+Impact keynote final

1

The Prerequisites to ROI Mohammad Hamid

CEO, Unison

www.unisonhq.comTwitter: @mo_hamidd

2

1Year Ago


3

A Sense of Urgency for Purpose


4What Drew Me In:

Creating Shared Value by Michael Porter & Mark Kramer


5What I Love About CSV

SCALE


6

To a great extent, companies have adapted the

shared values framework.


7

But what we have found is that many organizations expect ROI without implementing a

process that facilitates ROI.


8As CSR professionals, we have to think more about

Causality


9

And we have to intentionally pull the levers that drive ROI.


10What I’m here to talk about:

The Organizational Constructs that are necessary for ROI


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A Brief History of Social Impact Approaches in the Business World


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Philanthropy CSR CSV

Theories on The Role of Business in Social Impact

• No expectation of economic value creation

• Typically involves only corporate-giving/donations

• Typically isolated to one part of what the business does, as opposed to integrated in many different parts of the value-chain.

• Some expectation of economic value creation may exist

• Purpose is to acknowledge & minimize any negative externalities to society & the environment.

• Compliance is typically a big part of it

• Both economic & social value creation are necessary

• Purpose is drive profits & competitive advantage by solving social problems

• Typically requires fundamental business model changes


13Stakeholder Management is a ConstantPhilanthropy CSR CSV

• No expectation of economic value creation

• Typically involves only corporate-giving/donations

• Typically isolated to one part of what the business does, as opposed to integrated in many different parts of the value-chain.

• Some expectation of economic value creation may exist

• Purpose is to acknowledge & minimize any negative externalities to society & the environment.

• Compliance is typically a big part of it

• Both economic & social value creation are necessary

• Purpose is drive profits & competitive advantage by solving social problems

• Typically requires fundamental business model changes

Stakeholder Management


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Yet, we seem to struggle with this.

Continuous Exposure to new stakeholder groups

Difficulty for corporate responsibility teams to conduct thorough on-

going stakeholder analysis


15Step # 1 to Achieving ROI: Setting your Organization up for Success


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Inclusion Is Really Really Hard

Takes longer to truly understand stakeholder

priorities

Can be hard to balance different stakeholder

priorities


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Ultimately, it is a company’s stakeholders that give it legitimacy as a responsible

enterprise. -IFC/ Global Corporate Governance Forum

But we need to get this part right.


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Even if a company believes it is acting responsibly, it will have little credibility if

stakeholders do not perceive it to be acting responsibly.

-IFC/ Global Corporate Governance Forum

Stakeholders Are the Most Important Part of CSR


Stakeholder Theory is the constant & this extends beyond

CSR.

R. Edward Freeman, PhD


Common Critique of CSR & CSV: Isolated Vs. Ubiquitous


The Beauty of Stakeholder Theory: It extends beyond CSR & helps make

responsibility a core part of the organization’s DNA


22The Complexities of Internal Stakeholder Fi

nanc

e

Mar

ketin

g

Lega

l

Hum

an R

esou

rces

Prod

uctio

n

Res

earc

h

Tech

nolo

gy

Corp

orat

e Ci

tizen

ship

Internal Stakeholder Management


23The Complexities of External Stakeholder

External Stakeholder Management

Cust

omer

s

Shar

ehol

ders

Cred

itors

Gov

ernm

ent

Soci

ety

Supp

liers


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Integrated Stakeholder Management

Internal Stakeholders External Stakeholders

Owners

Managers

Employees

Cust

omer

s

Shar

ehol

ders

Cred

itors

Gov

ernm

ent

Soci

ety

Supp

liers

An Integrated Stakeholder Management approach puts us in a position to succeed by focusing on the common denominator


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Regardless of which theory of responsibility we subscribe to, if we fail our stakeholders, we

risk losing it all.


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Ultimately, we see stakeholder management as the “glue” or organizing principles around

all aspects of CSR


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To us, this underscores the need for stakeholder analysis to be addressed prior to

any other part of CSR.


28

Step # 2 to Achieving ROI: Strategy Evangelism as an Alignment Technique


29Something we hear very often at Middle-Market Companies:

“I’m having trouble getting a larger CSR

budget approved because it is seen as

a cost center.”


