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Applying Design Thinking to Create Impactful Corporate Social Responsibility Programs:A WIN-WIN for Social Enterprise & Corporate

Table of Content

Applying Design Thinking to Create Impactful Corporate Social Responsibility Programs: A WIN-WIN for Social Enterprise & Corporate

CHAPTER 1 4

CHAPTER 2 16

EXCURSUS 24

CHAPTER 3 46

CHAPTER 4 56

APPENDIX 76

Good CSR Programs Contribute Positively to Corporate Performance

SPOT Analysis on the Cross-Over of Social Enterprise and CSR Program

What is Social Impact Measurement (SIM)?

Apply Design Thinking to Formulate CSR Programs with Social Impact

Cases of SE and Corporate Cross-Over Programs Based on Design Thinking

Author Wong Ching Hung Eva; Kee Chi Hing and Kan Chung Kan ClaraDesigner FundamentalSponsor HomeAffairsBureau,HongKongSARGovernmentPublisher FullnessSocialEnterprisesSocietyLimitedAddress Shopno.14,1/F,Block8,CityGardenShoppingCentre,

233ElectricRoad,NorthPoint,HongKongEmail [email protected] 978-988-77323-7-2

3

Applying Design Thinking to Create Impactful Corporate Social Responsibility Programs: A WIN-WIN for Social Enterprise & Corporate

Since2015,FullnessSocialEnterprisesSociety(FSES)hasbeenpublishingbookletstosharepracticalmanagementknowledgehelpfultosocialentrepreneurshipdevelopment.FSEShasstartedtoteachtheHKU-SPACEQualificationFrameworkLevel-6coursecalledManagementforSocialEnterprisesince2012.SofarFSEShavetrained10cohortsof156students,ofwhich20havesuccessfullyestablishedstart-upsocialenterprises(SEs)and11areholdingmanagementpositionsinSEs.

SomeofthelecturematerialsonthecurrentdevelopmentofSEsinHongKong,onsocialimpactmeasurementandonmanagingbreakeventimearere-organizedandpublishedintobookletsforpubliccirculationinthelastthreeyears.

ThepurposeofthisnewbookletistosharehowSEscanworkmorecloselywithcorporationsoncorporatesocialresponsibility(CSR)initiativesforWIN-WINsituation.ThebookletaimsathelpingSEoperatorstoapplydesignthinkinginwritingproposalstocorpo-rationand/orfunderstoseektheirsupport.Ontheotherhand,tofacilitateCSRmanagersincorporationstowritebetterCSRreportswithsolidsocialimpactdatawhilecollaboratingwithSEsonCSRinitiatives.

Wong Ching Hung Eva BoardDirector,FullnessSocialEnterprisesSocietyLimitedCo-Founder,WEDOGLOBALMember,CommissiononPovertyMember,SocialInnovationandEntrepreneurshipDevelopmentFundTaskForceMember,CommunityCareFundTaskForceMember,SocialEnterpriseAdvisoryCommittee,HomeAffairsBureauMember,RadioTelevisionHongKongBoardofAdvisors

Kee Chi HingChair,FullnessSocialEnterprisesSocietyLimitedAdjunctProfessor,SchoolofBusiness,HongKongBaptistUniversityMember,SocialInnovationandEntrepreneurshipDevelopmentFundTaskForceMember,CommunityInvestmentandInclusionFundCommittee

Kan Chung Kan ClaraBoardDirector,FullnessSocialEnterprisesSocietyLimitedMember,AdvisoryCommitteeontheEnhancingSelf-Reliancethrough DistrictPartnershipProgrammeSeniorLecturer,DepartmentofMarketing,HongKongBaptistUniversity

PREFACE

54

GOOD CSR PROGRAMS CONTRIBUTE POSITIVELY TO CORPORATE PERFORMANCE

Chapter 1

The Social Context of Business Corporations

1 Galant,A.,&Cadez,S.(2017).Corporatesocialresponsibilityandfinancialperformancerelationship:areviewofmeasurementapproaches.Economicresearch-Ekonomskaistraživanja,30(1),676-693.

2 Miller,G.,Dessain,V,&Sjoman,A.(2006).WhenInvestingandSocialObjectivesMeet.HBSNo.9-106-043.Boston,MA:HarvardBusinessSchoolPublishing.

3 TheHolmesReport(2016,Dec18).InvestorsSeeBenefitsOfCorporateSocialResponsibility.Thesurveyasked1,400respondents(100CSRexecutives,100investmentprofessionals,and1,200Americanconsumersaged18yearsandolder)abouttheirthoughtsregardingvariousaspectsofCSR. Retrievedfromhttps://www.holmesreport.com/research/article/investors-see-benefits-of-corporate-social-responsibility

Backin1950s,wheninvestorsinvestinstocksofcompanies,thesimpleintentionistobuyprofit.Overtime,thesituationhasbecomeincreasinglycomplex.Professionalinvestorsincapitalmarketsaremotivatedbynewandnuanceddimensionswhenmakingtheirinvestmentrecommendationsanddecisions.Infact,manyinvestorsnowseemdrivenbynon-financialinterestsaswellastraditionalfinancialones.1

Asearlyasthe1900s,somesociallyconsciousinvestorsalreadyavoidedbuyingstockin‘sincompanies’,suchastobaccoorgamblingcompanies.Thenotionofsociallyresponsibleinvestinggainedlarge-scalemomentuminthe1980sand1990s.Anever-increasingnumberofretailandinstitutionalinves-torsarenowlookingtoincorporatesocialandenvironmentalcriteriaintotheirinvestmentdecisions.Justmakingmoneyisnotenoughtothese‘social’or‘ethical’investors–theywantto

‘Do Good while Doing Well’.Toreachthesecombinedgoals,therearenewrequirementsonadditionalinformationdisclosurefromcompaniesinwhichtheyareinterestedtoinvest.2

AccordingtoaresearchconductedbyHolmesReportin2016,83%ofprofes-sional investorsaremoreinclinedtoinvestinstockofacompanywell-knownforitssocialresponsibility,viewingsuchinitiativesasanindicatorofgreatertransparency,honestyinoperationsandfinancialreporting,aswellaslowerininvestmentrisks.3 The addeddisclosurepressurehasresultedinnewcompanypublications;corpo-ratesocialresponsibility(CSR)andsustainabilitydevelopmentreports.Assuch,theshiftfrompureshareholdervalue focustoCSRfocushasalsoprovidednewcontextsandturfsforSEstoworkwithcorporationstoachievemutuallybeneficialoutcomes.

75% 83% 79%ofconsumerslikelytotakesomenegativeactionstowardirresponsiblecompanies—everythingfromsocialmediapostingstoorganizingboycotts.

ofprofessionalinvestorsaremoreinclinedtoinvestinstockofacompanywell-knownforitssocialresponsibility,viewingsuchinitiativesasanindicatorofgreatertransparencyandhonestyinoperationsandfinancialreporting,resultinginlowerrisk.

offull-timeorpart-timeemployedconsumersbelievetheirownemployerissociallyresponsible,butonly41%believeallAmericancompaniesareresponsible.

39%Acompanythatisseen asnotresponsible standstoloseasmuchas

ofitspotentialcustomerbase,and1in4consumerswilltelltheirfriendsandfamilytoavoidacompanyseenasnotbeingresponsible.

Source: The Holmes Report (2016, Dec 18). Investors See Benefits Of Corporate Social Responsibility.

76

Chapter 1 · Good CSR Programs Contribute Positively to Corporate Performance

Intheearly2000s,MiltonMoskowitzf inds that corporategovernance,stakeholderrelationshipandlaborpracticesincreaseacompany’seaseofrecruitmentandbrandreputation.8

In2005,UNpublishesareportthatintegratesESGissuesintoinvestmentanalysisbutitisarguablypartoftheirfiduciarydutytodoso.9

In2010,ISO26000GuidanceonSocialResponsibility,nottiedtocertification,islaunched.10Theguidanceholdsthatitistheresponsibilityofanorganiza-tiontomakeethicalandtransparentdecisionswhenconductactivitiesonsocietyandtheenvironment.

Corporate Social Responsibility – A Brief Timeline

I t i s commonly bel ieved that theconceptofCSRfirstbeginstotakeshapeinthe1950sandbecomesapopularterminthe1960sandbeyond.Itisaformofcorporateself-regulationintegratedintoabusinessmodel.CSRpolicyfunctionsasaself-regulatorymechanismwherebyabusinessmoni-torsandensuresitsactivecompliancewith thespir it of the law, ethicalstandardsandnational/internationalnorms.4

In1960sand1970s,MiltonFriedmanargues that socia l responsibi l i tyadverselyaffectsafirm’sfinancialperformanceandthatgovernmentregulationswillalwaysdamagethemacroeconomy.5

In1987,UNdefined“sustainabledevel-opmentisdevelopmentthatmeetstheneedsofthepresentwithoutcompro-misingtheabilityoffuturegenerationstomeettheirownneeds.”6

In1994,JohnElkingtonidentifiedthenewlyemergingclusterofnon-finan-cialconsiderationswhichshouldbeincludedinthefactorsdeterminingacompany’sequityvalue.Hecoinedthephraseof“triplebottomline”referringtothefinancial(profit),environmental(planet)andsocialfactors(people)thatshouldbeincludedinthenew calculation.7

In 2011 , A lex Edmans , a War tonprofessor, f indsthat the100BestCompaniestoWorkForoutperformedtheirpeersintermsofstockreturnsby2-3%ayearover1984-2009anddeliveredearningsthatsystematicallyexceededanalystexpectations.11

The social context of the business is about interacting with the larger society. The evolvement of CSR over the years eases the dilemma on the emphasis of profit and/or social impact. Supporting social enterprises is one of the many accepted ways to exhibit CSR efforts for share value creation.

8 Moskowitz,M.&Levering,R.(2011,January20).BestCompaniesToWorkFor2011.Beyondperks:Lessonsfromtrackingthe“100Best”.Retrievedfromhttp://archive.fortune.com/2011/01/19/news/companies/best_companies_history.fortune/index.htm

9 Deringer,F.B.(2005).Alegalframeworkfortheintegrationofenvironmental,socialandgovernanceissuesintoinstitutionalinvestment.WrittenfortheAssetManagementWorkingGroupoftheUNEPFinanceInitiative.

10 Frost,R.(2011,March9).ISO26000Socialresponsibility-Theessentials.Retrievedfromhttps://www.iso.org/news/2011/03/Ref1558.html

11 Edmans,A.(2011).Doesthestockmarketfullyvalueintangibles?Employeesatisfactionandequityprices.JournalofFinancialeconomics,101(3), 621-640.

4 Fontaine,M.(2013).Corporatesocialresponsibilityandsustainability:thenewbottomline?InternationalJournalofBusinessandSocialScience,4(4),110-119.

5 Friedman,M.(1970,September13).Thesocialresponsibilityofbusinessistoincreaseitsprofits.NewYorkTimesMagazine,32-33,122-124.

6 WCED.(1987).OurCommonFuture.(ReportofTheWorldCommissiononEnvironmentandDevelopment).OxfordandNewYork:OxfordUniversityPress

7 Elkington,J.(2018,June25).25YearsAgoICoinedthePhrase“TripleBottomLine.”Here’sWhyIt’sTimetoRethinkIt.HarvardBusinessReviewDigitalArticles,2-5.

98


Formulating Better CSR project and Articulating Social Impacts

Accordingtothemeta-analysisbyOrlitzky,SchmidtandRynes,12thereisapositiverelationshipbetweenCorporateSocialResponsibility(CSR)andCorporateFinan-cialPerformance(CFP)acrossindustries.Themeta-analyticallydeterminedtruescorecorrelation(ρ)was+0.36.ThereturnonreputationfromCSRappearstobegoodpredictorsofCFP.Ontheotherhand,thecorrelationeffectbetweenenviron-mentalresponsibilityandCFPissignificantlylower.

AccordingtoaglobalsurveyconductedbyMcKinsey&Company,13theperceivedimportanceandbenefitsofenvironmental,social,andgovernance(ESG)programsaresoaring.

Ways in Which ESG Programs Improve Companies’ Financial Performance

Effect of ESG Programs on Organization’s Shareholder Value in Typical Times

% of opinion from 45 CFOs % of opinion from 91 investment professionals

Maintaining a good corporate reputation and/or brand equity

79% 75%

Attracting, motivating, and retaining talented employees 52% 55%

Meeting society’s expectations for good corporate behaviour

43% 30%

Improving operational efficiency and/or decreasing costs

39% 29%

Developing new opportunities for growth 35% 36%

AddsValue

No Effect

ReducesValue

Don’t Know Remark

% of opinions from

84 CFOs51% 21% 6% 22% Average

Value-Add3.5%

% of opinions from 154 investment professionals 56% 10% 7% 27% Average

Value-Add4.8%

12 Orlitzky,M.,Schmidt,F.L.&Rynes,S.L.(2003).Corporatesocialandfinancialperformance:Ameta-analysis.Organizationstudies,24(3),403-441.

13 Bonini,S.,Brun,N.andRosenthal,M.(February2009).McKinsey Global Survey: Valuing corporate social responsibility.McKinseyQuarterly.McKinsey&Company.Retrievedfromhttps://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/valuing-corporate-social-re-sponsibility-mckinsey-global-survey-results

Adapted from McKinsey Global Survey: Valuing corporate social responsibility

Adapted from McKinsey Global Survey: Valuing corporate social responsibility

1110


AnotherstudyfromMcKinseyandCompanyfindsthatcompaniesaddressmaterialESGissuesandignoreimmaterialonesoutperformthosethataddressbothmate-rialandimmaterialissuesby4percent.Thesecompaniesalsooutperformcompa-niesthataddressneitherbynearly9percent.14Thestudyisbasedondatafrom1992to2012oncompanies’ESGperformanceacross45industriesinsixsectors.

15 Wicks,J.(2018)The Price of Profit: Rethinking Corporate Social Responsibility,UK:JasonWicks,p.27.

16 Wicks,J.(2018)The Price of Profit: Rethinking Corporate Social Responsibility,UK:JasonWicks,p.150-151.

17 Chui,L.M.S.,Francesco,A.M.&Zheng,Y.Y.(2018).The Missing Link in Understanding Customer Loyalty in Ethical Consumption: A Social Cognitive Perspective of the Prosocial Motivation-Loyalty Link.2018WorldBusinessCongressoftheInternationalManagementDevelopmentAssociation.

14 Bailey,J.,Klempner,B.andZoffer,J.(June2016).Sustaining sustainability: What institutional investors should do next on ESG.McKinseyQuarterly.McKinsey&Company.Retrievedfromhttps://www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/sustaining-sustainability-what-institutional-investors-should-do-next-on-esg

A Focus on Material ESG Issues Drives Greater Returns Effect on financial returns of investors’ treatment of ESG issues

+6.0%

-2.9% +0.6%

High

Low

Low

High

Perfo

rman

ceonmaterial

ESGissu

es

PerformanceonimmaterialESGissues

+2.0%

AstudyfromNielsenmarketresearchgroupfindsthatthepercentageofpeoplewhoarewillingtopaymoreforsocially/environmentallyresponsibleproductsareincreasing:50%in2013,55%in2014,and66%in2015.15Otherresearchesarealsoindicatingthat“prosocialmotivationisacausetoguidecustomers’attitudeandevaluationoftheservicequalitythatimpactfuturerepurchaseintentions”.16

AcorporatethatisseriousinitsCSReffortsshallmakesureitsprogramsaretargeted.BestiftheCSRprogramsarelinkedtothevalues/processofitscorebusiness.Petprojectswillnothelpandarenotlikelytosustain.Forexample,aretailbankmayhaveprojectsontraining,coachingandsupportingentrepreneurstostartupsmallormediumbusiness.

Ontheotherhand,acorporateshalltrytointegrateitsCSReffortsintothecorpo-rateDNAandmakesurethatitisgoingtobethereforlongterm.Forexample,Dellseta2020targetbackin2013.Toyotahasanenvironmentalmissionstretchingallthewayto2050.

EfficientcorporatecommunicationshelptotakecorporateCSReffortstonewheights.Byengagingwithstakeholders,bothinternal(managementandstaffalignment)andexternal(consumers),CSRcanbecomeastrongsellingpoint17 that helpsthepreachingofcorporatevalues.ItisquitelikelythatcorporatescouldberewardedforCFP.

Adapted from McKinsey Quarterly Study -.Sustaining sustainability: What institutional investors should do next on ESG. High performance on relevant ESG issues and low on irrelevant: +6.0%High performance on both relevant and irrelevant ESG issues: +2.0%High performance on irrelevant ESG issues and low on relevant: +0.6%Low performance on both relevant and irrelevant ESG issues:-2.9%

1312


Relationship among NGO, SE, CSR and CSV 18

DuringtheearlydevelopmentstageofSE,afrequentlyaskedquestionis‘howtodifferentiateanSEandfromcompanieswithstrongCSR?’TheanswerisanauthenticSEwillprioritizesocialvaluecreationaheadofprofit,butacompanywillnot.Thisisshowninthediagramabovebytheheadingof‘DrivenbySelf-Interest’and‘DrivenbyOthers-interest’.

BothSEandCSVarehybridbusinessconceptswithinorganizationswhichputconsiderableemphasisondoublebottom-lines.Theyaremoresophisticatedastheyhavetoself-helpfirstthenhelpotherstoself-help.Onthecontrary,NGOandCSRrelymoreonfundingordonationwhichareoutsidetheircontrol.

TherearetwotypesofCSVcompanies.Thefirsttypeofcompaniesarethoseorig-inallyverysuccessfulSEsandgraduallymakeroomtostrengthenthemainstreambusiness.ThiscouldbedescribedaschangingfromOthers-InteresttoSelf-Interest.ThesecondtypeofcompaniesarethoseevolvefromCSReffortstoCSVbycreatingadditionalandsignificantbenefitstothecompany’smainstreambusiness.

CSRmanagerswhowanttohavemoreresourcesandinfluenceinthecompanyshouldconsiderhowtocreateandexpressincrementalvalue.AtpresentmostSustainabilityReportsorCSRReportsfromthelistedcompaniesinHongKongareshowingcompliancetorulesratherthanworkingtocreateastrongercorrelationtothelongtermbenefittothecompany’sbusiness.

18 Creatingsharedvalue(CSV)isabusinessconceptfirstintroducedin2006. Porter,M.E.,&Kramer,M.R.(2006).Thelinkbetweencompetitiveadvantageandcorporatesocialresponsibility.Harvard business review,84(12),78-92.

MichaelPorterarguesthatthecommonviewof“economicandsocialobjectivesaredistinctandoftencompeting”isafalsedichotomybecauseitrepresentsanincreasingobsoleteperspective.Companiesdonotfunctioninisolationfromthesocietyaroundthem.Themoreasocialimprovementrelatestoacompany’sbusinessgoals,themoreit leadstoeconomicbenefits.19 He furtherassertsthatcorporationscanbenefitfromstrategicphilanthropybyimprovingtheircompetitivecontextandthatsocietybenefitsbecausethecorporation’sassetsandexpertiseareusedinhighlyeffectivewaystoaddressimportantsocialproblems.20

Hefurthersuggeststhatsocialentre-preneurshipisanimportanttransitionalvehicletowardsCSVandacapitalistsysteminwhichmeetingsocialneedsisnotjustaperipheralactivitybutacoreaspectofeverybusiness.21

ThesharedvalueconceptispubliclyechoedinanaddressbytheformerFinancialSecretaryofHongKongin2016.TheFinancialSecretarysaysthattheSocialInnovationandEntre-preneurshipDevelopmentFund(SIEFund)setupundertheCommissionofPovertyseekstopromotea‘Creating

SharedValue’(CSV)initiativeandisencouragingestablishedenterprisestorethinkthewaythattheyoperateandseeknewopportunitiesforbusinessgrowthbyaddressingsocialneeds.Itisbelievedthatgreatsynergyexistedinthecross-fertilizationbetweensocialentrepreneursandthegrowingbodyoftechnology-savvytalentincomingupwithinnovativewaystoaddressoursocialissues.22

Therelationshipbetweenbusinessobjectiveandsocialgoodcontributioncantakeonmultiple/differentformsdependingonwhatthefirmvaluesmostandwhetherthesegoalsaremutuallysupportiveorconflicting.TherangeofoptionslistedbelowisanextractfromarecentscholarlyarticlefromINSEADKnowledge.Theoptionsspreadacrossacontinuum,fromorganizationswithanemphasisonprofittothosewithanemphasisonsocialwelfarecontribu-tion.23CorporateswhicharesureabouttheirbusinesspurposesandobjectiveswillunderstandtherelatedpossibilitiestoworkwithSEs.Equally,SEscanalsomakereferencetothistaxonomytoproposeanoptimum/long-termcross-overrelationshipstocorporatepartnersproactively.

