Shared Value Initiative India Dr. Amit Kapoor

Chairman, Shared Value Initiative India

&

Sandeep Goyal

CEO, Shared Value Initiative India

Website: www.sharedvalue.in

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Legatum Institute Survey Seven Nation Opinion Poll on Capitalism

September 2015

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How the World Thinks About Capitalism?

• [-] Big Businesses are Not Clean; Not Ethical

• [-] Poor gets Poorer in Capitalist Economies

• [-] Favour Protectionist Measures rather than ‘Open Economies’

• [+] Free Enterprise System Better for Poverty Alleviation than Government

• [+] Government should invest more on infrastructure than welfare benefits

• [+-] India – Business and Society’s Interests Match Well; Other Nations do

no agree.

Source: https://social.shorthand.com/montie/3C6iES9yjf/what-the-world-thinks-of-capitalism

Global Focus on UN Sustainable Development Goals

(2014-2030)

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Source: www.un.org

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Reality Check - The Bottom 4 Billion

• Significant Unmet Needs

• Dependent on Informal or Subsistent Livelihoods

• Live and Transact in an Informal Economy

• Face BoP Penalty

• Need Scalable & Replicable Solutions

– Government, NGOs, CSOs lack ability to scale and implement market oriented

business models

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Defining Shared Value

• Policies and practices for Competitive Advantage

• Corporate Strategy for creating unique business value by integrating socio-

environmental benefits with economic gains

• Not Philanthropy or CSR Activity

Reconceiving

Products and

Markets

Redefining

Productivity in

Value Chains

Enabling Local

Cluster

Development

Reconceiving Products

and Markets

Meeting social or environmental

needs through products or

services

Addressing underserved

customers

Focus on innovations with a

sense of purpose

Reconfiguring Value

Chains

Target environmental or social

constraints in the value chain

Changing practices in the value

chain to drive productivity

Enabling Local Cluster

Development

Improving the communities

where a company operates to

boost productivity, innovation,

and growth

Source: Adapted from HBR 2011 article “Creating Shared Value” by Prof. Michael Porter & Mark Kramer

How to Implement Shared Value?

Aravind Eyecare, Novartis

Arogya Parivar, Selco, Attero

Recycling, Janta Meals

HUL iShakti, Mother Dairy

Mirakle Couriers

Jaipur Rugs, Adani Farm-Pik,

Under the Mango Tree8

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Shared Value Orientation – Shift from Product to

Purpose Based Positioning

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Shared Value Initiative India (2015- ) India Regional Partner of Shared Value Initiative, USA

Institute for Competitiveness, India • An independent, international initiative centred in

India, dedicated to enlarging and disseminating the

body of research and knowledge on competition and

strategy, pioneered over the last 25 years by

Professor M.E. Porter of the Institute for Strategy and

Competitiveness, Harvard Business School (ISC,

HBS), USA

• Conducts and supports indigenous research, offers

academic and executive courses, and provides

advisory services to the corporate set-ups and the

governments

• Studies competition and its implications for company

strategy; the competitiveness of nations, regions &

cities

Shared Value Initiative, USA • A global community of leaders who find business

opportunities in societal challenges.

• The Initiative was announced as a Commitment to

Action for the Clinton Global Initiative Annual Meeting in

2012.

• Connects practitioners in search of the most effective

ways to implement shared value using the shared

value framework pioneered by Professor Michael Porter

and Mr. Mark Kramer

• Enables a platform for the companies, civil society

organizations, and governments to redefine capitalism

by leveraging the power of market-based competition in

addressing social problems.

Objective To bring the realization, understanding, adoption and implementation of the best practices for creating shared

value among the organizations operating in India, thereby accelerating the economic and social progress towards

a more equitable and sustainable India.

Started as Partnership between IFC, India and SVI, USA

About SVII – What and What Not?

