SlideShare a Scribd company logo
The shared values
economy is here.
How CSR professionals can employ a
purpose-driven framework to drive
success in their companies & their
communities.
Shared Value:
Value created through partnerships for the
benefit of both parties—typically a company
and a nonprofit—that helps one another
achieve their respective goals.
A brief look at terminology
2
Ethics, beliefs, convictions, support for social or
environmental causes, and other opinions shared
by customers, employees, and stakeholders of a
given company or nonprofit.
Shared Values:
Evolution of Purpose in Business
Corporate
Philanthropy
Workplace Giving
Creating Shared Value
3
Cause Marketing
Corporate Social
Responsibility
1960s
2010s
Creating Shared Value
4
Corporate
Philanthropy
Workplace Giving
Cause Marketing
1960s
2010s
We are here
Evolution of Purpose in Business
Corporate Social
Responsibility
Creating Shared Value
Corporate
Philanthropy
Workplace Giving
1960s
2010s
These are now just
prerequisites for
existing today
5
Evolution of Purpose in Business
We are here
Corporate Social
Responsibility
Cause Marketing
PurposeOrientedImpactScale
Corporate Social Responsibility
Cause Marketing
Workplace Giving
Corporate Philanthropy
Creating Shared Value
New Opportunity
No Longer Optional
6
7
The magnification of social impact is greater now
than at any point throughout history.
8
This extends to companies, too.
Experts say this is the
“There’s a fundamental opportunity for business
to address and impact social problems, and this
opportunity is the largest opportunity we see in
business today.”
business model of the future.
Michael Porter
Author of 18 books

Harvard Professor

Economic Theorist

Business Strategy Leader
9
Headlines like these are becoming more and more common
10
50% of millenials:
Source: Deloitte 2016
Welcome to the new reality.
In the shared values economy, this is the cost of entry.
Here’s why…
Have turned down a
job offer on the basis
of an organization’s
expressed values
Have declined to
undertake a work
task that’s been
assigned to them if
it’s at odds with their
personal values
Have ruled out ever
working for a
particular employer
because of its
convictions and
positions (or lack
thereof) on social
issues
11
And the effects of this reality are now prevalent across
many different demographic & psychographic segments.
Number of consumers
who are just as likely
to purchase as they
are to boycott.
Number of consumers
who are likely to switch
brands to one associated
with a good cause.
Consumers who would buy from
unknown brand if it had stronger
social or environmental
commitments
Percent of people
who would pay
more money for a
responsible product.
Percent who would
take a pay cut to work
at a responsible
company.
Would purchase product of
lesser quality if company
showed greater commitment
to social issues
Source: Cone Communications 2015
89% 9in10 4in5
71% 57% 61%
12
13
This represents a monumental
shift in society that we all know
cannot be ignored.
The question now is: how do
businesses actually go about
creating shared value?
To create shared value, companies must seek to
operate from within the shared values of their
communities.
Employee Values Customer Values
Stakeholder Values
14
Shared Values Methodology
Identify Operationalize Measure
To do this, teams can leverage the
15
The Shared Values Methodology
3. Measure Impact
1. Identify Shared Values
2. Operationalize
Strategy
In Practice
Plan strategy, approve
budget, set benchmarks
Execute programs,
initiatives, campaigns,
partnerships
Learn, iterate, adjust
course, realign with
shared values, plan
16
The Shared Values Methodology
Step 1
Identify Shared Values
Purpose-oriented professionals must
develop a deep, comprehensive,
holistic understanding of the
convictions shared by their 3 primary
communities: employees, customers,
and stakeholders. Successful
strategy operates from the “common
convictions” intersection of those
three core groups.
17
The Shared Values Methodology
Step 2
Operationalize Strategy
Once a thorough understanding of the
three core communities’ shared values
is established, the purpose-oriented
team is now tasked with identifying
opportunities in the market that can
fulfill their organization’s objectives as
well as their commitments to their
communities.
18
The Shared Values Methodology
Step 3
Measure Impact
As strategy is executed, the team
must now seek to understand how
those various programs,
partnerships, initiatives, and
campaigns are both a) hitting their
benchmarked social impact goals, as
well as b) driving various key
performance indicators within the
organization, namely sales & revenue,
employee retention & engagement,
and customer loyalty & satisfaction.
19
To make the greatest
impact on both social
and business progress,
leaders must become
shared values oriented
or risk missing the mark.
20
The Shared Values Methodology
provides a blueprint for success
in a shared values economy.
21
Learn more at http://two42solutions.com
or contact Mo at mhamid@two42solutions.com
The shared values economy is here.

