Kreutzer

Question 1

Corporate Social Responsibility (CSR)

Answer 1

refers to businesses bearing a responsibility to society and a broader set of stakeholders, companies integrate social and environmental concerns in their business operations and interactions

Question 2

Pyramid of CSR (from top to bottom)

Answer 2

Be a good corporate citizen
Be ethical
Obey the law
Be profitable

Question 3

Social Washing

Answer 3

Promote oneself as more socially responsible than one actually is

Question 4

Shareholder vs Stakeholder Value

Question 5

Shareholder perspective

Answer 5

The company has no social responsibility to the public or society, only to shareholders

Question 6

Stakeholder perspective

Answer 6

Ergänzen

Question 7

4 Steps to measure and manage impact

Answer 7

1) Set Strategy 2) Integrate Strategy 3) Optimize 4) Reinforce

Question 8

1) Set Strategy

Answer 8

define target SDG outcomes in a way that align with overall objectives, Set ABC classification labels for the goals

Question 9

2) Integrate

Answer 9

Assemble ressources, tools & processes, set performance targets, choose indicators and decide how to track them

Question 10

3) Optimize

Answer 10

collect data & make decisions based on analysis of data, make further improvement decisions

Question 11

4) Reinforce

Answer 11

Shape process & deepen governance, disclose impact measurement and management performance

Question 12

Five Dimensions of Impact

Answer 12

1) What are the outcomes of the investment? 2) Who experiences the outcome 3) How much of the what outcome is actually occurring? 4) Contribution on enterprise/ investor level 5) Risk: How could the outcome turn worse than expected?

Question 13

1) What are the outcomes of the investment?

Answer 13

Q: What specific outcomes do we expect?; Is it a positive or negative change?

Question 14

2) Who experiences the outcome?

Answer 14

Group of people or entire planet
Define key characteristics of the group (PERSONA)
Q: How underserved is this population?

Question 15

3) How much of the what outcome is actually occurring?

Answer 15

Show that measurable change happens due to the investment
Q: Scale? Duration? Depth (Degree of Change)?

Question 16

4) Contribution on Enterprise/ Investor Level

Answer 16

Q: What do we add with our investments?
Developments happen only because of the investment or would they happen anyway?

Question 17

5) Risk: How could the outcome turn worse than expected?

Answer 17

Investors often think about financial risk only BUT they should also add “impact risks” (social or environmental goals)

Question 18

Risk types

Answer 18

1) Evidence Risk 2) External Risk 3) Stakeholder participation risk 4) Drop-off risk 5) Efficiency Risk 6) Execution Risk 7) Alignment risk 8) Endurance risk 9) Unexpected Impact Risk

Question 19

1) Evidence Risk

Answer 19

probability that insufficient high-quality data exists to know what impact is occurring

Question 20

2) External Risk

Answer 20

probability that external factors disrupt our ability to deliver our impact

Question 21

3) Stakeholder participation risk

Answer 21

probability that the expectations and/ or experience of stakeholders are misunderstood or not taken into account

Question 22

4) Drop-off risk

Answer 22

probability that the positive impact does not endure and/or that negative impact is no longer mitigated

Question 23

5) Efficiency risk

Answer 23

probability that impact could have been achieved with fewer resources or at a lower cost

Question 24

6) Execution Risk

Answer 24

probability that the resources are not delivered as planned and do not result in desired outcomes

Question 25

7) Alignment Risk

Answer 25

probability that impact is not locked into business model

Question 26

8) Endurance risk

Answer 26

probability that required activities are not delivered for a long enough period

Question 27

9) unexpected impact risk

Answer 27

probability that significant unexpected positive and/ or negative impacts are experience by people and planet

Question 28

1. Set SDG Strategy

Answer 28

Five Step Process 1) Define Purpose 2) Identify SDG outcomes 3) Prioritize SDG outcomes 4) Set ABC-Goals 5) Define impact Thesis