• A non-profit, non-partisan, non-governmental organization that

aims to influence the change in focus and approach of the

organizations and institutions in India towards redefining capitalism

• Not intended to be a lobbying group

• Community of corporate CXOs, government, media, investors,

academic communities and civil society leaders committed to

redefining capitalism in terms of finding business opportunities in

societal challenges thereby leading to future prosperity of all Indians

• Embraces shift towards leveraging the power of market based

competition in addressing social problems while making economic

gains.

• Unique effort for delivering ideas and best practices among shared

value practitioners, proponents and stakeholders via peer-to-peer

exchange, research insights, networking, strategy and

implementation programmes

Serve & Thrive

Serve

Survive

Workshops, Events &

Programs

Shared Value Summit

Shared Value Index

Shared Value

Enterprise

Shared Value

Certification

Creating Shared Value

– Porter Prize

Our Activities and Engagements

Conducting workshops, events and programs around shared value concept,

success stories, innovations, implementation successes and challenges globally

Organizing annual summit to bring together the business thinkers and leaders on a

common platform for ideation and sharing of best practices around shared value

Launching the equivalent of Tradable Index, which will enable the social

performance assessment of listed companies on Shared Value Index vis-à-vis

financial performance on other indices

Comprehensive Assessment and Endorsement / Labeling of enterprises as Shared

Value Enterprise

Training and Certifying professionals & firms on shared value understanding and

implementation capabilities thereby creating a pool of skilled resources for

providing shared value consulting to corporates, governments, NGOs and CSO

The annual award recognizes the best in class enterprises that have showcased

shared value implementation at project level or enterprise level. The best enterprise

gets awarded Porter Prize for creating shared value

Partner’s Day Bringing together the partners and global shared value experts and thinkers for a

day before annual shared value summit

Months

Network Meetings & Round Tables •Half yearly round tables around shared value theme,

success stories and new insights.

Research and Publications •Articles, case studies, reports related to shared value impact,

trends and success stories

Activities

Apr

2016

Sep

2016 May

2016

Jun

2016

Jul

2016

Aug

2016

Oct

2016

6 7 8 3 2 1 5 4

Feb

2017

Dec

2016 Jan

2017

Mar

2017

11 12 10 9

Nov

2016

SVII Calendar for 2016

Social Media & Newsletter •Monthly newsletter and Online access to interesting trends,

insights, success stories, blogs, innovations and shared value

events / dialogues

Shared Value Summit •Two day summit having participation from shared value

experts (public, private, NGO, government, academics);

showcasing emerging trends, success stories and themes

globally and in India

Shared Value Enterprise • Recognizing the corporations as SVE based upon evaluation

by a team of shared value experts

Shared Value Index

Trainings and Workshops for Corporations

Ongoing

Ongoing

Ongoing Application, Audit, Assessment Phase

For Members to increase the acceptance at company level

Ongoing

Creating Shared Value – Porter Prize

• Shared Value Initiative India recognizes the enterprises (big or small) that are using shared value activities in their business models and bringing a positive change in society

• Exceptional Organizations showing Shared Value Orientation are awarded Porter Prize on Creating Shared Value

• Winners of Porter Prize on CSV for the year 2015

– JSW Group

– Jain Irrigation

• Winners (2012 – 2014)

– Hindustan Unilever Limited (2014)

– Rallis India Limited (2013)

– Godrej Group (2013)

– Mother Dairy (2012)

– ICICI Lombard (2012)

Shared Value Enterprises - Porter Prize Winners

• Shared Value Enterprise (SVE) recognize companies that are creating economic and social impact through a profitable business model

• An endorsement for companies that will highlight their corporate credibility in creating a positive impact on society

• A shared value enterprise would be looked upon as change maker that many companies will look up to.

• The endorsement will bring to fore that a company is acting as a force for good in society

• The enterprises will be celebrated at the yearly Shared Value Summit in India

• Companies will be accessed across the following parameters

Business Inputs

Social Outputs

Social Outcomes

Business Value

Created

Business Inputs– time, manpower, capital

Social Output – No. of people reached etc.

Social Outcomes – Increase in household

income, Decrease in illness

Economic Outcomes – Sales, revenues,

market share etc.

