indonesia Chamber of Commerce, May 23rd, 2014, Jakarta, IndonesiaTRANSCRIPT
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CSR Value Continuum Another way to think about Shared Value
Value Distribution Value Creation
Wayne Dunn Professor of Practice in CSR @ McGill
President & Founder
CSR Training Institute [email protected]
CSR Breakfast Seminar
Friday, May 23rd, 2014
Jakarta, Indonesia
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Why Me? Who is Wayne? • Saskatchewan Farm Boy
• Accidental Academic
• 2 seasons diamond drilling (Gold/Uranium)
• 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.)
• 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!)
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CSR: Sometimes a bit confusing?
Graphic borrowed shamelessly from : http://flowingdata.com/2010/04/27/discuss-powerpoint-is-the-enemy/
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CSR: THERE ARE NO EXPERTS
Beware the Expert
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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 (and help you to explain the value to the ‘quant jocks’)
Remember
There are no CSR Experts
We are all learning
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CSR in the OLDEN DAYS
Policies &
Good Intentions
Solving Social
Problems
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CSR in the OLDEN DAYS (cont)
Community Relations Management
Framework
Plan
?Results?
System
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CSR Pie, No Matter How you Slice It
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CSR: If not Value, then what?
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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
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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
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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
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CSR: Tools & Frameworks
Value Continuum
Value distribution to value creation
Value Alignment
Value creation
Value Sustainability
Expense 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
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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
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http://www.slideshare.net/waynedunn/csr-and-value-creation-shareholders-communities-and-governments
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CSR Partnerships
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CSR and 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)? PNG AIDS/CIDA Inc.
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CSR 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
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CSR as a Catalyst
• HIV/AIDS in PNG
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Value Proposition
• What Value Gets Created – For
Who?
• Who else might benefit?
• Avoid Zero-Sum situations when
possible
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Value Distribution
Value Creation
Value Proposition Alignment
• 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
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Value Sustainability
CapEx or OpEx? • Does the initial investment continue to
provide value beyond the investment timeframe
• Community Sports Event
• Local Supply Chain Development
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© 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
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CSR is a SHARED RESPONSIBILITY
Value for People
Value for Communities
Value for Shareholders
Value for Governments
Value for other Stakeholders
Need to balance interests
CSR is about value creation not Charity
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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
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Metrics, Monitoring &
Managing
Framework
Plan
?Results?
System
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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?
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CSR: Tools & Frameworks
Value Continuum
Value distribution to value creation
Value Alignment
Value creation
Value Sustainability
Expense 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
![Page 29: CSR Value Continuum: Another way to think about Shared Value](https://reader034.vdocuments.net/reader034/viewer/2022051314/55669bc6d8b42a78708b52c6/html5/thumbnails/29.jpg)
For Additional Information
Wayne Dunn
President & Founder
CSR Training Institute
Professor of Practice in Corporate Social Responsibility
McGill University | Institute for the Study of International Development
Desk: +1.250.743.7619
Slideshare (for this and other lectures, reports, etc.)
http://www.slideshare.net/waynedunn