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