Chris Thorn - From Corporate Social Responsibility (CSR) to Creating Shared Value (CSV) - bringing...
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ShareGift Australia CASE STUDY OF SHARED VALUE Directors working with shareholders Christopher Thorn Company Directors Conference Directorship:14 23 May 2014
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Shared value is ‘the idea that the most powerful way for business to benefit society is not through charitable giving or even good corporate citizenship, but through addressing social issues connected to the company’s industry and strategy directly with a business model – that is, through capitalism!’ Michael E. Porter, the Bishop William Lawrence University Professor at Harvard Business School. Corporate Shared Value (CSV) differs from Corporate Social Responsibility (CSR) in that it is embedded in organisational strategies to generate benefits rather than a more philanthropic focus. The moment for redefining the role of capitalism in society is now. The simple concept of “giving back” as framed by CSR is limiting the sense of purpose which customers, employees, and a new generation are demanding from business.
Transcript of Chris Thorn - From Corporate Social Responsibility (CSR) to Creating Shared Value (CSV) - bringing...
ShareGift Australia
CASE STUDY OF SHARED VALUEDirectors working with shareholders
Christopher Thorn
Company Directors Conference Directorship:14
23 May 2014
Shared Value
• Policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in which it operates
• Shared Value creation focuses on identifying and expanding the connections between societal and economic progress
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Impact of “Shared Value” thinking
• Blurs the Profit/Non Profit Boundary
• Connects competitive advantage and social issues Mining Companies
Safety Productivity
Brewing Beverage Companies Conservation Water security
Insurance Social interventions Lower premiums
• Social entrepreneurs emerge
• Championing social needs using viable business models
• Championing businesses to “invest” in social opportunities
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“Tower of Babel”
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• Socially Responsible Investing
• Blended Value
• Impact Investing
• Mission-Driven Investing
• Mission-Related Investing
• Triple Bottom Line
• Social Investing
• Values Based Investing
• Program Related Investing
• Sustainable and Responsible Investing
• Responsible Investing
• Ethical Investing
• Environmental, Social and Governance
• Ethical Screens(Monitor Institute Report “Investing for Social & Environmental Impact” January 2009)
What are Impact Investments?
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Impact Investments are investments made with the intention of generating measurable social and environmental impact alongside financial return and are considered to hold the potential to drive innovative solutions to global challenges
(Global Impact Investing Network, 2012)
What is Social Investment?
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(Monitor Institute Report ”Investing for Social & Environmental Impact” January 2009)www.monitorinstitute.com/impactinvesting
Impact Investing Continuum
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Source: F.J. Heron
Potential for Growth of the Social Investment Market in Australia
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Source: JBWere analysis; based on calculations of Australian impact investments derived from US and UK markets.
ShareGift Australia – A Unique Model
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• Not-for-profit organisation that provides a way for individuals to support the community by donating their shares
• An efficient way to change holdings into tax deductible donations, that can be directed to charities recommended by the donor
• Work with listed companies and charities to create economic and social value
• Innovative solutions tailored to the needs of companies and their stakeholders
• Addressing society’s challenges by creating long-term value
Example of Shared Value in Practice
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Company Mailing Size 50,000 shareholders
Mailing cost for the company (18 cents per letter)
$9,000 $9,000
Take up rate of shareholders (number of donations)
500 (1%)
1,500 (3%)
Immediate cost saving for the company
$3,000 $9,000
Forecast four-year saving to the company
$12,000 $36,000
Company donation to ShareGift Australia
$1,500 $7,500
Forecast four year saving less ShareGift Australia donation
$10,500 $28,500
Benefit to the community $72,000 $216,000
ShareGift Australia – Supporting Companies
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