Confidential

Corporate Social Responsibility for Impact

February 14, 2017 Clifford Yee – Managing Director Carol Chin-Fatt – Engagement Leader

2 Confidential

Prepared for:

The information provided herein has been provided expressly for Raffa Learning Community attendees as a basis for discussion purposes only.

This presentation was developed, compiled, prepared and arranged by Raffa, P.C.

through the expenditure of substantial time, effort and money and constitutes valuable intellectual property of Raffa, P.C.

All right, title, and interest in and to the presentation is vested in Raffa, P.C. and

none of these presentation slides may be used or reproduced without Raffa, P.C.’s prior written consent.

3 Confidential

What are we here to talk about today?

• Who & Why

– This workshop is for growing for-profits that have a desire to operate their businesses in a socially responsible manner

• What You’ll Learn

– Develop a clear understanding of corporate social responsibility (CSR)

– Understand the importance of articulating your intended social impact

– Discover methods for measuring and communicating the ROI of your CSR initiatives

– Identify potential CSR opportunities for your business to maximize reputation, trust, efficiencies and employee motivation — while achieving impact

4 Confidential

To serve as a catalyst for positive systemic

change

Mission

Total

Employees

275

Office Locations

(DC & Rockville)

2

Accounting Consulting Technology

Audit Human Resources

Tax Search & Transition Investment Advisory Employee Benefits Af

filia

ted

Com

pani

es

Professional Services $344,701

Cash Contribution $119,571

In-Kind Contribution $2,415,485

Pro Bono Contribution $2,879,757

2015 Total Contributions

Community Giving

2015

Revenue

$46M

A quick snapshot of Raffa, P.C.

5 Confidential

Corporate Social Responsibility (CSR) defined

“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”

– World Business Council For Sustainable Development

6 Confidential

Companies engage in a variety of social responsibility initiatives and tactics

Nonprofit Partnerships

Human Rights

Philanthropy

CSR Reporting

Workplace Diversity

Employee Treatment

Environmental Management

Cause Marketing Supply Chain

Community Investment

Employee Volunteerism

Product Giveaways

Corporate Governance Sponsorships

7 Confidential

Which typically result in three key business benefits

• Differentiation

• PR & Marketing

• Customer loyalty

• Environment

• Supply Chain

• Cost Savings

• Productivity

• Talent Retention

• Company Culture

Brand Operations Employee Engagement

8 Confidential

Companies design their CSR programs based on their lifecycle, mission, values and intended impact

Be Philanthropic

Maximize Profit

Align with a Cause

Create Shared Value

Make a Collective Impact

9 Confidential

Brand Operations Employee Engagement

Social Impact

Regardless of intended impact, all companies should measure the social impact of their programs

10 Confidential

A logic model is useful tool to help companies identify their desired impact and what it will take to achieve it

Inputs Outcomes Outputs Activities Impact

Resources dedicated to or consumed by the project

What the project does with its inputs to achieve its mission

The volume of work accomplished by a project

Benefits or changes for participants during and after the project

Long term consequences of intervention A fundamental change in a system or society

Planned Work Intended Results

11 Confidential

Case Study: USAA’s Corporate Responsibility Aspiration

Our Signature Cause

National Focus

Employee & member

time, talent & treasure

GOING ABOVE FOR THOSE WHO HAVE GONE BEYOND

MILITARY FAMILY RESILIENCY

FAMILIES IN NEED + EDUCATION + DISASTER RESPONSE

Support for Military Caregivers, Families of the

Fallen, & Wounded

Financial Readiness for Service Members,

Spouses & Children

Fulfilling Careers for Veterans & Military

Spouses

+ +

Promote emotional well-being, healing, support systems & financial empowerment

Improve financial behaviors, habits, stability & security

Provide transition assistance and increase career opportunities

Additional Local Focus

Direct Impact Targets Support safety, prevention and natural disaster

relief efforts for communities we serve Promote financial literacy and help students

gain STEM-related learning opportunities Address basic human needs due to

homelessness and hunger

Giving via USAA & The

USAA Foundation

Collaboration with military & community

groups

Products & services

(aligned to cause)

The USAA Educational Foundation

Resources (Enablers)

12 Confidential

Case Study: CSR framework for Zombie Coffee & Donuts

CSR Mission Be a catalyst for positive change in our community

CSR Pillars

CSR Priorities

Why?

1. Create job opportunities for students

2. Create access with financial support

3. Minimize our environmental footprint with green management

4. Support community entrepreneurship

5. Foster youth entrepreneurship

Education Environment Entrepreneurship

Educated communities

create economic opportunities

Healthy communities

require a healthy environment

Small businesses ensure local communities

thrive

13 Confidential

Disruptive trends are accelerating social impact and businesses are becoming forces for good

Investing in the Human Capital of Your Business

Emerging Frameworks for Collaboration

New Tools for Measuring and Reporting Impact

14 Confidential

Progressive companies are investing in the well-being of their employees

Health & Fitness Mindfulness

Fiscal Fitness

Diversity &

Inclusion

Social Media

Family Volunteerism

15 Confidential

And deliberately building a workforce that is purpose-aligned

To draw global attention to stories

that connect us

To share stories that matter, amuse,

inform and inspire

To democratize access to space for the benefit of life on

earth

To create freedoms for customers

without access to power

Believing community extends beyond the

places where we have stores

Example Purpose Statements

Source: Imperative 2016

16 Confidential

By harnessing the sense of purpose that drives their workforce, companies are fostering more social good

