Slides from a lecture and training session delivered to extractive sector leaders and stakeholders at a Nairobi Process event organized by Institute for Human Rights and Business. Nairobi, Kenya, February To keep updated on postings and events go to www.csrtraininginstitute.com and sign up for the newsletter. If interested the CSR Knowledge Centre http://bit.ly/CSRknowledge contains a series of short, pragmatic articles on CSR Strategy, Management and related areas.

1. Industry, Community
& Engagement
Who is responsible?
Wayne Dunn
President & Founder
CSR Training Institute
Professor of Practice in CSR @ McGill
wayne@csrtraininginstitute.com
www.csrtraininginstitute.com
Community Engagement Forum
Nairobi Process /
Institute for Human Rights in Business
Wednesday, Feb 11th, 2015
Nairobi, Kenya

2. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Should business
serve society?
We help it to do both. Simultaneously
Consulting
Advisory services
Training
CSR events
Strategy
Project review
CSR diagnostics
Custom workshops
Partnership development
Stakeholder engagement
Executive programs
CSR communications
Should business
serve shareholders?

3. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Aligning Interests
Value for shareholders AND society

4. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Over the last two days I’ve learned
• Great work being done, but lots more to do
• Progress is being made
• Frustrations (are they growing, static or shrinking?)
• Need for shared responsibilities (industry,
government, community, civil society)

5. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Session Objectives
• Look at some Frameworks that might be helpful:
Value and self-interest, (not selfish interest) the
sustainable common denominator for all
stakeholders
• Group Work/Case Study
• Interests, Roles, Responsibilities
& Action Plans
• Discussion
Value for
shareholders
AND
society

6. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
CSR Knowledge Centre
www.csrtraininginstitute.com/knowledge-centreEverything is available online (free!)

7. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Industry, Communities & engagement:
Simple, but never easy
Sometimes even confusing

8. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Enlightened Self-Interest
What’s in it
for me?
Aligned with
What’s in it
for you?

9. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Selfish Interest
What’s in it
for me?
And more
What’s in it
for me?

10. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
It is about Interests!
What’s In It For Me?
Does engagement
make sense without
self-interest?
Key issue is value alignment:
Value propositions that align
shareholder interests with
those of other stakeholders
Industry, Communities & engagement:
Simple, but never easy

11. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Effective stakeholder
engagement/empowerment
What’s in it for me
What’s in it for you

12. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Download from
CSR Knowledge Centre
www.csrtraininginstitute.com/knowledge-centre

13. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
What about “Shared Value”
The ‘Shared Value’ 4 bucket model
Do
Nothing
Bad
Philanthropy
Better
But not good
CSR
OK..
Sort of
The Best
Shared
Value

14. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
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
All Good - All the way
it’s all shared value Every CSR investment and activity
should create value for the company & for one or more stakeholders.

15. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Value
Distribution
Value
Creation
Value
Proposition
Alignment
• Grants/Donations/Philanthropy
• Local organizations/governance
• Education & Healthcare
• Skills training
• Employment
• Procurement
• New products, markets, ventures
1 1 3
CSR Value Alignment Framework©
© CSR Training Institute 2013

16. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Value Sustainability
•CapEx or OpEx?
• Does the initial investment continue to
provide value beyond the investment
timeframe
• Community Sports Event
• Local Supply Chain Development

17. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
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

18. Nairobi, Kenya, Feb 11, 2015
Community Engagement: Shareholder AND Societal Value
Who is responsible for good CSR
(or community engagement)
Shared Value Creation requires Shared Responsibility:
Whose Responsibility is Corporate Social Responsibility?
Corporate Social Responsibility is not something a company does to or
for communities, governments or others.
All partners are in the same boat.
If the boat floats all will benefit.
If it sinks everyone gets wet.

19. Community Engagement: Shareholder AND Societal Value
Nairobi, Kenya, Feb 11, 2015
CSR Roles & Responsibilities
Read the Case
• Pick a stakeholder
• What are your interests
• What are your
responsibilities
• What is your action
plan
• Report it back

20. Community Engagement: Shareholder AND Societal Value
Nairobi, Kenya, Feb 11, 2015
Questions, Discussion & Followup
Follow-up
Wayne Dunn
President & Founder
CSR Training Institute
Professor of Practice in CSR @ McGill
wayne@csrtraininginstitute.com
www.csrtraininginstitute.com