Community relations creating value for industry and community
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Keynote presentation to the International Congress on Community Relations’ Global Forum in Lima, Peru, Aug. 2014. Discusses how community relations and CSR can create value for industry and community To keep updated on postings and events go to www.csrtraininginstitute.com and sign up for the newsletter
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Community relations creating value for industry and community
- 1. Community Relations/CSRCreating value for industry & community Wayne Dunn President, CSR Training Institute Professor of Practice in CSR @ McGill wayne@csrtraininginstitute.com Friday, Aug 15, 2015 Lima, Peru
- 2. What is CSR Training Institute? HELP BUSINESS TO SERVE SHAREHOLDERS AND SOCIETY •World Class Faculty, primarily practitioners. •Executive Programs •Partnering with leading Universities and Institutions •Open registration programs •Integrated training, advisory services and mentoring •Corporate development •CSR Events
- 3. Why Me? Who is Wayne? • Saskatchewan Farm Boy • Accidental Academic • 2 seasons diamond drilling (Gold/Uranium), • 2 years oil rigs • 25+ years of practical, global CSR experience • About 100 projects (programs, policies, strategy, relationships, innovation, etc.) Many very complex (e.g., industry HIV/AIDS strategy in South Africa and Papua New Guinea). Some great successes, at least one social license failure. • Over 40 countries spanning all continents (urban, rural, indigenous, traditional, etc.) • Extensive Indigenous experience in Peru and globally • Numerous awards (1st private sector winner of World Bank Development Innovation Award, Stanford Case Study, etc.) • Developed McGill | ISID Executive Program on CSR Strategy & Management • Professor of PRACTICE in CSR (note – still practicing and learning!)
- 4. CSR: THERE ARE NO EXPERTS Beware the Expert
- 5. CSR: Sometimes a bit confusing? Graphic borrowed shamelessly from : http://flowingdata.com/2010/04/27/discuss-powerpoint-is-the-enemy/
- 6. Objective CSR and Value–to discuss a framework and a couple of tools that MIGHThelp you to be more efficient at understanding and creating value through CSR investments and activities Gap Analysis –to explore a common gap between industry and community that often destroys value and relationships Remember There are no CSR Experts We are all learning
- 7. Session Objectives •To provide tools and insights for assessing and understanding CSR projects and initiatives? •To help participants be able to think about CSR & Value in a more systematic manner. •To discuss Industry/Community capacity gaps and bridges
- 8. CSR/Community Relations in the OLDEN DAYS Policies & Good Intentions Solving Social Problems Suddenly communities could influence how, or if, a project could proceed. Industry had a new challenge to figure out
- 9. CSR in the OLDEN DAYS (cont) Community Relations Management Framework Plan ?Results? System
- 10. How to think about CSR (more) Systematically •Frameworks and systematic approaches to CSR is still an evolving area, despite a lot of progress over the last 15 years •No one size fits all •CSR programs and activities can be examined along many dimensions
- 11. CSR Pie, No Matter How you Slice It
- 12. CSR: If not Value, then what?
- 13. CSR: If Value, then How? •Shareholder Value •Stakeholder Value •Environmental Value •Community Value •Distributed Value •Shared Value •Retained Value •Sustainable Value •Social Value •Cultural Value •Organizational Value •Created Value •Lost Value •New Value •Reputational Value •Value Continuum •Value Sustainability •Value Creation •Value Proposition •Value Efficiency
- 14. CSR: What’s In It For Me? Does CSR make sense without self- interest? Key issue is value alignment: Value propositions that align shareholder interests with those of other stakeholders
- 15. CSR is a SHARED RESPONSIBILITY •Value for People •Value for Communities •Value for Shareholders •Value for Governments •Value of other Stakeholders Need to balance interests CSR is about value creation not Charity
- 16. CSR is a SHARED RESPONSIBILITY Effective value creation through CSR requires shared responsibility Depending on project it may include •Company •Local Government •National Government •Traditional Leaders •Development Partners •International Organizations •NGOs and other stakeholders
- 17. CSR Value Optimization: Start by Knowing •Analysis of CSR starts with an inventory of activities and programs and then proceeds to analyze and categorize according to various frameworks •A simple inventory of CSR activities provides insights for maximizing value –often low-hanging fruit •Having a common and consistent method to examine and understand activities and projects helps to optimize value •See Resource Material for example Cameco Community Relations Report
- 18. CSR: Tools & Frameworks Value Continuum Value distribution to value creation Value Alignment Value creation Value Sustainability Expense or Capital Not all of these are applicable in every project/situation and there are others that could be developed. What is important is to have frameworks that help to understand both individual CSR initiatives and corporate/project wide CSR
- 19. CSR Value Continuum© •Helps to understand aggregate of project/corporate CSR activities. •CSR includes a range of activities from Philanthropy through to synergistic value alignment (and a well-rounded and developed program would have activities along the continuum) •Continuum of value distribution through to value creation •Shared Value should be created on all CSR projects, not just those at far right. Level and amount of shared value/value creation changes but all are about value and shared value Value Distribution Value Creation •Grants/Donations/Philanthropy •Local organizations/governance •Education & Healthcare •Skills training •Employment •Procurement •New products, markets, ventures © CSR Training Institute 2013
- 21. CSR Partnerships
- 22. CSR/Community Relationsand Partners Who/what benefits from success of this initiative? What sort of partners would fit with this initiative? (if any) What value would they receive? Create? (for project and for company) Quinoa production(Dept of Agriculture, Food Security, etc.)
