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“Successful businesses thrive in healthy communities*” *Barry Salzburg CEO Deloitte & Touche USA LLP Presented to the The Business of Sport Conference Nick Jones Director, Sustainable Advantage Ltd Today’s line up Defining the concepts

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successful businesses thrive in healthy communities barry salzburg ceo deloitte touche usa llp

“Successful businesses thrive in healthy communities*”*Barry Salzburg CEO Deloitte & Touche USA LLP

Presented to the

The Business of Sport Conference

Nick Jones

Director, Sustainable Advantage Ltd

today s line up
Today’s line up

Defining the concepts

Putting them into context – Tensions and opportunities

Collaboration

Building lasting partnerships

sustainability csr social investment defined
Sustainability, CSR & Social Investment Defined
  • World Business Council on Sustainable Development:
    • "Sustainable development involves the simultaneous pursuit of economic prosperity, environmental quality and social equity. Companies aiming for sustainability need to perform not against a single, financial bottom line but against the triple bottom line.“
  • Corporate Social Responsibility:
    • Corporate Social Responsibility is the responsibility a business has to its employees, customers, shareholders and adhering to the law.
  • Social Investment
    • Investing assets and resources into supporting positive social change that will have benefits to the community and the business in terms of dealing with issues that are, or will be, holding the business and community back
  • Future-focussed companies interlink these concepts as they are increasingly seen as vital for future business success
sustainability the opportunity comes when all aspects interact
Sustainability. The opportunity comes when all aspects interact

Environmental

Social

Cultural

Economic

corporate social responsibility is of value in strengthening the business from the inside out
Corporate social responsibility is of value in strengthening the business from the inside out
  • Staff satisfaction and loyalty
  • Customer loyalty and satisfaction
  • Strengthens supplier relationships
  • Creates values based connection and brand differentiation
  • “Happy staff, happy customers, happy shareholders”

The Harvard Business Review “Service Profit Chain” March/April 1994 and enhanced in July 2000

the broad context statistics new zealand quickstats
The broad context Statistics New Zealand QuickStats

Non-profit institutions 2.6% of GDP in 2004 which equates to $3.64 billion

97,000 institutions in October 2005

Social services account for 23% of the value and 12 % of the institutions

GDP proportion increases to 4.9% including voluntary labour

1,011,600 volunteers giving 270m hours plus

105,000 paid employees

slide9

Overall levels of support for the Community and Voluntary Sector shows links to relevance and connection Support is defined as donating goods or money to an appeal, ongoing donation/sponsorship, volunteering, other e.g. Purchase. Time period last 12 months

Source: Nielsen Media Research Panorama Jan-Dec 2007/Nick Jones & Associates Ltd

support levels across the 25 sectors measured

Estimated Number

% of Population

of People 10+ 

10+

Personally Supported

2,717,000

75.4

Arts And Culture

447,000

12.4

Sports Clubs

881,000

24.4

Marae

299,000

8.3

Other Clubs/Community Organisations

964,000

26.7

Preschool

647,000

17.9

Primary And Secondary Education

1,038,000

28.8

Tertiary Education

230,000

6.4

Hospitals/ Rehabilitation

307,000

8.5

Hospice

706,000

19.6

Illness And Disease Prevention

666,000

18.5

Mental Health Services

340,000

9.4

Children's Health

713,000

19.8

Other Health Services

759,000

21.1

Children's Welfare

401,000

11.1

Family Support Services

416,000

11.5

Youth Services And Welfare

301,000

8.3

Services For The Elderly

395,000

11.0

Services For People With Disabilities

657,000

18.2

Disaster Relief

449,000

12.4

Child Sponsorship

454,000

12.6

Fair Trade Practices

255,000

7.1

Animal Welfare And Rights

530,000

14.7

Environmental

417,000

11.6

Religious Activities

679,000

18.8

Political Organisations

181,000

5.0

Support levels across the 25 sectors measured

Ranking

  • Primary and secondary education
  • Other clubs and community organisations
  • Sports clubs
  • Other health services
  • Children’s health
  • Hospice
  • Religious activities
  • Illness and disease prevention
  • Services for people with disabilities
  • Preschool

Source: Nielsen Media Research Panorama Jan-Dec 2007/Nick Jones & Associates Ltd

slide11
The crossover between support types highlights a core group of 439,000 people who volunteer and donate in both ways

