ebbf2013 creating shared value - elizabeth sobhani walker


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From Concept to Reality - Creating Shared Value (CSV): Understanding the CSV model, the implementation challenges and lessons learned for developing shared value opportunities
Elizabeth Walker Sobhani of Lotus Consulting will explore
the spectrum of activities from corporate philanthropy to the latest innovations around creating shared value as a means of generating business and social impact.
She will provide practical lessons learned on mobilizing these concepts into reality and the role we can play in creating shared value in our own businesses.

Published in: Business, Economy & Finance
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ebbf2013 creating shared value - elizabeth sobhani walker

  1. 1. From Concept to Reality: Creating Shared Value Elizabeth Walker Sobhani
  2. 2. From Concept to Reality: Creating Shared Value EBBF Conference Ocotober 2013 Elizabeth Walker Sobhani www.lotusconsultingasia.com
  3. 3. Creating Shared Value – focus areas 1. Why? The Changing Landscape 2. What? The Evolution from Philanthropy 3. How? The Lessons Learned 2
  4. 4. Framing the Situation 3 Businesses Public SectorCivil Society SOCIETY Affordable Housing Lack of Healthcare Global Warming Unemployment Access to Education Inequality Violence / Abuse Pollution Global Water Crisis Poverty
  5. 5. From Externalities to Internalities 4 Businesses Public SectorCivil Society SOCIETY Affordable Housing Lack of Healthcare Global Warming Unemployment Inequality Pollution Poverty
  6. 6. The good news… 93% of CEO’s believe the issues of sustainability will be critical to their business - Accenture and UN Global Compact 5 The recent pool of top gradates see more fulfillment in life…. “Man’s merit lieth in service and virtue and not in pageantry of wealth and riches.” - Baha’i Writings
  7. 7. However, CEO’s are looking for a new model… 6 “CEOs’ initial optimism has given way to the belief that the constraints of market structures and incentives prevent them from embedding sustainability at the heart of their business” - Accenture and UN Global Compact 2013 CEO Study on Sustainability
  8. 8. The evolution of thinking… from philanthropy to CSR to CSV. 7 Philanthropy • Providing grants and donations to nonprofits Corporate Social Responsibility • Ethical standards and compliance • Cultural shift to “sustainability” • Increased citizenship activities Creating Shared Value • Integrating societal improvement into economic value creation (Porter/Kramer) • Societal benefit and business benefit (profit creation) • Why? Scalable and sustainable
  9. 9. The formula: 8 Investments in long- term business competitiveness… Wealth Creation Creating Shared Value Enhancing the well- being and prosperity of society …that simultaneously address social and environmental objectives
  10. 10. The key is the scale of impact on both spectrums 9 Creating Shared ValueSocial Enterprises Philanthropy Socially Responsible Business DEGREE OF BUSINESS IMPACT DEGREEOFSOCIALIMPACT
  11. 11. How? There are three methods but this is still evolving… 10 Reconceiving Products and Services 1 Redefining Value Chains 2 Companies can improve the quality, quantity, cost, and reliability of inputs and distribution while they simultaneously act as a steward for essential natural resources and drive economic and social development. Strengthening Local Clusters 3 Companies do not operate in isolation from their surroundings. To compete and thrive, they need reliable local suppliers, a functioning infrastructure of roads and telecommunications, access to talent, and an effective and predictable legal system. Companies can meet social needs while better serving existing markets, accessing new ones, or lowering costs through innovation.
  12. 12. Novartis 11
  13. 13. Coca-Cola Brazil 12
  14. 14. Bermuda – Lack of university educated labour pool 13
  15. 15. How? It starts from the top. 14 4. Measure and Modify Communicate and Implement 3. Implement Budget, Human Resource Plan, Implementation Plan Research Strategy and Goals 2. Develop the Strategy Initiatives Initiatives Initiatives Business Definition 1. Set the Vision Mission and Vision
  16. 16. Business can instigate, but civil society and often the public sector are needed from the outset 15 Public SectorCivil Society SOCIETY Businesses Social Innovation
  17. 17. Important Values to Drive the Shift: 16 Empathy Service CreativityHumility Trust Values and Culture
  18. 18. Lessons Learned and Advice 1. Takes time to discuss and educate the leadership team, but a shift is possible due to the dual goal which includes bottom line benefits 2. Redefining the clear social purpose is the bedrock for the strategy 3. Change champions help shift the culture to align with the redefined purpose 4. Research is critical – we need to really understand the societal problems to bring business solutions to bear 5. Partnerships make a stronger model – NGO’s, government, other distributors or companies. Bring them to the table at the outset and co-create. 6. A learning culture is important as we are charting a new path 7. Measurement is not easy, but critical –even starting with outputs and outcomes versus social impact 8. We should not be embarrassed to communicate our social impact even while making a profit 9. The greatest social benefits will come with scale 17
  19. 19. The Challenge for each of us… 18 Challenge: How can we infuse the concept of simultaneously creating shared value (social and business value) in our companies and redefine the way business has traditionally been done? Within civil society, how can we leverage the concept of shared value to partner with companies to have greater social impact?
  20. 20. From Concept to Reality: Creating Shared Value Thank-you! Elizabeth Walker Sobhani www.lotusconsultingasia.com