From Concept to Reality - Creating Shared Value (CSV): Understanding the CSV model, the implementation challenges and lessons learned for developing shared value opportunities Elizabeth Walker Sobhani of Lotus Consulting will explore the spectrum of activities from corporate philanthropy to the latest innovations around creating shared value as a means of generating business and social impact. She will provide practical lessons learned on mobilizing these concepts into reality and the role we can play in creating shared value in our own businesses.

1. From Concept to Reality:
Creating Shared Value
Elizabeth Walker Sobhani

2. From Concept to Reality:
Creating Shared Value
EBBF Conference
Ocotober 2013
Elizabeth Walker Sobhani
www.lotusconsultingasia.com

3. Creating Shared Value – focus areas
1. Why?
The Changing Landscape
2. What?
The Evolution from Philanthropy
3. How?
The Lessons Learned
2

4. Framing the Situation
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Businesses
Public SectorCivil Society
SOCIETY
Affordable Housing
Lack of
Healthcare
Global Warming
Unemployment
Access to Education
Inequality
Violence /
Abuse
Pollution
Global Water
Crisis
Poverty

5. From Externalities to Internalities
4
Businesses
Public SectorCivil Society
SOCIETY
Affordable Housing
Lack of
Healthcare
Global Warming
Unemployment
Inequality
Pollution
Poverty

6. The good news…
93% of CEO’s believe the issues of
sustainability will be critical to their business
- Accenture and UN Global Compact
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The recent pool of top gradates see more
fulfillment in life….
“Man’s merit lieth in service and virtue and
not in pageantry of wealth and riches.”
- Baha’i Writings

7. However, CEO’s are looking for a new model…
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“CEOs’ initial optimism has given way
to the belief that the constraints of
market structures and incentives
prevent them from embedding
sustainability at the heart of their
business”
- Accenture and UN Global Compact 2013 CEO
Study on Sustainability

8. The evolution of thinking… from philanthropy to
CSR to CSV.
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Philanthropy
• Providing grants and
donations to
nonprofits
Corporate Social
Responsibility
• Ethical standards and
compliance
• Cultural shift to
“sustainability”
• Increased citizenship
activities
Creating Shared
Value
• Integrating societal
improvement into
economic value creation
(Porter/Kramer)
• Societal benefit and
business benefit (profit
creation)
• Why? Scalable and
sustainable

9. The formula:
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Investments in long-
term business
competitiveness…
Wealth Creation
Creating Shared
Value
Enhancing the well-
being and prosperity
of society
…that simultaneously
address social and
environmental
objectives

10. The key is the scale of impact on both spectrums
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Creating Shared ValueSocial Enterprises
Philanthropy
Socially Responsible
Business
DEGREE OF BUSINESS IMPACT
DEGREEOFSOCIALIMPACT

11. How? There are three methods but this is still
evolving…
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Reconceiving Products
and Services
1
Redefining Value
Chains
2
Companies can improve the
quality, quantity, cost, and
reliability of inputs and
distribution while they
simultaneously act as a steward
for essential natural resources
and drive economic and social
development.
Strengthening Local
Clusters
3
Companies do not operate in
isolation from their
surroundings. To compete and
thrive, they need reliable local
suppliers, a functioning
infrastructure of roads and
telecommunications, access to
talent, and an effective and
predictable legal system.
Companies can meet social
needs while better serving
existing markets, accessing new
ones, or lowering costs through
innovation.

12. Novartis
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13. Coca-Cola Brazil
12

14. Bermuda – Lack of university educated labour pool
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15. How? It starts from the top.
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4. Measure and
Modify
Communicate and Implement 3. Implement
Budget, Human Resource Plan, Implementation Plan
Research
Strategy and Goals
2. Develop the
Strategy
Initiatives Initiatives Initiatives
Business
Definition
1. Set the Vision
Mission and Vision

16. Business can instigate, but civil society and often
the public sector are needed from the outset
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Public SectorCivil Society
SOCIETY
Businesses
Social
Innovation

17. Important Values to Drive the Shift:
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Empathy
Service
CreativityHumility
Trust
Values and
Culture

18. Lessons Learned and Advice
1. Takes time to discuss and educate the leadership team, but a shift is possible
due to the dual goal which includes bottom line benefits
2. Redefining the clear social purpose is the bedrock for the strategy
3. Change champions help shift the culture to align with the redefined purpose
4. Research is critical – we need to really understand the societal problems to
bring business solutions to bear
5. Partnerships make a stronger model – NGO’s, government, other distributors or
companies. Bring them to the table at the outset and co-create.
6. A learning culture is important as we are charting a new path
7. Measurement is not easy, but critical –even starting with outputs and
outcomes versus social impact
8. We should not be embarrassed to communicate our social impact even while
making a profit
9. The greatest social benefits will come with scale
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19. The Challenge for each of us…
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Challenge:
How can we infuse the concept of
simultaneously creating shared value (social
and business value) in our companies and
redefine the way business has traditionally
been done?
Within civil society, how can we leverage the
concept of shared value to partner with
companies to have greater social impact?

20. From Concept to Reality:
Creating Shared Value
Thank-you!
Elizabeth Walker Sobhani
www.lotusconsultingasia.com