Donated goods/money to an appeal

1.7 1 million

Volunteered

1.22 million

249,000 only

volunteer

586,000 only

donated

goods/money

378,000

315,000 only

made a direct

donation/sponsorship

439,000

152,000

306,000

Source: Nielsen Media Research Panorama Jan-Dec 2007/Nick Jones & Associates Ltd

Direct donation/sponsorship

1.21 million

factors impacting on new zealand businesses
Factors impacting on New Zealand businesses

Global credit crunch

ECONOMIC

Overseas employment

opportunities

Centralised decisions

Inflation and recession

Shareholders

Technology

Customers

Business

Immigration

Health and wellbeing

CULTURAL

SOCIAL

Current/future

employees

Legislation

The wider

Community

Pressure groups

Political influences

Business ethics

ENVIRONMENTAL

Climate change

the consumer who cares is impacting on business and across society today
The Consumer who Cares is impacting on business and across society today

My levels of optimism, aspirations and attitudes to change

How I see businesses role in making a difference to society and the environment

Health and wellbeing personally and in society

How much I care and what I do about it

IS DEFINING YOUR MARKET TODAY

My personal action in supporting non-profit and community organisations

Financial control and how I use that

My sense of safety and security

I make active choices in purchasing of products and services

(purchasing, paying more for or avoidance)

Levels of trust and assurance

Views on fairness and equity in society and cultural values

slide16
The “Consumers who Care” are a significant market who buy from and support businesses that are socially and environmentally responsible
  • Baby Boomers approx. 750,000
  • Generation X approx. 840,000
  • Generation Y approx. 900,000
  • Interested in Rugby Union 1.7 million

Consumer who Cares = 1.9 million+

Source: Nielsen Media Research Panorama Jan-Jun 2007/Nick Jones & Associates Ltd

slide17

Segment

CSR

Community

Purchasing

Active Leaders

Strong support

Strong support

High

est

levels

on average

Strong with slight

environmental

Everyday Achievers

Strong support

Strong support

skew

Pragmatic Optimists

Str

ong support

Average support

Regular but not frequent

Independent & Aware

Strong support

Average support

Regular but not frequent

Mo

re

social

than environmental

Informed Consumers

Highest levels on average

Below average

orientation

Concerned Explorers

Below average

Below average

Occasional

Starting Out

Below average

Below average

Very

occasional

Change Averse

Lowest levels

Below average

Minimal

Toughing it Out

Below average

Lowest levels

Minimal

The marketplace segmented by CSR and sustainability behaviour and attitudesSource: Nielsen Media Research Panorama (Jan-Dec 2007) Nick Jones & Associates Ltd

Notes

CSR: Personal views and attitudes towards corporate social responsibility including environmental responsibility

Community: Personal support for community and voluntary sector including donating, volunteering , etc.

Purchasing: Personal purchasing and avoidance of goods and services that do (or in the case of avoidance do not) support social and environmental causes

Source: Nielsen Media Research Panorama (Jan-Dec 2007) Nick Jones & Associates Ltd

unique segmentation includes major aspects of consumers sustainability behaviour
Unique segmentation includes major aspects of consumers sustainability behaviour

Source: Nielsen Media Research Panorama (Jan-Dec 2007) Nick Jones & Associates Ltd

slide19
Business and community must take account of expectations, needs, beliefs and priorities as they vary significantly between these segments
  • The Engaged Segment
  • Independent and Aware
  • Finding it difficult to get a work life balance
  • Interested in packaging and sampling at the supermarket
  • Environmentally aware
  • Sense of optimism but feel they get a raw deal
  • Often feel lonely but spend time with friends too
  • Spend too much on alcohol
  • The Explorer Segment
  • Concerned Explorers
  • Concerns over trust
  • Believe environment is being managed OK and NZ is off track
  • Sense of quality and cost relationship but on a tight budget
  • Life is getting harder
  • Some physical activity but other struggles around weight and health

The Trailblazer segment

Active Leaders

  • Buying organics and environmentally friendly products
  • Open to change
  • Active themselves and in the community
  • Open minded
  • Don’t feel lonely or eat takeaways
  • Financially comfortable
  • See beyond money and fashion
  • NZ products appeal

Index base is 15+ and index of >110 or <90

Source: Nielsen Media Research Panorama (Jan-Dec 2007) Nick Jones & Associates Ltd

the crossover between the communities in our lives creates the opportunity for collaboration
The crossover between the communities in our lives creates the opportunity for collaboration

