The shared values economy is here.How CSR professionals can employ a purpose-driven framework to drive success in their companies & their communities.

Shared Value:Value created through partnerships for the benefit of both parties—typically a company and a nonprofit—that helps one another achieve their respective goals.

A brief look at terminology2

Ethics, beliefs, convictions, support for social or environmental causes, and other opinions shared by customers, employees, and stakeholders of a given company or nonprofit.

Shared Values:

Evolution of Purpose in Business

Corporate Philanthropy

Workplace Giving

Creating Shared Value

3

Cause Marketing

Corporate Social Responsibility

1960s

2010

s

Creating Shared Value

4

Corporate Philanthropy

Workplace Giving

Cause Marketing

1960s

2010

sWe are here

Evolution of Purpose in Business

Corporate Social Responsibility

Creating Shared Value

Corporate Philanthropy

Workplace Giving

1960s

2010

s

These are now just prerequisites for existing today

5Evolution of Purpose in Business

We are here

Corporate Social Responsibility

Cause Marketing

Purp

ose

Orie

nted

Impa

ct S

cale

Corporate Social Responsibility Cause Marketing Workplace Giving Corporate Philanthropy

Creating Shared ValueNew Opportunity

No Longer Optional

6

7

The magnification of social impact is greater now

than at any point throughout history.

8

This extends to companies, too.

Experts say this is the

“There’s a fundamental opportunity for business to address and impact social problems, and this opportunity is the largest opportunity we see in business today.”

business model of the future.

Michael PorterAuthor of 18 booksHarvard ProfessorEconomic Theorist

Business Strategy Leader

9

Headlines like these are becoming more and more common 10

50% of millenials:

Source: Deloitte 2016

Welcome to the new reality. In the shared values economy, this is the cost of entry. Here’s why…

Have turned down a job offer on the basis of an organization’s expressed values

Have declined to undertake a work task that’s been

assigned to them if it’s at odds with their

personal values

Have ruled out ever working for a

particular employer because of its

convictions and positions (or lack thereof) on social

issues

11

And the effects of this reality are now prevalent across many different demographic & psychographic segments.

Number of consumers who are just as likely to purchase as they

are to boycott.

Number of consumers who are likely to switch

brands to one associated with a good cause.

Consumers who would buy from unknown brand if it had stronger

social or environmental commitments

Percent of people who would pay

more money for a responsible product.

Percent who would take a pay cut to work

at a responsible company.

Would purchase product of lesser quality if company

showed greater commitment to social issues

Source: Cone Communications 2015

89% 9 in 10 4 in 5

71% 57% 61%

12

13

This represents a monumental shift in society that we all know cannot be ignored.

The question now is: how do businesses actually go about

creating shared value?

To create shared value, companies must seek to operate from within the shared values of their communities.

Employee Values Customer Values

Stakeholder Values

14

Shared Values Methodology

Identify Operationalize Measure

To do this, teams can leverage the 15

The Shared Values Methodology

3. Measure Impact

1. Identify Shared Values

2. Operationalize Strategy

In Practice

Plan strategy, approve budget, set benchmarks

Execute programs, initiatives, campaigns, partnerships

Learn, iterate, adjust course, realign with shared values, plan

16

The Shared Values Methodology Step 1

Identify Shared ValuesPurpose-oriented professionals must develop a deep, comprehensive, holistic understanding of the convictions shared by their 3 primary communities: employees, customers, and stakeholders. Successful strategy operates from the “common convictions” intersection of those three core groups.

17

The Shared Values Methodology Step 2

Operationalize StrategyOnce a thorough understanding of the three core communities’ shared values is established, the purpose-oriented team is now tasked with identifying opportunities in the market that can fulfill their organization’s objectives as well as their commitments to their communities.

18

The Shared Values Methodology Step 3

Measure ImpactAs strategy is executed, the team must now seek to understand how those various programs, partnerships, initiatives, and campaigns are both a) hitting their benchmarked social impact goals, as well as b) driving various key performance indicators within the organization, namely sales & revenue, employee retention & engagement, and customer loyalty & satisfaction.

19

To make the greatest impact on both social and business progress, leaders must become shared values oriented or risk missing the mark.

20

The Shared Values Methodology provides a blueprint for success in a shared values economy.

21

Learn more at http://two42solutions.com or contact Mo at mhamid@two42solutions.com

The shared values economy is here.