the sdgs: a framework for social and business value

©2017 CSR Training Institute

Projects, partnerships, communications & more

Presented by

Wayne DunnPresident & Founder, CSR Training Institute

Former Prof. of Practice in CSR (McGill University)[email protected]

BEST PRACTICES IN CSRA conversation about sustainability social

responsibility and shared value

Courtleigh Hotel, Kingston JamaicaJan 24th, 2017

Kingston, Jamaica

Sponsored by the Canadian High Commission

The Sustainable Development GoalsA FRAMEWORK FOR SOCIAL & BUSINESS VALUE

mailto:[email protected]


??Corporate Social Responsibilty??

•That Do-Good stuff that happens on the margins of our real business

•Gives us some good things to talk about in our public statements

•We support it, but try to keep it away from core-business so it isn’t too distracting

•It helps us to look like good community people with a conscience


Let’s get one thing clear

CSR is about value. Nothing Else

Profit & Purpose should support each other

CSR is about creating social and business value

CSR disconnected from business value is paternalistic

and unsustainable

CSR as window-dressing is just dumb in today’s

networked and transparent world

Value creation should be as integral to CSR planning

and management as to any other business activity.Why would you suspend a value-focus simply because it also

involves social value

Strategic CSR can drive social and business value


CSR: What is it?


Outline

•The world changed! What happened?

•Evolution of business’ response

•CSR as a value creation strategy

•SDGs a framework for aligning business and social value

•Case study/group work

•More emerging issues/trends (if time)


Expectations & Commitments

Wrong program if you just want answers• Its not a how-to manual or an instruction book

• Not prescriptive

• Success is being able to understand more and ask smarter questions

• Stay curious and engaged. We will learn from and with each other, all of us.

• We won’t learn it all today – not enough time (I’ve added extra slides, plus full Pen Drive)

• Ask questions (there are no dumb questions, just dumb people that hold back their questions)

• CSR, Shareholders, society, business, stakeholders & you –it is all about value


Caution: Language is ‘under development’

• Corporate Social Responsibility (CSR)

• Sustainability

• Corporate Responsibility

• Social Responsibility

• Environment, Social and Governance (ESG)

• Shared Value

• Social License

• ????

Whatever the words, it is about where business meets society, who benefits, how and why


Objective

•Broader value-centric perspective on CSR

•Understand potential of SDG framework to facilitate social and business value


Issues take years to gain traction

• Emphasis on philanthropy• Emergence of consumer

activism• Emergence of

environmental movementUnsafe at any speedRalph Nader, 1965


Society’s responseschange companies & industries

Brent Spar, 1996 Shell Scientifically sound but PR Disaster

Marcopper Tailings Dam, Philippines - Placer Dome, 1996

1998 – Placer Dome first major mining company to adopt sustainability policy

First private sector project to ever win World Bank’s Development Innovation Award


Echo Chamber of Social Media Drives


The world changed

• Isolated world gave more power and influence to large institutions (government, business, etc.)

• More focus on local issues, standards and expectations

• Globalized inter-connected world • Emerging global standards and norms• Increased democratization of power and

influence

• Anywhere is everywhere


Increasing societal expectations and influence

0

50

100

150

200

250

300

1975 1980 1985 1990 1995 2000 2005 2010 2015

Soci

etal

Exp

ecta

tio

ns

& In

flu

ence

Applies to organizations of all types, but especially

business

*directionally indicative data derived from SWAG analysis


Evolution of CSR• Business response to these global changes took time and is still

evolving

• Some businesses are still resisting and waiting for something magical to happen


Business’ ResponseEvolved over time (and still evolving)

•Beads and trinkets•Throw money at problems and issues•Philanthropy, Charity & disconnect•Zero Sum CSR•Strategic CSR – value proposition alignment


CSR: Strategic Value Alignment

Business

Society

Environment

• Society

• Environment

• Business

• It’s OK to have a strong focus on self-interest

• Selflessness is not sustainable


CSR = Value for shareholders and society

CSR is more than charity and philanthropy

It is NOT simply about organizations giving to society

Corporate Social Responsibility is about creating business value

AND social value. About aligning and balancing shareholder,

societal and environmental interests.

