Lecture6reportingonatriplebottomlinebb

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Lecture6reportingonatriplebottomlinebb

  1. 1. © Henley Business School 2010 Centre for Entrepreneurship Reporting on a Triple Bottom Line
  2. 2. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Agenda • Accountability – Social Accounting – Critical Questions • Prioritising Stakeholders – Accountability Map • The Triple Bottom Line • Case Study Exercise • Other Social Accounting Tools • Criteria for Presentation • Urban Outreach Ministries’ Organic Gardens (Masters) HBS 102 today!
  3. 3. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Accountability “subject to giving an account: answerable.” - Why do social enterprises have to be accountable?
  4. 4. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Social Accounting • Proving – demonstrating what we have done and achieved (performance and impact) to all stakeholders (accountability) • Our Objectives and Their Objectives – the 360 degree picture • Common or Shared Objectives – making comparisons • Improving – social enterprise plans • “the process of communicating the social and environmental effects of organizations' economic actions to particular interest groups within society and to society at large.”
  5. 5. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Stakeholders • A person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and policies. • Key stakeholders in a business organization include creditors, customers, directors, employees, governme nt (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.
  6. 6. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Stakeholders Stakeholders: Present And Future Customers, Indigen ous & Vulnerable Peoples & Media & Public Shareholders & Investors Employees Governmental Agencies & Law Enforcement & Elected Officials Suppliers & Distributors & Transportation Agencies Industry Partners & NGOs & Associations
  7. 7. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Critical Questions • Are all of our core players committed to our central mission? • Are we truly effective in our work? • Are we efficient in our application of resources? • Do we have a responsible funding strategy that is consistent with our stage of organisational development? • Do we have a management information system in place that is appropriate for our organisation’s future? • Does our work have an appropriate impact? • Do our words reflect the reality of our actions?
  8. 8. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Prioritising Stakeholders • What is the extent of their prior contribution to your organisation? • What is the extent to which they may be valuable to poor performance or mismanagement on your part? Who is most at risk if your perform badly? How well- positioned are these groups or individuals to “protect” themselves from this risk? • What is the importance to you of their future support?
  9. 9. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Accountability Map
  10. 10. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line The Triple Bottom Line • Disclosure (reporting) is a key part of doing sustainable business. • Sustainability reporting is broader in scope than traditional financial reporting. • The Triple Bottom Line (TBL) is one way to report on sustainable business activity. • TBL defines sustainability in terms of three separate elements: economic, environmental , and social perspectives of operations. http://www.youtube.com/watch?v=5qWVkN6UPHc
  11. 11. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line What is the Triple Bottom Line (TBL)? Recognizes need to consider economic, social, and environmental business decisions People, Planet, Profit • Equity, Ecology, Economy • Social Equity, Environment, Economy
  12. 12. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Three Elements of the Triple Bottom Line Economy – reflects activities related to shaping demand for products and services, employee compensation, community contributions, local procurement policies, and other monetary issues related to company activities. Can you think of some indicators that can be used to measure the Economic Bottom Line?
  13. 13. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Three Elements of the Triple Bottom Line Society - reflects activities in shaping local, national and international public policy, equality, treatment of minorities, employee issues and public concern. That is, organizational citizenship. Can you think of some indicators that can be used to measure the Societal Bottom Line?
  14. 14. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Three Elements of the Triple Bottom Line Environment – reflects the impact made through processes, products or services that affect the environment. These may include air, water, land, natural resources, flora, fauna and human health. Can you think of some indicators that can be used to measure the Environmental Bottom Line?
  15. 15. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Typical Measures of the Triple Bottom Line
  16. 16. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Example of a Triple Bottom Line
  17. 17. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Examples of TBL Measures
  18. 18. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Examples of TBL Measures
