Measuring Social Return on Investment (SROI)

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

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Measuring Social Return on Investment (SROI)

  1. 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. 2. Monitor Percentage Target Input Performance Indicators Develop Return on Investment Outcome SMART Plan Value Impact Formula Output Sustainability CSR Measure SocialStakeholders
  3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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.
  7. 7. 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)
  8. 8. 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
  9. 9. KPI in the CSR Guidelines  GRI: Performance indicators in the GRI Guidelines.  IIRC: Integrated Reporting  SROI Network: Mandatory Indicators
  10. 10. 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
  11. 11. Challenges in Healthcare Sectors  Retain highly professional employees  Access to care for poor people
  12. 12. Brand 2011 2010 2009 2008 1 2 2 Brand Audit 1
  13. 13. Employee’ Satisfaction Overall Staff Satisfaction 45.90% 2008 49.90% 55.70% 57.20% 36% 2009 2010 2011 Int. Benchmark
  14. 14. 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
  15. 15. Patients’ Visit Total Patients Visit 599259 443993 2008 641938 472307 2009 2010 2011
  16. 16. Charity Office  Deduction of 1 SR from each hospital bill.  Free Treatment for 10,000 patients
  17. 17. We live by ethics & we grow by knowledge S. Tehemar

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