Effective CSR balances the interests of shareholders, society and

the planet, making stronger and more sustainable


The CSR Value Case

•Value to organization is mandatory

•Plus value to society and/or value to environment

NO EXCEPTIONS

• Every CSR Project should have a value-case analysis

• Value to the organization

• Value to society

• Value to environment


Social value imperativeapplies across industry, sector & geography


Sustainability is a big deal

* Morgan Stanley Institute for Sustainable Investing

And a bigopportunity


Part of Apple’s Response to pressure and opportunity


The world has changed

The SDG framework can help your business adjust and adapt to ongoing social and environmental performance expectations.

It can also help to align shareholder value, social value and environmental stewardship

And will keep changing

Increasing value generation at all levels


Adopted unanimously by the United Nations in a Special Assembly

September 2015

Global Development Framework IICollective Social Responsibility


SDGs


The SDGs

1. No Poverty

2. Zero Hunger

3. Good health & well-being

4. Quality education

5. Gender equality

6. Clean water & sanitation

7. Affordable & clean energy

8. Decent work & economic growth

9. Industry, innovation & infrastructure

10.Reduced inequalities

11.Sustainable cities & communities

12.Responsible production & consumption

13.Climate action

14.Life below water

15.Life on land

16.Peace, justice & strong institutions

17.Partnerships for the goals


SDGs & CSR ActivitiesGeneral alignment

Global development framework1. Education

2. Health

3. Poverty alleviation

4. Gender

5. Environment

6. Partnerships

7. Equity & justice

Social value investments of business 1. Education

2. Health

3. Poverty alleviation

4. Gender

5. Environment

6. Partnerships

7. Equity & justice


Jamaica’s commitment to SDGs


SDG Analysis Frameworks

SDG alignment and engagement should be based on a systematic and strategic analysis around value and fit.

No value | No sense doing anything

Some SDG Value and Fit Analysis Frameworks

• Current status

• Applicability to industry and operations

• Company’s ability to have an impact

• Importance to key stakeholders

• Value impact on business

• Local significance

• Other


SAB Miller’s SDG AlignmentProsper’s 5 Pillars

Thriving World10. Reduced inequalities8. Decent work and economic

growth5. Gender equality2. Zero hunger1. No poverty

Sociable World3. Good health and well being

Resilient World6. Clean water and sanitation15. Life on land

Productive World2. Zero hunger6. Clean water & sanitation8. Decent work & economic growth15. Life on land

Clean World13. Climate Action12. Responsible consumption &

productivity9. Industry, innovation and

infrastructure8. Decent work and economic

growth


SAB Miller’s SDG Alignment

Prosper’s 5 Pillars• Thriving World• Sociable World• Resilient World• Productive World• Clean World


Ma’aden’s SDG Mapping Analysis

3. Good health & well-being

8. Decent work & economic growth

9. Industry, innovation & infrastructure

12. Responsible production & consumption

13. Climate action

15. Life on land

17. Partnerships for the goals


…

…

The Sustainable Development Goals and Torex

17

Torex Business & Activities

Goal 1 End poverty in all its formseverywhere

Goal 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Goal 3 Ensure healthy lives and promote well-being for all at all ages

Goal 4 Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Goal 5 Achieve gender equality and empower all women and girls

Goal 6 Ensure availability and sustainable management of water and sanitation for all

Goal 7 Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 8 Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Goal 9 Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Goal 10 Reduce inequality within and among countries

Goal 11 Make cities and human settlements inclusive, safe, resilient and sustainable

Goal 12 Ensure sustainable consumption and production patterns

Goal 13 Take urgent action to combat climate change and its impacts*

Goal 14 Conserve and sustainably use the oceans, seas and marine resources for sustainable development

Goal 15 Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertifcation, and

halt and reverse land degradation and halt biodiversity loss

Goal 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective,

accountable and inclusive institutions at all levels

Goal 17 Strengthen the means of implementation and revitalize the global partnership for sustainable development

SDG

Imp

act Areas

17 SDGs


…

…

SDG Impact Analysis (Current)

17

Business & Activities




















SDG

Imp

act Areas

17 SDGs

Which of the SDGs does your business impact now


…

…

SDG Impact Analysis (Strategic)

17

Business & Activities




















SDG

Imp

act Areas

17 SDGs

Multi-dimensional assessment of strategic importance of each SDG

Applicability to industry and operations

Company’s ability to have an impact

Importance to key stakeholders

Value impact on business Local significance Other


Business Case for systematic SDG engagementsome value propositions

• Ease of communication – globally accepted framework

• Better social and business ROI

• Prioritize investment and impact areas

• Ability to attract partners and collaborators

• Government and regulator relationships

• Stakeholder relationships

• Framework for Public/Private and NGO partnerships

• Objective criteria for engaging / not engaging

• Connects business directly to global development priorities

• Will becoming increasingly important around finance and risk areas (Equator / IFC 2, etc.)

