C3 and Social Enterprise

CSR & SocEnt Shared principles and common strategies

CSR in Action April 1st, 2013

Agenda

Introduction

Leadership and success re-defined

Strategic approach to CSR

Case study: Bain and Booz

Appendix

2 © 2012 Consult and Coach for a Cause FZ LLE

All Rights Reserved @CandC4aCause

C3 in a nutshell

C3 is a social enterprise MOBILIZING corporate professionals to

SUPPORT SOCIAL ENTREPRENEURS on volunteer basis

130+ volunteers

100+ soc ent supported

IN ONE YEAR!

INTRODUCTION

Network of partners Word of mouth

3 @CandC4aCause

1st Social Enterprise Week in the Region

© 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved

SOCIAL MISSION

IMPACT

BUSINESS KNOW-HOW

C3 vision and mission

UNLOCK the potential of

SOCIAL VENTURES and help them MAXIMIZE their IMPACT on the

community

INTRODUCTION

Maximize Social Impact

Maximize Performance

4 @CandC4aCause © 2012 Consult and Coach for a Cause FZ LLE All Rights Reserved

What’s next

INTRODUCTION


MEMBERSHIP PROGRAM

for Social Entrepreneurs

Social Impact EXPERTS NETWORK

for SMEs and CSR Divisions

Leadership and success redefined

'I want to work for a company that

contributes to and is part of the

community. I want some-thing I believe

in.‘

ANITA RODDICK,

Founder The Body Shop

‘Business benefits 0f [social responsibility] are hard measures of growth and margin improvement. It’s a

no-brainer. ’

PAUL POLMAN

CEO Unilever

‘Businessmen who focus on profits wind

up in the hole. For me, profit is what

happens when you do everything else

right.’

YVON CHOUINARD

Founder Patagonia

‘The most powerful and enduring brands

are built from the heart. The companies

that are lasting are those that are

authentic’

HOWARD SCHULTZ CEO

Starbucks

LEADERSHIP AND SUCCESS RE-DEFINED


13%

20%

30%

31%

6%

The socially conscious consumer

Play limited role in the community

Just make money

Change the way they operate to align with greater social needs

Support larger issues with

donation & time

Support larger issues with donation & time AND advocate for change

Global consumers think that THE ROLE OF BUSINESS IN SOCIETY is:

Source: The 2011 Cone / Echo Global CR Opportunity Study

7 @CandC4aCause



The role of social media

Online Information’s Impact on Purchase Decisions

80%

87%

85%

68%

80%

81% After getting a recommendation, I go online to do ADDITIONAL research before deciding whether to purchase it

2010 2011

NEGATIVE information online has made me change my mind about purchasing a recommended product / service

POSITIVE information online has reinforced my decision to purchase a recommended product / service

Source: The 2011 Cone Online Influencer Tracker

8 @CandC4aCause



From linear marketing…

company

consumer

9 @CandC4aCause



… to Square MarketingTM

prosumer

employee

social responsibility

& social media

company

consumer

10 @CandC4aCause



Arabs’ interest in social causes

Interest in Social Causes (Post Arab Spring)

67%

67%

63%

59%

60%

52%

MENA

Interest in Volunteering

63%

65%

68%

49%

52%

62% UAE

KSA

Qatar

Kuwait

Bahrain

Oman

In Improving Communities

68%

60%

Source: Social Entrepreneurship: Why is it Important Post Arab Spring? Online Survey Report - March 2012 - Stanford University, Bayt.com, YouGov



Social media in the Arab world



Glocal Issues

Heading towards

> 2°C

Climate

40% of

global shortfall by 2030

Water

Middle East Population

x2 by 2050

Population

1:10 Obese

1bn Hungry

Inequality

Next

40 years supply =

Past 8,000 years

Food

Middle East Hazardous Waste

>600 kg per person

Waste



Companies’ shift towards social responsibility

14 @CandC4aCause



A strategic six-step approach

STRATEGIC APPROACH TO CRS


Well-designed CSR strategies can maximize social impact while unlocking business performance

Align Social & Financial

Performance

Choose a feasible

Biz Model

Make sure you don’t

HARM

Unlock $$$

Benefits

Include All Stake-holders

Measure Social Impact

1 2 3

4 5 6

Doing Good vs Not Doing Harm


CSR as Contingent Benefit

Source: Berkeley Haas School of Business – California Management Review

Past CSR activities make stakeholders perceive an

adverse event as ‘ bad luck’ rather than ‘bad management’

Saving the company money, regulatory scrutiny and brand

value

Doing Good

Not Doing Harm

Savings in firm value

after product recall if

compared to

+3.6%

+1.6%

+2.0%


1

UNGC – The 10 principles

Source: UNGC


HUMAN RIGHTS (P1/P2)

Ethics / Equality /

Discrimination

LABOR RIGHTS (P3-P6)

Policies / Protection / Health & Safety

ENVIRONMENT (P7-P9)