19 Porter,M.E.,&Kramer,M.R.(2002).Thecompetitiveadvantageofcorporatephilanthropy.Harvardbusinessreview,80(12),56-68.

20 Austin,J.E.,Childress,S.M.&Reavis,C.(Rev2003,October).TheHarvardBusinessSchoolSocialEnterpriseInitiativeattheTen-YearMark.HBSNo.304-042.Boston,MA:HarvardBusinessSchoolPublishing.

21 Driver,M.&Porter,M.(2012).AnInterviewwithMichaelPorter:SocialEntrepreneurshipandtheTransformationofCapitalism.AcademyofManagementLearning&Education,11(3),421-431.

22 TheGovernmentoftheHongKongSpecialAdministrativeRegion.(2016,September22).SpeechbyFSatopeningceremonyofPhilanthropyforBetterCitiesForum[Pressrelease].Retrievedfromhttps://www.info.gov.hk/gia/general/201609/22/P2016092200335.htm

23 SmithN.C.&Lankoski,L.(2018,June19).Balancing Profit and Social Welfare: Ten Ways to Do It.INSEADKnowledge.Retrievedfromhttps://knowledge.insead.edu/responsibility/balancing-profit-and-social-welfare-ten-ways-to-do-it-9421

Social Enterprise as a transitional vehicle to Creating Shared Value (CSV)

CSVCreatingShared

Value,DoingWellbyDoingGood

SESocialEnterprise,DoingGoodby DoingWell

CSRCorporateSocialResponsibility

NGOCharityOrganization

Driven by Self-Interest Driven by Others-Interest

MOVE UP

MOVE UP

Partnership

Partnership

MainstreamingProfit Centre

DoubleBottom-line (Social&Financial)

Cost Centre

SingleBottom-line (Socialonly)

1514


Sharing Kitchen – Facilitate Participation of Six Restaurants to Create Shared Value

Fimmick – CSV through the Promotion of the City’s Traditional Craftsmanship

SharingKitchen25isanSEthatadvocatessharingeconomy,workintegrationandcommunityinclusion.SharingKitchenwassetupinApril2016andisthefirstSEofitskindinHongKong.

TheSEproposestoletout-of-jobhousewivestousethefacilitiesofrestaurantkitchenstoprepareoriginalandsumptuousfooditemstosellthroughtherestaurantnetworks.Itsbusi-nessmodeloptimizestheusageofrestaurantkitchensduringthedown-timebetweenlunchanddinner,borrowstheexistingfoodlicenseadvantage,leveagescustomersourceandsellingchannels.

ThesharedvalueinitsmodelofsharingeconomyisnotonlyconfinedtoSEoperatorsandfacilitiesowners,italsoincludestheunder-privilegedbeneficiarygroups.SharingKitchenpilotsitsoperationafterreceivingHK$0.7MillionfromSocialInnovationandEntrepreneurshipFund(SIEF)andOxfamandachievesbreakevenwithin12months.Inthe21stmonth,itreceivedHK$7Milliongrantsforscaling-uptoaCo-Cookingproject.ItisoneofthesixrecipientsoftheOutstandingSocialEnterpriseAwardsin2017.

Duringthat21months,ithas44mediacoverageincludingFinancialMagazineinTVBJadeChannelandinRTHKandnumerousmassmedia.Basedonconservativecalculation,theequivalentadvertisementvaluewasatleast HK$4.4Million.

Ontopofthereputationalcapitalgain,fromthegovernmentpointofview,themediacoveragecanalsobeconsideredaspubliceducation.Themessagesinclude:

• Thegrass-rootsinglemothershaveuntappedpotentials.Withaproperconditiontheycanrealizetheircookingskillstoearngoodincomefortheirfamilyandenhancetheirself-esteem.

In2017,OurHongKongFoundation(OHKF)24

organizedacompetitiononCSV.Therearefourfinalistcorporations.ThreeofthemarelocallargecorporationsandlistedcompanieswhohaveconductedverygoodCSRprojects.Althoughthoseprojectscouldgenerateincomes,theamountisinsignificanttotheirmainstreambusiness.Furthermore,itisnotobviousthattheincomegeneratedcancoverthecostsoftheCSRprojects.Ontheotherhand,amedium-sizedigitalmarketingcompany– Fimmick–showcasesaninnovativeCSRendeavorthathascreatednewsharedvaluesforthelocalcommunity.

FimmicksupportsthefoundingofanSE–Eldage–byoneofitsintrapreneur,JoyceLeung,whoisalsotheCorporateAffairsandMarketingManagerofFimmick.EldagecapitalizesonthedigitalmarketingcompetenceofthemothercompanytopromotethevalueoftraditionalhandicraftbusinessofHongKong.BusinessesthatemphasizecraftsmanshipsuchasengravingMaJongtiles,makingneonlights,buildingbirdcages,andproducingofmini-busdestinationplasticplatesarepromotedextensivelythroughthedigitalchannels.

ThesocialmissionofEldageistobuildabridgebetweenartisansandtheyoungergeneration.

• Thesixrestaurantslettingouttheirkitchensforsharingarealsocoveredbythemedia.Theyareimportantplayersincontributingtopovertyalleviationwhileachievingrevenuegain.Itisagoodexampleofcreatingsharedvaluebysmall-mediumenterprises.

• Tothegeneralpublic,SharingKitchendemonstratesthatsharingeconomycanhappenwithoutinformationtechnology.Thenecessaryelementisinnovativemind,nottechnology.

TheSROIofthepubliceducationisHK$4.4MilliondividedbyHK$0.7Million.Thatis629%.

TheSROIoftheworkfaretothesinglemothersisHK$0.8MilliondividedbyHK$0.7Million.Thatis114%over21months.Toannualizethenumber,itis65%/year,higherthanthe50%/yearoftheaverageSROIofSEsinHongKong.

AccordingtoJoyce,“Itisinevitablethatoldpracticesaresupplantedbynewtechnologyandthattraditionalindustriesareforcedtophaseoutasaresult.Howeverironic,suchneglectedculturecanbeagaindisplayedandrememberedasanimportantchapterofourcityviadigitalplatforms.ThatisthereasonwecomeupwiththeideatostartaFacebookpagetore-createthestoriesoflocalartisanmastersthroughtext,photosandvideos.Webelievethattheefforthelpstocreateanewlensforyoungsterstoexploretheculturebehindthesehandicraft.”TheFacebookpagehasattractedmorethan33,000followerssince2016.

TherearetwotypesofmarketingactivitiesstemmingfromEldage.Firstistheresellingofthetraditionalhandicraftsthroughon-linee-commerceplatform.Secondisorganizingofworkshopsengagingtheartisanmastersastrainerstoteachthecraftsmanship.Thoughtheincomegeneratedforthesemastersisnotmuch,theyenjoytheseopportunitiestosharetheircraftsmanshipskillsandearntherespectfromthelearners.EldagedoesnotmakemuchprofitfromthisSE,butitearnsmanyawardsandmediaexposure.ThereputationbringssubstantialnewbusinessestoFimmickasthemothercompany.

TWO CSV CASES IN HONG KONG

FIMMICKdemonstrateshowaninno-vativeCSRprogramcancreatesharedvaluethatboththecommunityandthecompanybebenefited.

SHARING KITCHEN is anSEwith itsoperationsbasedonsharingeconomyprinciples,demonstrateshowtofacilitaterestaurantstocreatesharevaluethatbothbenefittherestaurantsandthegrass-rootwomentoearnincomefromtheirproducts.

24 OurHongKongFoundation(OHKF)isaHongKongnon-profitorganizationwithamissiontopromotethelong-termandoverallinterestsofHongKongthroughpublicpolicyresearch,analysisandrecommendation.Poolingtogetherlocal,mainlandandinternationaltalent,theFoundationstudiesHongKong’sdevelopmentneeds,offeringmultidisciplinarypublicpolicyrecommendationsandsolutionstofostersocialcohesion,economicprosperityandsustainabledevelopment.Retrievedfrom:https://ourhkfoundation.org.hk/en/node/36 25 SharingKitchen「共廚家作」https://www.facebook.com/sharingkitchen/

1716

SPOT ANALYSIS ON THE CROSS-OVER OF SE AND CSR PROGRAM

Chapter 2

TherearecertaininnateissueswiththecurrentcorporateCSReffortspersethatmayhindertheeffectivecross-overwithsocialentrepreneurship.Acloserlookatthepromisingconditionsaswellastherustysideoftheplayreferencingscholarlyviewsandglobalpracticeshelpstoascertainanunbiasedperspective.

Strengths

Social Entrepreneurship as a Government Supported Initiative Backin2002inUK,PatriciaHewitt,theformerMinisterofDepartmentofTradeandIndustry,wrote“…therealitiesofa21stcenturyeconomymeanthatsocialandenvironmentalissuesshouldbeincreasinglyviewedascommercialopportunities,anddriversofbusinesssuccess,ratherthanasthreats.Socialenterprisesaredynamic,progressivebusinessesthatwecanalllearnfrom.….Iwanttoensurethatwedomoretoencourage,growandsustainsocialenterprises–toensurethatsocialenterpriseisnotseenasa‘sideshow’tothe‘real’economybutratheranintegralanddynamicpartofit.”26

InHongKong,thenumberofSEsisestimatedtobe70127inJune2018.BasedonaFacebookresearchconductedbydigitalmarketingagencyFimmick,thereareabout60,000people(about1%ofHongKongpopulationagedover20)whoactivelysearchedonsocialenterpriserelatednewsin2016.28

26 GreatBritain.DepartmentofTradeandindustry.(July2002).Social Enterprise: a strategy for success.SocialEnterpriseUnit.

27 Byend2017,thereare654entrieslistedintheSEDirectorypublishedbyHongkongCouncilofSocialServices.Itrepresentsa7.2%growthfrom2016.Basedonalinearprojection,thereshouldbe701SEsbyJune2018.

28 Ina2016seminarco-organizedbyFimmickandFSES,WillyLai,Co-Founder&CEOofFimmickLimiteddemonstratedthepowerofdigitalmarketingbyusingonlyafewminutestofindthenumber.

Social Enterprises as a ‘side show’

Social Enterprises as an ‘integral and

dynamic part’

REAL ECONOMY

1918

Chapter 2 · SPOT Analysis on the Cross-Over of SE and CSR Program

Problems

ArecentassignmentexerciseforagroupofmasterlevelstudentsisusedheretoillustratethecurrentproblemsituationofcorporateCSRarticulationandreporting.

In 2017, Fullness Social Enterprises Society (FSES) conducted an analysis on 20 Sustain-ability Reports with findings as follows:

Social Impact articulation in simple numeric forms

Sustainability

Fact or Prediction

Eco-friendly

Lack of Evaluation

Volunteering

Awards, Recognitions, Milestones

Good Example: Cathay Pacific (CX)

Scholarship amount

Charts

1

4

6

8

10

5

7

9

2

3

Manyreportslackthearticulationofimpactinnumbers,especiallywhenrevealingeffortsrelatedtocommunityinvolvement.Thereportsmayexplainingreatlengthwhythecompany’spresencehasmadeadifference.However,thebiggestproblemistheinconsistentuseofdataandnumbers.Thereareusuallysomenumbersincertainpartsofthereportonly.Itmakespeoplereadingthereportskepticalaboutthepartsthatarenotprovidedwithnumbers.

ManyreportsexplainthatthereasonofCO2/energy/waterconsumptionincreasesarejustreferringtotheincreaseincorrespondingscaleofoperation.Usuallynoperunitnumberisprovided.Thismakespeoplesuspectthatevenperunitconsumptionhasincreased,whichmaynotbetrue.

Sometimesitishardtotellwhetheranumberisafactorjustaprediction/appropriation.Forexample,anewsystemcanreduceenergyconsumptionbyXXXin oneyear.

Manycompaniesemphasizehowemployeesareencouragedtobeeco-friendlyintheofficebuttheydonotexplainwhethertherearemeasuresinplacetomakeemployeescomply,orthemagnitudeofchange/improvementovertime.

Evenwhennumbersandresultsareprovidedfortheactionstaken,thereisalackofevaluation/benchmarkinginhowgoodornotgoodenoughtheresultsareinrelativeterms.Thisisacrucialproblembecauseanumberisinsuffi-cienttoexplainwhytherelatedactions/involvementsaresignificantandirreplaceable.Honestevaluationsprojecttheheartandsoultoareport.(ClosestexampleisHongKongandShanghaiHotelGroupasitshowsasenseof candidness.)

Manyreportsdonotclearlystatetheperimeteroftheirstatistics.Forexample,oneofcorporationsdoesnotstatesincewhichyearithasstartedcountingthevolunteerhour.Thesetypesofambiguityreducethecredibilityofthereport.

Forsustainabilityeffortsrendered,manycompaniestrytouseawards/certificates/recognitionsasevidencetosupporttheirwork.However,theydonotexplaintherelativestandardsbehindtheseachievements.Moreimportantly,itisseldomexplainedhowtheseachieve-mentscouldbetranslatedintonumbers.

CXhasdoneagoodjobtoframegoodreportsbutmanyothershavenotdoneenoughtocontextualizetheirnumber.

Whenthegrantingofscholarshipismentioned,manyreportsdonotstatetheexactamount.

Manychartsarepresentedinamisleadingwaywiththescalenotstartingatzero.

WiththeadditionofnewSEsfromtheSocialInnovationandEntrepreneurshipDevelopmentFund(SIEFund),thethreeSE-relatedgovernmentfunds29provideseedmoneytoabout70newSEsperyear.

Brandbuildingisanotherkeysuccessfactorforabusinesstothriveinsalesandprofit margin.Astrongbrandgeneratesreputationalcapital30 through mediaexposure.Therearequiteafewwidelyaccepteddistinctadvantagesofastrongbrand:easyrecognition,lowperceivedrisk,lesspricesensitivity,highercustomerloyalty.CorporatesthatareabletobuildauthenticbrandstoriesonCSReffortsisconvincingtoconsumerswhoalignedwiththeirvaluesofmakingthesocietyortheworldabetterplace.TheFimmickandSharingKitchencasesmentionedearlieraregoodexamplesillustratingreputationalcapitalinthelocalcontext.

Theoppositeeffectofnegativerepu-tationalcapitalcanbeillustratedbythecaseofPerrierinthe1990s.PerrierwasoncetheleadingsparkingwaterbrandintheUS,holding80%oftheUSimportedbottled-watermarketandcloseto6%ofthetotalbottled-watermarket.31In1990,benzenewasfoundinthebottledwatersold inSouthCarolineandthecompanyrecalled70millionbottlesintheUSandCanadawhileclaimingthatitwasanisolatedincident.WhensimilarcontaminationwasdiscoveredbyDanishandDutchofficials,thecompanyperformedaworldwiderecallandclaimedthatbenzenenaturallyoccurred inthe

Reputational Capital and Media ExposureCO2thatmadeitswater“sparkling”andwasusuallyfilteredout.Perrierexperiencedasubstantialmarketsharelostandsharepricedropbecauseoftheincident.Sixyearslater,Perrier’ssaleswasstillatonlyone-halfofits1989peak,andthecompanyhadtospendlargeamountsofmoneyonincreasedadvertisement,freesamples,andothermarketingandpromotionalexpendituresinanattempttorecoveritsmarketshare.32

Businesseswitharecognizablesociallyresponsiblereputationappealtothepublicanddifferentiatethemselvesfromcompetitors.YettheCSRclaimhastobeauthentic.Ifconsumersfindoutthatitisjustamarketinggimmickafterall,itwouldbeatoughtasktoturnaroundtheperceptionofskepticalconsumers.

29 EnhancingEmployabilityforPeopleofDisabilitythroughSmallEnterpriseProject(3E)fromSocialWelfareDepartment;andEnhancingSelf-ReliancethroughDistrictPartnershipProgramme(ESR)fromHomeAffairsDepartment.

30 Jackson,K.T.(2004).Building reputational capital: Strategies for integrity and fair play that improve the bottom line.OxfordUniversityPress.

31 Greenhouse,S.(1988,October30).Perrier’sNewAmericanAssault.The New York Times.Retrievedfrom:https://www.nytimes.com/1988/10/30/busi-ness/perrier-s-new-american-assault.html

32 Caesar-Gordon,A.(2015,October28).CommunicationsCaseStudy:Lessonstolearnfromaproductrecall.PR Week.Retrievedfromhttps://www.prweek.com/article/1357209/lessons-learn-product-recall Brainstorm the possible areas of improvement and substantiate with solid arguments?

Exercise:

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ThelackofsocialimpactmeasurementandvaluearticulationinmanyHongKongcompaniesisjustthetipoftheiceberg.Thefactofthematteristhelackofyardstickdatawhichcanillustratethemonetizedvalueofthecommunityinvestment,liketheSocialValueBank33inUK.TheabilitytorepresentthesocialcontributionsinmonetarytermhelpscorporatestomakedecisionsontheirCSReffortsandfocus.

Strengthen Social Entrepreneurship Cross-over with CSR Itisindeedintriguingtounderstandthepossiblereasonsbehindthedifferentshapesofambiguitieslistedabove.IfSEoperators,incollaborationwithcorpo-rateCSRinitiatives,couldexpressivelybringtheCSRcontributionsandimpactsupfront,itwouldbehighlybeneficialtoasustainablelongtermrelationship.Andinturn,itwouldcommendablyturnproblemsintoopportunities.

SE is a hybridorganizationusingbusinessskillsasameansforachievingsocialmission.Quitealotofthemwillmeasureandreporttheirsocialimpactsincludingbenefitstothesociallydisad-vantagedandthevolunteerhours.Ontheotherhand,mostNGOsonlyreporttheiroutputsinsteadofimpactintheirannualreports.

33 Trotter,L.,Vine,J.,Leach,M.,&Fujiwara,D.(2014).Measuringthesocialimpactofcommunityinvestment:aguidetousingthewellbeingvaluationapproach.HACT:London,UK.p.14-15

34 Kee,C.H.,Kwan,C.H.&Kan,C.K.C.(2016).ComparingtheKeyPerformanceIndicatorsoftheSocialEnterpriseSectorsamongHongKong,UnitedKingdom,andKorea,HK:FSES,p.65-66.

