csr 2.0 shared value creation

CSR 2.0

Shared Value Creation

3 May 2013

Usha Menon

Situation Analysis

• How would you define Corporate Social Responsibility (CSR)?

• In you opinion, what are the features of good CSR programs?

• Given a specific example of such a CSR program?

Sustainable Development

Corporate Philanthropy

Social Identity

Responsible Business

Right to Operate

Bridging the gap

Empowering the beneficiaries

Definition

CSR as a complete business strategy that

aims to ensure the long-term viability of the business, by assuming an active

role in the development of the community, the economy, and the environment, through good business practices

Nine Principles and Related Benefits of CSR

The National Voluntary Guidelines on

Socio-Economic and Environmental Responsibilities of Business

~ by the Ministry of Corporate Affair

The CSR Journey

Compliance - Law, Principles, Conduct

Corporate Philanthropy- Wealth redistribution

Sustainability – Protect the future

Shared value creation – Collective impact

SHARED-VALUE CREATION

CSR 2.0 – Made in India New Companies Bill

• 2% CSR policy focuses on Companies with revenue greater than Rs.1000 Crore or profits of Rs.5 Crore

• must spend 2% of the average of the last 3 years profits, towards CSR activity

• employee welfare expenses cannot be classified as CSR spending and must focus on poverty alleviation, healthcare, education and social business ventures.

CSR 2.0 – Made in India

This means approximately

US$5 billion worth of funds will

become annually available that could be absorbed by the nonprofit sector

CSR 2.0 – Made in India

Example:

Nearly 79 Pharmaceutical companies have to invest anywhere

between Rs.300-325 crore in the

coming years under CSR scheme

CSR 2.0

From Corporate Social Responsibility

to

Creating Shared Value

15

William Bissell

• “CSR can be your company’s most profitable division”.

Dr. Verghese Kurien

Source: Making Collective Impact Work - Stanford Social Innovations Review , 2012

Shared- value creation

What are other examples of such CSR 2.0 in India?

What were the reasons

for its success?

Shared- value creation

Are your engagements CSR 2.0?

What is working ?

What are the challenges ?

NGOs and the Corporate sector

can co-create a future

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What are the conditions needed for this collective impact?

Source: Making Collective Impact Work - Stanford Social Innovations Review , 2012

Usha Menon

(+65) 9752 2774

umenon@ushamenonasia.com

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