Purpose is powerful Purpose-oriented workers are engaged and more likely:

• to be leaders (58%) • to stay at their companies (20%)

•To promote the brand (57%) • to find meaning in their work (64%)

Purpose Finding work that matters to each person, and

connecting them to opportunities where they can drive meaningful impact

Employee Orientation

Purpose | Achievement | Money

Source: Imperative 2016

17 Confidential

Purpose-driven companies are working towards solving meaningful world problems with their employees

Every generation has Purpose-Oriented workers

“Purpose taps a universal need. It serves as a motivator despite cultural differences – uniting everyone to contribute

to something bigger.”

Source: Imperative 2016

18 Confidential

• Walks, Runs • Care/Impact Days, Weeks, Months

• Drives & Kit Assembly • Micro-Volunteerism

• Board Service • Pro--bono Service • Mentoring • Loaned Execs • Fellowships

• Matching Gifts • Dollars for Doers • United Way/CFC • Employee Funds • Online Giving Campaigns

Involvement Projects

Employee Giving

Skills-based Volunteerism

Companies are finding new ways to engage employees via smaller giving programs and skills based volunteerism

19 Confidential

Engaged employees can bring authentic humanity to their employer’s brand

1. Pick your channel (s)

3. Let employees help tell your story

2. Create or engage in something bigger

#faceversary #AdobeLife #IamCapitalOne

#TeamAmtrack #MacysLove

#LivingtheMcDream

#TalkinKoons

20 Confidential

New models of partnership are providing companies easier ways to collaborate for more meaningful impact

Collective Impact

Public-Private Partnerships

Place-Based Initiatives

21 Confidential

No matter the type of model, sustainable multi-stakeholder collaborations have several common conditions of success

Shared Measurement

Continuous Communication

Backbone or Anchor Support

Common Agenda

Mutually reinforcing Activities

22 Confidential

Corporations are increasingly leveraging Public-Private Partnerships (P3s) to address community issues

Traditional P3 Focus Areas

Emerging P3 Focus Areas

23 Confidential

Place-Based Initiatives allow businesses to address social issues in their local communities more holistically

Place Based

Initiatives

Access to Quality

Education

Jobs & Economic

Vitality

Affordable Housing Safety

Access to Quality

Healthcare

24 Confidential

The Collective Impact model brings together cross sector community partners to solve a specific problem at scale

25 Confidential

Case Study: Harlem Children Zone and Strive Partnership are examples of replicable collective impact success

26 Confidential

As your company advances in its CSR journey, measuring your social impact becomes more important

Access to Finance

Helps Tell Your Story

Helps Achieve Your Purpose

Indicates Well-Run Operations

Impact Reporting is an Expectation

Measure Outcomes vs. Inputs & Activities

27 Confidential

UN SDGS can help companies align the reporting of the impact of their CSR efforts

28 Confidential

Companies are using a variety of frameworks and certifications to demonstrate their impact

GRI Standards >> Overview Video

Certified B Corporation

Global Impact Investing Rating

System

Impact Reporting & Investment

Standards (IRIS)

Sustainability Accounting Standards

Board (SASB)

Global Reporting Initiative

GRI Standards

International Standards

Organization ISO 26000

Social Accountability International

SA80000

UL Environment ULE880

29 Confidential

Award and recognition programs are useful for measuring and communicating a company’s impact

30 Confidential

The rise of B Corps is fostering a movement where businesses are a force for good

90% of Americans say that companies must not only say a product or service is beneficial, but they need to prove it.”

- Cone Communications

“73% of consumers care about the company, not just the product when making a purchasing decision.”

- BBMG

31 Confidential

Snapshot of Certified B Corps

1897+ CERTIFIED B CORPS

40+ COUNTRIES

140+ INDUSTRIES

1 UNIFYING GOAL

Business As A Force

For Good

32 Confidential

The B Corp assessment is organized across five stakeholder impact areas

Community

Governance

Workers

Environment

Customers

33 Confidential

Other approaches and tools for accelerating impact will continue to emerge and drive disruption in CSR

Social Impact Bonds

Conscious Capitalism

Social Return on Investment

Impact Investing and Patient Capital

Program Related investing

Integrated Reporting

Venture Philanthropy

Social Entrepreneurship

34 Confidential

Our Final Thoughts

• Impact Matters! No matter how you decide to structure your CSR

strategy and programs, sustainable social impact should be a goal

• Invest in Human Capital! Take care of your employees, and they will take care of your brand.

• Achieve Greater Impact! Cultivate your network of community partners across all sectors for mutual benefit.

• Measure What Matters! People want to buy into a company, tell them why they should buy into yours.

35 Confidential

Thank You!

Cliff Yee

cyee@raffa.com @clifford_yee

Carol Chin-Fatt

cchin-fatt@raffa.com @chinfattc

“It is not enough for business to do well; it must also do good. But in order to do good, a business must first do well.”

– Peter F. Drucker