Cannot WorkSeriouslyill,disabled, veryold

Could still work but not competitiveAge60+,educateddisabledonwheelchair,ethnicminority,singlemother

20 Billion CSSA Distribution

10

10

Billion CSSA

Billion CSSA

WISE: 7.5 Jobopportunitiesatworkintegrationsocialenterprisesgeneratessignificantsavings

Billion SavingOpportunities

Social Entrepreneurship as a Tool for Poverty Alleviation and Capacity Building In2010Cameronrolledout‘TheBigSociety’ initiative inUK.Thecoreelementoftheinitiativewastopromoteandenablesocialentrepreneurstotakeupmoresocialwelfareresponsibilitieswhilethegovernmentcouldreducethewelfarebudgetinthepost-financialtsunamiperiod.However,therewasstrongresistancetotheinitiative.OneofthereasonswasthattheUKgovernmentcouldnotarguethepotentialbenefitoftheinitiativewithevidentialhardnumbersbecausetheinformationwasnotcollectedandthegovernmentdidnothavethem.34

InHongKong,everyyearthegovern-mentprovidesaroundHK$20Billiontoabout500,000applicantsofCompre-

hensiveSocialSecurityAssistance(CSSA)Scheme.Abouthalfoftheprovision(HK$10Billion)isgiventoCSSAappli-cantswhodonothavetheabilitytowork(examples:children,theveryoldelderly,seriouslydisabledorlong-termsick).Theotherhalfoftheprovisionisgiventoapplicantswhohavetheabilitytoworkbutnotcompetitiveinthejobmarket(example:out-of-jobyoung-oldsegmentaged60orabovebutstillveryhealthy,theeducateddisabledbutonwheelchair,theethnicminoritieswhoneitherspeaknorwriteChinese,thesinglemotherswhohavetotakecareofyoungchildrenandcouldonlyworkfrom10amto3pmwhenthechildrenareatschool).Ifalloftheseapplicants

35 Ditto

canworkinWork-Integration-SocialEnterprise(WISE),thentheoreticallyonlyHK$2.5Billionisneededbecausethecost-effectivenessofWISEisfourtimes35 oftheCSSA.TherecouldwellbeasavingofHK$7.5Billionperyear.

TheWISEempowersthesociallydisad-vantagedbybuildingtheircapability,expandingtheirsocialnetwork,andgeneratesworkfarefortheirwork.Thesehuman/social/financialcapitalsenhancetheirself-confidence.CSSAdoesnothavetheseempowermenteffects.

CorporateCSReffortsandresourcescanberegardedasenablerstofurtherfacilitateWISEempowermenttothesociallydisadvantagedbeneficiary.Apartfromsimpledonation,corporateCSRinterventioncanbeverycreativeandcantakemanyforms.Toname afew:

(i) SimpleprocurementthatgeneratebusinessrevenuetoSEs;

(ii) InteractiveactivitiesusingtheexpertiseoftheSEbeneficiarygroups,atthesametimetounder-standandconnectwiththem;

(iii) Creativevolunteeringopportuni-tiesforstaffwithprocurementandinteractiveactivities;

(iv) Creatingsharedvaluebyincorpo-ratingtheSEbeneficiary’sworkintothebusinessfunction.

Thelistaboveisofcoursefarfromexhaustive.Ampleopportunitiesexistiftherecouldbeeffectivedialogueandexchangebetweencorporates’CSRmanagementandSEoperators.Itisessentialthatstakeholdersatbothendsareproactiveenoughtolookoutforprospectsofbridging.

2322


Threats

ThemountingpressuretodressupCSRasaniconicdisciplineadheredtothecorebusinessinitiativeandatthesametimecontributetothedeliveryofposi-tiveimpactiseasiersaidthandone.

CSRisnotamandatedpracticeforCorporates.WhentryingtoembracethebroadvisionofCSR,CSRprogramsareofteninitiatedandruninanunco-ordinatedwaybyavarietyofinternalmanagers,frequentlywithouttheactiveengagementorblessingsoftheseniormanagement.36Poorcoordinationandalackoflogicconnectingvariousprogramscouldhampertheexpected/well-intendedsocialimpact.

Therearealsosomecommondeficien-ciesontheSEside.First,itishardlyaneasytaskforsmallscaleSEoperatorstosharethebusinessworldviewofcorpo-rateCSRexecutivesandviceversa.Itisachallengetoenablebothendstospeak

inthesamelanguage.Businessmindsetcoachingandtrainingisinescapablynecessarytoimprovethedialogue.37 AplatformtofacilitateregularbridginganddialoguebetweenSEsandcorpo-ratesisnon-existent.Althoughthereareperiodicallyheldeventsforsuchexchange,thereisalackofsystematicapproachinplaceandthusrenderingsuchbridgingeffortsmostlypiecemeal.ItistotallyrestedinthecapablehandsofindividualSEoperatorstodevelopcreative/innovativesolutionstomakeithappen.TheabilityfortheSEstosupplytheirproductsinabundancetocorporatesisanotherchallenge.Thelimitedoperation/productioncapacityissometimesahindrancetogrowthandsustainabilitytosomeSEs.

36 Rangan,K.,Chase,L.,&Karim,S.(2015).The truth about CSR.HarvardBusinessReview,93(1/2),40–49.

37 Acollectionof14one-pagecorporatepitchsummariesareincludedinAppendix(I)ofthisbooklet.Itistheresultofthreecapacitybuildingtrainingsessionstoover20SEs,asoneofthecoreinitiativesofTitheEthicalConsumptionMovement(TECM)2018inHongKong.

SPOT Analysis on How SE can help CSR

Goals Setting

Actions Planning

PrepareCSReffortsforbiggercontribution tothemainstreamBusiness and the Society

AcquireSIMandDesignThinkingknowledge

AskPartnerstoincludeSIMand EAVforecastinproposals

MeasureKnowledgeVolunteering

TrainCommunityInvestmentPartnersonSIM

AskPartnerstoinclude SIMandEAVresultsinreporting

ArrangeCommunityofPracticeforPartners

TrackSIMimprovementofprojects overtheyears

Developanintegratingindexfortheportfolio

CompareSIMresultsofdifferentprojects

PresentSIMportfolioinCSRReports

ComparedtoNGOSectorinHongKong:

• TheSEsectorisleadinginSocial Impact Measurement (SIM),includingSocialReturnonInvestment(SROI),andtheadoptionofDesign Thinking to generate newproducts

• TheSEsectorismoreproficientingettingmedia exposureandrecruitingknowl-edge volunteers

CSRlacksSIM data for evaluationofimpact:

• Whethertheprogrambeneficiariesactuallyleadabetterlife

• Whetherthereiseffectiveuseoffundingfortheprojects

ManyNGOsareastillreportingoutputinsteadofquantifiableoutcomesorimpacts

WithSIMdata,CSRmanagerscanidentifyprojectswithbettercost-effectiveness:

• Theprojectscancovermorebeneficiaries

• Thesamebenefitstomoreparticipantswiththesameamountoffunding

SEscanplaytheroletoguideCSReffortstotransit into CSVprojects

Therearemanytypesofsocial impact reportingandsomeofthemarequiteunreliable:

• Whendifferentassessorsreportverydifferentresultsonsocialimpactforthesameprograminthesameorganization

• Someassessorsregardsocialimpactasjustoutputmeasurements

STRENGTHS

PROBLEMS

OPPORTUNITIES

THREATS

2524


WHAT IS SOCIAL IMPACT MEASUREMENT (SIM)?

Excursus

SocialAccordingtotheMerriam-Websteron-linedictionary,‘Social’means‘oforrelatingtohumansociety,theinteractionoftheindividualandthegroup,orthewelfareofhumanbeingsasmembersofsociety.’38Inshort,‘social’iseitherhuman,oragroup,orthesociety.

ThisfollowingsectionisadetaildiscussiononthenotionofSocialImpactMeasurement(SIM),amodelproposedbyFullnessSocialEnterprisesSociety(FSES)aspartofitsbodyofknowledgein2013.FSESkeepsapplyingandupdatingtheSIMmodelwithnewprojectsandcontext.TheSIMmodelwillbepartofthecoretrainingmaterialofFSESAcademyfortheJockeyClubFullnessSocialImpactMeasurementCoachingScheme(forSEsandNGOs).TheSIMmodelwillbesharedwithkeymanagersofNGOsandSEsinHongKongtofacilitatethearticulationof socialImpact.

Before After

CONTROL GROUP

TEST GROUP

IMPACT

Start of impact project

Impact‘Impact’means“animpingingorstrikingespeciallyofonebodyagainstanother”.39

38 social.2018.InMerriam-Webster.com.Retrievedfrom:https://www.merriam-webster.com/dictionary/social

39 impact.2018.InMerriam-Webster.com.Retrievedfrom:https://www.merriam-webster.com/dictionary/impact

24

2726

Excursus · What is Social Impact Measurement (SIM)?

Measurement ‘Measurement’means‘afigure,extent,oramountobtainedbymeasuring’.40 Addingthemeaningsofthethreewords,SocialImpactMeasurement(SIM)canbedefinedastheextentofanimpingingmadebyaprojectontargetedbeneficiaries.ThenumericexpressionofthesocialimpactistheprimarydeliverableoftheSIM.Thenumericexpressionofthestateofthecontrolisanotherdeliverable.However,thenumericexpressionsarethindescriptions.Thenarrativeexpressionfromthebeneficiariesconcernedprovidesamuchthickerdescriptiononwhathadhappenedandwhyithappens.

Introducing Three Most Popular Methods to Measure Social Impacts

Social Impact Measurement (SIM)Measuringtheintangibleisdifficultbutnotimpossible.Oneoftheworkaroundsisusingproxy.Thenthechallengeisshiftedtohowaccuratetheproxycanrepresenttheoriginalintangible.Insomecases,theproxyisthecostofthealternativewhichprovidessimilarsocialimpact.Themainchallengeofusingproxyishowaccuratetheproxycanreflecttheactualimpact.Thephilosophicalargumentisthatifsomeonearguesthattheproxyisinaccurate,thenhe/sheshouldproposewhichproxyismoreaccurate.Ifagreementisreachedthatthenewlyproposedoneisbetterandwell-substantiated,thenthenewlyproposedoneshouldbeused.Ifhe/shecannotproposesuchanalternative,thatthecurrentproxyisalreadythebestoneavailable.Throughthisprocessofreplacingwithbetterproxies,wewillfindagoodenoughproxyinfuture.Here,weproposeoneofthebestwaystocaptureimpactsanditsrelatedvalueisbyapplyingtheDonaldKirkpatrickfour-levelmodel(DKmodel).

Therearequantitativesurveystomeasuretheaveragefeelingofthebeneficiaries,plussemi-structuredinterviewstounderstandwhathashappenedtothebeneficiaries.Itisanapproachcommonlyadoptedbysocialworkers.

ThismethodisbasedonDonaldKirkpatrick’sPhDthesisin1954.Thecontributiontopracticeistheinclusionofboththebeneficiaryperspectiveandthefunderperspective.Theassumptionisthathumanchangeswilltakeplaceonlyifhisaffectivereactionispositive(Level1),thenheacceptsnewknowledge,skills,orattitude(Level2),andfinallyhedevelopsnewbehaviors(Level3).Hencethebeneficiaryperspectivehas3levels.

ThefunderperspectiveisdonebyprovidingtheSROIoftheprojector/andtheunitcostperbeneficiary(Level4)whichiscalculatedbythetotalcostoftheprojectdividedbythenumberofbeneficiary.Hencethefunderperspectivehas2types.

TheDKModelhasbeenusedbymultinationalcorporations,likeHewl-ett-Packard,inearly1990’sinpeopledevelopmentprogramsforitstwouniquefunctionsofmeasuringresultsaswellasguidingthehumanchangeprocess.ThehumanchangeprocessisusuallycharacterizedbytheTheoryofChange(TOC).

In2013,FSESadaptedtheDKModelandappliesittoSocialImpactMeasurement(SIM)withintheworkcontextofSEs.

RobertsEnterpriseDevelopmentFund(REDF)firstdevelopedthismethodin1996.TheREDFSROImethodfocuseson‘monetizing’thesocialvaluecreated.Sincealotoftheactivitiesandelementscannotbemonetizeddirectly,usuallyproxieswillbeusedtoestimatethemone-taryvalue.

Theappropriatenessoftheproxyandthecredibilityoftheestimationhavetobesupportedbyatransparentaudittrailontheassumptionsanddecisionstaken.Sincethisapproachfocusesonfunderperspective,itisfavoredbyfundersandbusinessperson.Itisbecausewithasinglenumber,itiseasyforthemtopicktheprojectswiththehighestSROI,andtheycanalsotracktheimprovementofSROIoveryears.

ThemajorweaknessofSROIisreliability.Itisconsidered‘un-reliable’becausedifferentassessorsmaypickdifferentproxiesforthesameproject.Inaddition,someassessorsdonotdisclosetheassumptionssotheresultscannotbechallenged.DuetothesecredibilityproblemsREDFeventuallyabandonedthemethod.

Drucker (1995) “Profit us to strengthen nonprofits”:Two-thirdsofthefirstoffendersparoledinFloridaintothecustodyoftheSalvationArmyarenotindictedforanothercrimeforatleastsixyears.

Yetaprisonerscostsatleasttwiceasparolee.

40 measurement.2018.InMerriam-Webster.com.Retrievedfrom:https://www.merriam-webster.com/dictionary/measurement

41 Drucker,P.(2011).Managing in a time of great change.Routledge.(p.240)

Source 41: Drucker, P. (2012). Managing in a time of great change. Routledge.

Mixed Methods

Donald Kirkpatrick Model (DK Model)

Social Return on Investment (SROI)

1

2

3

2928


logicof control

Through the programlogicofempowerment

Measuring the Impact of a CU-EMBA Seminar on ‘Social Impact Measurement’ based on

Donald Kirkpatrick ModelDonald Kirkpatrick 4-Levels Model

LEVEL SCALE 1-5

% OF RESPONSE WITH RATING 4 OR 5

PARTICIPANTS’ COMMENTS

1 REACTION

a) Overall Satisfaction 4.4Overall Satisfaction 97%

‘Fruitfulnight’.

‘Firsttimetohearthis topic,veryinformative’.

‘70%ofparticipantslike thecasestudies’b) Seminar Satisfaction 4.5

Seminar Satisfaction 100%

2 KNOWLEDGE CHANGE

a) Pre 2.0 Knowledge increased 76%

‘UnderstandSIM’s importanceandhow toapplyit’

‘Numericanalysisis moreeffective’

b) Post 4.1Learning improves my job 97%

3 BEHAVIOR CHANGE

a) Apply learning on the job 4.1

Apply learning on the job 74%

(10alumnisaythattheywillapplySIMontheircommunity

investmentprojects)

‘Volunteeringhours canbemonetizedand includedinSROI’

4 FINANCIAL IMPLICATION

‘Socialimpactcanbeandshouldbemeasuredtojustifythefundingapplication’

Level 1

Level 2

Level 4

Level 3

SatisfactiononProgram,WellBeing

WellBeing= Lifesatisfaction+Affect(S+C+V)+Eudemonia

Knowledge/Skill/Attitude(KSA)Changes

BlendedROI=SocialROI+FinancialROI

Workfare+Socialcostsaving+Othermonetizedimpact

Investment

Profit

Investment+

BehaviorChanges

Powerless segments

Positive externalities Sustainable

solution

Neglectedsocial

problems

EXAMPLE ONE

1 CU-EMBA Alumni Seminar

Examples in applying the DK model on Social Impact Measurement (SIM)

TheimpactandvaluecreatedafteraSIMseminarconductedbyFSESinNovember2018toagroupofEMBAalumnioftheChineseUniversityofHongKong(CU-EMBA).

Fromthefeedbackoftheseminar,almostallofthecorporateexecutives(CU-EMBAalumni)participatedareinterestedin:(i)casesharingexamplesofwhatothercompaniesaredoing;(ii)socialimpactmeasurementandthearticulationofsocialimpactinspecificnumericalterms.

3130


Therearefourtypesofdescriptionsineachlevel.

1 First Type thepreandpostnumericmeasurements.

2 Second Type thecommentscollectedfrominterviews.ThisispreferablydoneusingGroundedTheoryMethod(GTM)42tounravelresultsandinsightsfromunexpectedcommentswithinthedynamicsofwhathadhappened.

3 Third Type thebenchmarkorindustrystandard.

4 Fourth Type thejournalistwayofpresentationthataveragereadercanunderstand.

A Quantitative

B Qualitative

C Benchmark

D Journalist

L4: Financial SROI CE’s reaction

HKSEsector SROI

Funder’s reaction

L3: Behavior No.ofgoodfriend

MrsWong’s story

USMean number

Friend’s CreditLine

L2: Learning Competence score

MrsChan’s comment

Poverty Line$

Daily income$

L1: Feeling Well-being score

SisterWah’s comment

HK Mean score

Betterbea hawker

Four Levels × Four Columns of Description

Dawn Market （天光墟） in Tin Shui Wai （天水圍）

Community Development Alliance: 80 hawkers in 2009 – 2012

Mixed Methods + Benchmarking + Journalist Articulation

SROI in 3 years

Hawker income ~$8.9M20 – 80HC × $5K × 36Mth

2 social workers $1.5M / 3 Yr

Initial Social capital: 5,040 volunteer hour $360K(2 professors: 144hr 5 social workers: 1,440hr 6 core volunteers: 3,456hr)

CSSA saving ~$3.7M52HC × $2K × 36Mth

Consumer saving $1.3M

Derived social capital

=+

+

+ +

L4: Economic Impact

L3: Behavior

Social support n/w Mean HCNewfriends: 38.4HCGood friends: 9.9HCLend 2 mth income: 2.3HC

Income($126 → 253)

Relationwithlocals

2.6

2.7

4.5

4.4

Pre Post Gwth

73%↑

63%↑L2: KSA

Venturesatisfaction

Lifesatisfaction 2.4 3.6

The mean in HK is 3.24

4.4

50%↑

L1: Feeling

↑

Outsiders 17Locals 10Other hawker 6Govt officer 5

Helpful 88%Back up sales 79%Chat often 63%Help on tools 38%Help sourcing 25%

WehadmoresparetimewhentakingCSSA.Nowwearebusier,butwearehappier because we can earn our own living.

Iwasstupid.ButnowIamsmarter,meetmanypeople,speakmore,braver,more confident.

whoandherhusbandwereunemployedbecauseofdisabilities.Afterbeinghawkers,they stop taking CSSA

wholostjobwhenthefactorymoved to the Mainland

Wah

Mrs Chan

EXAMPLE TWO

2 Dawn Market in Tin Shui Wai

TherolemodelofusingtheDKModelistheDawnMarketinTinShuiWai,becauseitcannearlyfillupallthe16datafieldsinthetablebelow.

42 GroundedTheoryMethodisaresearchmethodologywhichoperatesinductively,and“GroundedTheoryissimplythediscoveryofemergingpatterns indata” Walsh,I.,Holton,J.A.,Bailyn,L.,Fernandez,W.,Levina,N.,&Glaser,B.(2015).Whatgroundedtheoryis…acriticallyreflectiveconversationamongscholars.Organizational Research Methods,18(4),581-599.

HC = Headcount

3332


Measuring the Impact of Knowledge Volunteering

1 Youaresatisfiedwiththevolunteeringexperience

2 Yourunderstandingofthepoorincreased

3 YourunderstandingoftheNGOorsocialenterpriseincreased

4 Theexperienceimprovesyour leadershipskills

5 Theexperienceimprovesyour friendshipwithothervolunteers

6 Thevolunteeringimprovestheimageofyourorganization

7 Thevolunteeringincreasesyoursenseofbelongingtotheorganization

8 Youwilljoinsimilarvolunteering jobagain

9 Youwillrecommendyourfriendstojoin the volunteering

Strongly Disagree

Strongly Agree

Neutral

NGO / SE

Impact of Knowledge Volunteering

Corporate VolunteerCorporation

L4: (Headcount) × (Hour/HC) × (Est. wage)

L3: Will join again and recommend to others,84%, 4.1

L2: Knowledge on SE, 90%, 4.2

L2: Understanding the poor, 90%, 4.2

L1: Overall Satisfaction,85%, 4.1

L4: Sense of belonging, 80%, 4.0

L4: Cross-dept relation,71%, 3.9

L4: Image in community,84%, 4.1

L3: Support more volunteering,91%, 4.4

L2: Leadership skill,64%, 3.7

Building the emotional bond of corporate volunteers to the social venture

EXAMPLE THREE

3 Knowledge Volunteering of a major property management company in Hong Kong

3534


Theprojectincludesfourtypesofactivities.TeacherTraining,AssemblyTalkinschools,SocialEnterpriseWorkshop,andSocialEnterpriseTrainingCamp.ThenumericSIMresultsofthefouractivitiesareshownontheright.Thenarrativecommentsareshowbelow.