Recognizing the Changemakers -

Shared Value Enterprise

• Training and certifying professionals & firms on shared value understanding and

implementation capabilities thereby creating a pool of skilled resources for providing

shared value consulting to corporates, governments, NGOs and CSO

• The training program comprises of modules on shared value across industries and

geographies , the client landscape, identification of shared value opportunities, initiative

design, shared value measurement, and enterprise-level components of shared value

strategy.

• The key focus areas of the course will be:

– Understanding the shared value fundamentals

– Creating shared value – project level or enterprise level

– Designing shared value strategy and business Models

– Challenges for shared value implementation

– Metrics for shared value – economic, social and environmental, outputs and

outcomes

– Scaling shared value initiatives

Shared Value Certification

• Launching the equivalent of tradable Index, which will enable the social performance assessment

of listed companies on Shared Value Index vis-à-vis financial performance on other indices

• Evaluate the companies on parameters that reflects the creation of shared value. Each company

listed on the index will be assessed based on the parameters representing their shared value

approaches

• The index will be applicable to companies involved in making a positive change in society or

environment while being economically sustainable.

• The companies on the index will be evaluated on yearly basis and those who show consistent

progress will be retained as part of Index pool

Step 1

Identification of Parameters

Step 2

Data Collection

Step 3

Measuring the Index

Step 4

Analysing the Index

Shared Value Index

• Shared Value Summit is the annual event for shared value practitioners and leaders who are looking at making a difference to the world by redefining their business models. The event convenes the foremost thinkers (industry, consulting and academic) from the field of shared value to discuss, deliberate and formulate action strategies.

• Partners Day is a day long event, which is held one day before Shared Value Summit. This day belongs to the member partners of Shared Value Initiative India, who learn, discuss and engage in activities, discussions and networking.

Partners Day (19 Nov 2015) • Top executives from member partners including Abbott, SealedAir, ReachScale, Mother Dairy, et al. participated

for the partners day

• Global business thinkers and leaders like Justin Bakule, Executive Director – Shared Value Initiative, Rishi Agarwal, Director – Consulting Team at FSG, David Wilcox , Founder – ReachScale, Shelly Batra, Founder – Operation Asha, Jasraj Virdi, Associate Director - Corporate Citizenship at Abbott India Limited among others were present on the day

• The key learning outcomes for the day were –

– Tangible models of measurement are required to make shared value adoption a widespread phenomenon

– There are different ways to create shared value across industries

– Partnership with government and right kind of NGOs play a crucial role in effective implementation of shared value strategies

– Shared value is about social and economic objectives going in tandem towards nation’s inclusive development

– Technology & innovations are essential in development of non-exploitative business models that create a positive impact on society

Shared Value Summit & Partner’s Day

Shared Value Summit 2015

Get Involved

Becoming a member

Supporting the initiative by funding our activities

around research, events, and whitepapers

Creating awareness about Shared Value and

its significance

Participate in Shared Value Summit and

Shared Value Enterprise

We invite information and inputs from Indian government, corporates and civil society to setup

and expand the practice of Shared Value in India. The on-field actions around Shared Value

philosophy will add tremendous value in enhancing the social and environmental progress of

our country.

SVII - Become a Partner

SVII Membership – What does it mean?

• Companies need to acknowledge and adopt Shared Value principle to

gain competitive advantage via differentiation and shift in positioning

towards conscious capitalism

• SVII envisions mentoring, networking and knowledge support to those

companies, civil society organizations and government institutions in

India, which are committed to adopting shared value as a practice

• By joining the SVII, you will learn from and contributing to the practice,

staying informed about the latest thinking and practice models, and

connecting with the cross-industry peers.

