Social Value (or how I pretend to be an accountant)

Transcription

1 Social Value (or how I pretend to be an accountant) Ben Wielgus, Associate Director, KPMG New Vision of Value Key messages Externalities have historically been largely excluded from the measurement of corporate value But this disconnect between corporate and societal value is disappearing Business leaders and investors need to understand these new dynamics and their consequences in order to unlock value creation opportunities 1

2 The Triple Bottom Line Economic Social Environment Generic True Value Bridge 2

3 Integrated Reporting Economic Manufactured Intellectual Social Human Environmental What is social capital made of? Vital for efficiency? Vital for resilience? 3

4 Relational Proximity Framework Real Life Client Average index scores given by driver Directness Continuity Multiplexity Parity Commonality 50% 55% 60% 65% 70% 75% 80% 4

5 Medium Access Responsiveness Style Client Detail Directness (Communication) Increasing connectedness to achieve clearer and more complete communication. Continuity (Story) Managing gaps between interactions to create belonging that increases momentum and growth. Multiplexity (Knowledge) Improving the breadth and quality of relevant information to create mutual understanding and respond to needs. Parity (Power) The fair use of power and mutual respect to increase participation and investment. Commonality (Purpose) Building shared purpose and unity to increase motivation and synergy. Medium Access Responsiveness Style History Frequency Stability Change Challenges Roles Skills Personal Participation Influence Benefits Conduct Objectives Culture Differences Responsibility 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% Team Driver Detail Detail Example of an unsatisfactory relationship Face to face communication between our group is inappropriate (either too little or too much). Deficient Functional Effective Example of an effective relationship The amount of face to face communication between our group is optimal to build understanding and effective communication. It is difficult for people up to contact each other. Communication is delayed and is very frustrating. The lines of communication between people in the group are open, work quickly and can be relied upon to get the message through. Responses to requests and queries are sometimes slow or difficult to obtain. Requests and queries are dealt with promptly. Communication between us is characterised by hidden agendas and evasion. It is difficult to be open and honest. The style of communication is abrasive at times. We can be open and honest with each other. We listen to each other well and are friendly, courteous and professional, even when addressing difficult and sensitive Issues. Average response Relative number of responses 0% 20% 40% 60% 80% 100% 5

6 Company Where Next? The Relational Balance Sheet Shareholders Customers Suppliers Employees Community Regulators Ben Wielgus Associate Director, KPMG KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. Relational Proximity and Relational Proximity Framework TM are trade and service marks owned by Relational Analytics Ltd and are used under licence. 6