Teachers’ feedback after attending Teacher Training

Students’ feedback after attending an Assembly Talk

Students’ feedback after attending an SE Workshop

Iappreciatethesocialentrepreneurshipdemonstratedandthetransformationofthebeneficiaries.

Ididnotknowmuchaboutsocialenterprises,Ithoughtmostofthemarelosingmoneyandreliedongovernmentfundingtooperate.Butthefactisdifferent. IheardmanyinnovativeideaswhichIhadneverthoughtofbefore.Itmakesmefeelthattherearealotofopportunitiesouttheretoexplore.

They(SEs)helpeachother.Theirworldisfullof love.Afterlisteningtotheirstory,Iwanttohelpthemtoo.

Iwouldliketoworkinthisenvironment,becauseIcaninfluenceothersandbeinflu-enced.Icanhelpothersandotherscanhelpme.

TheexperienceoftheSEWorkshopandtheirsharingchangemyperspectivesontheelderly.

Thereflectiononmytransformativeexperienceiswehavea‘fixedmindset’whichcanbebrokendownthroughexperientiallearning.Thenwewillhaveawidenperspectiveanda‘growthmindset’.

Ms Lam DeputyPrincipal

Ms Ma Teacher

Ms Yau DeputyPrincipal

Students’ feedback after attending an SE Camp

Attheverybeginning,Ithoughtthatsocialenterprisesaresomestupidpeoplewhodon’tknowhowtomakemoneyortheyjustwanttofeelgoodofthem-selves.NowIunderstandthattherearemanywaystoearnmoneywhilehelpingtheneedywithatrueheart.

Teacher Training126 teachers spent

1,000 man-hours

Assembly Talk15,000 students

92 Schools12,500 man-hours

SE Workshop24 SEs with

multiple sessions

SE training camp53 SE ideas from

516 students

Level 4 Unit Cost $4,000,000 / 15,000 students = $267 per student

Level 3 Behavior

99%teacherswillsupportethicalconsumptionsandrecommendtofriends

98%teacherswillapplywhatislearnedintheclass

87%studentsarewillingtohelpthevulnerablegroups

92%respondentsarewillingtotakeactionstohelpthevulnerablegroups

92%studentsarewillingtohelpthevulnerablegroups

89%changeperspectiveonthevulnerablegroups

94%changeperspectiveonpossiblesolutionstosocialproblems

Level 2 Learning

67%teachershaveabetterunderstandingofsocialentrepreneurship

66%teachersunderstandbetterhowsocialentrepreneurshipcanhelpdevelopstudentsfurther

80%studentshaveabetterunderstandingofsocialenterprise

67%studentshaveabetterunderstandingofsocialenterprise

66%studentshaveabetterunderstandingofthevulnerablegroups

81%moreunderstandingofsocialenterprise

Level 1 Reaction (Scale of 5)

Overallsatisfactionis4.47

126teachersfrom73schoolstrained

Total1,000man-hours


15,000studentsfrom92schoolsattended

Total12,500man-hours


7,033studentsfrom79schoolsparticipated

Total14,000participationman-hours


516youngsocialchangemakersfrom68schoolstrained

Total25,000training man-hours

EXAMPLE FOUR

4 The results of FSES Social Entrepreneurship School Education (SENSE) Program

3736


Corporates are Keen to Learn and Do More

Inordernottolagbehind,alotofcorporateexecutivesareactivelylookingforwaystojumpontothebandwagonofCSR-SEcollaboration.

In2017,the1,826listedcompaniesdonatedHK$16.3billionintotal.43Itis0.075%ofthe21,709billionrevenueofalllistedcompanies.44CSRprogramsusuallyhavethreetypesofactivities:corporatevolunteering,communityinvestmentforsolvingsocialproblems,andsponsorshipofmeaningfuleventsthatmayresultinmediacoverageandpubliceducation.

Insteadofgivingmoney,somesmartCSRprogramsusingtheMOREapproachtohelptheNGOpartnerorSEpartnertoachievetheirgoalsbyprovidingMarketingaccess,Outsourcingbusinessprocesstothepartner,sharingResourcelikevenueandfacilities,andprocuringEthicallywhichmeansbuyingtheservicesorproductsfromNGOsorSEs.

43 Yujing,L.(2018,October10).HongKong-listedcompaniesdonatedUS$2.1billiontocharitylastyear,anincreaseof28percenton2016.SCMP.Retrievedfrom:https://www.scmp.com/news/article/2167930/hong-kong-listed-companies-donated-us21-billion-charity-last-year-increase-28

44 HKEX(2018)HKEXFactBook.HK:HKEX.Retrievedfrom:https://www.hkex.com.hk/-/media/HKEX-Market/Market-Data/Statistics/Consolidated- Reports/HKEX-Fact-Book/HKEX-Fact-Book-2017/FB_2017.pdf?la=en

Corporations’ Internal Review on the Alignment between CSR and Business

Corporate Branding • ConsumersandcitizensareawareofandappreciatetheeffortsandtheCSRprograms.

Knowledge Volunteering

• Employeesarebenefitedfromvolunteeringduetoexposuretodiversifiedstakeholdersincludingthesociallydisadvantaged,professionalsfromNGOs,consumers,andcolleaguesfromotherdepartment.Theirleadershippotentialcanalsobeexploitedincomplexcommunityserviceprojects.

Earn Respect in Core Business

• TheCSRprojectsarecorrelatedtothecorebusinessandarewell-receivedandtrustedbystakeholders.

Money Well Spent • TheCSRprogramshouldincludeinnovativeness,impactful,sustainability,scalability.

Corporations’ Focus on Community Investments

Relevance • Whethertheprojectfitsthecorporation’sinterestincommunityinvestment?

• Whethertheprojectcancreatetheexpectedsocialimpacts?

Social Impacts • Istheprojectmakingadifference?

• Doestheprojectbringforthabetterlifefortheprogram beneficiaries?

• Arethereanypositiveexternalbenefitstothelivesofothersindividuals,families,organizations,orthecommunity?

Cost-effectiveness • Istheprojectaneffectiveuseoffunding?

Main CSR Programs

SOCIAL

Sponsorship / Donation

Media coverage as Public EducationEquivalentAdvertisementValue(EAV)

L4:SocialReturnonInvestment

L3:BehaviorChange

L2:CompetenceChange

L1:Satisfaction

Volunteer

Smart CSR point to Media coverage as Public Education• Marketing

• Outsourcing

• Resourcesharing

• Ethicalprocurement

L2:SocialknowledgeL1:Satisfaction

L4:ImageincommunityL4:Cross-deptrelationshipL4:Senseofbelonging

(Headcount×Time×Capability)

Volunteer Corporation

NGO/SE

L3 Leadership

Soci

al Im

acts

M

easu

rem

ent

Insi

ghtf

ul S

tori

es

L3 Support

L3 Support

3938


Questions about Social Impact Measurement

a) What is the role of the funding organization in SIM? Justlikeanyconsumerwhowouldliketomakesurethatmoneyiswellspent.

b) What are the selection criteria of a reliable agency of SIM? Checktheagency’strackrecordsandreputation.

c) Howtoevaluatewhethertheproposedoutputs/outcomesarerelevant/effectiveones? Themostappropriatewayistoaskthegranteetopropose.

d) Anyremedialactionstotakeiftheinterim/finalSIMresultsarenot relevant/significant? Conductapost-mortemanalysistoidentifypitfalls,allowthepossibilityofcommis-sioninganotheragencytotakeoverthejob.

e) How to determine the scope of SIM for various programs? Asktheoperatortoproposeandreviewthejustifications.

f) Howtodeterminethedirectandindirectbeneficiaries,andtheinternalandexternalstakeholders of a SIM? Itisbettertoavoidindirectbeneficiarieswheneverpossible,becauseitcanbe subjectivetosetthelimitonwhatshouldbecounted.

g) How to determine whether a longitudinal study is good for SIM? Itdependsontheresources(moneyandtime)available.

h) What is an appropriate sample size of a SIM? Itdepends.Foracademicresearch,usuallyaminimumof30participants.

i) How to quantify qualitative performance? UseaLikertscale.

j) How to translate the program outcomes into monetary terms? Findaproxywhichhasamarketvalue.

k) Is it appropriate to compare the performance of similar programs? Yes,justlikethecomparisonofstocksperformancewithinthesameindustry.

CSR manager’s consideration on whether to adopt SIM to report their work

Decision Statement: Choose the Method to Present Community Investment Results

Potential Problem Analysis on Adoption of Social Impact Measurement

CRITERIA Wt

ALTERNATIVES

(A) Outputs and

Stores

(B) Impacts

and Cost-effectiveness

(C) Social Return

on Investment

ArticulationofSocialValuescreated H M → (HM) H → (HH) H → (HM)

RecognitionbyStakeholders H H → (HM) H → (HH) H → (HH)

AvailabilityofCapablePartners M H → (MH) L → (ML) L → (ML)

Minimumadditionalcostfor SIMmeasurement L H → (LH) L → (LM) L → (LM)

OverallScore

PotentialProblems Laggingbehindintheindustry

ResistancefromtheexistingPartners

PartnersbuySIMreports

PreventiveandContingentActions

Choice

Potential Problem Impact Probability Preventive/Contingent Action Cost Y/N

SelectionofSIMpartners H L

1)HKJCisfundingFSEStotrainNGOsonSIM $0

2)InviteSIMexpertsintheselectionpanel $0

3)AskpotentialpartnerstoprovidepreviousSIMreports $0

EvaluateSIMresults H M

1)CSRdepartmenttobetrainedonSIM $$

2)InviteSIMexpertsintheevaluationpanel $0

3)FundthosepartnerswithoutSIMcapa-bilitytobuyservicesfromSIMconsultants $$$

ScopingSIMin projects M M

1)CSRdepartmenttobetrainedonSIM $$

2)HireSIMconsultantstohelpthescoping $$$

4140


Select the SIM Consultant Media Exposure as an Expression of Impact

CRITERIA WEIGHT MIX METHOD SROI DK MODEL

Measurement Method

AcademicallyValid Must

AcademicallyReliable Must

AppropriateNarrative HW 10

CanbetheMainstream HW 10

Organization / Personnel

AcademicCompetence MW 6

CrediblePublications MW 6

Track Record

HistoryofPractice LW 3

Clients LW 3

Score

Risk

Choice

AlongwiththeincreaseindemandforSIM,themarketmaywellbefloodedwithalotoflessexperiencedconsultants.EightcriteriaarelistedaboveforreferenceinselectingtheSIMconsultant.Asaminimumrequirement,themethodsuggestedbyanypotentialconsultantshouldatleastbeacademicallyvalid,withreliableandtransparentdatacollectionprocess.

Theotherhighlywanted(HW)requirementisthatthemethodcouldprovideaconvincingnarrativethatcanexpresscomplexstoriesinaneasytounderstandpresentation.Thisisespeciallytruetothefunderwhoprovidestheresourcesfortheprojectandthebeneficiary,andtheotherrelateddimensionsofthebenefi-ciary.IftheHongKonggovernmentorsomebigfunderstakestheleadtoadoptcertainmethod(s),itwillwellbecomeanindustrystandard.ItisalwaysagoodideatoadoptthemainstreampracticessothatlatertheSIMresultscanbebench-markedwithothers.

Themediumwanted(MW)requirementsrelatetothecapabilityoftheconsutlant,whoisrequiredtoconductthemeasurementanddefendthemethodandresultsinfrontofacademicsandfunders.Professional,commercialandacademicresearchexperiencesandcompetencearerequired.Publicationsandsimilarpreviousjobexperiencesareindicatorstoreflectthecompetence.

MediaexposureinSE/CSRcross-overservestwodualWIN-WINpurposes:

ThepublicitystrengthensboththecorporatebrandandtheSEbrand.TheenhancedreputationalcapitalofsuccessstoriessupportedbySIMresultsupliftconfidenceforbothsidesofcross-over.

Astorywell-toldeducatestheinternalandexternalstakeholdergroups(Internal–corporates/governmentfundersandSEoperators;andExternal–beneficiaries,consumersandmedia)tochangeattitudeandbehaviortowardstakingactionstosupportsociallygooddeeds.Therippleeffectofsuchpubliceducationcouldbe,enhancedCSRandCSVeffortsinpovertyalleviationandenvironmentprotection;furtherdevel-opmentofemployees’volunteeringengagements;voluntaryparticipa-tioninethicalconsumption;repeatedinterestinpublicitycoverage;orevennurturingofsocialentrepreneurialspirits.

1

2

Foranyofthepurposesachieved,therecouldbepositivecontributiontosocietalbetterment.ThereisalotmoremeaningcarriedwithmediaexposureforCSRandCSVefforts.ThetablebelowshowsaPotentialOpportunitiesAnalysis(POA)onhowtoincreasemediaexposureonSEdevelopmentthatfacilitatesconsumersupporttoprocureservicesandproductsfromSEswhichinturnwillusetheincometohirethesociallydisadvantaged.

Sincethenatureis‘DoingGood’,sometop-gradecelebritieswillparticipateintheeventsvoluntarily.DuetothepresenceofthecelebritiestherearefreemediaexposureswithEquivalentAdvertisementValue(EAV)ofaboutHK$800,000,whilethecostofthewholeeventisonlyHK$100,000.Thekeyistobuildtherelationshipwiththecelebrities.

Thesecondtypeofmediaexposureistheseriesofinterviewsofthesocialentre-preneursand/orthebeneficiaries.Inthiscase,threeradiostationsareinterested.Thecontentcanbethefounderstory,beneficiarystory,turnaroundstory,innova-tions,controversialtopics,andtruthofmyths.

Thethirdtypeisthepapermediaandonlinemedia.Sincethesearevisualexpo-sures,numbers,photos,charts,andtitleofthestoriescanattractreaders.Thelasttypeispaidadvertisement,whichusuallycouldprovideconcessionratesforNGOs.

POTENTIAL OPPORTUNITIES ANALYSIS

Goal Opportunities EAV Promotion Cost

EAV HK$4.8 Million

Celebrity $0.8M Relationship $0

Radioprogram $2.4M Newcontent $0

OtherMedia $1.1M Rhetorical $0

Advertisement $0.5M Negotiation $100K

4342


Balancing Profit and Social Welfare: Ten Ways to Do It 45

VARIANT GOAL

Variants of profit maximisation

Simpleprofitmaximisation(1) Maximiseprofit

Enlightenedprofitmaximisation(2a)

Maximiseprofitthroughcontributionstosocialwelfare

Constrainedprofitmaximisation(2b)

Maximiseprofitsothatsocialwelfareoutcomesstaywithinanacceptablerange

Variants of multi-objective firms

Hierarchicalgoalswithprioritytoprofit(3a)

Maximiseprofit,thenmaximisesocialwelfarecontributionswithoutadverselyaffectingprofit

Weightedcombinationofgoals(3b)

Maximiseaweightedcombinationofprofitandsocialwelfarecontributionswithweightsthatvarybasedonpresetcriteria

Complementarygoalswithequalprioritygiventoprofileandtosocialwelfare(3c)

Maximisebothprofitandsocialwelfarecontributionsequally

Hierarchicalgoalswithprioritytosocialwelfare(3d)

Maximisesocialwelfarecontributions,thenmaximiseprofitwithoutadverselyaffectingsocialwelfare

Variants of social welfare maximisation

Constrainedsocialwelfaremaximisation(4a)

Maximisesocialwelfarecontributionssothatprofitoutcomesstaywithinanacceptablerange

Enlightenedsocialwelfaremaximisation(4b)

Maximisesocialwelfarecontributionsthroughprofit

Simplesocialwelfaremaximisation(5)

Maximisesocialwelfarecontributions

(Smith&Lankoski2018)

ToconcludethediscussiononSIManditsrelativeimportancetoSE/CSRcross-over,twocomparisontablesdevelopedbyFSEScharacterizingtheresultsofcommunityinvestmentareattached.Itisimportanttoarticulatesocialimpacttofundersespeciallywhenthegovernmentisthefundingsourceoftheprograms.Theresultsshowninthecomparisonarepresentedinsimplenumericterms,easilyunderstandableandareactuallyquotedextensivelybyindustryandgovernmentofficials.Theyareexamplesofpubliceducationandreputationalcapitalforthestakeholdersinvolved.Theresulthelpstobuildconfidenceforcorporatestostrideintocommunityinvestment(CSR)andclearsalotofmisunderstandingsthatmayhavecloudedtheirdecisionbefore.

45 Smith,N.C.&Lankoski,L..(2018,June19).BalancingProfitandSocialWelfare:TenWaystoDoIt. INSEAD Knowledge.Retrievedfrom: https://knowledge.insead.edu/responsibility/balancing-profit-and-social-welfare-ten-ways-to-do-it-9421

4544


ESR 3Es Total

Period of data 2007–2013 2007–2013 —

Grant given (HK$) HK$156M HK$52M HK$208M

Number of SEs 144 75 219

Average grant/SE HK$1.08M HK$0.69M HK$0.95M

Socially disadvantaged/ disabled employees 2,064(FT+PT) 541(FT) 2,605

Workfare (HK$) HK$64.0M HK$40.5M HK$104.5M

Workfare/SE (HK$) HK$444,444 HK$540,000 HK$447,169

Annual SROI 41% 78% 50%

Wage/month/employee (HK$) HK$2,584 HK$6,238 HK$3,343

Survival rate at 5th year 77% 75% 75%–77%

Media life span N/A 9.3years ~9.3years

Accumulative SROI over 9.3 years 382% 724% 446%

Comparing and Integrating Results of ESR 46 and 3E 47 Program 48

KPI UK (Led by DTI)

Korea (Led by MoEL)

HK (Led by HAB)

Scale of the SE Sector

Based on CIC-registered SEs

Total11,230SEs(7/2015data)TotalRevenue £2.083billion, 0.11%ofGDP (2014data)

Based on registered SEs

Total1,082SEs (9/2014data)

TotalKRW$952billion, 0.07%ofGDP (2014data)

Based on registered SEs

Total527SEs (2015data)

TotalHK$1.5billion, 0.06%ofGDP (2014data)

Based on assumed SEs

Total62,000SEs (2007data)

Total£24billion, 1.45%ofGDP (2007data)


N/A


N/A

Financial Self-Sustainability

SEs at break-even/profitable

73%ofSEs (2013data)


14%ofSEs (2012data)


62.9%ofSEs (2014data)

Market toughness benchmark

SMElifespan: 7.2years





Social Impact

Social return on investment

N/A


N/A


AnnualSROI:48% CumulativeSROI:

446%over9.3years medianlifespan

Workfare content in price

N/A


17%


Average16.7% (2014data)

Comparing the Key Performance Indicators of the Social Enterprise Sectors among Hong Kong,

United Kingdom, and Korea 49

46 ESRstandsforEnhancingSelfReliancethroughDistrictPartnershipProgramme.ItisaninitiativesponsoredbyHomeAffairsDepartmentofHongKongSARGovernmentandhavefundedover200successfulSEprojectssinceitsinceptionin2007.

47 3EstandsforEnhancingEmploymentofPeoplewithDisabilitiesthroughSmallEnterpriseProject.ItisaninitiativefundedbySocialWelfareDepart-mentofHongKongSARGovernment.

48 Kee,C.H.(2013).SocialReturnonInvestment(SROI)ofEnhancingSelfReliance(ESR)throughDistrictPartnershipprojects.FSES.Retrievedfrom:https://www.thinkers.hk/ourdb/files/[email protected]/fses_June_Article.pdf Kee,C.H.(2013).SocialReturnonInvestment(SROI)of“EnhancingEmploymentofPeoplewithDisabilitiesthroughSmallEnterpriseProject”(3E).FSES.Retrievedfrom:https://www.mindvan.com/ourdb/files/[email protected]/fses_august_Article.pdf

49 KeeC.H.Kwan,C.H.T.&Kan,C.K.C.(2016).Comparing the Key Performance Indicators of the Social Enterprise Sectors among Hong Kong, United Kingdom, and Korea.FSES.

