CORPORATE SUSTAINABILITY: What it is & global trends. Corporate Sustainability & IR, SET 09/05/13

Transcription

1 CORPORATE SUSTAINABILITY: What it is & global trends Corporate Sustainability & IR, SET 09/05/13

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3 Our clients & partners:

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5 INTERCHANGEABLE & RELATED TERMS Corporate Sustainability Corporate Social Responsibility (CSR) Corporate Citizenship Creative Capitalism

6 Why is this important?

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10 Creative Capitalism

11 Capitalism has improved the lives of billions of people something that's easy to forget at a time of great economic uncertainty. But it has left out billions more.

12 So they are stuck in poverty, suffer from preventable diseases and never have a chance to make the most of their lives.

13 Governments and nonprofit groups have an irreplaceable role in helping them, but it will take too long if they try to do it alone. It is mainly corporations that have the skills to make technological innovations work for the poor.

14 To make the most of those skills, we need a more creative capitalism: an attempt to stretch the reach of market forces so that more companies can benefit from doing work that makes more people better off.

15 We need new ways to bring far more people into the system capitalism that has done so much good in the world. BILL GATES, 2008, Creative Capitalism, Time

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17 Social Responsibility (SR-ISO26000)

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19 Key information: Organization Overall strategy & analysis Governance Stakeholder engagement Standard performance indicators Application Level

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22 Application Levels

23 Key Discussions: In / Out Process Core / Peripheral Cost / Sustainable Profits

24 Strategic Sustainability (Porter & Kramer) Inside-out Outside-in Strategic positioning

25 Inside-out >

26 Outside-in >

27 Outside-in Yours?: Inside-out Yours?: 1. 2.

28 Repositioning existing CSR activities

29 Conceptual trends Shared Values Social Enterprise / Social Biz Hybrid-Value Chain

30 Shared Value Policies and practices that enhance the competitiveness of a company while simultaneously advancing economic and social conditions in the communities in which it operates. (Porter & Kramer)

31 Points of Convergence Find and expand the points of convergence between economic and social objectives, not assume tradeoffs or the need for redistribution These points of convergence are growing (Porter)

32 Towards Social Innovation Achieving shared value requires new thinking, new technologies, and new approaches to management Shared value opportunities are even greater in developing countries (Porter)

33 3 Strategies 1. Reconceiving products & markets 2. Redefine productivity in value-chain 3. Enabling local cluster development

34 1. Reconceiving products & services Delivering unmet needs of the society. Leveraging firm s existing core capacity. Examples Vodafone s M-PESA in Kenya, mobile banking/agro info services. 10 million customers, processing value of 11% of GDP. Thompson Reuters mobile agro-information systems for farmers, resulting in 2 million farmers as customers while increase 60% of their productivity.

35 2. Redefine value-chain productivity Examples Wal-mart has saved 200 million in cost via reduction of packaging and transportation distance. Johnson & Johnson has saved 250 million in health care cost through employee wellness programme investment.

36 2. Redefine value-chain productivity Thai Examples BangChak s Community Gasoline Stations DTAC s Agriculture SIM

37 3. Enabling local cluster development Support and investment in cluster / business ecosystem development in the firm s strategic location. Focus on the increase in efficiency, productivity and innovation. Examples Nestle s Nespresso set-out to build agricultural, technical, financial and logistical firms and capabilities in each coffee region, increase efficiency and stability as well as quality of local production.

38 Social Enterprise / Social Biz Companies setup with... Social and environmental purpose Clear solution models Financially sustainable Not maximizing profit / options for reinvestment and community investment

39 Spectrum of organization types NGO / Non-profit NGO with revenue activities Social Enterprise Firms with strong CSR Normal firms Social benefits Profit

40 Source: fringer.org

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42 Source: fringer.org

43 Hybrid Value-chain (HVC) BIZ HVC SE / NGO Scalability Access / Innovation

44 Low-income Housing Coleramica + Kairos = Viste Tu Casa (12M USD, 28,000 families) Mortgage + Developers + CSO = HVCs (7,500 homes/apartments; 100M USD)

45 Health Aravind + Dutsche Bank = 15M Eyes Fund Grameen + Danone = Yogurt for low-income Others Amanco + SEs = Drip-irrigation systems (56M a year) Grameen + Telenor = Grameen Phone (27 million subscribers)

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53 CONCLUSION Corporate Sustainability Strategic fit Stakeholders engagement Impact Inclusive & sustainable growth

54 Sunit Shrestha