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The Shared Values Economy Is Here

  • 1. The shared values economy is here. How CSR professionals can employ a purpose-driven framework to drive success in their companies & their communities.
  • 2. Shared Value: Value created through partnerships for the benefit of both parties—typically a company and a nonprofit—that helps one another achieve their respective goals. A brief look at terminology 2 Ethics, beliefs, convictions, support for social or environmental causes, and other opinions shared by customers, employees, and stakeholders of a given company or nonprofit. Shared Values:
  • 3. Evolution of Purpose in Business Corporate Philanthropy Workplace Giving Creating Shared Value 3 Cause Marketing Corporate Social Responsibility 1960s 2010s
  • 4. Creating Shared Value 4 Corporate Philanthropy Workplace Giving Cause Marketing 1960s 2010s We are here Evolution of Purpose in Business Corporate Social Responsibility
  • 5. Creating Shared Value Corporate Philanthropy Workplace Giving 1960s 2010s These are now just prerequisites for existing today 5 Evolution of Purpose in Business We are here Corporate Social Responsibility Cause Marketing
  • 6. PurposeOrientedImpactScale Corporate Social Responsibility Cause Marketing Workplace Giving Corporate Philanthropy Creating Shared Value New Opportunity No Longer Optional 6
  • 7. 7 The magnification of social impact is greater now than at any point throughout history.
  • 8. 8 This extends to companies, too.
  • 9. Experts say this is the “There’s a fundamental opportunity for business to address and impact social problems, and this opportunity is the largest opportunity we see in business today.” business model of the future. Michael Porter Author of 18 books Harvard Professor Economic Theorist Business Strategy Leader 9
  • 10. Headlines like these are becoming more and more common 10
  • 11. 50% of millenials: Source: Deloitte 2016 Welcome to the new reality. In the shared values economy, this is the cost of entry. Here’s why… Have turned down a job offer on the basis of an organization’s expressed values Have declined to undertake a work task that’s been assigned to them if it’s at odds with their personal values Have ruled out ever working for a particular employer because of its convictions and positions (or lack thereof) on social issues 11
  • 12. And the effects of this reality are now prevalent across many different demographic & psychographic segments. Number of consumers who are just as likely to purchase as they are to boycott. Number of consumers who are likely to switch brands to one associated with a good cause. Consumers who would buy from unknown brand if it had stronger social or environmental commitments Percent of people who would pay more money for a responsible product. Percent who would take a pay cut to work at a responsible company. Would purchase product of lesser quality if company showed greater commitment to social issues Source: Cone Communications 2015 89% 9in10 4in5 71% 57% 61% 12
  • 13. 13 This represents a monumental shift in society that we all know cannot be ignored. The question now is: how do businesses actually go about creating shared value?
  • 14. To create shared value, companies must seek to operate from within the shared values of their communities. Employee Values Customer Values Stakeholder Values 14
  • 15. Shared Values Methodology Identify Operationalize Measure To do this, teams can leverage the 15
  • 16. The Shared Values Methodology 3. Measure Impact 1. Identify Shared Values 2. Operationalize Strategy In Practice Plan strategy, approve budget, set benchmarks Execute programs, initiatives, campaigns, partnerships Learn, iterate, adjust course, realign with shared values, plan 16
  • 17. The Shared Values Methodology Step 1 Identify Shared Values Purpose-oriented professionals must develop a deep, comprehensive, holistic understanding of the convictions shared by their 3 primary communities: employees, customers, and stakeholders. Successful strategy operates from the “common convictions” intersection of those three core groups. 17
  • 18. The Shared Values Methodology Step 2 Operationalize Strategy Once a thorough understanding of the three core communities’ shared values is established, the purpose-oriented team is now tasked with identifying opportunities in the market that can fulfill their organization’s objectives as well as their commitments to their communities. 18
  • 19. The Shared Values Methodology Step 3 Measure Impact As strategy is executed, the team must now seek to understand how those various programs, partnerships, initiatives, and campaigns are both a) hitting their benchmarked social impact goals, as well as b) driving various key performance indicators within the organization, namely sales & revenue, employee retention & engagement, and customer loyalty & satisfaction. 19
  • 20. To make the greatest impact on both social and business progress, leaders must become shared values oriented or risk missing the mark. 20
  • 21. The Shared Values Methodology provides a blueprint for success in a shared values economy. 21
  • 22. Learn more at http://two42solutions.com or contact Mo at mhamid@two42solutions.com The shared values economy is here.