4746

APPLYING DESIGN THINKING TO FORMULATE CSR PROGRAMS WITH SOCIAL IMPACT

Chapter 3

AccordingtoaHarvardBusinessSchoolresearchregardingtheCSRpracticeof142companies,CSRpracticesareexplainedinthreegenericinitiativesof(i)purephilanthropyfocusthatcreatesvalueprimarilyforthesociety;(ii)operationimprovementinsocialorenvironmentalareasthatcreatesmorevaluetothesocietythantothefirm;and(iii)transformingexistingbusinessmodeltoaddresssocialorenvironmentalchallengesaltogetherandcreatesharedvalue.

Apparently,thewidelyacceptedidealofcreatingsharedvalue–economicandsocial–byCSReffortsisnotthenorm,thereareoftenmultifacetedimplementationthatrunsbetweenthethreetypesofpractices.

CorporatesappeartobequiteagreeabletoalignCSRpracticestothepurposesandvaluesofthestakeholdergroups,yetnotsomuchtototalintegrationofCSRintobusinessstrategiesandpractices.50

WhenSEoperatorstrytobuildlongtermcollaborativerelationshipwithcorpo-rates,itisimportanttothinkinthemindsetofcorporates’CSRexecutives.Tounderstandtargetcorporates’usualandpreferredpracticesisarequiredstake-holdermanagementjourneyfortheSEstoembrace.

DesignThinking(DT)comesintoplaytofacilitatethecrossoverofSE-Corporatecollaboration.DTisasystematicwaytoevaluate,designandsolveproblemswithitsrootssprangfromthe1950s.Thetermispopularizedinthe1990sandsincethenDThasbeenwidelyappliedtomultipledisciplinesasanimportanttoolkittoinforminnovativeandcreativethinking.

50Rangan,K.,Chase,L.,&Karim,S.(2015).The truth about CSR.HarvardBusinessReview,93(1/2),40–49.

48% 39% 13%

Philanthropy Operational Improvement

Business-Model Transformation

4948

Chapter 3 · Applying Design Thinking to Formulate CSR Programs with Social Impact

Innovation

Inventioniscreatinganewthing,whichmayormaynothaveeconomicvalue.Innovationismoreofa‘business’term.Thesimpledefinitionofinnovationis‘anewsolutionwithbetterresult’.Itcanbeanewfeatureoftheproduct,oranewprocess,oranewusageoftheexistingproduct.Inthebusinesscontext,‘betterresult’usuallymeanseconomicbenefit.

Ifitis‘anewsolutionwithworseresult’,thenitis‘innovativelydump’,asitlogicallymeansfinancialloss.

Innovation = Novelty + Entrepreneurship + DiffusionTheScienceofArtificialbyHerbertSimon(1969)51

Design Thinking

Noveltyisthefirststageofinnovation.Newideasmaycomefromtheusersorsuppliers,orbycombiningexistingideas,orbyeureka.Thenewideasareonlyimaginationsuntiltheyarebeingcreatedphysicallysothattheycanbeseen,orfelt,oroperated,orproducesomeresults.Thentheartifactsareputintoanitera-tiveprocesstoimproveitslookandfeelorfunctions.Sometimes,luckisneededtogenerateideasduringthisimprovementprocess.

Entrepreneurshipisthesecondstageofinnovation.Itmayalsobecalled‘Commer-cialization’.Thepurposeistoimprovethecost-effectiveness,orprice-performancetoenabletheproducttosellinvolume.

Diffusionisthefinalstage.Thisisthemarketingefforttoreachthetarget/massconsumers.

Finally,allinnovationshavetheirexpirationdatewhentherearesubstituteprod-uctsemergedwhichperformbetter.

51Simon,H.A.(1969).The sciences of the artificial.MITpress.

The 3 components of Design Thinking

ThethreecomponentsareUserNeeds,NovelSolution,andTrialandErrorProcess.

User Needs

Novelty

TheoutputofDesignThinkingisanartifactmadebyhuman(asproducer)forhuman(asuser).Theartifactisusefulifitmeetstheneedsandwantsoftheuser,oruselessifitdoesnot.Artifactshavefunc-tionalattributesandaestheticattributes.Intimesofscarcity,thefunctionalattri-butesaremoreimportant,whileintimesofabundancy,theaestheticattributesaremoreimportant.

Therearethreetypesofneeds.First,spokenneedsarewhatcanbeidentifiedthroughsurveyorinterviews.Second,unspokenneedsarewhattheuserwantbutwillnotvoiceoutinpublic.

Thestartingpointofdevelopingnoveltyistoimaginethenewsolution.Theimag-inationcantakefourapproacheswhichcanberememberedasadd, subtract, multiply and divide (+,-,x,/).Thefirstapproachisaddinganewcomponentorfeature.Forexample,Hewlett-Packardaddsthescannerfunctionintotheprinter,thenaddsthecopierfunction,andfinallythefaxfunction.

Thesecondapproachisremovingsomefeaturesorconstraintssothatthecostischeaperortheresponseisfaster.BothUberandAirbnbignorethelegalconstraintsaswellastheconsumerprotectionsandtheassociatedcostsforprovidingtaxi-likeservicesorhotel-likeservices.

Thethirdapproachiscrossingoverwithothertypesofsolutionthatisdifferent.TheconceptofCreatingSharedValue(CSV)byMichaelPorterisacross-overbetweenbusinessandhumanserviceorganizations(HSO),thatis,across-

Forexample,onemayliketowatchpornographicmoviesbutmaynotadmititinaninterviewbyafemaleresearcher.Third,unawareneedsarewhattheusershavenotexpected,butfindtheywantthemaftertheartifactappearsinfrontofthem.Forexample,consumerswillnotdescribesomethinglikeiPhoneinthesurveyonconsumerneedsformobilephone,beforeiPhoneisproduced.TheresultsofthesesurveysonuserneedsandsolutionsfromexistingprovidersshouldbeconcludedasaPointofView.Ifthesurveysarein-depth,theresultisprobablyaUniquePointofView.

overbetweenthesecondsectorandthe thirdsector.

Thefourthapproachisreframingwhatthesolutionshouldbe.HongKonggovernmentevaluatestheSEfundsgrantingschemesbyalotoffinancialmeasuresandoperationdata.Allthesefinancialandoperatingdatareflectthecivilservantsandthegranteesaredoingtheirbest,buttheytellnothingaboutwhetherthepublicexpenditureiswellspent.UntilFSESworkedout(reframed)theSocialReturnonInvestment(SROI)ofthetwoSEgrantingschemes’valueimpactof450%in2013,themoneyisrecognizedaswellspent.Inessence,itmeansthatforeveryonedollarthegovernmentgrantedtoSEs,thesociallydisadvantagedwillreceivebenefitsworth$4.5dollar.Thisistoreframetheevalua-tionfrompagesofthickdatatoasinglenumberonthecost-effectivenessof theimpact.

Autonomy

Demand Supply

Combinatory

Novelty Entrepre-neurship

DiffusionBetter

solutions from othersSerendipity

Cost- effectivenessandVolume

Morepeopleknow&use

Serendipity

Imagination

Cretivity

Aesthetic

5150


A Control System

A Plan-Do-Check-Act Cycle

Trial and Error ProcessThisistraditionalwisdom.Inthe19thcentury, this wisdombecametheControlTheoryinwhichthedeviationbetweenthetargetandthesystemoutputfeedbackintothesystem’sinputsothattheoutputwouldbeadjustedaccordinglyuntiltherewasnomoredeviationbetweenthetargetandtheoutput.In1970’s,thecontroltheoryevolvedintothePlan-Do-Check-Act(PDCA) p rocess in Tota l Qua l i t yManagement.The‘Plan’isthetarget,The‘Do’istheoutput.The‘Check’isonthedeviation.The‘Act’isthefeedbackbasedonthe‘Check’intotheinputofthesystem.

InDesignThinking,thethinkingonnoveltyisthe‘Plan’.Theprocessofcreatingthe initial artifactcalled‘Prototyping’isthe‘Do’.Theengage-mentofstakeholderstoprovidetheiropinionontheartifactisthe‘Check’.Tore-designandre-createtheprototypeisthe‘Act’.Finallyiftheprototypingjustusesbare-enoughcost,thenitiscalled“Lean”.IfthePDCAhasgonesmoothwithinweeksorafewmonths,thenitiscalled“Agile”.

+-

ACT

OUTPUTPLAN

PLAN

ACT DO

CHECK

DO

CHECK

Social Impact Measurement (SIM) increases the success rate in applying funding

Social Impact Measurement (SIM) based on the DK Model assists the Theory Of Change (TOC)

Inthebusinesssector,investorwillbuystockswhichhaveatrackrecordofmakingprofits,orhaveatrustworthyCEO/managementthatprovidesattractivefinancialprojections.Thehighertheprofit,thehigherthepricetheinvestorwillpay.Aslongasprofitisgood,theinvestorsdonotcareaboutthecoststructure.

Butinthesocialsector,thepractitionerwhoapplyfundingfromdonorseldomprovidestheSIMresultsofpreviousprojects,orprovidesaforecastoftheSIMofthecurrentprojectapplyingforfunding.Atpresent,thisisnotaproblemasnearlyallNGOswillnotprovidethedata.Hence,evenwhenknowledgeabledonorsintendtolookforapplicationswithSIMresults,thereareonlyapplicationsshowingoutputdataandsomeprimitivesatisfactoryoutcomedata.

Associalimpactmeasurementisgettingmorepopularinthesocialenterprisesector,thefundersordonorswillhavechoices.Theycanpicktheapplicationswiththehighestcost-effectiveness.

TheDonaldKirkpatrick(DK)modelisbasedontheholisticviewofhumanbehaviorrelatedtoaffective,cognitive,andbehavioralaspects.ThesethreeaspectsarethefirstthreelevelsofDKModel.

IftheproductofNGOsorSEscouldenable‘achangedhumanlife’,thenitrequirestheservicetargetorbeneficiarytohavebehaviorchange(e.g.gettingridofaddiction).Thebehaviorchangewillhappenonlywhenthereiscognitivechangeinknowledge,skill,orattitude.Theservicetargetwilllearnthecompetenceonlywhentheyfindthelearningprocessenjoyable.This‘Satisfaction→Cognitive→Behavior’processischaracterizedasaTheoryOfChange(TOC).IfasocialserviceprojectexhibitsSIMresultsbasedonDKModel,thenitisalreadyexpressingitsTOCframework.

5352


Situation Analysis

Shared Planning

Hoshin as a kind of Strategic Plan

The Targeted 4 Levels of Impact as the Strategies in the Plan

Theword‘Hoshin’isatranslationfromJapaneseintoEnglish.TheoriginalrootofthisJapanesewordisfromtheChinesephrase‘fangzhen’(方針)which meansthesmallcompassthatpointstotherightdirectionastheholderofthecompassmoveforward.

Nowadays,Japaneseusesthiswordtoillustrateaone-pagestrategicplanbusinesscanvas.Byputtingallthestrategicplanningelementsintoonepage,thereaderscanhaveaholisticviewofthelogiclinkagesamongsttheelements.Furthermore,bybeingone-page,thereisahigherprobabilitythatthereaderscanrememberallthe

strategies.Thepurposeofaplanistoremindthatthereisaneedofchangeofbehaviorfromtheroutine.Ifthereadercannotrememberthechangesrequired,theplanisuseless.

The‘I’inthecolumn‘IxP’istheimpor-tanceofthestrategyinrealizingthemission.The‘P’istheprobabilityofsuccessofthestrategy.Bylistingout‘I’as‘High,Medium,orLow’(H,M,L)andthesamefor‘P’,thestrategiesscoreiswellprioritized.ForstrategiesthatscoreML,LM,LL,theyshouldbedeletedsothatresourcescanbefocusedontheHH,HM,andMH.

InStrategicPlanning,therearethreesteps:SituationAnalysis,GoalsSetting,andActionsPlanning.Inotherwords,wewillpickactionswhichcancontributetotherealizationofgoals.Forexample,ifwewanttotrainyoungex-offenderstostartuptheirownsmallbusiness,thenweneedatleastfourstrategies:

• Thefirststrategyistoensuretheirlearningexperienceisajoyfulonesothattheywillsitthroughthewholetraining.

• Thesecondstrategyistoensuretheycanunderstand/graspthecorebusi-nessskills.

• Thethirdstrategyistoensuretheyapplythelearningtowritethebusi-nessplanandsubmittheplantothevariousfundingorganizations.

• Thefourthstrategyistoensurethesuccessrateofthefundingappli-cationsothattheunitcostofeachsuccessfulentrepreneurisreasonable.Abenchmarkisthefee($7,100)of

the39-hourcourseof‘ManagementforSocialEnterprises’inHKU-SPACE.Anevenbettermeasurementisthatthetotalmoneyearnedbysuccessfulentrepreneursismuchmorethanthetotaltrainingfee.ThisistheSROIwayofjustification.

Therecanbeadditionalstrategiesaslistedbelow:

• Thefifthstrategyistoplanforfreemediacoverageonsuccessfulstories.Thesekindofstoriesinthemediacanbeviewedasakindofpubliceduca-tion.Incasetherearemanystories,thenthesestoriescanbecompiledintoabookletasaknowledgeproductforsubsequentlearners.

• Thesixthstrategy is tobuildanalumninetworksothattheycanhavesynergisticmutualhelp,support,orcooperationamongsttheirbusiness.

Organization: Where WhenPeriod: WhoOwner: WhichVersion:

1 Thecoursedesignissimilartothe‘ManagementforSocialEnterprise’byHKU-SPACE,whichrequires13sessionseach3hours,andthecoursefeeis$7,100/pax

2 TheImpactswillbemeasurementbyDonaldKirkpatrickFourLevelmodel

3 ....

MissionTotrainyoung

ex-offenderstostartupsmallbusinesses

GoalsThesocialimpacts

createdissogood,thatnextproposalisalso

approved

Strategy KPI IxP Owner

a) Thelearningisjoyfulduetothecoursedesign >4.3 H,H

b) Learnersacquirecoreskillsforstartupplanning >3.5 H,H

c) Learnerswrite/submitbusinessplansforfundingAbletosecurestart-upfund

>20% >15%

H,M H,L

d) Theearninginthefirst3years ofthesuccessfulentrepreneursascomparedtothetotalprogramcost

>33% H,L

e) Mediacoverage(EAM)ontheprogram >0.1M M,L

f) Thelearnersjointhealumniactivities >50% M,L

KPI Key Performance IndexI ImportanceP Probabiity

5554


Writing Proposals to solicit Corporate CSR Cross-over

Theyear2018markstheseventhyearoftheTitheEthicalConsumptionMovement(TECM)organizedbyFSESandsponsoredbytheHomeAffairsBureau.In2017,FSESpilotedacapacitybuildingprogramtotrainselectedSEsonmanagementskills.Theprogramwasverywellreceived.InTECM2018,muchstrongercapacitybuildingelementsareincorporatedintoTECMtargetingmoreSEoperators.Thecapacitybuildinginitiativehasatwo-prolongedobjective.

1 Uplifting of Management Skills:AseriesofmanagementseminarsareorganizedrelatingtomanagementskillsrelevanttoSEoperation.TherearealsoadditionalcoachingsessionstoadviceindividualSEstotackleimminentmarketingandmanagementissues.

2 Corporate bridging:Focusspecificallyonwritingandpitchingproposalstofundersandcorporatesponsors.

FromtheSPOTanalysis,itisapparentthatbothcorporatesandSEsarelookingforopportunitiesofcollaborativecross-fertilizationforsocialgoodandsocialimpact.

Toillustratethelearningoutcomesofthisyear’scapacitybuildingprogram,itisbesttosharetheworkoftheSEsbasedonasuggestedstakeholdersmappingtemplate.ThekeyfactsrelatedtoindividualSEsarediscussedandrefinedthoroughlytohelpthemtofocustheireffortinunderstandingtheirrelevant stakeholders.

–TimCook,CEOofApple

Stakeholders Mapping

The company does “a lot of things for reasons besides profit motive. We want to leave the world better than we found it.”

Prioritize & FocusBestifsinglefocus

Who are you?Your Key Business Needs?

Your Social Mission

Your Work

Stakeholders’ interest (research)Doyourhomeworkonthekeytargets

Recent interestPrevious workPublicity

Corporate beliefs, resources, interests.

Related stake-holders interests are/could also be fulfilled

Potential ScenariosVisualizingonpaper

Actionable plans (on how to engage)Plan APlan B

Action steps:

Participation format

$$

People

Time

Identify Key Target CorporationsDoyourhomeworkonthekeytargets

Funders/ Charities Foundation Corporates...

Why you fixate on your particular target corporate(s)

Shaping WIN-WIN storiesHowdoyouwanttoshapethestory?

Specific VALUES in a few strong statements

Social impact (Best if SROI cited in numeric terms)

CSR/Sustain-ability Stories

Reputation

Timeline/Next stepsAnopportunity(gooddeed)notbemissed

Unreservedly easy to fulfill outright

Add some sense of urgency.

It is now or never!!!

• Spokenneed,TOCreview

• Zoom-instudy• BetterthantheBest

• UnspokenorUnaware• Adaywithuser, Need,Want,Fear

• Imagination• Aesthetic(Empathy)• UniqueValue Proposition

• InitialHypothesis• Controlhandles• HoshinKanri(方針管理 )

• Prototyping• Stakeholderviews• Shortcycles improvement

• Diffusionprocess• POAonTippingpoint• FocusonG.A.P.S.

• Returnsoninvestment• Unitcostsforinputandscoresforoutcomes

• NewBehavior, socialN/Ws

• Transactionsatisfaction• Well-beingbenchmark• Mixmethods,Story

• Empowermentthru’KSA

Understand – Due Diligence

Observe & Explore

Point of View

Shared Plan

Pilot PDCA

Rollout in scale

L4: Cost-effectiveness

L3: Behavior impacts

L1: Affective impacts

L2: Competence impacts

Integrating Social Impact Measurement, Design Thinking and Hoshin Planning

Value Proposition

Good idea is Not Good Enough

Value Delivery

Better than the Best

Value Communication

The Best is Far from Perfect

Serendipity

* GAPS Analysis of Goals, Actual or Abilities, Past or Perceptions, and Standards KSA Knowledge, Skills and Attitude POA Potential Opportunities Analysis

5756

CASES OF SE AND CORPORATE CROSS-OVER PROGRAMS BASED ON DESIGN THINKING

Chapter 4

WEDOGLOBAL,foundedin2011,aimsatbuildingaplatformforpeoplefromdifferentethnicitiestointeractwitheachotherforachievingthepurposesofdiver-sityandinclusion.

TheFoundersofWEDOGLOBAL,BoscoNgandEvaWong,havethevisionofcreatingharmonyamongstpeopleofdiversebackgrounds.AccordingtoWong,“Wewouldliketowalkwithethnicminorityyouthtogether,toempowerthemthroughskillsdevelopmentandemploymentopportunitiesforthemtosharetheirculturesandtraditions.Theycanbecometherolemodelsoftheircommunitiestocreatebiggerimpacts.Gradually,theysetexamplesofhowethnicminoritycancontributetothesocietyasanactivecitizen.”

WEDOGLOBALisaself-sustainablesocialenterpriseandoneofthelargestsocialenterprisesprovidingethnicminoritytoursinvariousdistrictsinHongKong.Apartfromeducationaltours,theyprovidetotalsolutionstocorporates,includingmulticulturaltraining,teambuildingactivitiesandcorporatesocialresponsibility(CSR)programs.Throughtheactivities,bondingandunderstandingbetweenstaffmembersisestablished.Atthesametime,knowledgeandawarenesstowardsdifferentculturesandrelatedsocialissuesalsoclaimbenefitstowardsthestaffdevelopment.