  19. 19. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Case Study: Gap Adventures • http://www.youtube.com/watch?v=xbeUftMoFUQ • Company Website • http://www.gapadventures.com/ • Task: • Create a list of TBL measures for Gap Adventures
  20. 20. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Triple Bottom Line Report
  21. 21. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Benefits of Triple Bottom Line Reporting Businesses who report sustainability outcomes have the opportunity to achieve a competitive advantage through: • increased trust levels from consumers; • increased credibility, • potential to reduce cost of supplies through detailed analysis; • potential to be viewed as a superior investment choice, and • increased employee satisfaction and attraction of high calibre employees. • Example – Vancouver 2010 Sustainability Report – http://www.vancouver2010.com/more-2010- information/sustainability/reports-and- resources/sustainability-report/
  22. 22. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Other Social Accounting Tools • Quality and Impact Toolkit (www.proveandimprove.org) • Key co-operative performance indicators • Balanced score-card for social enterprises • Performance dashboard for social firms • Prove it – social capital • Social capital stock-take
  23. 23. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Other Social Accounting Tools • Social Return on Investment • Measuring Economic Impact • LM3 – the Money Trail • Green Office Check-list • Development Trusts’ health-check • SAN: www.socialauditnetwork.org.uk
  24. 24. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Presentation – March 18, 2010 • Each pair will be given 5 minutes to deliver the team recommendation for the social enterprise where they had the placement. • Counts for 30% (Undergrad)/25% (Masters) of your final mark • What you should discuss: – Overview of your social enterprise – what they do, who their customers are, main products/services – Briefly talk about the problem and your analysis of it – Discuss 3 alternatives and rationalise why you chose your solution.
  25. 25. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Urban Outreach Gardens: Organic Gardens • Red Flags – South Baldwin Fitness and the Organic Gardens are two different ventures. – There is not much indication that the exec. Director will slow down long enough to do the critical capacity building and organisational planning necessary to implement a successful social enterprise strategy for Urban Outreach Ministries. – There may be tax and legal issues. Does Organic Gardens fit adequately under the umbrella of UOM? Will it need to be a separate entity? – Probably need to talk about using “profits” to grow the garden – provide more of mission of the garden. The issue was not addressed adequately.
  26. 26. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Urban Outreach Gardens: Organic Gardens • Red Flags – If the proposed organisation is a triple bottom line, is the board supportive of the project? Are employees/staff in support of the idea? – Executive director may be too entrepreneurial for UOM. – There is no solid information that the garden would work. Interview other organic gardens. Are the productivity figures meaningful? – What kind of contract is the executive director on? Is there any provision for succession? – Are there other sources of revenue, including fundraising, that would be better use of resources – greater return in the long run?
  27. 27. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Urban Outreach Gardens: Organic Gardens • Red Flags – What is the opportunity cost of the Organic Gardens project? How receptive will the community be? Will it have same outcomes as predicted? What, if anything will have to be given up to pursue the Organic Gardens project? – Consider sustainable operation as a financial goal. Is it realistic that property is always donated? – Is it likely to be able to get the $200000 donated to make $38000 profit? More clarification is needed on the costs and benefits. – Organic garden may take years to get “organic” designation. What impact would that have on the project? – It is unclear as to the actual demand for organic garden. What are the trends nationally and locally?
  28. 28. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line What needs to be done now? • Strategic Planning • Board Building • Synergising the two organisations together • Consider – is it realistic to assume donation of $200K and land costs? • Are there better funding sources tan through entreprenerial activity? • Will the board of directors be committed to the values of the executive director?
  29. 29. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line Need in the Market • Needs more scrutiny – What is the need? – How big is it? – How long will it be an unmet need? – Will Organic Gardens be able to capitalise on that need? • Are there other needs that can be met with an organic garden?
  30. 30. Lecture 1: Understanding Social EnterprisesLecture 8: Reporting on a Triple Bottom Line As a consultant…. • Strategic Planning – Urban Outreach Ministries is expanding on a fragile base and immature infrastrcucture. – Build capacity (Board, employees) – Vision – Resources needed (skills, abilities, knowledge and contacts) – What measures of success should we use? (TBL!) – Who are our stakeholders? – Sources of funds and expenditures

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