Impact / Strategy/

Responsibility

ANTI-CORRUP-TION (P10)

Transparent / Fair /

Accountable


1

For-purpose organizations’ business models

Source: Brookings, Silatech

For-Purpose Organizations Charitable Commercial

Financially sustainable non-profit organization

Relies entirely on strategic partnerships

Generates some revenues

Financially sustainable through its own income-generation activities (Hybrid model)

Sustainable Non-Profit

Organization with a social mission (and a for profit legal entity)

Reinvests 50% or more of its returns back into social causes

Social Business

Organization with a social mission (and a for profit legal entity)

Social Responsibility at the core of business strategy

CSR-Focused Business

Social Enterprise



2

Social and financial alignment

Beneficiaries

Suppliers / Distributors

Employees

Customers


Maximize Financial

Performance

19 © 2012 Social Enterprise Advisors FZ LLE



3

Stakeholders

Shareholders Employees


Con/Pro-sumers

Partners Community

Stakeholders

Company Environment

SOCIAL BUSINESS IDEA TM

Source: ‘Who cares wins’ by David Jones

Stakeholders’ alignment for scalability




4

Potential benefits of a social mission

Potential Benefits Focus Areas

Competitive advantage / sales edge

Customer consciousness preferences

Marketing savings Social media / viral marketing

HR - recruiting / retention savings and productivity increase

Employee consciousness preferences

Capital’s wider access and lower cost

Social impact measurement (outcomes)

Reputation insurance Authenticity / transparency



5

Measure your social impact

What you cannot MEASURE,

you cannot MANAGE

What you cannot MANAGE,

you cannot CHANGE!




6

Case Study – CSR through C3

CASE STUDY



Knowledge & Skills

Volunteering Time

Speed Consulting Sessions

Pro-bono for C3 and C3 members

Speed Consulting Sessions

Soc Ent Week Sponsorship

Community Relevance

Hands-on Experience

Thank you!

[email protected]

[email protected]

www.consultandcoachforacause.org

www.facebook.com/consultandcoachforacause

@CandC4aCause

RISE* Social Venture Rubric

Social

* Research Initiative on Social Entrepreneurship – Columbia Business School

BUILDING BLOCKS

Financial

Mission Context &

Theories of Change

Social & Financial Alignment

Social Impact Metrics

Scalability / Social Impact

Legal Form & Financing

Market Potential

Products and Services

Competitive Advantages

Cash Flow & ROI

People

APPENDIX



Theory of Change (1/2)

Source: Global Social Venture Competition

The Theory of Change describes WHY the activities of the venture lead to the desired social outcomes.



APPENDIX

Theory of Change (2/2)

KEY QUESTIONS

1. Who are you seeking to influence or benefit?

2. What benefits are you seeking to achieve?

3. When will you achieve them?

4. How will you and others make this happen?

5. Where and under what circumstances will you do your work?

6. Why do you believe your theory will bear out?

2. Results

3. Time Period

4. Activities, strategies, resources

5. Context

6. Assumptions

1. Target Population

Source: Stanford Social Innovation Review



APPENDIX

Social and financial alignment

Beneficiaries


Employees

Customers


Maximize Financial

Performance



APPENDIX

Stakeholders

Shareholders Employees


Con/Pro-sumers

Partners Community

Stakeholders

Company Environment

SOCIAL BUSINESS IDEA TM

Source: ‘Who cares wins’ by David Jones

Scalability / Social Impact



APPENDIX

Impact Value Chain (1/2)


The Impact Value Chain illustrates HOW the venture’s activities lead to the desired outcomes and impact.

Inputs

What is put into

the venture

Outputs Outcomes Goal

Alignment

What would have

happened anyway

IMPACT

Venture’s primary activities

Results that can be

measured

Changes to social systems

Activity and goal

adjustment

Activities



APPENDIX

Impact Value Chain (2/2)


The Impact Value Chain illustrates HOW the venture’s activities lead to the desired outcomes and impact.

Outputs Outcomes

What would have

happened anyway

IMPACT

Results that can be

measured

Changes to social systems

E.G. NUMBER OF TRAINEES / YEAR ATTENDING BACK

TO BASICS TRAINING COURSES

E.G. DELTA % OF DOMESTIC

INCIDENTS B/W

HOUSEHOLDS EXPOSED TO

B2B TRAINING vs NORMAL

HOUSEHOLDS



APPENDIX

Why measuring?

What you cannot MEASURE,

you cannot MANAGE

What you cannot MANAGE,

you cannot CHANGE!

by Alex Lemille



APPENDIX

Social Impact Indicators


Specific operational metrics (OUTPUT MEASURES) that a venture can utilize to assess whether they are

progressing towards their social benefit objectives.

Choose the ones that most strongly correlate to desired outcomes.



APPENDIX

C3 and Social Enterprise

Business

Transcript of C3 and Social Enterprise