Some recognitions of WEDO GLOBAL• TheHongKongYouthServiceAward2017(FounderofWEDOGLOBAL)

• SIEfundandThePeninsulaSocialEnterpriseIncubationFund2016

• GlobalFinal12,GlobalSocialVentureCompetition2015(USA)

• GrantedSocialEnterprise,DBSFoundation2015(Singapore)

• GrandAward,SocialVentureCompetitionAsia2015(SouthKorea)

• GrantedSocialEnterprise,DBSSocialEnterpriseAdvancementGrant2014

• Awardee,PolyUMicrofund2012,TheHongKongPolytechnicUniversity

• Oneofthefirst20socialenterprisesinHongKongtoreceivetheSocialEnterpriseEndorsementMark(endorsedbyCityUniversityofHongKongandHongKongGeneralChamberofSocialEnterprises)

+85221572181 [email protected] www.wedoglobal.com wedoglobal

5958

Chapter 4 · Cases of SE and Corporate Cross-Over Programs Based on Design Thinking

Situation of Ethnic Minorities in Hong Kong

Growing Ethnic Minority PopulationEthnicminorityisarelativeconcept.InHongKong,itreferstonon-Chinesepopulation.Excludingforeigndomestichelpers,thehighestethnicminoritypopulationwouldbeSouthAsians,includingIndians,Pakistanis,Nepalese,BangladeshisandSri-Lankans.

Duetohistoricalreasons,anumberofSouthAsianscametoHongKongasPoliceorforbusinessduringtheBritishcolonialtime.AfterHongKongreturnedtoChina in 1997, theyhavebeenpermittedtostaybehindinHongKongasarecognitionoftheircontributiontothedevelopmentoftheterritory.

High Poverty RateBeforeHKSARgovernmentpolicyinter-vention,SouthAsianshavearatherhighpovertyrateof25.7%.AmongstthewiderSouthAsianpopulationinHongKong,thepovertyrateofPaki-stanisismostseverewithapovertyrateof56.5%,implyingthatoneoutoftwoPakistanisislivinginpoverty.ThepovertyrateofNepaleseandIndiansareat17.4%and14.8%respectively.53

Accordingtothe2016PopulationBy-census52conductedbyHongKongCensusandStatisticsDepartment,thenumberofSouthAsiansincreasedsignificantlyby71%overthepast10years,theirpopulationhasreached84,875in2016,whichconstitutesto1.15%of thewholepopulation in HongKong.

With the rapid increaseof ethnicminoritycitizensinHongKong,theyarenotonlythepotentialcustomersbutalsopotentialworkforcewhomaysupportthefuturedevelopmentofHongKong.

Low Acceptance Level in SocietyHowever,thegrowthofethnicminoritypopulationalsocreatesconflictsandsocial issues.Accordingtoaracialacceptancesurvey conductedbyUnison,54theacceptanceleveloflocalChinesetowardsSouthAsianis18-21%lowerwhencomparedtotheaccep-tanceleveltowardslocalChinese,inareasofneighborhood,educationandworkplace.

53 HongKongCensusandStatisticsDepartment.(February2018).Hong Kong Poverty Situation Report on Ethnic Minorities 2016.GovernmentofHongKongSpecialAdministrativeRegion.Retrievedfrom:https://www.povertyrelief.gov.hk/pdf/Hong%20Kong%20Poverty%20Situation%20Report%20on%20Ethnic%20Minorities%202016.pdf

54 HongKongUnison.(2012).RacialAcceptanceSurveyReport.Retrievedfromhttp://www.unison.org.hk/DocumentDownload/Researches/R201203%20Racial%20Acceptance%20Survey%20Report.pdf)

52 HongKongCensusandStatisticsDepartment.(2016).2016 Population By-census.Retrievedfromhttps://www.bycensus2016.gov.hk/tc/ press-detail24.html

South Asian

Acceptance as Neighborhood

Acceptance in Education

Acceptance in Workplace

Chinese

64%

85%

69%

87%

70%

89%

6160


Theory of ChangeIfthereisamulti-culturalenvironmentthatcancreatemoreunderstandingandcollaborationamongChineseandnon-Chineseethnicminorities(i.e.training,co-creation,networkbuilding,overseaslearning);andempowertheparticipantsthroughskillsdevelop-ment,communityinvolvementandglobalaswellasculturalexposure,thenon-Chineseethnicminoritieswillbeabletodevelopasenseofsocialinclusiveness.Theyareinspiredandmotivatedtobuildupconfidence,tacklechallengesandbuildamulti-culturalHongKongtogetherwiththeir Chinesepeers.

Ifethnicminoritiescanbeengagedinthecommunitythroughdifferentactiv-ities,theycangraspabetterunder-standingandconnectionwithdifferentstakeholders.Buildingawarenessaboutculturaldiversitywithinthecommunityisafoundationofamulticulturalandintegratedsociety.

Ethnic Minority Companies

• Free Training

• Employment

• ReferralofJobs

• SocialnetworkofEM

• Co-createtours

• ReferralofnewEM

• Multiculturalteambuilding

• Trainingworkshop

• CSR/CSVprograms

• $Income(B2B)

• Referralofcustomers

• Volunteers/Mediaexpose

Understand self cultural identity and Chinese cultureSocial Inclusion & Social networkPoverty & Unemployment

Cultural awareness and sensitivity in workplaceBelonging to companiesPerception and discrimination towards ethnic minority

Language and Cultural Barrier AconsiderableproportionofSouthAsianchildrenarebornandraisedinHongKong,othersmaycometoHongKongwithparentsatveryyoungage.Education,especiallylearningChinese,isoneofthemajorchallengestoSouthAsianswhenblendingin.BothSouthAsianchildrenandadultsalike,arelessproficientinreadingandwritingChinese.Astheygrowup,theuseofChinese(writtenandspoken)continuestoposeamajorchallenge,bothinstudyoratwork.

6362


SE-Corporate Collaboration

Desirability Feasibility Viability

Creating Shared Values

Applying Design Thinking Model

AccordingtoMichaelPorterandMarkKramer’sarticleinHarvardBusinessReviewonthenotionofcreatingsharedvalue,“Companiescouldbringbusinessandsocietybacktogetheriftheyrede-finedtheirpurposeascreatingsharedvalue—generatingeconomicvalueinawaythatalsoproducesvalueforsocietybyaddressingitschallenges.Asharedvalueapproachreconnectscompanysuccesswithsocialprogress.”55

DesignthinkingisagreattooltostartSE-Corporatecollaboration.Throughhuman-centereddesign,itiseasytounderstandvariousstakeholdersinthe collaboration.Thedesignprocessstartswiththreesimpleyetkeyquestions:

Asasocialenterprise,WEDOGLOBALbelievesinsynergyincreatingsharedvalueswithcompanies,communitiesandnon-governmentalorganizationstocreatecross-sectorimpacts.Throughapplyingthedesignthinkingprocedures,WEDOGLOBALfocusesonhuman-centereddesigntocreateinnovativeandcustomizedprograms.

Inrecentyearsconsumersaremoreawareoftheoverallvaluesprovidedbycompanies,includingbranding,prod-uctsorservices,andtheirimpactstothesocietyandenvironment.CSRmaybefamiliartomanycompaniesandtheyhavesetvariousgoalstohavebroaderinfluencesontheirlong-termsuccess.

Design thinking is a human-centered approach to innova-tion that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.56

— Tim Brown, CEO of IDEO

Start Here

Desirability

Feasibility Viability

Whatisdesiredbythetargetgroup? (e.g.EthnicMinority)

Whatarethedesiredoutcomes bythecorporate?

Whatistechnicallyfeasible forSEandcorporates?

Istheideafinanciallyviablefor bothSEandCorporates?

55 Porter,M.E.,&Kramer,M.R.(2011).Creating Shared Value. Harvard Business Review,89(1/2),62–77.

56 IDEOU(OfficialWebsite).Design thinking is a process for creative problem solving.Retrievedfromhttps://www.ideou.com/pages/design-thinking

Best Available Solution for SE-Corporate Collaboration

6564


Roles of Social Enterprise and Corporate CSR Managers in Design Thinking Procedures 57 & 58

Design Thinking Roles of Social Enterprise Roles of Corporate CSR manager

• Understandtheneedofcorporate

• Understandtheneedofcommunitystakeholders

• Engagethecorporatestafftolearnaboutrelatedsocialissuesthroughtraining/experience

• Coordinateinternalstafftounderstandthesocialissueandrelatedcommunitystakeholder

• DefinetheobjectivesoftheCSR/CSVprogram

• Assigncoreteammembersinthesocialenterpriseandcorporate

• Definetheobjectivesandexpectedoutcomesfortheproject

• Involvestakeholdersincommunitytoco-createmeaningfulprograms

• Setpreliminarybudgetfortheprogram—

• FormulateideaswithcoreteammembersfromSEandcorporate

• Selectfeasibleideaandfinalizebudget

• Sitevisit/rehearsalofprogram/pre-training(mayormaynothappen)

• Reviseideasifnecessary

• Actualdeliveryofprogram

• Capturesocialimpactdataforreport

• Coordinateinternalstafftoco-organizetheprogram

• PrepareCSR/CSVprogram

• Conductareviewmeetingtodiscusstheoutcomesofprogramandfuturecollaboration

EMPATHIZE

DEFINE

IDEATE

TEST (implement)

REPEAT (feedback loop)

PROTOTYPE

57 TheHassoPlattnerInstituteofDesignatStanford(2010).AnIntroductiontoDesignThinkingPROCESSGUIDERetrievedfrom:https://dschool-old.stanford.edu/sandbox/groups/designresources/wiki/36873/attachments/74b3d/ModeGuideBOOTCAMP2010L.pdf

58 IDEO,D.K.(2015).Thefieldguidetohuman-centereddesign.(P.14)

Collaboration with DBS Bank

WEDO GLOBAL AND DBS BANK

WEDOGLOBALandDBSBank(HongKong)Limitedsharethevisiontoembracediversityandinclusion.DBSBankalsosupportssocialentrepreneurshipwiththebeliefthatSEscancreatebiggersocialimpactswithsocialmissionandsustainablebusinessmodel.

Theactivitiesco-createdinclude(i)culturalteambuildingactivitieswithagroupofDBSBankstaffteam;(ii)sustainablevolunteerprogramsforethnicminoritychildren;and(iii) mentorshipandco-brandingevents.Itmarksagreatsuccessandexampleforthemultiple-winsituationsforcorporate-socialenterprisecollaboration.

In2016,65colleaguesfromtheDBSBankparticipatedinthemulticulturalteambuildingandtrainingorganizedbyWEDOGLOBAL.Withthethemeof“DiversityandInclusion”,WEDOGLOBALCulturalAmbassadors(fromdifferentculturalbackgrounds)whohadgonethroughWEDOGLOBAL’strainingsharedtheirculturesandthecommonchallengestheyhadencountered.Through interactivesessions,DBSbankcolleaguescouldhavedirectdialogueswithpeoplefromdifferentculturalbackgrounds.Intotal,445traininghourswereprovidedtoDBSBankcolleaguestoenhancetheirempathy,teambondingandculturalsensitivity.

Cultural Team Building Activities

“Our continuous support to SEs never stops! Joining hands with SEs not only fosters social changes, it also helps improve our customer services mindset. Through the multicultural workshop by WEDO GLOBAL, we have under-stood the needs of people from different backgrounds. We were also inspired on how to provide better caring services to build a more inclusive community.”

CASE 1

EMPATHIZE

DEFINE

PROTOTYPEREPEAT!

TEST

1 3

4

2

56

IDEATE


6766


In2017,colleaguesfromDBSbankinHongKongparticipatedintheEthnicMinorityCulturalTourorganizedbyWEDOGLOBAL.TheywereabletohavedirectinteractionswithethnicminoritiestounderstandthesituationandstoriesofethnicminoritiesinHongKong.TheylearnedandexperiencedtheIndianculturewiththeguidanceofWEDOCulturalAmbassadors.Thisisanempathyexerciseandtasterprogramforvolunteerstobuilduprelationshipwithethnicminorities.

Afterthetour,DBSBankrecruitedcorporatevolunteerstoconductregularvolunteeringsessionswithWEDOGLOBALforagroupofethnicminoritychildrenstudyinginkindergartenin2018.TheaimistocreateauniqueandsustainableexperienceforboththeethnicminoritychildrenandtheDBSBankTeam.ItisarareyetvaluableopportunityforethnicminoritychildrentointeractwithChinesebigbrothersandsisterstolearnabouttheChineseculturesfortheirbetterintegrationtothesociety.Thethemeoftheactivitiesisaroundculturesandfestiveseasons.Itisanunconventionallearningexperienceforboththeethnicminoritychildrenandthecorporatestaff.

Empathy Training and Volunteer Programs Mentorship and Awareness Building Initiatives

WEDOGLOBALisoneofthementeesoftheDBSSocialEnterpriseMentorshipProgramin2017-18.SeniormanagementofDBSBanksharedtheirexpertiseandexperiencewithWEDOGLOBALtohelpequipitsbusinessmanagementskillsandstrengthenitssocialstrategies.DBSalsocreatedthe“DBS×HK01LiveKindCampaign”,59whichcomprisedaseriesofonlinevideosandwebarticles.IntheWEDOGLOBAL’sepisode,popularHKsingerEmanLamjoinedtheWEDOGLOBAL’sWanchaitourtoexperiencetheSikhculture.Thevideoreceivedover250,000viewsonFacebookandYouTubeinamonth.

《DBS x HK01 Live Kind 想像不一樣》WEDO GLOBAL 少數‧多數

59 蘇健進(2018-05-21).WEDOGLOBALxDBSBank“Livekind”campaign.【文化共融】．入廟見人．與少數族裔來一次真摰交 . Retrievedfromhttps://www.hk01.com/社區專題 /183586/文化共融 -入廟見人 - 與少數族裔來一次真摰交流 ?utm_campaign= DBS_2018&utm_source=fbpost+community&utm_medium=SocialORhttps://youtu.be/BX4ocwOk4uU


6968


Quantitative measurement

Social Impact Measurement of WEDO GLOBAL × DBS Bank Volunteer Programs (2017-2018)

Volunteer hours On-job training hours

Volunteer activities Learning hours 115 505 227

contributedby DBSBankvolunteers Providedfor

ethnicminoritystaff

conductedbyWEDOGLOBALandDBSBank

providedforethnicminoritystudents

TheresultsfromtheevaluationformscollectedfromDBSbankvolunteersshowthatallofthemagreethatthevolunteeractivitiesenhancetheirunderstandingtowardsmulti-cultureinHongKong.

I have enhanced my understanding towards multiculturalism in Hong Kong after the

cultural experience

After the experience, my understanding towards ethnic minority

becomes more positive

33%50%67% 33%

17%Strongly

Agree

Strongly Agree

AgreeAgree

Neutral

I hope to get to know more ethnic minorities in the future

I support corporates to promote Diversity & Inclusion

Theyalsoagreethattheywanttomeetmoreethnicminoritiesinthefutureandsupportthecompanytopromotediversityandinclusion.

50% 50%

Strongly Agree Agree

67%

Strongly Agree

33%Agree


7170


Inourdailylife,wedon’thavemuchchancetomeetpeoplefromdifferentculturalbackgrounds.Throughthisprogram, LV 1 somememorablemomentstouchedusfromknowingtheethnicminorities. LV 2 Wealsolearntmoreabouttheirculture,e.g.SikhsyearbraceletandthemeaningofSikh.DuringtheSikhtemplevisit,wehadtoguessthemeaningofanIndianword,yetatlastwefoundoutthateventheWEDOGLOBAL’sIndianambassadordidn’tknowtheanswer. LV 3 Thatmakesusrealizethatethnicminorities,eventheygrowupinHongKong,dofacechallengesinlearningnotonlyChinese,butalsotheirmotherlanguage.

LV 1 Gladthatwecancontributetothesocietyinourworkplacebyparticipatinginthecorporatevolunteeringprogram.AfterjoiningWEDOGLOBAL’sprogram, LV 2 wecanbetterinteractwithethnicminoritiesandrecognizethattheyarenotmuchdifferentfromus. LV 3 Wesharedthesevaluablestoriesandexperienceswithourfamilyandfriendstoo.

LV 4 Before,itishardforustobringthemoutsideaswedon’thaveenoughstaffratio.WiththeorganizationofWEDOGLOBALandengagementofDBSBankvolunteers,weareabletoprovideourstudentswithmoreoutdoorexperientiallearning.TheyprovidethestudentswithChineseculturalexperiencethatcanenhancetheirintegrationintomainstreamsociety.

Qualitative Measurement

Throughinterviewswithstakeholders,soundbitesreflectingtheimpactoftheSE-Corporatecollaborationarecaptured.ThelearningandchangesareanalyzedthroughthelensofDonaldKirkpatrickModel.60

DBS Bank’s volunteer

DBS Bank’s volunteer

Principal from the kindergarten

LEVEL 1

Affective

LEVEL 2

Awareness

LEVEL 3

Behavioral change

LEVEL 4

Results (ROI)

60 Kwan,C.H.,Kee,C.H.,Chan,K.F.J.&Ng,C.H.T.(2016).IntroductiontoSocialImpactMeasurement,HongKongContext. Chapter5:Thebeneficiary-centricapproachtoSIM.FSES.(P.16-17)

WEDOGLOBALcollaboratedwithHKBNin2017toprovideCulturalLearningExperienceforlessresourcefulyouthsagedfrom13-17.Over15HKBNvolunteersreceivedavolunteertrainingconductedbyWEDOGLOBALtounderstandmoreaboutthemulticulturaldevelopmentinHongKong.Afterthat,thevolunteersprovidedfeedbacktoperfectthetourdesignandarrangement.Atotalof184participantsjoinedthetours.Theyhadachancetolearnmoreaboutmulticulturaleducationviafunandinteractivetour,whichenhancedtheirknowledgeandawarenessoncross-culturalunderstandingandinclusion.

CASE 2

Collaboration with Hong Kong Broadband Network (HKBN)

WEDO GLOBAL AND HKBN

OBJECTIVES OF THE SE-CORPORATE COLLABORATION

For less resourceful youths• Increaseculturalawareness

throughdirectinteraction

• Enhanceculturalknowledgeandunderstandingaboutethnicminority

• TodirectlyinteractwithethnicminoritieslivinginHongKong

For HKBN volunteers• Gainculturalexperiencethrough

culturalvolunteertraining

• Contributetomotivateunder-privilegedyouthsinlearningaboutdifferentcultures

• ContributetomakeHongKongamoremulti-culturalcity

For ethnic minorities staff from WEDO GLOBAL• Gainworkexperienceand

exchangewithHKBNtalents

• InteractwithlocalChineseandhavechancestosharetheirculture

• Employmentopportunitiesasculturalambassadorsandprojectassistant

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Design Thinking Roles of WEDO GLOBAL Roles of HKBN

• NeedofHKBN:Talentdevelopment&empowermentofvolunteers,contribu-tiontothesociety

• Needofcommunity:Culturallearningexperienceforlessresourcefulyouth

• TrainingprogramforHKBNvolunteerstounderstandaboutethnicminoritylivingin Hong Kong

• Coordinatevolunteerstounderstandthesocialissuerelatedtoethnicminoritiesliving in Hong Kong

• DefinetheobjectivesandoutcomesoftheCSRprogram:ProvideculturallearningexperienceforlessresourcefulyouthandtrainupethnicminoritystaffofWEDOGLOBAL

• AssigncoreteammembersinWEDOGLOBALandHKBN

• InvolveKowloonMosqueandpartnersinthecommunitytosupporttheprogram

• Setpreliminarybudgetfortheprogram—

• Formulatefinalizedprogramdesignandbudget

• Providefeedbacktorevisetheprogramforabetterlearningexperienceforsecondaryschoolstudents

• Actualdeliveryofprogram

• Capturesocialimpactdataaftereachtourforreport

• Coordinateinternalstafftoco-organizetheprogram

• PrepareCSR/CSVprogramreport

• Conductareviewmeetingaftereachtourtodiscusstheoutcomesoftheprogram

EMPATHIZE

DEFINE

IDEATE

TEST (implement)

PROTOTYPE

Applying Design Thinking Process

Quantitative measurement

Social Impact Measurement of WEDO GLOBAL ×HKBN Volunteer Programs (2017)

Volunteer hours On-job training hours

Volunteer activities Learning hours 90 7010 550

contributedby HKBNvolunteers Providedfor

ethnicminoritystaff

conductedby WEDOGLOBALandHKBN

providedforlessresourcefulyouths

Social Impact Measurement

Aftereachtour,evaluationformsaregiventotheparticipantstocollecttheirfeedbackaboutthetour.165evaluationformswerecollected(totalparticipants:184partici-pants).TheresultswereanalyzedandSocialReturnonInvestment(SROI)wascalculatedasfollows.