• Internal & external communications (simple and easy stories to tell)

• Helps to rationalize CSR strategy and programs


Group Work / Case Study

•CSR Value proposition analysis

•SDG impact/fit analysis

•Divide into groups of about 5 participants

•Review the case and be ready to present your review to the group


Banking on Value© | Group Work

•XYZ Banking is a regional bank with global ambitions. They provide a full range of financial services including deposit taking, consumer and business finance, investment banking, insurance and investment management.

•They have recently moved into an Island country in Asia. The country is made up of several islands and has a mixture of first and third world conditions. The economy is growing rapidly and a sizable portion of the population is transitioning from subsistence household economies to ones based on cash and regular income.



• XYZ banking’s leadership prides itself on its commitment to social causes and issues and has traditionally supported many important causes around poverty, arts, homelessness and education. The CEO put a two-person team in charge of CSR and gave them a budget to work with.

• They operated mostly independent of core business operations picking and choosing amongst the many applications for assistance that were submitted and allocating resources on a relatively ad-hoc basis. They seldom engaged with anyone else in the bank unless the project involved corporate volunteerism and then they worked to find in-house volunteers.



•The company and the industry started going through challenging times and the company’s leadership and managers began questioning the CSR budget, a budget that they maintained had nothing to do with creating business value.

•They felt that every dollar that went to CSR was a dollar they didn’t have to work with, especially during the challenging times they were in. Shareholders and even the bank’s customers were uneasy with the Bank’s unstructured support to a range of social causes and issues that were basically unrelated to the business.



•The CSR team recognized that they had an internal stakeholder issue and began searching for a project that could both create local social value and, at the same time, provide direct value to XYZ Banking. They met with the Banks leaders so they could better understand the pain points and challenges that they were facing.

•One of the key pain points was developing a strong pipeline of new customers for the bank’s retail operations. Significant investment significant portion of the Island’s poorest residents were beginning to transition from a subsistence household economy to a more cash-based one.



•This transition wasn’t as easy as they expected – the addition of regular cash paychecks was often creating domestic problems and tensions and, because the families had little financial knowledge they were often exploited by individuals and businesses.

•The Bank’s CSR team was approached by a local NGO, Grassroots Finance, and asked to support a project that would provide the transitioning households with financial literacy training, including how to select and work with a retail bank, how to buy insurance, etc.



•The NGO wanted to target a geographic area that XYZ Bank was planning on expanding into but where, currently they had little profile or presence.

•The CSR team really liked this project and realized that it would be very helpful for the beneficiaries and would also position XYZ Bank very well for acquiring these new clients. The NGO wants to move quickly but the CSR Team has little budget remaining in the current year and will have to request additional budget from their Executive Committee.



1. List the short and medium term value that XYZ Bank could realize from this program and any strategies or tactics that they could use to increase the value they would receive.

2. List the short and medium term value that beneficiary households would receive from the program and any strategies and tactics to enhance the value they would recieve.

3. Identify the SDGs that would be impacted by this project;


Let’s get one thing clear

CSR is about value. Nothing Else

Profit & Purpose should support each other

CSR is about creating social and business value

CSR disconnected from business value is paternalistic

and unsustainable

CSR as window-dressing is just dumb in today’s

networked and transparent world

Value creation should be as integral to CSR planning

and management as to any other business activity.Why would you suspend a value-focus simply because it also

involves social value

Strategic CSR can drive social and business value


CSR: What is it?


Summary

•The world changed! What happened?

•Evolution of business’ response

•CSR as a value creation strategy

•SDGs a framework for aligning business and social value

•Case study/group work

•More emerging issues/trends (if time)


Thank you for listeningQuestions & Follow-up

Wayne DunnPresident & Founder, CSR Training InstituteFormer Professor of Practice in CSR, McGill Universitywayne@csrtraininginstitute.comwww.csrtraininginstitute.comWhatsApp +1.250.701.6088

mailto:[email protected]

http://www.csrtraininginstitute.com/