The 2017 Shared Value Forum kicked off with panel discussions focused on changing the world and investment innovation, storyteller sessions exploring changing business models, and a fireside chat with Mark Kramer focused on leadership.
SHARED VALUE TO HELP THE URBAN POOR
- Professor Rebekah Brown from Monash University opened #SVF17 with insights from her project to revitalise 24 urban slums in the Asia Pacific.
- Brown: “How do we create a shared value outcome for the urban poor?” and “How can our scientific solutions improve the health, wellbeing and the environment”.
- Presentation highlighted the importance of scalability in shared value programs in order to improve the prosperity of these communities and ensure the program occurs “not just across Asia Pacific” but beyond.
- Rebekah finished by posing the question: “How do we set up a shared value solution… that can enable investment and deliver social and environmental outcome?”.
COMPANIES ROOTED IN REALITY OF PROBLEMS
- Inspired by Fortune magazine’s ‘Change the world’ list.
- Michala Fischer-Hansen, Novo Nordisk: “Having done it for more than 90 years, shared value is at the centre of our business.” We need the trust of our customers and stakeholders.
- Mark Kramer: “It’s not about public relations … shared value begins to shift the focus to the impact we are having on the world”.
- Cath Carver, NAB: “You’ve got to start with the client and the client’s problems … working with clients even more closely … I absolutely believe we can achieve all of those things”.
- Mark: “When it comes to solving problems, companies are rooted in the reality of the problems, in a way that governments are not”.
- Mark: “Shared value is a competitive strategy” How can you make more money and have a positive impact?
NEW TOOLS FOR SHARED VALUE EDUCATION
- Ben Peacock from the Republic of Everyone and Leanne Piggott from the Centre for Social Impact announced two new tools for shared value education in Australia.
- SV GO provides a step-by-step guide to help companies develop shared value solutions. The booklet includes a framework for identifying components of a shared value initiative including the business and social outcomes, alongside ten potential shared value projects developed as part of last year’s forum.
- Australia’s first shared value MBA course will begin in at the University of New South Wales August 2017, and is only the second in the world.
DIFFERENT BUSINESS MODELS OPEN DOORS TO PROFIT AND GROWTH
- Editor of AFR BOSS, Joanne Gray led a fireside chat with Mark Kramer exploring the impact of shared value on his life, shared value in the Trump era and his three golden rules.
- Doing philanthropy well and solving social problems are not the same thing. Companies need to ask: “What is their competitive strategy? What is their differentiated strategy?”
- Challenge for shared value: Trump era has given companies permission to focus on short-term.
- “Social purpose is closely tied to innovation”.
- “You are able to achieve scale, when you are achieving profit, in a way you cannot in philanthropy”
- “It really is about leadership. If your vision is in months, not years, you’re really not much of a leader”.
- “The reason there is momentum behind this movement, companies try this with an experiment, with one initiative and it works. They begin to see they’ve missed something. There’s a different way to look at their business model, that can open doors to profit and growth”.
KRAMER’S GOLDEN RULES
- Being rigorous about business pace.
- Looking outside your four walls about whom you need to partner with.
OPPORTUNITIES FOR SHARED VALUE COME FROM NETWORKS
- Katy Barfield, Yume – There needs to be an intrapraneur in the corporates that is agitated to listen to these shared value business cases and “corporates need to empower these intrapraneurs.”
- Patricia Lau, Hong Kong SAR Government: Relying on grants is different from relying on a sustainable scaleable business model.
- Katy on capital raising: 1. “Know your business model”; 2. “It is your idea, your business. Choose your investors carefully.”3. “You need unbelievable resilience. You will face a brick wall everyday.”
- Sidney Myer AM: Opportunities for shared value investment come from networks.
- Andrew Major, HESTA Super talked about balancing community, business and regulatory responsibilities.
- Sidney Myer AM: Philanthropy is borne from language of outcomes, shared value is borne from language of returns.
DATA, SCALE AND THE ROLE OF SMART PHONES
- Julie Batch, IAG: “Don’t forget the smartphone” – it completely changes people’s access to support.
- Brian McLaughlin, Infoxchange: “We see huge potential for common platforms, common technologies to collaborate and engage with government”.
- Ros Harvey – The Yield: “create scale to solve huge societal problems, richest countries can’t do this let alone the poorest of the poor. How do we take our technologies to scale?”.
- David Raper, IBM: “there’s a lot happening in Australia” – if I look across the region, one of the most inspiring or exciting places is India”, how can they provide services to 1.4 billion people? They are doing some fantastic things, somewhat government directed with partnerships; biometrics for unbankable people