I have enhanced my understanding towards multiculturalism in Hong Kong after the

cultural experience

50% 45%

Strongly Agree Agree

5%

Neutral

EMPATHIZE

DEFINE

PROTOTYPEREPEAT!

TEST

1 3

4

2

56

IDEATE

REPEAT (feedback loop)

7574


Itwasavery LV 1 meaningfulandfruitfulexperiencetoconducttheHKBNxWEDOMulticulturalExperienceTour.Iwasabletosharemycultureandtraditionswithothers.Ihadanoppor-tunitytosharemyexperienceandanswerquestionsfromtheparticipantsaswellas LV 2 tolearnfromtheHKBNTalentswhoofferedgreathelpduringthetours.Withtheirsupportsandfreshideas,Iwasabletofurtherenhancemytourguidingskillandcrowdcontrolskill. LV 3 Mostimportantly,theirhumblenessandmotivationtokeepimprovingandprovidinghelptotheneedyimpressedmealot.Hence,thelearningsplayedamajorpartinchangingmyattitudetowardswork. LV 4 ThiswasalsothecontributingfactorformyteamtonominatemetojointheHongKongSocialEnterprisesOutstandingEmployeeRecognitionScheme2017.Themeaningfultoursbroughtchangestotheparticipants,andtheirpositivefeedbacksmadeitallworthwhile.

Qualitative Measurement (Ethnic Minority Cultural Ambassador)

Again,thelearningsandchangesofparticipantswereanalyzedthroughthelensofDonaldKirkpatrickModel.

Ilyas, WEDO GLOBAL Cultural Ambassador

LEVEL 1

Affective

LEVEL 2

Awareness

LEVEL 3

Behavioral change

LEVEL 4

Results (ROI)


INPUT

OUTCOMES

PROCESS OUTPUT

• Projectbudget• HKBNvolunteers• WEDOGLOBALstaff• Communitypartners• Preparationmaterials

• 98%participantsfeltmorepositivetowardsethnicminoritiesafterthetours

• 95%participantsagreedthatthetoursenhancedtheirunderstandingofmulticulturaldevelopmentinHongKong

• UnderstandingofethnicminorityinHongKong:Beforethetours(4.27marks)Afterthetours(7.03marks)

• 84.4%participantsincreasedtheirunderstandingofethnicminoritiesinHong Kong

• 89.8%participantshopetoknowmoreaboutethnicminorities

• 87.4%participantshopetotakeactiononproblemsfacedbyethnic minorities

• TrainingforHKBN volunteers

• Ethnicminoritystaffjobtraining

• Culturalexperienceforlessresourcefulyouth

Beneficiaries:• Lessresourcefulyouth:184• Ethnicminoritystaff:2• HKBNvolunteers: Trainingfor15Talents

• WEDOGLOBAL: HKSocialEnterpriseEmployeeRecognitionScheme

• HKBN:AwardeeofSESupporter+

Level 1 Affective

Level 3 Behavior

Level 2 Awareness

My understanding towards ethnic minorities in Hong Kong

10

25

13

38

50

2 5 83 6 94 7 10

Beforetheculturalexperience(mean:4.27marks)

Aftertheculturalexperience(mean:7.03marks)

WEDO GLOBAL SOCIAL IMPACT MEASUREMENT (SIM) (CSR PROJECT WITH HKBN 2017)

14 SE PROPOSALS

7776

APPENDIX

(I) 14ExamplesofONE-PageProposalto Corporates/Funders

(II) SupplementaryExercise1: AnexaminationquestiontocalculatetheSocialReturnonInvestmentinaMasterLevelcourseinSociallyResponsibleMarketing

(III) SupplementaryExercise2: Cost-effectivenessEvaluationofSocialVenture–theBigSocietyinUK

The following cases are summary illustrations of the learning outcomes used by 14 SEs for actual

pitch to corporates. They are included in the 2018 TECM Kick-off

Ceremony Booklet and can be downloaded via TECM website.

14 Examples of ONE-Page Proposal to Corporates/Funders

APPENDIX I

SE PROPOSAL #02

7978

Appendix I

The Down’s Kwan Ngai Service Team

1-3A,G/F,WingHingHouse, FukLoiEstate,TsuenWan,N.T.

2611-9747 2611-9752

SE PROPOSAL #01

Committed to Train People with Disabilities to Succeed in Open Employment

Achievements in the Past 16 Years

Social Mission Use Our Service!

Social Impact

TheDown’sKwanNgaiServiceTeamisanon-profitSocialEnterprisewhocreatesjobopportunitiesforpeoplewithdisabilitiestocontributetothesocietybyprovidingcarbeautyservices.

Supportthedisabled inemployment:

180 Apprentices; 26 Employed workers

85% oftherevenueisforthesalaryofworkerswithdisabilitiesandother

trainingsubsidies

Enhanceworkingskills,empowerthemandchangetheirlife

New Territories South Regional Police Headquarters and Operational BaseCooperatedsince:Year2013 No.ofvehicles:26 Frequencyofservice: 520Washes/Month 4employees;10apprentices

Fuk Loi Estate and our communityCooperatedsince:Year2002 No.ofvehicles:65 Frequencyofservice: 400Washes/Month 2employees;20apprentices

Hong Kong DisneylandCooperatedsince:Year2015 No.ofvehicles:34 Frequencyofservice: 208Washes/Month 3employees

Enhance job capabilities of people with disabilities to land a job in the market and eventually

improve social integration

Purchaseourcarcleaningservice

•Buymonthlycarcleaningservicevoucherforyourcompanyvehicles

•Buymonthlycarcleaningservicevoucherforyouremployeesasastaffbenefit

Allowustoprovidecarcleaningserviceandvocationaltrainingatyourcompanybuildingcarpark

TheDown’sKwanNgaiServiceTeamwascertifiedas aSocialEnterprise(Intermediate)on27November,2014.

PLAN A

PLAN B

1

3

2

4

Trainee in SE

Vocational Training

Internship at work

Employed in the job market

The Salvation Army

Senior Citizens Talent Advancement Project Tung Tau Centre

JoyceHo MarketingandDevelopmentManager TheSalvationArmy

2783-2216 [email protected]

Smart Age Innovation Adventure Project

Corporate Collaboration

Creative Idea

Social Impact

Providediversifiedcoursesforpeopleofage50+toexploretheirstrengthsandpotential,anddeveloptheirwonderful‘’ThirdLife’’

Integratenewtechnology,3Dprintingandcreativethinkingtohelpelderliescultivateaninnovativemindsetforproblem-solving

•Aimatenhancingthequalityoflifeof100elderlieswholivealone

•Energized20retiredpeople

•Developedsocialinnovativeideas (e.g.cleaningdentures,simplifiedclothesdryer,homeworkoutbands)

Activity: Workshop on Innovative Problem Solving Workshop Content

1.Sharingtheinventionofretirees

2.Introducing3Dprintinganditsexecution

3.Understandingelderlies’limitationwithlife&inthecommunity

4.Developingcreativesolutionanddailylife‘’Invention’’

Target:15-20corporateemployees(ofanyage)

Employeeparticipation:Utilizetheirindustryknowledgeandworkexperiencetodevelopcreative‘’Invention’’withtheretiree

Social Impact

Stimulateemployees’creativeproblem-solvingskills

Develop6-10originalproductstoenhancethelifeofelderlieswholivealone

Understandthepracticalityof3Dprintingindailylifeandthepotentialofelderly

Durationoftheprogram:3days (Adjustableaccordingtotheneed)

SE PROPOSAL #03 SE PROPOSAL #04

8180

Appendix I

Hong Kong Youth Talent Institute (HKYTI)

ElvisKu 2153-3940 [email protected]

•Assistsnon-engagedyouthsoncareerandlifeplanning

•Trainupthosewithanartisticpotentialtobeperformersandcoaches

•Provideprofessionalperformanceserviceandtalenttrainingcourse

Established since: Year 2014 Parent Organization: Evangelical Lutheran Church Social Service - Hong Kong

Social Impact


•Createjobopportunitiesfornon-engagedyouths

• 60%oftherevenueastheirsalary

•Enhancetheirworkingskillsand confidence

•Assisttheminplanningtheircareer

•Changethenegativeimpressionofthepublictowardsnon-engagedyouths

Important Figures (2016 September - 2018 August)•Benefit>100Youths

•Generate$1,000,000salaryfortheyouths

• 60%Youthsbecameclearontheircareerpaths

• 8Youthshaveestablishedtheirowncompany

Past ExperienceSun Life Financial

•Corporatetrainingbytheyouthcoaches

•Enhanceteamspiritinthecompanythroughinteractivedrama

Dutch Lady

•Cooperateonbrandpromotionactivityfor3consecutiveyears

•Provideservicesincludingthemesongcreation,gymnasticschoreographyandteachingtour

•Promotepositiveandsocial-responsibleimageforthebrand

Hospital Authority

•Providedancecoursesfortheemployees

•Trainemployeesforperformanceinmassevents

•Enhancetheteambonding

Service Scopes •Dancing(choreography,performanceandtraining)

•CorporateTraining(teambuilding,communication)

•Shooting(MVandminimovieproduction,eventshooting)

•Songwriting(melodyandlyrics)

• Eventproduction(lightandsoundcoordination)

•Drama(performanceandteaching)

Interactive drama corporate training service •Distincttrainingledbyourtrainedyouths

•Customizedtheme(incl.Communicationskills,teambuilding,creativethinking)accordingtotheneedsofthecompany

•Servicedurationis2-4hoursfor20employeestomakesomebreakthroughinarelaxingatmosphere

•Benefit2youthsbyincreasingtheirincomeandconfidence

Subsidize and participate in youth’s talent training course • $20,000subsidyfora20-hourtalenttrainingcoursewith10non-engagedyouthsand10employees

•Developyouths’talentandworkingskills

• Employeeswillunderstandmoreabouttheyouths

•Performancecollaborationbytheyouthsandtheemployees

PLAN A

PLAN B

Nature Bathing De-stress and Restore in Nature

Social Impact in 5 Months (Mar – Aug 2018)

NatureBathingoffersNaturePlayprogramsforurbancitizenstode-stressandusesrevenuefrompaidprogramstofinancefreeprogramsforstudentsfromlow-incomefamilies.Participantsde-stressthemselvesandlearntohelpothersde-stressthroughtheAmbassadorProgram.

Sponsor & VolunteerCo-createnatureplayprogramsforstudentsfromlow-incomefamilies;engagebyvolunteering

sponsor 15 students and invite 15 corporate volunteers to join a Forest Adventure together

Reference case: Rotaract Club CWB • 15studentsfromPrincipalChanFreeTutorialWorld&15volunteersfromRotaractClubCWBvisitedTaiPoKauNatureReserveforafull-dayprogram

• Resultsfromquestionnairesshoweda2-pointincreaseinHappyIndexand2-pointdecreaseinStressIndex(ona5-pointscale)

naturebathinghk

400+Individualsparticipated

↑ 2 points in “HappyIndex” (A5-pointscale)

20+Nature PlayPrograms

2YouthAmbassadorsTrainedup

Nature Play Program

Yearestablished:2017Founder&Background:WilliamTsang, aregisteredsocialworkerwith>16yearsofexperienceinyouthwork

What is it? •Naturegames•Mindfulnesspractices• 5sensesexperience• Lifereflections

• 74casesofstudentsuicidein2years(8/2015-10/2017)

• 1in2secondaryschoolstudentsshowssymptomsofdepression

•>30%ofHongKongcitizenssufferfromemotionaldistress

•Utilizingtherestorativepowerofnatureasastressrelieverandmoodbooster

• Inspiringurbancitizenstoconnectwithnatureanduseitasanapproachforself-care

• Cultivating environmental awarenessbynatureplayandmindfulnesspractices

What does it do?•De-stressthemind&body•Enhancesocialrelationships• Lifereflections•Environmentalconservation

Social Issue Proposed Collaboration

Learn & Give

Social Innovation

Promoteteambonding&environmentalawareness,fosterinnovationandletemployeesde-stresswithNaturePlay

Corporate Team Building ProgramEachprogramwillsupport30studentstojoinaCostalExploration

Learn-at-lunch workshopEachworkshopwillsupport15studentstogoFireflywatching


8382

Appendix I

St. James’ Settlement GroundWorks

Cumulative Social Impact

Forms of Collaboration

Public Education and Appreciation

BlueHouse,74AStoneNullahLane,Wanchai,HK 2116-1106/8235-4375 [email protected]

Community Production. Support local agriculture. Take from the nature. Make good use of them.

Aim at promoting healthy eating and helping grassroots labor to achieve employment

• SocialReturnonInvestment(SROI)1:7.27

• Farmers,locals,customersandthecommunitygain

•Createjobopportunityforlaborwithdignity

•Succeedinestablishingcommunityproductionmodel

•Productretailswithonlinepromotion

•Productprocessingwithsellingspotsprovided

•Exhibitionandgiftpackagepre-order

•Productionclassesandfarmvisits

Handmade candy biscuits produced with heart

Seasonal food with natural ingredients

Organic vegetables consumed at the best season

Current Service

Foundedin2015,the f irst cateringservicesocialenterpriseofPoLeungKuk.Aimtoprovidetrainingandjobopportunitiestotheunderprivilegedandpeoplewithdisabilitiesinthecommunitytoequipthemselves,enhancetheirself-esteemandeventuallytransformthemtobeself-sufficient.

ProvideresidentsofTinShuiWaiwithhealthyandaffordablecateringservice

Providecustomersfromdifferentdistrictswithmealbox,partysnacksdeliveryandworkshop

Unit507,5/F,TinChingAmenityandCommunityBuilding,TinChingEstate,TinShuiWai,N.T.

3464-0935(Shop);2612-2261(Cateringservice) CaféSunny天晴茶座

Social Impact Proposed Corporate Collaboration

•Preparemorethan20underprivilegedcitizensandpeoplewithdisabilitiesinthecommunityforopenemploymentbyprovidingtrainingandjobopportunities

•StrengthentheSocialNetworkoftheunderprivilegedandpeoplewithdisabilitiesandincreasetheSocialCapitalinthecommunity

•Around45%oftherevenueasthesalaryofemployees

(accordingtotheCensusandStatisticsDepartment,thatofnormalfastfoodrestaurantis25%)

•Enhanceworkingskills,self-esteemandself-identificationoftheunderprivilegedandpeoplewithdisabilitiesinthecommunity

•Achievesocialintegrationandmutualcareattheworkplace

PLAN A

PLAN C

PLAN B

PLAN D

Frequentlyorderourpartysnacksdeliveryservice,mealboxandbarbecuepackagesduringstaffpicnicorcorporateevents.

Attendourworkshopinstructedbylocalwomenorstaffwithdisabilitiestomaketraditionalorregionalsnacksforelderlies.Talktotheelderliesandlearntoappreciatethem.

VolunteerandjoinustogiveoutmealboxproducedbyCaféSunnytotheneedyortheelderlieswholivealoneinTinShuiWai.

Attendourworkshopinstructedbylocalwomenorstaffwithdisabilitieswiththeneedyorpeoplewithdisabilitiestomakeandeatfestiveorregionalsnacks.Deepenthemutualunderstandingandenjoy thefestival.

「共融．共享」工作坊

「細味．睿智」

「愛心遍圍城」


8584

Appendix I

Our Mission Social Impact

Our 8-year Experience

ShopNo.149,ThirdStreet,SaiYingPun,HK 2857-7072 9532-9328 www.animalse.hk

Reducetheno.ofpetssufferingfromEuthanasiaduetoagingordisabilities.

Providejobopportunitiestotheunderprivileged(underemployedyouthsandrecoveredpeoplefrommentalillness).

Promoteintegrationbetweensocietyandanimals.

•Trained15underprivilegedemployeesin3yearsfromtheyear2015-2017andgeneratedHK$580,000salary

•HK$3.2ineveryHK$10servesasthesalaryfortheunderprivilegedemployees

•Traineesareemployedasvetbeautystylist,vetassistantandpetshopassistant

•Serve100petseveryyear,80%aredogsand20%arecats

•Prolongthelifecyclefor21monthsforoldcatsanddogsofage7+

•Carriedoutprofessionalweightmonitoringexercisefora10-year-oldcattoreduce20%offatsintwomonthsandregainhealth

• Improvedthewalkingposturefor90%ofthepetswhichsufferedfromarthritisthroughphysio-therapy

•100%satisfactionratefromthepetowners

•Chooseourcatanddogvoucherservice

• JointheAnimalSEClub

•Makeitasastaffbenefitforyouremployee’spets

•Attendaworkshoponcaringandnursingofoldagedcatsanddogs

•Provideuswitharentalvenue

•Collaborateanddesignplansforcatsanddogs’transportation

• Fundustoexpandourteam

Provideold-agedpetrecoveringserviceforthe510,000petsinHongKong.

Our Proposals

Establishedintheyear2013,HOHOLIFEaimsatselectinggoodquality,creativeandfashionableproductsforsilveragepeople,soastokeepthemactiveinsociallifeandhelpthemenjoyretiredlifewithdignityandbecool.

1403EasternCommercialCtr, 397HennessyRoad,HK

3568-5193 www.hoholife.com

Social Impact

• Sellproductsinmainstreamdepartmentstores,chainretailbusinessandonlineshoppingplatforms.

•Developmarketingplanstargetingsilveragepeople,providebrandcrossoverandconsultantserviceonold-agefacilitiesfororganizations

Dragon Airline

• Sellthepandamagnifierdesignedandproducedbyusontheirflight

• HOHOLIFEdonatesonemagnifiertoStJames’Settlement’selderliesinneedforeverymagnifiersold(benefit>80elderlies)

Hong Kong Central Library

• Provideconsultationandexecutionplantoonold-age-friendlyfacilitiestoinstallaround100racksforwalkingstickstoreadersinneed

• Enhancechildren’sunderstandingtowardstoneedsofelderlies(benefit>5000elderlies)

The Commercial Press

• Holdtalksaboutpreventionofelderliesfallingdownandsilverage travel

• Enhancepublicunderstandingofelderlyneedsandeventuallyimprovethelifequalityoftheelderlies(benefit~100elderlies)


Social Impact in Corporate Collaboration

1. Ensurethesafetyof200elderlieswithAlzheimer’sdiseaseandpreventthemfromgettinglostduringthefirstphaseofMicro-smart-GPStracking

2. Achieveaninclusivesocietybyhelpingyoungemployeesandtheirchildrenunderstandtheneedsofelderliesthroughtheelderlyvisitingprogram

Benefits to the Corporate

1. Enhancethecorporateimageofbeingsociallyresponsibleandbecomemoreelderly-friendlyamongconsumers

2. Receiveadiscountonelderlyproductsandreduceemployees’pressurebyshowingcarefortheelderlies

•Promoted‘’ActiveAging’’andourcreativesilverageproductstoover20,000people

•Employ10retireesas‘’SilverAgeAmbassador’’tosharetheir“ActiveAgeing”storiesandpromoteelderlyre-employment

Social Mission

Our Business

Wewanttobreakstereotypestowardsageingandcreateamoreacceptingandpositiveage-embracingenvironmentforourcommunity.Withsuitableassistanttools,elderliescanattainourgoals–“ageinginplace”and“activeageing”.

Collaboratetodeveloptechnologicalproducts,Micro-smart-GPStrackingdevice,forelderlieswhichsufferfromAlzheimer’sdiseasetopreventthemfromgettinglost.