30

We believe this is merely a Positioning Issue

CSR professionals need to use visual tools that help them communicate the merits of their programs & this will drive cross-

departmental alignment.


31

The Corporate Responsibility CanvasOverall Program Context

Overall Program Goals

Key Stakeholder Group Intended Effects Importance To Program Current Efforts

Designed to drive cross-departmental alignment & facilitate budget increases.


32Pharma - ExampleOverall Program Context

Overall Program Goals




We make citizenship / social responsibility investments in light of our operation in a politically sensitive industry, subject to public and government scrutiny, and in light of our need to be seen as a leader among the scientific and regulatory community. We are constrained by limits on product contributions, and additionally by our current economic situation,

which will be affected by coming "patent cliffs."

Our primary goals are to ensure that we are never perceived as putting profits ahead of patients; additionally, we make substantial investments in future science and medicine which benefit both our business, our reputation, and our

standing with doctors and researchers.

Customers: Patients & Caregivers

Drive reputation, drive employee engagement,

& create social value. HIGH EQUAL

HIGH

HIGH

EQUAL

LAG

Partners: Medical Community

NGOs: Alzheimer’s Research Assoc

Create shared value by partnering with medical community to provide

Provide additional funding for deeper inquiry & drive

social impact


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The Corporate Responsibility Planner Provides CSR Teams with:

A method to clearly define &

communicate goals

A method to identify how value can be created

across the value-chain


34

Step # 3 to Achieving ROI: Last-Mile Communications to help surface the

effects of CSR on key stakeholder groups


35Something we hear very often at Companies of All Sizes

“By the time we get around to executing our program, it’s very challenging to keep all of our stakeholder groups aware of our

latest work.”


36

Managing The Stakeholder Journey Like Marketer’s Manage the Customer Journey

The Next Era in Responsibility Communications


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Characteristics of a Scalable Responsibility Awareness Strategy

- Logging Stakeholder interactions with Awareness Campaigns

- Highlighting instances of Stakeholder inclusion in Awareness Campaigns

- Understanding where stakeholders want to interact with Awareness materials


38

Example of Intelligence Responsibility Awareness

Hi Ben,

During our last inclusion campaign, you indicated that you wanted to see the company facilitate more pro-bono opportunities. As it turns out, you were not alone. We are proud to share with you the latest collaboration we have with Paladin, a leading pro-bono match-making service.

You can sign-up here.

Thanks, Team Unison


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How do these steps to driving ROI work together?


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We see the broader process of Corporate Responsibility as a recursive cycle:


41

What is Identify? Understanding the perception of past, current,

& future CSR programs from different stakeholder groups.

Why is it valuable?

Stakeholder KPIs Ways to Improve New Ideas


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What is Operationalize? Executing the program, driving awareness of

the program, & on-going reporting of the program.

Why is it valuable?

Stakeholder-driven decision-making

Last-mile Communications Data Collection


43

What is Measure? Executing the program, driving awareness of

the program, & on-going reporting of the program.

Why is it valuable?

Common Metrics At Program Level

Standardized Benchmarking

Friction-less Process


44Order of Operations Matters: O doesn’t work without I


45Order of Operations Matters: M doesn’t work without O


46

Conclusions


47Conclusion #1In any discipline, you cannot start with ROI. There are prerequisites


48In CSR, those prerequisites are• Stakeholder Inclusion • Strategy Evangelism • Last-mile Communications • Common-Metrics at the Program Level


49Conclusion #2The Corporate Responsibility Planner can be a great tool for getting these prerequisites in place.


50

Conclusion #3The organizing principles of Corporate Responsibility lie in

Stakeholder Theory. & Regardless of how we choose to drive social impact at our companies,

we must ensure that our stakeholders are aligned with that strategy.


51

Unison helps you grow by making social value creation a fundamental part of what you do.

Using the Unison Platform, corporate citizenship officers can drive cross-departmental alignment, scale programs &

awareness campaigns, & measure the tangible and intangible results of their initiatives.

Launched in September of 2016

Leadership & Management

+Impact keynote final