con vox
TRANSCRIPT
conVox
turning social risk into social value
conVox
turning social risk into social value
”We don't have a robust framework for looking at the full range of risks
companies face in emerging markets …” !
!Inge!Boets!!!!!!x!Partner!Ernst!&Young!!!!!!x!Business'Risk'Services''''''x!!!!!!!
!!
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social risks pose special challenges
• costs are high when things go wrong • existing diagnostic tools are ineffective • current solutions are inadequate !
you can’t get ahead of the curve by ignoring social risks or managing
them with the wrong tools. !
perils of ignoring social risk
reduced:!produc6on!
staff!morale!
reputa6on!
!opportuni6es!
!
increased*costs*of:!capital!
redress!
security!
mi6ga6on!!
compliance audits and one-off surveys provide insufficient protection
**
*• More! than! 1,000! deaths! in! 2012B13! in! Pakistani! and!
Bangladeshi! factories! supplying! apparel! to! major! US!brands! despite! audits! by! the! brands! themselves! and!'independent'!social!audit!firms.!
!• Apple's! share! price! is! down! 40%! since! September!
2012! driven! in! part! by! concerns! that! new! product!shipments! are! slowing! as! a! result! of! fraught! worker!rela6ons!at!Foxconn.!
!• Cri6cisms!of! Shell’s!opera6ons! in!Niger!delta!has! led!
to!a!sustained!campaign!against!the!company!because!of!alleged!'human!rights!viola6ons’.!
!
community and social investment programs don’t deliver
*!
• Companies! invest! in! communi6es,!but!oVen!with!no!apparent!effect!on!community!percep6ons,!aWtudes!or!ac6ons!against!companies!
• Communi6es! are! oVen! unaware! of! corporate!community! investments! and! overall! contribu6on! to!the!local!economy!
!• Communi6es! frequently! find! liYle! value! in! those!
corporate!community!investments!they!are!aware!of!
• Companies! don’t! know,! or! don’t! respond! to! what!communi6es!do!care!about!
conVox. offers
tools and services
to create shared value by moving beyond social risk management. !
conVox. how it works
• Asks! workers! and! communi6es! a! few! wellBcraVed!
ques6ons!con6nuously!using!cell!phones!etc.!!!• Works! with! companies! to! analyze! and! respond! to!
worker!and!community!percep6ons.!!• Closes! the! loop! with! respondents! so! they! know!
they've!been!heard!and!are!part!of!the!solu6on.!
• Helps!craV!and!deliver!the!right!messages!and!builds!dialogue!with!stakeholders.!
• Checks,! using! fresh! feedback! data,! if! stakeholders’!concerns!are!adequately!addressed.!!
• Trains! staff! to! understand! and! cul6vate! stakeholder!loyalty.!
!• Creates! incen6ves! to! improve! risk!management!with!
benchmarks,!scorecards!and!the!Social!Index.!!
conVox. services
• Map! stakeholders! along! supply! chain! to! determine!
who!and!when!to!survey.!
• CraV! survey! instruments! and! collect! feedback! data!using!ConVox’s!proprietary!methodology.!
• Analyze! feedback! and! explore! the! data! through!supplemental!inves6ga6on.!
• Provide! management! with! scorecards,! benchmarks!and!recommenda6ons!to!address!risks.!
• Advise! clients! on! how! to! report! findings! back! to!respondents!and!communicate!with!stakeholders.!
• Publish!the!Social'Index'that!ranks!companies!on!their!responsiveness! to! social! risk! and! their! capacity! to!create!social!value.!
conVox. cycle
COURSE!CORRECTION!• !benchmarking!&!scorecards!
• !social!index!!!• !keep!feedback!flowing!
!
CLOSING!THE!LOOP!• !advice!&!training!on!engaging!
stakeholders!
!
DATA!COLLECTION!• !con6nuous!microBsurveys!!• !interviews!&!focus!groups!
!
ANALYSIS!!!!• !data!analy6cs!
• !addi6onal!inves6ga6on!• !ac6on!recommenda6ons!
!
DESIGN!• !map!stakeholders!!• !craV!ques6ons!
• !set!data!collec6on!methods!
!
social risk to social value
!
!• Africa:! assists! forestry! companies! to! understand! and!
take! ac6on! to! foster! the! ac6ve! coopera6on! of! local!communi6es! to! protect! planta6ons,! minimize! arson,!poaching! and! pilfering,! and! reduce! chronic! worker!absenteeism.!
• Central* America:! advises! interna6onal! agroBbusiness!firms!on!what! services! farmers!value!most!and!how! to!provide! them! in! manner! that! leads! to! higher!produc6vity!and!profits.!
• USA/Europe/Asia:! engages! factory!workers! of! a! global!manufacturing! company! about! condi6ons! and!opportuni6es! to! improve! produc6vity! and! reduce!environmental!footprint.!
conVox. track record
conVox costs are a fraction of compliance audits and stakeholder surveys.
conVox. costs
conVox. business case !
conVox!engagement!
stakeholder!coopera6on!
produce!more!
beYer!reputa6on!
confidence!premium!
higher!PE!
mul6ple!!
new!opportuni6es!
higher!returns!
sustainable!business!model!
*David* Bonbright! has! spent! three! decades! working! at! the!interface! of! business,! civil! society! and! government! in! Africa,!Asia! and! La6n! America.! His! most! recent! venture,! Keystone!Accountability,!is!the!leader!in!bringing!a!dataBdriven!approach!to!the!inclusion!of!cons6tuent!feedback!in!social!development.!His! public! service! includes! chairing! the! board! of! CIVICUS:!Global!Alliance!for!Ci6zen!Par6cipa6on.!*Nicholas*van*Praag*!dedicated!his!two!decades!at!the!World!Bank! as! a! public! policy! communicator! to! environment,! social!and! poli6cal! safeguards.! He! also! spent! a! decade! in!humanitarian!opera6ons!at!the!United!Na6ons!and!now!leads!Ground! Truth,! an! ini6a6ve! focused! on! bridging! the! gap!between! humanitarian! agencies! and! beneficiaries.! He! has!worked!extensively!in!Africa,!Asia,!Europe!and!La6n!America.!!
conVox. co-founders