• Members get an opportunity to add their voice to a movement seeking to

shape our nation’s strategy on issues as well as suggest possible

solutions

• Amplification of the voice via Shared Value platform

• Insightful thought leadership, Networking and knowledge exchange with

industry experts, leaders, peers and different institutions

Publications: Reports, Case

Studies, Articles

Communication: Social Media,

Blogs & Website

Round Tables, Shared Value Conference & Certification

Trainings

Cross-Industry & Cross-Institution Collaboration &

Networking

Experienced Leadership SVII is guided by Mike Kramer of FSG and Prof. Michael Porter of

Harvard Business School, USA

Knowledge Platform Participation in shared value workshops, online shared value communities,

webinars, round-tables, speaking sessions by shared value practitioners

and experts and access to case studies on successful shared value

initiatives

Networking Opportunity

Participation in Annual Conference having a congruence of global shared

value experts, practice leaders and enthusiasts from the research

institutions, companies, civil society and government organizations

Shift Towards the Future SVII is an exclusive regional partner of Shared Value (US) in India. Joining

SVII enables exclusive access to the shared value thought leadership and

expertise available in India

Drive Your Presence Amplification of your voice and brand via SVII shared value platform

comprising community groups, events, workshops, round-tables,

webinars, annual conference

Transformation - Trainings Create case studies on successful shared value initiatives by member

organization and conduct one trainings / workshops annually for

employees / management of member organization to enable the shift in

organizational mindset towards shared value

Shape the Initiative in India Exclusive Partner/ Leadership Council position in SVII Board enables an

opportunity to shape the future strategy of SVII, drive the research agenda

and contribute to the nation’s strategy towards shared value solutions

Shared Value Enterprise Participate in “Shared Value Enterprise” certification as well as become a

part of unique initiatives towards devising a “Shared Value Enterprise”

assessment framework and “Shared Value Index” metrics

SVII Membership – Why You Should Join Us?

SVII Membership – How to Become a Part of Initiative?

• Membership is by invitation, based on a criterion and is offered to the corporate CXOs,

government, media, investors, academic communities and civil society leaders who have shown

stewardship in their business interests as well as the communities in which they operate.

• Membership is for 3 years. Membership fee is structured to ensure the sustainability of the SVII

in terms of rigor and impact while enabling the participation of all types of high-impact

organizations.

Membership Type Who Annual Fees

(USD)

Exclusive Partner Multinational Corporations, Conglomerates, Trade bodies, Government 500000

Leadership Council Multinational Corporations, Conglomerates, Trade bodies, Government 250000

Executive Council Multinational Corporations, Conglomerates, Indian Corporates, Trade

bodies, Government

50000

Supporter Corporations, Embassies, Government, Civil Society Organizations 20000

Associate Organizations, Embassies, Government, Civil Society Organizations,

Educational Institutes, Think Tanks, International Bodies, Thought

Leaders, Thinkers

10000

For membership benefits and details, please refer to http://sharedvalue.in/membership/

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Our Partners

Just to Recap - Shared Value Initiative in India

• Institute for Competitiveness, India has been identified as the Indian knot (Regional Partner) in

the global network of Shared Value Initiative division of FSG, Inc., a Massachusetts non-profit

corporation. IFC has setup Shared Value Initiative India (SVII) in Feb 2015.

• Shared Value Initiative, USA was launched in 2012 as a Clinton Global Initiative Commitment

to Action with the support of Mark Kramer, Harvard Business School Professor Michael Porter, and

the new executive director of the initiative, Justin Bakule, formerly a managing director at FSG.

• Shared Value Concept has proved itself over the last four years after launch in USA. The entire

ecosystem including partners, knowledge base, best practices, and case studies has seen

consistent growth and acceptance among the global enterprises over the years. The best

practices, learnings and network of Shared Value Initiative, USA are available to SVII for building

a shared value ecosystem in India.

• Shared Value Initiative is aligned with Sustainable Development Goals thereby offering an

opportunity to evaluate and action on SDGs in a better manner.

• This platform acts as a strategic toolkit for leaders who want to strategize, implement or sustain a

Shared Value program.

Thank You

U 24/8, DLF Phase 3, Gurgaon 122002, Haryana, India

Tel: +91 124 437 66 76; Email: info@sharedvalue.in

Website: www.sharedvalue.in