A presentation that focused on the value of measuring Social Return on Investment within the Corporate Social Responsibility Context.

1. ROI in the CSR Context.
Does it Matter?
Dr. Sherif Tehemar
BDS/DDS, MSC, PhD, FACOMS, CSSGB
Sustainability Reporting Certified (GRI)
CSR Certified (World Bank)
CSR Consultant

2. Monitor
Percentage
Target
Input
Performance Indicators
Develop
Return on Investment
Outcome
SMART
Plan
Value
Impact Formula
Output
Sustainability
CSR
Measure
SocialStakeholders

3. Points to Consider
 Businesses have the RIGHT to earn profits.
 CSR is NOT a philanthropic activity.
 Businesses have COMMITMENTS toward society.
 Implementing CSR programs by Businesses SHOULD
improve their TBL.
 ETICAL profits of the Company should have an impact on the
PROSPERITY of the society.
 The
CSR in improving the COMPETETIVE
ADVANTAGE of the company should be well realized and
appreciated by all stakeholders.
role
of

5. Important Statistics
 Employees at green companies are 16% more productive
 NG Survey: 80% of US workers want to work for an
organization which makes the environment a priority
 DSFH: 6% Decrease in employee turnover after 2 years
 2012 Neilsen survey: 66% customers prefer to buy from
companies that give back to society
-62% want to work for these companies
-59% want to invest in these companies

6. Financial Data
 IBM: “We earn a 3:1 return on our investment in Corporate
Citizenship’
 Westpac CEO, Morgan, 2006: “Benefits from reducing our
employee turnover are $50 million of avoided costs per
annum”
 DSFH: 150% reduction in SR in stationery after GO Green
campaign & digital environment (over 3 years)
 Jumeirah Group: $ 870,000 Saved
efficiencies in the last quarter of 2008
through
energy
 Wal-Mart: $2.4 million per year saved from eliminating
excessive packaging in ONE toy line

7. Branding
 Increase by 200% in brand recognition after year 1
(reference: Scandic)
 Brand recognition, reputation and loyalty, reflect on profits
starting year 2
 DSFH: Brand Audit DSFH ranked 1st brand in healthcare for
two years in a row.

8. Studies: UAE(2012)
 The driving forces are
 Preserving the environment.
 Better image and reputation,
 Developing and sustaining better relationships with
the government,
 Increases productivity and contributes to employee
loyalty.
Dubai Chamber of Commerce and Industry (Dubai Chamber) funded by the Emirates Foundation for Philanthropy (2012)

9. Why we measure ROI?
 Improved program management
 More effective planning
 More effective evaluation
 Increased understanding of the impact of your work
 Stronger communication of the value of your work to ‘the
people that matter’ (internal and external stakeholders)
 Enhanced attention to the social, economic and
environmental value created by your business or
organization

10. KPI in the CSR Guidelines
 GRI: Performance indicators in the GRI Guidelines.
 IIRC: Integrated Reporting
 SROI Network: Mandatory Indicators

11. Maximize your ROI
 Believe and be committed (Being Good by Doing Good)
 Engage with your stakeholders & build your Communication
Model
 Understand the need
 Develop you CSR strategy with SMART goals
 Build solid data management process
 Link your CSR initiatives to your
core business
 Raise awareness
 Be transparent
 Continuously review your process
& measure performance
 Report

12. Challenges in Healthcare
Sectors
 Retain highly professional employees
 Access to care for poor people

13. Brand
2011
2010
2009
2008
1
2
2
Brand Audit
1

14. Employee’ Satisfaction
Overall Staff Satisfaction
45.90%
2008
49.90%
55.70%
57.20%
36%
2009
2010
2011
Int. Benchmark

15. Employees’ Loyalty
International rate of hospital turnover
17.5 %to 19.4%
DSFH overall turnover in 2011
13%
International nursing turnover
17.1 %to 25.2%
DSFH nursing turnover 2011
13%
19%
16%
13%
2009
2010
2011

16. Patients’ Visit
Total Patients Visit
599259
443993
2008
641938
472307
2009
2010
2011

17. Charity Office
 Deduction of 1 SR from each hospital bill.
 Free Treatment for 10,000 patients

18. We live by ethics & we grow by knowledge
S. Tehemar