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 wayne@csrtraininginstitute.com

CSR Breakfast Seminar

Friday, May 23rd, 2014

Jakarta, Indonesia

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!)

CSR: Sometimes a bit confusing?

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

CSR: THERE ARE NO EXPERTS

Beware the Expert

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

CSR in the OLDEN DAYS

Policies &

Good Intentions

Solving Social

Problems

CSR in the OLDEN DAYS (cont)

Community Relations Management

Framework

Plan

?Results?

System

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 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

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: 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

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

CSR Partnerships

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.

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

CSR as a Catalyst

• HIV/AIDS in PNG

Value Proposition

• What Value Gets Created – For

Who?

• Who else might benefit?

• Avoid Zero-Sum situations when

possible

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

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

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

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

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?

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

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

wayne@csrtraininginstitute.com

Desk: +1.250.743.7619

Slideshare (for this and other lectures, reports, etc.)

http://www.slideshare.net/waynedunn