Work

Personal/

Family

Place

Values and beliefs

behaviour

NB This is a conceptual map for illustration only

distance and alignment
Distance and alignment

Putting distance between ourselves and an issue either intentionally or unintentionally

The distance between aligned values and compromise in the workplace

The business creating strategic drift (distance) away from its employees and customers values

The distance between intention and action

Alignment of values creates/supports trust in relationships which is HUGE for brands

The alignment of thinking in the commercial world, the government and community on connectedness (whatever that looks like for people)

collaborative models based on thomas kilman conflict resolution models
Collaborative modelsBased on Thomas Kilman Conflict Resolution Models

INNOVATION

Compete

Collaboration

Value of the issue

Compromise

Avoid/nothing happens

Accommodate

Value of the relationship

slide26

“The consumer increasingly connects markets and meaning – and thus there will be a day when all entrepreneurs have to take social and environmental concerns into their core business strategies if they want to attract and keep consumers and stay in business.” Pamela Hartigan, Schwab Foundation for Social Entrepreneurship

slide27
Taking a strategic approach is best for all partiesHarvard Business Review “Strategy and Society” Michael E. Porter and Mark R. Kramer
  • Four prevailing justifications: Moral obligation, sustainability, license to operate and reputation
  • Potential approaches:
    • Support generic social issues not specific to the business
    • Focus on issues impacting the community and the business e.g. “vulnerable consumers”
    • Strategic alignments that leverage mutual capabilities between partners
business relevance relates to all aspects of management of a good business
Business relevance relates to all aspects of management of a “good’ business
  • Recruitment and retention
  • Health
  • Skills development
  • Work/Life Balance
  • Family-friendly
  • Accessing new markets
  • Service and product development
  • PR and marketing
  • Cost effective
the human side giving adds to our quality of life
The human side: “Giving” adds to our quality of life

Cohesive communities, organisational development, participation, people-centredness

John Raeburn, 2007: People-centred Community Development

Altruism is hard wired in our brains and creates a pleasurable experience.

National Institute of Health in the US reported in May 2007 in The Washington Post

Employees who are empowered to “give” will have an even greater sense of health and wellbeing

EEO and JRA/Unlimited “Best Places to Work” prove results of the business benefits of empowerment programmes

giving time beats stress source icm csv and barclays plc september 2004
“Giving time” beats stressSource: ICM/CSV and Barclays PLC September 2004

48% who have volunteered for two years or more say volunteering makes them less depressed

63% of 25-34 year olds say volunteering helps them feel less stressed

31% of 18-24 year olds say they have taken less time off works since volunteering

resonant leadership can we apply this to community and business partnerships as well
Resonant leadership. Can we apply this to community and business partnerships as well?
  • In Resonant Leadership*, authors Richard Boyatzis and Annie McKee talk about the need for leaders to renew themselves and nurture mindfulness, hope, and compassion in their lives.
  • What role can community and business partnerships play?
    • They can help define who the business is
    • They can help define what they stand for
    • They can provide a new “lens” on the marketplace
    • They can lead innovation

*Harvard Business School Press. RESONANT LEADERSHIP: Renewing Yourself and Connecting with Others Through Mindfulness, Hope, and Compassion, by Richard Boyatzis and Annie McKee.

slide32
Developmental triggers for business: How can you help?Boston College Centre for Corporate Citizenship
making it work reflect on who you are and what you need and what you can offer
Making it work. Reflect on who you are and what you need and what you can offer?

What does the business need?

What do you stand for?

Be specific on what you need and why – impacts and outcomes

Jointly define the reciprocity in the partnership

What's in it for them? How can you help meet the businesses needs

How will you know its worked?

the partnering initiative model for development http thepartneringinitiative org mainpages rb pc
The Partnering Initiative model for developmenthttp://thepartneringinitiative.org/mainpages/rb/pc/
building healthy businesses and healthy communities some things to consider
Building healthy businesses and healthy communities- Some things to consider
  • Put yourself in your partners shoes. What's going on in their world?
    • Tensions and opportunities
    • Needs and beliefs
    • Interests and relevance
    • Are the values and priorities aligned?
  • Encourage people to get involved: employees, community and consumers
  • Ensure understanding using consistent and simple commonly used language not terminology
  • Give people easy options e.g. collaborative approaches on complex issues.
  • Educate, empower and inspire – go on a journey of rewarding discovery
slide36

For more information on the Consumer who Cares research and/or CSR strategy and partnership please email nick.jones@hayesknight.co.nz