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Plenary 3: Engaging corporations in social causes
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Successful, leading companies heavily engage today in Inclusive
Business
-
And understand this is a co-creation effort
Private sector
(semi-) Public
Civil Society
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Evolution towards hybrid formats
Role of Corporates? Role of VPOs?
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Corporate Social Impact Strategies
A definition:
a whole range of investment strategies and approaches that
corporations use to build and invest in sustainable value creating
models that generate social (or environmental) as well as strategic
return.
(*) 12 B$ raised by 83 corporate venturing funds; size
estimation in 2011 by James Mawson
(*)
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Models of collaboration
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Panel
Representing the corporate world:
Jay Magee, Global CSR Manager Fast Retailing (Uniqlo
Grameen)
Representing corporate related units:
Clara Shen, Director Mars Catalyst
Representing the (impact) investing world:
Sandeep Aneja, Founder & CEO, Kaizen PE
Representing the impact side:
Eric Stowe, Founder & CEO, Splash
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Plenary 3: Engaging corporations in social causes
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Doing good is good for business and the brand
Employing People with Disabilities Social Business in
Bangladesh
Number of Grameen UNIQLO stores
UNIQLO Singapore: 32 employees / 23 Stores
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Local needs met by locals, building up skills Empowerment and
Social Inclusion
Assisted Shopping for People with Disabilities.
Employment of People with Disabilities.
Sold by locals to locals.
Designed and manufactured by locals.
Doing good works in emerging and mature markets
-
UNIQLO + Grameen Healthcare Trust UNIQLO + NGOs + Special
Schools
Partnerships are key to success
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Mutuality in Business
AVPN April 2015
Catalyst
Economics of Mutuality
-
Mars Inc. - Catalyst - Confidential - Nov. 2014 2
2
01
3
20
12
2
00
9
20
08
2
00
7
What should be the right level of profit ?
Chicago School has prevailed
Focus on capital gains vs. value creation
Is this a natural law ?
New forms of scarcity (planet, people)
Economics is the management of scarcities
No relationship between profit & growth
Strong correlation between past & future profit
Initial Findings
Launch of Economics of Mutuality (also called PiA metrics)
you only manage what you measure
The objective of the company
The 1947 letter of Forrest Mars, Sr. found in the archives of
McLean just prior to Catalysts 2009 MDRU on the Economics of
Mutuality
Launch of the Principles in Action program @ Mars (2010)
Economics of Mutuality presented to MLT / Family conceptually -
2009
19
90
2
01
0 Across segments & geographies Business at the middle of
the
diamond MAUA / BLOOM
Codification in simple business terms (stable & actionable),
across the value chain
Human Capital Natural Shared Financial Social Capital Capital
Capital
Two breakthrough results
Mutuality Metrics 1
2 Human Capital | Social Capital | Natural Capital on business
performance
Mutuality can be delivered through an inclusive business model
approach based on modified metrics & management practices
Peer Reviewed in 2013 MSAC-led
-
3 Confidential Nov 2014
Shared Financial Capital
Natural Capital - Making More with Less from the Planet
Social Capital Human Capital Consumer Capital
MAUA / BLOOM
Drinks (Coffee) Gum Africa Pilot
Drinks (Coffee) - Tanzania, Papua New Guinea
Chocolate Segment - Cote dIvoire (Vision for Change)
Drinks Global Chocolate Global Petcare Gum Africa
Drinks Coffee & Tea Petcare Dog Food Gum Africa Oral
Care
Drinks (Coffee)
Route to Market at the Middle of the Diamond
Supplier Manufacturer Distributor Consumer Farm
Financial, Human & Social Capital
VALUE CHAIN
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Aroma Slum Manila The Huffingtonpost, Dec 2012 the ghetto called
Aroma reeks of putrefying trash collected by its residents for
recycling. Half-naked children with grimy faces play on muddy dirt
roads lined by crumbling shanties of tarpaulin walls, cracked tin
roofs and communal toilets.
Our Bloom entrepreneurs Unlocking entrepreneurship within the
local communities
Stockpoints (receives stocks from distributors)
Retailers (1mn Sari Sari stores in the Philippines)
Uplifters (store-to-store distribution business)
Sustainable income from a basket of goods
Improved access to goods/ quality of life
Regular training on biz mgmt and competencies
Access to MFI/CSO/NGOs/tools
Social support Bloom community
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Kaizen Private Equity
Engaging Corporations in Social CausesApril 2015
-
Confidential & Proprietary2
It takes 20 years to build a reputation and only 5 minutes to
ruin it.
- Warren Buffet
Engaging Corporations in Social Causes
-
Confidential & Proprietary3
Dimensions of a Social Enterprise
Social Impact Potential- +
Traditional not for profit
-
Confidential & Proprietary4
Dimensions of a Social Enterprise
Social Impact Potential
+
-
Profit Potential
+
-
Traditional not for profit
Traditional Business
-
Confidential & Proprietary5
Dimensions of a Social Enterprise
Social Impact Potential
+
-
Profit Potential
+
-
Traditional not for profit
Traditional Business Sustainable
Social Enterprise
-
Confidential & Proprietary6
Scale of Problem
Target Group
Leadership
Opportunity
Small Large
Privileged Disadvantaged
Transactional Transformational
Equitable Systems Inequitable Systems
Characteristics of Social Entrepreneurs
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Social Sector and Private Equity:Like Oil and Water?
7
Kaizen Private Equity. All Rights Reserved.
Social Returns
Financial Return
Social Returns
Financial Return
Traditional View Emerging View
Social returns can drive financial returnsDouble bottom line =
lower financial return
Traditionally Private Equity has been driven purely by profit
motives
However achieving double bottom line returns is emerging as a
norm
Increasingly Funds are looking to generate social returns along
with financial returns
-
Need to Kick Start the Virtuous Cycle
8
Kaizen Private Equity. All Rights Reserved.
-
Kaizen Private Equity- Impact
9 Kaizen Private Equity. All Rights Reserved.
Sustainable Financial Model in Place
Socialo Provides access to knowledge for
people who could not afford it earlier
o Improves knowledge basis, which helps workers advance in their
profession
o Enables propagation of know how that increases productivity
and earning potential of the students
Environmentalo Focus on technology reduces the
reliance on paper
Over 2,800 direct jobs created
Over 300,000 teachers in online and offline delivery modes
~52% jobs for women
Over 4.2 million students in the system
Solar power project implementation
Social ImpactTriple Bottom Line
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Thank You
10
Sandeep [email protected]+91 9930388355202 Suraj
Prakash CHS, 86 Shankar Ghanekar Marg,Prabhadevi, Mumbai 400025,
India
