The document discusses the challenges faced by officeholders in balancing shareholders' financial interests with philanthropic efforts. It highlights the rise of B Corporations, which aim to benefit all stakeholders, and emphasizes the need for innovative portfolio management that incorporates social responsibility and environmental sustainability alongside profitability. Additionally, it outlines the impacts of organizational changes on customers, employees, communities, government effectiveness, and the natural environment.

1. Saving the world one project
at a time
October 2017
www.pwc.com.au
Bryan Fenech
Business Transformation Consultant

2. Legal limits on officeholders to pursue philanthropic ends
Duty to put the financial interests of shareholders first

3. Practical limits on officeholders to pursue philanthropic ends
Creditor and investor expectations and power
“The shareholders will revolt. Being a listed company is
another difficulty …if you’ve got massive shareholders, you
know, some of the banks or superannuation funds or pension
funds …you’re a new CEO and you want to make changes and
they don’t get it, they’ll take their money, all your
shareholders get pissed off and you’re out of your job.”
“In the world’s business model today that’s a major thing for
any chief executive, you get up in the morning saying you
want to change the organisation you probably won’t have a
job in a couple of weeks … you’re not going to deviate from my
risk versus return thanks very much.”

4. Competing for priority with financial objectives
Social responsibility and environmental sustainability running a poor second

5. The B corporation movement – a new kind of organisation
Benefitting all stakeholders not just shareholders

6. Responses from traditional corporations
Declarations of values, funding social programs, participating in hackathons

8. How portfolio management and assurance can help
Measuring value in a more flexible, nuanced and multifaceted way
1. Segmentation
2. Multi-attribute scoring
models
3. Balancing
4. Assurance

9. Portfolio segmentation
Budgeting for different strategic drivers as distinct investment categories
Categories can be defined to
represent an intelligent balance
between profitability and other
objectives

10. Multi-attribute scoring models
Building objectives into prioritisation systems
Parameters can be defined that
reflect corporate social
responsibility and
environmental sustainability
objectives alongside profitability
objectives

11. Portfolio balancing
Adjust and improve the portfolio over time
Opportunities to adjust and
improve the portfolio and for an
organisation to assess it role as a
responsible corporate citizen

12. Using program assurance to drive philanthropic objectives
Assuring commitments through independent checks
Customer Employee Community Political Environmental
How does change
positively or
negatively impact
customers?
Customers are
consumers of
products and
services and may
include people,
businesses and
government
agencies. Impact in
this context is
specific to this
consumption
relationship.
How does change
positively or
negatively impact
employees?
Employers and
employees may have
different mutual
rights and obligations
depending on the
nature of the
employment contract
- eg, contractors
versus full time
employees, part time
employees, casuals,
etc. Impact in this
context is specific to
the scope of the
employment
relationship
How does change
positively or
negatively impact the
broader community?
Community includes
individuals and
groups who are third
parties in the sense
that there is no
contractual
relationship involved.
Impact in this context
relates to the
interests of citizens
and their rights to the
enjoyment of public
and private space,
amenities and
services beyond any
customer or
employment
relationship
How does change
positively or
negatively impact the
functioning and
effectiveness of
democratic
government?
Impact in this context
relates to the ability
of government
institutions to act in
the public interest.
How does change
positively or
negatively impact the
natural environment?
Impact in this context
relates to activity that
causes pollution of
any aspect of the
natural environment
including land
pollution, water
pollution, air
pollution, thermal
pollution, light
pollution and noise
pollution.

13. Questions ...
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