In an era where most companies are focusing on Corporate Social Responsibility, there is a new approach to business coming of age – Shared Value. This innovative concept focuses on creating policies and operating procedures that enhance competitive value while simultaneously advancing economic and social conditions in the communities where your employees live and work. Join VolunteerMatch Solutions for a conversation with Mark Kramer and Dane Smith of FSG to learn how Shared Value can bring societal value to the core of business strategy and how this type of strategy can enhance your employee’s satisfaction. Speakers: Mark Kramer, Co-Founder & Managing Director, FSG Mark is co-founder and Managing Director of FSG and the author of influential articles published in journals such as Harvard Business Review and Stanford Social Innovation Review on the topics shared value, catalytic philanthropy, collective impact, strategic evaluation, and impact investing. He oversees FSG's consulting practice and action initiatives, and also serves as a Senior Fellow in the CSR Initiative at Harvard's Kennedy School of Government. Dane Smith, Managing Director, FSG Dane Smith is a Managing Director of FSG and leads the Washington, D.C. office, as well as serving as a co-leader of FSG’s Shared Value practice. He brings twenty years of experience advising private and public sector leaders on business strategy and has particular expertise in helping companies identify new business opportunities that simultaneously address serious social challenges

1. The Connection between Competitive Advantage and
Social Value:
Engaging Employees through Shared Value Volunteering
Dane Smith
Managing Director
FSG
Mark Kramer
Co-Founder & Managing Director
FSG
Panelists: Facilitator:
Lauren Wagner
Business Development Manager
VolunteerMatch
@Lauren_Lynn2
June 18, 2013

2. How To Ask Questions
• Type questions into the box on the
right side of the your screen
• Submit via Twitter to
@VM_Solutions using “#VMbpn”
• We will pose questions at the end of
the presentation
• A copy of the sides will be circulated
after the event
2

3. The Connection between Competitive Advantage and
Social Value:
Engaging Employees through Shared Value Volunteering
Dane Smith
Managing Director
FSG
Mark Kramer
Co-Founder & Managing Director
FSG
Panelists
3

4. Boston | Geneva | Mumbai | San Francisco | Seattle | Washington FSG.ORG
Engaging Employees through
Shared Value Volunteering
VolunteerMatch
June 2013

5. © 2013 FSG
FSG.ORG
5 © 2013 FSG
According to the Gallup Poll, 71% of U.S. Workers Are
Not Reaching Their Full Potential
29% 51% 20%
Engaged Not Engaged Actively Disengaged
These employees are loyal and
psychologically committed to
the organization. They are
more productive and more likely
to stay with their company for at
least a year.
These employees may be
productive, but they are not
psychologically connected to
their company. They are more
likely to miss workdays and
more likely to leave.
These employees are physically
present but psychologically
absent. They are unhappy with
their work situation and insist on
sharing this unhappiness with
their colleagues.
Source: The Gallup Organization

6. © 2013 FSG
FSG.ORG
6 © 2013 FSG
Companies Do Not Automatically Increase Employee
Engagement When They Offer Volunteer Programs
• Three things are needed for a company’s volunteering program to drive
engagement:
– Needs to have demonstrable impact on the social problem
– Needs to have a demonstrable connection to the company’s business
– Needs to have a connection to the employees’ work. Companies can do
this by:
• Designing the program so that it gives employees the opportunity to
learn and grow in areas related to their work
• Demonstrating how the volunteering efforts are important for allowing
the company to execute on its Shared Value strategy
• It is insufficient to have anecdotal evidence that these objectives are being met
– the company needs to measure these elements and use the measures to
improve their Shared Value and Employee Engagement programs.

7. © 2013 FSG
FSG.ORG
7 © 2013 FSG
There are 5 Deadly Sins of Volunteerism
Sins of Commission
• Requiring participation in
volunteer programs
Sins of Omission
• Developing programs without
clear employee input
• Not connecting volunteer
program to the company’s
mission
• Missing opportunities to help
employees develop new skills
that the company needs
• Not using volunteer programs
to reward stellar employees

8. © 2013 FSG
FSG.ORG
8 © 2013 FSG
There Are Twelve Drivers of Employee Engagement
THE FIRST ELEMENT
Knowing What’s Expected
THE SECOND ELEMENT
Materials and Equipment
THE THIRD ELEMENT
The Opportunity to Do What I Do Best
THE FOURTH ELEMENT
Recognition and Praise
THE FIFTH ELEMENT
Someone at Work Cares About Me as
a Person
THE SIXTH ELEMENT
Someone at Work Encourages My
Development
THE SEVENTH ELEMENT
My Opinions Seem to Count
THE EIGHTH ELEMENT
Connection with the Mission of the
Company
THE NINTH ELEMENT
Coworkers Committed to Doing Quality
Work
THE TENTH ELEMENT
A Best Friend at Work
THE ELEVENTH ELEMENT
Talking About Progress
THE TWELFTH ELEMENT
Opportunities to Learn and Grow
Source: The Gallup Organization

