Post on 06-Aug-2015
Making the Business Case and Gaining Executive Buy-in
presented by Dr. Lu
3rd Nov 2014 Shanghai
Slide 1 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
Slide 2 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
CSR strategy: a conceptual framework
核心价值 关键领域 有效平台
沟通合作 反馈完善 互信互利
System & process 体系与流程
Slide 3 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
Stakeholder Interest
分析 - 与利益相关方互动中的问题有哪些?
Business Needs
优先化 - 什么问题是最紧迫最重要的?
Engagement and communications
通过沟通和反馈确认工作目标和优先权
CSR strategy: how to select appropriate CSR project
Slide 4 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
环境
健康 供应链
人才
BHP
安全
志愿者
GE
创新
KPMG
BHP合作
CSR strategy: examples of project positioning
Slide 5 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
CSR ROI – 3C and 3 different ways of measuring
Sustainable Business growth
Operating environment
Social value creation
Input
Outcome
Impact
Compliance Competitive advantages Community values 1 2 3
Slide 6 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
CSR ROI
Compliance
Competitive advantages
Social values
1
2
3
(pay attention to: red line, grey area and blued timeline)
(cost saving, efficiency, improved supply, market)
Use economic & investment analysis model to support decision (ex. Win2000)
No need to carry out ROI as it is a no choice, MUST DO
(community development, smooth environment, reputation)
Use SROI and “Results” as reference model to quantify social factor impact
Slide 7 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
CSR ROI:Social Return on Investment SROI
Input Activity Outcome Impact
Event Chain (Value Chain) Evaluation
Monetized $1 Monetized $2 SROI = $2 / $1
Monetization methods: Time cost, Cost saving, Value creation, Survey etc.
Types Who can use SROI How to use SROI
Donor CSR Projects Foundation
Prove benefit (& how much) created Provide to accounting system, decision
Self-Operated
NGO/NPO Social Enterprise
Evaluate organizational & social values Present to donors
Regulatory body
Industrial association Social organization
Assess under regulation Use SROI as policy making references
Slide 8 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
ROI – deliver the measurable success
Slide 9 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
CSR strategy: Engage & Convince snr Management
从上面的分析,我们看出,一个合适的CSR项目,至少应当涵盖这几个特点:与企业创造
价值活动紧密相关;与企业特征和经营领域、地域紧密相关;与企业战略紧密相关;能产生较大规模的积极影响;可操作;可持续;可规避风险。
Bottom line – what value can it create for the business?
Relevant - is it relevant to our business (stream, sector, location)?
Strategy – is it cohesive with our company strategy?
Impact – what level of impact can it make?
Feasible & practical – is it attainable, achievable?
Sustainable - does it have a long term vision, bring long-term benefit?
Risk – have any risks associated with it been identified?
Slide 10 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
Strengthen CSR for sustainable business
Principles for stakeholder
engagement 按照利益相关方沟通原则
Economical-Social-
Environmental bottom-line 三重底线的可持续
发展原则
UN Global Compact
联合国全球契约十项原则
ISO 26000 CSR Guidelines 社会责任
指引
Corporate Sustainable Business Strategy 企业可持续发展战略
Execution in day-to-day operation and business development
把可持续发展的理念和对环境社会负责融入商业和各职能部门的日常运营中
Measuring performance (internal system & external monitoring) 内部监测与社会监督
Effective engagement is in the entire life-cycle
Slide 11 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
Strengthen CSR for sustainable business
Stakeholder engagement 过程框架图
利益相关方 企业
决策目标 Decision
Target
企业运营/拓展商务逻辑 利益相关方各自利益
参与 纳入
决策过程 Decision
实施过程 Execution
参与度与影响力 纳入度与说服力
成本 cost
stakeholder
Interest of each party
Level of involvement
& influential power
Level of engagement
& convincing power
company
Op/Exp Business logic
效率 Efficiency
involve engage
Slide 12 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
Strengthen Engagement using 3C model
core
content
context
Understand impacts
Obtain insights
Help to articulate values, mission, strategy,
commitment
Update on progress and new initiatives
Facilitate regulatory approvals process
Measurement, evaluation and reporting
Identify issues
Avert or solve crisis
Proactively improve relationships
Each engagement fits into the big picture.
The role of stakeholder may vary from
participatory to advisory
The reason of engaging will determine
content and the style of engagement
The context of engagement will impact on
the effectiveness of engaging
Engagement has to be a continued,
consistent and aligned effort
Engagement 3C Principles
Slide 13 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
Fundamental characteristics of CSR managers
•Integrity and sense of accountability & responsibility
•Know CSR theory and practices
•Passionate
•Commercial sense and logical through process
•Communication skills and can deal with pressure
•Team spirit and collaboration skills
Slide 14 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
CSR manager’s toolbox
Engagement Toolkit
•Business focus map (operation, project)
•Market, policy intelligence
•Communality, NGO information
•Standards & guidelines (ISO, GRI, EHS etc)
•Stakeholder profile deck
•Stakeholder analysis and mapping
•Engagement plan, roadmap, calendar
•ROI and reporting
•PM deck (schedule, track, review, measure)
•Issue and risk register
•Meeting tools
•Feedback and evaluation
•Elevator speech
•Company standard information
•Benchmarking information & survey
•Code of practice
In good order
mobile
Slide 15 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
CSR manager’s toolbox
Sometimes, we may need (or we dream to have) the big one like this:
Slide 16 CSR Leadership World 2014 – Nov. 3-4 Shanghai Dr. Lu
Making the business case & gaining executive buy-in
Thank you!
Dr. Jianzhong Lu
Lvjianzhong2011@gmail.com
18061709619