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CREATING VALUE FOR CORPORATE PARTNERSHIP Dr Cheong Koon Hean CEO, Housing & Development Board (Singapore) IFHP Council Summit, 28 May 2015, Paris

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CREATING VALUE FOR CORPORATE PARTNERSHIP

Dr Cheong Koon HeanCEO, Housing & Development Board (Singapore)IFHP Council Summit, 28 May 2015, Paris

WHY DO NGO & PRIVATE ENTERPRISE (PE) PARTNER?

Opportunities

NGO PE

The existential question: Why partner?• What are the needs &

motivations?• What are the challenges & risks?

THE DRIVERS OF PARTNERSHIP

Why do PEs & NGOs partner each other?

Source: C&E Corporate-NGO Partnership Barometer Report 2013

EVOLUTION OF CSR : CREATING SHARED VALUES

CSR is increasingly connected to business strategy

Creating Shared Values

Source: CoCreate Consultancy, 2013 Global CSR Study

EVOLUTION OF CSR : CREATING SHARED VALUES

Current Thinking: Creating Shared Values• Defined as policies and operating practices that enhance

the competitiveness of businesses while simultaneously advancing the economies and social conditions in communities in which they operate.

• Based on the premises that both economic and social progress be addressed using value principles.

Michael E. Porter & Mark R KramerHarvard Business Review, Jan 2011

DRIVERS OF CREATING SHARED VALUES

1st Driver: Public Scrutiny

DRIVERS OF CREATING SHARED VALUES

2nd Driver: Competition and Consumers• 81% of consumers feel that PEs should support

social and/or environmental issues

Source: Cone Communications, 2013 Global CSR Study

DRIVERS OF CREATING SHARED VALUES

2nd Driver: Competition and Consumers• When faced with similar or

identical products, consumers are likely to choose the one associated with a good cause

Source: Cone Communications, 2013 Global CSR Study

DRIVERS OF CREATING SHARED VALUES

3rd Driver: Innovative Solutioning

• Businesses want to partner NGOs with expertise where they lack it

• Tembec partner with WWF to tap on their biologists & ecologists for its forest resource management certification program

• WWF brought international exposure & visibility to the partnership

IFHP’S VALUE PROPOSITIONSIFHP’s Value Propositions

What IFHP need to work on

Credibility & Stature • Build IFHP’s established brand image • Raise IFHP’s profile through activities

& conferences with solid/relevant content

• Profile members’ expertise• Add value through workshops, advisory

work which help build PE capacitiesExpertise to Offer • Identify niche that IFHP can occupy

• Build capacity in specific fields among IFHP’s 7 agenda areas

• Tie-up with research institutions to deepen expert advice

Global Network of Experts

• Revitalise existing partnerships• Establish new partnerships with

relevant organisations• Build up local-anchors

CHALLENGES & RISKS IN A PARTNERSHIP

PEs’ perspective• NGOs are watch

dog & critical friends

• NGOs should be transparent & accountable

• What is the ROI of partnership?

• Demands accountability for use of funds

NGO’s perspective• Will the partnership

risk my brand name?

• What is my role: ▫ A partner? ▫ A consultant?▫ A beneficiary?

NGO PE

What Makes a Partnership Work?• Built on specific needs, not generalities • Understand each other’s interests• Have clear objectives, with structure to

support the relationship• Agreed outcomes and/ or programmes

indicators

CHALLENGES & RISKS IN A PARTNERSHIP

WHAT ARE THE VALUE PROPOSITIONS OF SIMILAR

NGO?

WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT (WBCSD)

• Value Propositions:• A network of 66 global partners in 64

countries, representing 35,000 businesses

• A platform for PEs to offer cross-domain business solutions by partnering other people

• Strong research capabilities, from tie-ups with Stockholm University & Stockholm Resilience Centre for research

SOME LEARNING POINTS

Four common characteristics:• Identified with at least 1 well-regarded

program, service or product, which is their niche or strength• A local presence that helps open doors• A research arm, or tie-up, that keeps

abreast of advancement in relevant fields • Opportunities for members to contribute

back to society