Question 29

1) Define Purpose

Answer 29

What is enterprise purpose and key strategic objectives? -> Align SDG objectives with business objectives - ground impact strategy in mission and business objectives - create mission statement with stakeholders to understand how key stakeholders articulate goals and values of enterprise - time frame: short/ long-term goals

Question 30

2) Identify SDG outcomes

Answer 30

What sustainable development issues are most relevant to stakeholders? - SDG outome: define WHAT (->Value Chain (raw materials, suppliers, inbound logistics, company operations, distribution, product use, product end life) analysis - who is enterprise impacting and in what way?) and the WHO (-> Definition of Stakeholders: people or organizations that experience change as a result of your activity), Directly or Indirectly affected with intended or unintended consequences

Question 31

3) Prioritize SDG outcomes

Answer 31

Which SDG outcomes are priorities for enterprises? Ergänzen!

Question 32

4) Set ABC-Goals

Answer 32

What ABC goals are targeted for each SDG outcome? A - Act to avoid harm B - Benefit stakeholders C - Contribute to solutions

Question 33

Step ABC goals

Answer 33

Definition of threshold: societal norm or ecological level deemed "good enough" by stakeholders Treshoold can be designed by stakeholders, polity, industrial standard or by SDGs

Question 34

5) Define Impact Thesis

Answer 34

What is your theory of change to achieve each SDG outcome? Theory of Change model: Ergänzen

Question 35

2. Integrate

Answer 35

Consists of 3 Steps: 1) Develop mindset 2) Decide what to measure 3) Get process in place

Question 36

1) Develop mindset

Answer 36

developing data for decision making mindset - what/ who combination connected to a what/ if theory of change -> focus on collecting data -> on what will be actively managed and measure and be able to make trade-offs > align incentives and processes for success

Question 37

Five Principles of Data for decision-making mindset

Answer 37

1) Align impact measurements with actionable decisions 2) Align data quality to decision importance 3) Consider trade-offs to get "good-enough" data (Quality, Credibility, Timeliness, Consequences) 4) Start with imperfection and get better (Data risks - Quality, Gasps, Unexpected Outcomes) 5) Strive to collect data across more of the five dimensions over time to improve analysis

Question 38

2) Decide what to measure

Answer 38

Select metrics across the five dimensions of impact and set baselines and targets 1. What - Outcome Level, Importance to Stakeholder, SDG Target 2. Who - Stakeholder, Geogr. Boundary, Outcomelevel at baseline 3. How much - Scale, Depth, Duration 4. Contribution - Depth counterfactual, Duration counterfactual 5. Risk - Risk type, risk level

Question 39

3) Get process in place

Answer 39

put financial and Human Resources in place for strong impact management practice Checklist for integration: Create data collection plan (Qualitative vs Quantitative, Survey vs Interview, Free from bias) Put in additional training if needed, put incorporate impact measurement responsibilities into job descriptions

Question 40

3. Optimize

Answer 40

Optimize SDG impact through active management - monitor and analyze SDG impact data making/ performance decisions (meet? exceed? fallen short?) Why did It happen? Learning from underperformance celebrating overperformance What next? Optimize SDG impact through new decisions and actions, adjust future targets, align resources

Question 41

4. Reinforce

Answer 41

Embed SDG commitments into governance practices and internal reporting - SDG commitment integrated at board level - how have sustainable development issues influenced overall strategy? - align internal operations, inventive and resources - disclose to key external stakeholders how to measure and manage impact - how to create long-term value for the organization and society? - work with independent 3rd party to verify impact reporting -> create additional layer of confidence in what to report - Making it real through CEO commitment and annual letter, board composition and commitment, business model alignment, etc.

Question 42

3 Sector - Model of Society

Answer 42

Social enterprises at the interface between market and civil society social Enterprise is a spectrum, not only black and white social business model canvas ERGÄNZEN!