Estimatedimpact:save$100,000expenditurederivedfromthe“lost andfound”

Carryoutold-age-friendlyprojects

1. Establishold-age-friendlyfacilitiesandprovideabettercustomerexperiencetotheelderlies.

2. Improvecorporateimagebyproducingcreativeandpracticaldailylifeproductssuchasmagnifierandwalkingsticksas commercialgifts.

3. Providetalksforemployees(oninformationofelderly-care,swallowingdifficultiesandAlzheimer’sdisease).Volunteerinelderlyhousesthroughus.

PLAN A PLAN B

Experience on Corporate Collaboration


8786

Appendix I

Tohelptheunderprivilegedandpeoplewithdisabilitiestosucceedinemploymentandintegrateintosocietywithdignityatworkbydevelopingmulti-business.

A Subsidiary of the Mental Health Association of Hong Kong

Social Impact

Join our Organizational Consumption Projects (since 2013)

Corporate Collaboration Social Impact

Benefits to Corporates

Social Mission

Business Scopes


100+Disabledemployeesarehired

HK$80 milliononcostinsocietyisreduced

200+Internshippositionsareprovided

•Conveniencestore,onlineshops,offlineshopsanddirectsalesofrehabproducts

•Marketingpromotionservice,publicationofthefreemagazine

•Cateringservice

•Cleaningserviceandmore.

• 40corporates,organizationsandbodiesarejoining

•Currentlyofferingdiscountsto360,000corporateemployeesandunderprivilegedmembersuponpurchasesinCheersCo-op(physicalstore)orCheersPointNet(onlineshop)

•Enjoyourprocurementservicetosearch,orderanddeliverproductswithgoodqualityandeconomicpriceforannualgiftpackage,voucher,cashcoupon,foodandbeveragesandmore.

•Enhancethemutualunderstandingthroughthecustomersinteractingwithstaff

•EveryHK$5,000purchasegenerates10workinghoursforourunderprivilegedemployees

• Fostersocialintegration

•Benominatedtogetthe “CaringCompany”logo

•ReceiveCertificationofSocialProcurementandmaylistitonthe annualreportofthecompany

Jordan,FortressHill,TsuenWan,MaOnShan

3188-8064 www.hkfairtradepower.com

shop.hkfairtradepower.com [email protected]

•Ensureafairreturnforproducers,andbuildstableandsustainabletradingpartnershipsfortheirlivelihood

•Fostercollaborationsbetweenproducersandconsumerstoenhancemutualhelpandmutualbenefit

•Raiseconsumerawarenessofsocialandenvironmentalissuesbyadvocatingethicalconsumption,andtheirunderstandingthatconsumptioncouldmakeadifference

1. Preparefestivegiftpackageforcorporates(made200fairtrade,environment-friendlyandsustainablegiftpackagesforonesinglecompany)

Collaborated partners: Hong Kong Convention and Exhibition Centre, Morgan Stanley, Hong Kong Cable Television and more

2. HoldfairtradeDIYworkshopsforcorporatestosupportfairtradethroughdailylifetopicsandimprovethebondingbetweenworkersandmembers

Collaborated partners: The Wharf (Holdings), Ernst & Young, Target and more

3. Providecorporatesandorganizationswithquality,sustainableandclearsourcingproductsforlong-terminternalprocurement

Collaborated partners: Delifrance, Hospital Authority and more

1. Purchasefairtradegiftpackagesforyourcompany’sfestivals,annualevents,orinyouroffice

2. TakeourDIYworkshopsasagatheringactivityforyourstaff

3. Enhanceyourcorporateimagebyfulfillingcorporatesocialresponsibility

•Sell300+fairtradeproducts(food,naturalcareproducts,artcrafts)

•HoldtalksonfairtradeeducationandDIYworkshops

•Providecorporatesandorganizationswithproductscertifiedininternationalfairtradewithethical,sustainable,organicornaturalsource

Social Impact

Corporate Collaboration Proposed Corporate Collaboration

Social Mission Business Scopes

Improvelifequalityof350,000+underprivilegedproducersin30+countries

orareayearly

Hold 50+ fair trade eventsyearly

Educate10,000+ peopleyearly


8988

Appendix I

• Lowacceptanceandadeep-rootednegativeimpressiononreusingsecondhandfashioninHongKong

•Middle-agedwomenareundervaluedinthelaborforceduetoage,familyandindustrydevelopment,makingthemdifficulttofindajob

•10,208frequentconsignors*,14,000+accumulativeregisteredconsignors

• 138,962reusedclotheseveryyear

• 72%ofcustomersthinktheyhavebecomemoreenvironmental-friendly#

• 107,000+peoplehavevisitedthestoreeveryyear

• 45+organizationshaveparticipatedindifferenttypesofenvironmental protectionactivities

•Collectsecondhandladiesandchildrenfashion

•Carryoutsecondhandfashionrecyclingeventfrequentlyinthecompany

•Upcyclingworkshoponfashion

• Lifesatisfactionrate8/10(averageofpeopleinHongKongis6.27/10)

•Employed50+middle-agedwomenand4aremanagers

•Averagehourlyrateis$70.8,adoubleoftheminimumwage

•Provide600+hoursfortrainingannuallytoimprovetheirskillsandconfidence

•Runwithaconsignmentbusinessmodeltoencouragewomentobeaconsignorandgivefashionasecondlife

•Shopsactaseco-platformstohighlightthebeautywithinthesecondhandfashionandchangethegeneralpublic’sperceptiontowardsit

• Empowerandprovidemiddle-agedwomenwithjobopportunitiesandseasonaltraining

•Unleashtheirpotentialandabilitieswhichareboundedbytheage

•GreenLittlealsoencouragesparentstoletchildrenbecomeconsignorsandlearntocherishthroughconsignmentanddonation


gl.sjs.org.hk sjsgreenladies sjsgreenlittle

A Social Enterprise under St. James’ Settlement

Environment Protection Women Employment

Dedicatedtopromotingreusingoffashionandemphasizingtalentsdevelopmenttocreatesocialchangeandabettersociety.

GreenLadies: Since2008 GreenLittle: Since2016

Social Issue

Social Impact

Social Innovation

* Recordedfrom2014Aprilto2018Marchwhohasconsignedfor2timesoraboveasahabit

# Researchresultsfrom2016byPolicy21

• Littlemanagerexperienceactivity

•Trainingandrole-playactivitiestoemployees’familyandchildrentopromoteenvironmentalprotection,reusingandrecycling,andhowtorunaboutique

Home Market A Registered Non-profit organization

RoomC,1/F,SouthOceanBuilding,286-300CheungShaWanRoad,Kln

3987-7800 2720-0137 [email protected] www.homemakret.hk homemarketHK

Werunchainstorestocarefortheunderprivilegedandrelievepoverty.Wesellfoodanddailynecessitiesatmostaffordablepricestounderprivilegedpeopleincludingelderlies,low-incomefamilies,peoplewithdisabilities,newimmigrantsandethnicminorities.

•Collaboratedwith190grocerysuppliersfor6yearsandestablishedastablesupplyforlow-incomepeople

•StartedworkingwithdifferentNGOsincludingS.E.P.D(SupporttheEmploymentofPeoplewithDisabilities)toestablishtwoHomeMarket;HelpedFoodforGoodtocarryoutvoluntaryworkonfooddistributionandelderlycareindifferentdistricts

GatherpowerfromEducation,Commercials,SocialandGovernmentsectorstopromoteethicconsumptioninHongKong

1. Increasetheno.ofstores

2. Promotecarebetweenneighborsandcarryoutcommunity-orientedactivities

3. Collaboratewith“green”organizationstogiveoutfreemealsindifferentdistrictsandcarryoutelderlycarevoluntaryactivities

HomeMarketisapioneeringpovertyreliefprojectthatcomprisesachainofnot-for-profitconveniencestoressellingfoodanddailynecessitiesatpricesclosetothecoststounderprivilegedpeople.Weemployedthedisabledandrehabilitatedoffenderstohelpthemintegrateintothecommunity.

Social Impact

Corporate Collaboration Experience and Expected Social Impact

Proposed Corporate Collaboration


Provide330 elderly houses,socialorganizationsandnon-profitorganizationswithbulkpurchaseandmembershipservices

Served160,000+peopleinwhich90% arelow-incomecitizensandage65+elderlies,10%arethedisabled,newimmigrantsandethnicminorities

Employ14 disabled and rehabilitated offenders tohelp themintegrateintothecommunityandbecomeself-sufficient

Serve5,000+ people everyday


9190

Appendix I

PromotehealthyeatingandhelppeoplewithAutismtointegrateintosocietythroughemploy-mentanddevelopingtheirtalents.

•Trainandemploy6youthswithAutismeveryyearandassistthemonjobseeking

•Arrange5traineepositionsforyouthswithlearningdisabilities

• Joinourfoodmakingworkshopandjob experiencingactivity

•Purchaseourproductsandcateringdelivery

•Makefoodmakingworkshopasanemployeebenefit,sendfoodtoothersocialorganizationstoboostcompanyimage

•Purchaseourfoodandgiftsforclientsandemployeestoenhancerelationswithclientsandteamspirit

•HSBC-InterestClass

•HeepHongSociety-5YouthswithAutismhavecompletedtheinternship

• FortressHillMethodistSecondarySchool-3Youthswithlearningdisabilitieshavecompletedtheinternship

• iGroup(AsiaPacific)Limited-Cookiemaking

•CulturePowerCharityFoundation-CharityhandmadeNewYearGiftPackage

Corporate Collaboration and their Social Impact


Benefits to the Corporates

Social Impact

Corporate Collaboration Experience

Room1,23/F,WahSingIndustrialBuilding, 12-14WahSingStreet,KwaiChung,N.T.

5547-0026 [email protected] angelchild.com.hk

•PromoteunderstandingandeducatethepublicaboutAutism.

• EnhancetheworkingandsocialskillsofpeoplewithAutismtosucceedinopenemployment.

Sellhome-madehealthyfoodmadebyparentsofchildrenwithAutism.Weensuretheproductsareoflessoil,sugar,saltandwithnopreservatives,transfatandman-madefooddyes.


Essence Hub Kelvin Chan 2415-0128 [email protected] 3/F,204PrinceEdwardRoadWest,Kowloon

Sponsor and become a “Real Life book”, enrich the experi-ence of grassroots students

• $15,000subsidyfor120grassrootsstudentstoenjoyGolden-agedRealLifeLibraryoncampus

• Inspirestudentsoncareerandlifeplanning

• Fostercross-generationcommunication

• Traincorporateemployeestobecomea“RealLifeBook”bygolden-agedpeople

• UnderstandtheageingpopulationandActiveAgeing

Value the golden-aged and let them hold your employee/ client activities

• Sponsor15targetedbeneficiariesand15employeestoparticipatetogether

• Courseandactivity:OfficeStretching,Golden-agedcookingclass,photographystudio,guidedtourandmore

• Letgolden-agedpeoplecontributetosocietywiththeirtalentsbyprovidingdiversifiedlearningactivitiesandinterestclasses

• Becomegolden-age-friendlycorporates

Encourage retired people to pursue a healthy and meaningful lifestyleEstablishedin2014,EssenceHubdedicatestoenrichingthelivesofthegolden-aged(age50-65)andthecommunitybyintroducingahealthier,qualityandmeaningfullifestyle.Wewishtoconservetheheritageandwisdomofthecommunityandpassthemdownthroughgenerations.

Course and activity• Stretchingexercise

•Artisticphotography

•Dimsumcooking

•Eco-craftmaking

You need a new track for the second part of life• ThepopulationinHongKongisageing.In2036,1/3ofthepopulationwouldbeelderlies.Theneedforold-agedpeopleandtheshrinkinglaborforceisaserioussocialissue.

•Thereare220,000+golden-agedpeoplewhohaveleftthelaborforcefromthemanagementpositionorprofessionalsectors.Theyareimportantsocialcapitalsandneedachancetoexercisetheirtalents.(statisticsfrom2017)

Innovative ideas

Social Impact (2014-2018)


Social Mission

•Citytour

•Healthandfitness

• InformationTechnology

• Fosterphysicalandmentalhealth

•Provideelderlieswithaplatform

•Contributetosociety

•Trained24golden-agedtutorstocarryout361coursesandactivitiesforthecommunity

•Contributed1500teachinghourstothecommunityandserved12,000people

•Golden-agedReal-LifeLibraryteamhasprovided30+timesofsharingto2,400youths

Golden-aged Real-Life Library•Golden-agedpeoplesharingtheirlifeexperiencetoinspiretheyouthsandpromotecross-generationexperiencesharing

• 70membersfrom40+careerbackgroundinourteam

Share the space with golden-aged peopleMakeuseoftheirtalents. 70%ofourtutorsare golden-agedpeople.

PLAN A PLAN B

14 SE PROPOSALS

9392

Appendix I

1

1

2

3

An examination question to calculate the Social Return on Investment in a Master Level course in Socially Responsible Marketing

Youareresponsibleforthecorporatesocialresponsibility(CSR)programofalocallistedcompanyfocusingondevelopingresidentialprojects.Lastyear,yourCSRbudgetwasHK$10millionforthreetypesofactivities.

Calculate the Social Return on Investment (SROI) for the CSR programs last year.

First,youaregivengrants,eachworthHK$1million,to5organiza-tionstostartupsocialenterprisestoaddresslocalhousingissues.Eachsocialenterprisehas5employeesfromsociallydisadvan-tagedgroups.Onaveragetheannualwageoftheseemployeesis HK$100,000/person.Theaveragelifespanofthesesocialenterprisesis9years.Inordertoalignwiththecurrentgovernmentpractices,youwillonlycountthesocialimpactsinthefirst6years.

Third,thecompanyprovidespaidleavetoemployeesforvolun-teering.Lastyear,therewere500employeesclaimingtheonedayleaveforknowledgevolunteeringwhichworthHK$2,500/daytothesociety.Ontheotherhand,eachdaycoststhecompanyalossofproductivityofHK$2,000/day/employee.

Second,youhaveusedHK$4milliontosponsorvariousNGOprojectsaimingatsolvingthehousingissuesinHongKong.Theequivalentadvertisementvalue(EAV)wasaboutHK$5million.

APPENDIX II : SUPPLEMENTARY EXERCISE 1

SE SUPPORTER AWARD SCHEME

ThepurposeoftheschemeistofacilitatecrosssectorscollaborationbetweenSEsandcorporates.TheschemealsoencouragescorporationstoincorporatetheirsupporttoSEsandethicalconsumptionthroughrelevantCSRprograms.ThroughthenominationsbyrespectiveSEs,supportingSEsarerecognizedwiththeirinitiativesofSEpartnershipandsocialinclusionefforts.Twoexam-plesoftheawardeesarepresentedbelow:

AXA × People On BoardAXAHongKongstartstoworkwithPeopleOnBoardin2014.The“YoungWizardsSmartSavings”,isacollaborativegameisjointlydesignedbyAXAandPeopleOnBoard.Theboardgameaimsatinstillingconceptsofgoodsavingandspendinghabitsinourchildreninanaffluentsociety.AXAoffersprofessionalknowledgeinmarketposi-tioning,promotionsandsales,whilePeopleOnBoardexercisecreativityindesigninginteractivegamestofacilitatequalitytimebetweenparentsandchildren.

New World Development Company Limited (NWD) × YM BalloonNWDhasfrequentlyengagedYMBalloonattrainersofballoonartinitsstaffactivities.StaffandVolun-teersalsovisitunder-privilegedgroupstogetherwithYMBalloonaspartoflearningandpracticingthesocialconceptofcommunityinclusion.

SE-Corporate collaboration is one of the main objectives of the Tithe Ethical Consumption Movement (TECM) in 2018. The bridging and bonding between SEs and corporates enables better use of talents and resources advantage for synergy and success stories in societal betterment.

9594

Appendix III

2 Cost-effectiveness Evaluation of Social Venture – the Big Society in UK 61

ThemostvisiblelegacyofDavidCameron’s“bigsociety”,a£1.5bntaxpayer-fundedschemethatencouragesteenagerstogetinvolvedintheircommunities,isunderscrutinyamidevidencethatitisfailingtodelivervalueformoney.TheNationalCitizenService(NCS),whichwaslaunchedin2011,bringstogetheryoungpeoplefromdifferentbackgroundsforaprogramofpersonalandsocialdevelopment.Itoffersathree-tofour-weekpart-residen-tialprogramwhere15-to17-year-oldsworkinteamsbuildinglifeskills,takingonchal-lenges,makingfriendsandcontributingtotheircommunity.Almost£1bnofthebudgetforitscurrentprogram,whichrunsuntil2020,hasyettobespent,promptingfrenziedbiddingforcontractsamongorganizationsthatprovideactivityplacementsduringschoolholidays.Butthecommissioningprocesshasexperiencedproblems.TheNCSTrust,whichoverseestheservice,recentlydroppedaclaimtorecover£780,000againstoneprovider,Engage4LifeLtd,whichwentintoliquidationinDecember2015.LastyeartheHouseofCommonspublicaccountscommitteeconcludedthattheservice“maynolongerbejusti-fiable”ifitfailedtomeetitstargetsforincreasingthenumberofparticipantsorachieveitslongtermsocietalaimsatacheapercostperhead.Accordingtothecommittee,thetrustpaidprovidersabout£10min2016forplacesthatwerenotfilled.AsoflastDecember,just£200,000hadbeenrecovered.TheNCS,whichwassupposedtofind101,000placesforyoungpeopleaged16to17inthelastfinancialyear,confirmedtotheObserverthatithadfallenshortofthistarget.“Alongsideournetworkofprovidersandpartners,wehaveachievedourhighestannualparticipationnumbertodate,withjustunder100,000youngpeopleparticipatingin2017,whichequatesto98%ofourparticipationtarget,”anNCSspokeswomansaid.Theorganizationhasalsoseensomeseniormembersofstaffleave.NatashaKizzie,itsdirectorofmarketing,leftlastmonth.SeveralothershavejoinedaconsultancycalledSimpactCICwhichadvisesclientsonhowtobidforcontracts.AnNCSspokeswomansaiditwasrecommissioningitspartnernetworkto“helpgrowscaleandimpactintheyearsahead”.Shesaid:“TheNCSrecommissioningtenderprocesswillbefair,openandtransparentforallinterestedparties.Aswithanypublicprocurementweoperateunderstrictregulationsandtakeourresponsibilitiesseriously.Everyonewillreceivethesameinformation;andbeaskedtobidonthatinformationalone.Allsupplierswillbeaskedtosignaconflictofinterestformaspartofthetenderprocess.”TheNCSsaidthatnearly400,000youngpeoplehadbenefitedfromitsservices,makingitthefastest-growingyouthprograminmorethanacentury.

Itsaidanindependentevaluationconfirmedthatforevery£1spentonitssummerprogram,NCSdeliversbetween£1.15and£2.42ofbenefitsbacktosociety,whileseparateresearchfoundthatithelpedfostergreaterunderstandingandintegrationamong16-to17-year-oldsfromdifferentbackgrounds.ButCatSmith,Labor’sshadowministerforvoterengagementandyouthaffairs,saidcloserscrutinyoftheserviceshouldbeagovernment

APPENDIX II : SUPPLEMENTARY EXERCISE 2

priority,giventhatyouthserviceshadseentheirfundingcutbymorethan£400moverthepastsixyears.“TheNCSprovidesgreatopportunitiesforyoungpeople,butwecannotallowthisgovernmenttoturnablindeyetoitsfailings”.“ThepublicneedtoknowthateverypennyisspenteffectivelyandthatNCSproviderspitchingfornewcontractsthisyearwilldosoinafairandtransparentmanner.”

How will you evaluate the social venture?

61 PartoftheinformationisextractedfromthefollowingnewsarticleinTheGuardian. FinancialdoubtssurfaceoverCameron’s‘bigsociety’youthprogramme(2018,April14).The Guardian.Retrievedfrom:https://www.theguardian.com/society/2018/apr/14/financial-doubts-over-national-citizen-service-david-cameron-big-society-youth-programme

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