9. © 2013 FSG
FSG.ORG
9 © 2013 FSG
-27%
-31%
-51% -51%
-62%
12%
18%
12%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Bottom-Line Reduction Top-Line Growth
%
difference
of top
quartile
from
bottom
quartile
Turnover
Absenteeism Shrinkage
Safety
Incidents
Customer Productivity Profitability
High-
Turnover
Orgs.
Low-
Turnover
Orgs.
Source: The Gallup Organization
Employee Engagement Has A Strong Effect
on Business Results
Analysis of:
 681,799 employees
 23,910 business units
 125 organizations
 37 industries

10. © 2013 FSG
FSG.ORG
10 © 2012 FSG
“Giving Back”
Business must fulfill
community
obligations
Business Engages With Society In Three Ways
Shared Value
Corporate
Philanthropy &
Volunteering
“Finding business
opportunities in
social problems”
Social problems can
be solved with a
business approach
“Minimizing harm to
society and the
company”
Business should be
responsible
Corporate Social
Responsibility
The choice of how to engage influences the structure and impact
of corporate volunteerism

11. © 2013 FSG
FSG.ORG
11 © 2013 FSG
Shared Value Strategies Increase Competitiveness
and Profitability by Addressing Social Problems
Shared Value holds the
key to unlocking the next
wave of business
innovation and growth.
”
“
The Role of Business in Society
• Only companies create prosperity
• Business loses legitimacy when
companies are perceived to be
prospering at the expense of the
broader community
• Companies can innovate, scale and
sustain solutions in ways that
governments and NGOs cannot

12. © 2013 FSG
© 2010 FSG12
FSG.ORG
Shared Value Is Found at the Nexus of Business
Opportunities, Corporate Assets and Social Needs
Social Need
Business
Opportunities
Corporate Assets
and Expertise
Shared Value
Opportunity
Volunteer opportunities can also be found at this nexus point

13. © 2013 FSG
FSG.ORG
13
How Do Companies Create Shared Value?
Enabling Local Cluster
Development
Redefining Productivity
in the Value Chain
Reconceiving Products
and Markets
Shared Value is:
“Enhancing the competitiveness
of a company while
simultaneously advancing the
economic and social conditions in
the communities in which it
operates”
Shared Value is NOT:
• Sharing the value already created
(philanthropy)
• Personal values
• Balancing stakeholder interests
Shared Value strategies:

14. © 2013 FSG14
FSG.ORG
© 2011 FSG
Companies Are Rethinking Their Purposes
Healthy Families
Computing / IT Smarter Cities
Credit
Healthcare Products
$ Healthy Relationship
With Money

15. © 2013 FSG
FSG.ORG
15 © 2013 FSG
Volunteering Programs Can Be Designed
Three Different Ways
SocialImpact
Business Impact
“Shared Value Enhancers” Shared Value
“Community Obligations” “Business as Usual”
Solving social problems at scale
IRRhurdlerate
3
Most volunteer programs fall into the first category
offering little business or social impact:
Adopting a shared value approach can strengthen both benefits
2
1

16. © 2013 FSG
FSG.ORG
16 © 2013 FSG
Shared Value Initiatives Have Measurable
Social and Business Impact
Strengthening Shared Value through Volunteerism
• Shared Value requires companies to develop deep
relationships with other stakeholders such as NGOs and
community groups
• Volunteer programs work best when they strengthen Shared
Value via:
• Deepening insights about relevant social problems
• Identifying new revenue or cost-saving opportunities
linked to social problems

17. © 2013 FSG
FSG.ORG
17 © 2013 FSG
Shared Value and Employee Engagement Can Be
Mutually Reinforcing
• Strengthens innovative thinking
• Enhances ability to develop strong partnerships
SV EE
• Deepens the connection between employees and the
company mission
• Signals company commitment to providing opportunities
for employees to learn and grow
EMPLOYEE ENGAGEMENT
SHARED VALUE

18. Q&A
18
• Type questions into the box on the
right side of the your screen
• Submit via Twitter to
@VM_Solutions using “#VMbpn”

19. Stay Informed
Blog:
www.VolunteeringIsCSR.org
Twitter:
@VM_Solutions
Newsletter:
Monthly ‘Good Companies’
newsletter - Sign up on the
blog!
19

20. Save the Date – July 18th
20
A 2013 VolunteerMatch Client Summit Encore Presentation
In Case of Emergency:
Engaging the community in Disaster Response
Thursday
July 18th, 2013
10-11 a.m. PT (1-2 p.m. ET)
Featuring:
Stacie Kronthal
Vice President of Strategic Partnerships, Network for Good
Jim Starr
Vice President, Volunteer Management, American Red Cross
James Rooney
Manager, Technology for Good, Microsoft
Register:
https://www1.gotomeeting.com/register/855574225