- 23. CSR/Community Relations Projects as a Catalyst •CSR projects can act as a catalyst to bring key partners to the table •Why do this? •Increases available resources (financial, human, organizational, political) •Increases sustainability •Reduces risk
- 24. Value Proposition •What Value Gets Created –For Who? •Who else might benefit? •Avoid Zero-Sum situations when possible
- 25. Value Distribution Value Creation Value Proposition Alignment •Grants/Donations/Philanthropy •Local organizations/governance •Education & Healthcare •Skills training •Employment •Procurement •New products, markets, ventures it’s all shared value Every CSR investment and activity should create value for the company & for one or more stakeholders. 1 1 3 CSR Value Alignment Framework© © CSR Training Institute 2013
- 26. Value Sustainability CapEx or OpEx? Does the initial investment continue to provide value beyond the investment timeframe •Community Sports Event •Local Supply Chain Development
- 27. © CSR Training Institute 2014 Value Sustainability© Current Value Medium Term Value Long Term Value •Grants/Donations/Philanthropy •Local organizations/governance •Education & Healthcare •Skills training •Employment •Procurement •New products, markets, ventures Does a CSR investment continue to produce value over time
- 28. Social Value Creation / ROI Millennium Development Goals Framework for Public/Private development collaboration Poverty Health Education Equality Environment Common ground between private sector CSR investments/activities with ODA/Govt priorities
- 29. The Industry/Community Capacity Gap
- 30. We’re all TryingBut, often its not working Industry Efforts Community Efforts Clear roles & responsibilities Organizational Structure/Vehicle Cultural Understanding Adequate Resources Execution Capacity Governance Partnership Strategy Politics/Business separation Etc.
- 31. Metrics, Monitoring & Managing Framework Plan ?Results? System
- 32. Metrics, Monitoring & Managing •Can you manage it if you can’t measure it? •What metrics would you measure/monitor? •Why? •How? •How can it fit within your existing management systems?
- 33. Social License •Industry Social License •Corporate Social License •Project/Site Social License
- 34. Industry Social License •Oil Sands -Alberta •Uranium Mining –Saskatchewan •American chefs signing up to boycott Canadian seafood because of the seal hunt •Nov 4, 2013 -Newfoundland bans fracking pending more research
- 35. CSR: Tools & Frameworks Value Continuum Value distribution to value creation Value Alignment Value creation Value Sustainability Expense or Capital Not all of these are applicable in every project/situation and there are others that could be developed. What is important is to have frameworks that help to understand both individual CSR initiatives and corporate/project wide CSR
- 36. QuestionsFor follow-up and more information CSR Training Institute Wayne Dunn Professor of Practice in CSR wayne@csrtraininginstitute.com
- 37. Extra Slides for Handout The following are extra slides that readers may find useful
- 38. Gathering & Organizing Information on CSR Activities ABC CSR Program Description Short descriptionof the program Objective Statedand/or understood objectives Type of Activity (Where does it fit on the CSR Value Continuum) •Grants and Donations •Community Social & Development •Training and Education •Local Institutional Development •Local Infrastructure •Employment •Procurement •Community Health •Other
- 39. Responsibility & Management What dept./position is responsible for the program? How is it currently managed and how does the management integrate with other corporate management systems? Does the success/failure of this program affect the manager’s annual evaluation? How? Consultation and History What, if any, local involvement was there in the design and development of the program? Any other notes on history –when it started, how it came about, successes, failures, developments, etc.
- 40. Budget Current budget including how it is derived (i.e. 3% of something). Also any recent or expected changes to the budget. Value Proposition What groups,individuals, stakeholders benefit from this activity, directly and indirectly? Is there a way to help more to benefit from it? Partners Are there any partners that aren’t covered in the value proposition discussion? How arepartners involved? What are their roles and responsibilities? Are they capable of meeting them?
- 41. Community Benefits What are the benefits to the community? Can they be quantified? How? Company Benefits What are the benefits to the company? Can they be quantified? How? Other Beneficiaries Are there other benefits from the program? Who benefits? How? Can they be quantified? How?
- 42. Success Indicators, Metrics, Measuring & Monitoring How is the program measured and monitored? Does it connect to management and corporate objectives? Is the program’s success linked to the management evaluation program? What other, if any, success indicators are there? How is the program reported? To who? Frequency
- 43. Other ThinkAbouts •Value Sustainability •Social Value Return on Investment •Communications •Metrics •CSR as a Catalyst
- 44. For Additional Information Wayne Dunn Professor of Practice in Corporate Social Responsibility CSR Training Institute wayne@csrtraininginstitute.com www.csrtraininginstitute.com Desk: +1.250.743.7619