Take-Aways & Next Steps:

Corporate Impact Innovation Workshop at SoCap13

Hosted by I-DEV International, SoCap & Inter-American Development Bank

InteractInteractInteractInteract(at SoCap) (at SoCap) (at SoCap) (at SoCap) InteractInteractInteractInteract(at SoCap) (at SoCap) (at SoCap) (at SoCap)

Exchange Exchange Exchange Exchange Ideas & Ideas & Ideas & Ideas & Perspectives Perspectives Perspectives Perspectives

Exchange Exchange Exchange Exchange Ideas & Ideas & Ideas & Ideas & Perspectives Perspectives Perspectives Perspectives

2)2)2)2)Collaborate Collaborate Collaborate Collaborate on Solutionson Solutionson Solutionson SolutionsCollaborate Collaborate Collaborate Collaborate on Solutionson Solutionson Solutionson Solutions

3)3)3)3)

About the Corporate Impact Initiative at SoCap13…

1)1)1)1)

About the Initiative

The Corporate Impact Initiative at SoCap13 was developed to:

1. Highlight examples of innovative partnerships between corporations & the impact sector*

2. Facilitate on-going collaboration between corporations and the impact sector*

*Impact sector includes impact investors, social enterprises, foundations, & development organizations

The initiative included:

• Three corporate impact panels that showcased a range of innovative cross-sector partnerships

• A half-day, invitation only workshop on Corporate Impact Innovation, facilitated by I-DEV

About the conveners…

I-DEV developed, designed and facilitated the Corporate Impact Initiative and workshop at SoCap13.

I-DEV International (www.idevinternational.com) is a global impact strategy and innovation firm that specializes in

working with corporations, local SMEs in developing countries and the impact sector to build high-impact, business-

based partnerships from the ground up. I-DEV has offices in New York, San Francisco, Kenya (Africa Regional

Headquarters), Peru (Latin America Regional Headquarters) and Singapore (Asia Satellite office).

The Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB)

(http://www5.iadb.org/mif/) is a key partner and sponsor of the Corporate Impact Initiative.

The MIF partners with global corporations to develop and support shared value projects in

Latin America and the Caribbean. It focuses on reducing poverty through encouragingincreased private investment and advancing private sector development. MIF also works with the private sector to

develop, finance, and execute innovative business models that benefit corporate partners, local entrepreneurs and

poor and low-income households.

SOCAP (http://socap13.socialcapitalmarkets.net/) is a world-renowned conference series

dedicated to increasing the flow of capital toward social good. SOCAP connects leading

global innovators, investors, foundations, institutions, and social entrepreneurs to build

this market at the intersection of money and meaning.

Catalyze new cross-sector connections & relationshipsCatalyze new cross-sector

connections & relationships

Identify & break down barriers inhibiting great

collaboration

Identify & break down barriers inhibiting great

collaboration

Brainstorm on potential solutions

Brainstorm on potential solutions

About the Corporate Impact Innovation Workshop…

Workshop Design

The half day, interactive workshop on corporate impact innovation was designed as a first step in

kicking off long-term, on-going dialog & collaboration between thought leaders from the corporate

and impact sectors.

Thirty four decision makers from global corporations, foundations, government development finance

institutions (DFIs), impact investors, and advisory firms attended and actively engaged with each

other (Many for the first time!) around the following objectives.

1) 2) 3)

Workshop Objectives

A diverse group participated in the workshop…

Investors & Funds(22%)

Investors & Funds(22%)

Advisors(19%)Advisors(19%)

Corporations(17%)

Corporations(17%)

Foundations(17%)

Foundations(17%)

DFIs(13%)DFIs(13%)

Social Enterprises & Other(13%)

Social Enterprises & Other(13%)

We focused on 3 key questions…

Potential solutions to these challenges?Potential solutions to these challenges?

Roles for each actor in addressing these challenges?Roles for each actor in addressing these challenges?

Biggest challenges limiting greater collaboration between corporations & the impact sector?

Biggest challenges limiting greater collaboration between corporations & the impact sector?

1)

2)

3)

We looked at organizational stereotypes…

DFIsDFIs

• Slow moving

• Not using $ in quantities that test or

create scalable impact

• Academic/ research-focused vs.

action-oriented

• Big on planning, but slow to take

action

• Lack cohesive direction & change

focus too often

• Disconnected from true sector

needs & required resources support

InvestorsInvestors FoundationsFoundations

• Risk Averse (both as an org &

individual staff)

• Very broad/ vague focus

• Bureaucratic

• Slow to innovate

• “Love innovation but only if it has

been done before”…

• Confusing organizational structures

• Too many acronyms

• Political agenda

• Limited ability to drive scale

• “Still no returns”

• Questionable pipeline

• Very narrow/ defined investment

focus

• Increasing pressure to reduce risk/

invest later stage in order to increase

financial returns

• Social impact too defined

EntrepreneursEntrepreneurs

• Young/ no relevant experience

• A lot of passion

• Under-prepared

• Very early stage

• Cannot scale

• Lack of focus

• Under-funded

CorporationsCorporations AdvisorsAdvisors

We looked at organizational stereotypes…

• Low risk tolerance (both as org &

individual staff)

• Focused on metrics, PR & CSR reports

• Don’t want to lead change

• Very confusing organizational

structure

• Misaligned goals with impact sector

• Confusion over seeking PR or financial

return

• High concern over public image

• Think they can solve every problem

• Can be relevant for everyone

• Formula/ framework-based approach

& solutions

We explored the biggest challenges inhibiting collaboration…

Incentive & risk tolerance

misalignment

(23 responses)

Incentive & risk tolerance

misalignment

(23 responses)

Lack of tools & resources

(4 responses)

Lack of tools & resources

(4 responses)

Confusing organizational structure & processes

(11 responses)

Confusing organizational structure & processes

(11 responses)

Language barriers/ different lexicon

(9 responses)

Language barriers/ different lexicon

(9 responses)

Lack of awareness of opportunities & potential partners

(11 responses)

Lack of awareness of opportunities & potential partners

(11 responses)

Mismatches related to scale

(7 responses)

Mismatches related to scale

(7 responses)

We brainstormed around potential solutions & roles…

Foundations & DFIs can…

1. Support cross-sector collaboration by helping to convene future cross-sector workshops, conferences & events

2. Support development of training seminars for both corporations and impact sector (e.g. Impact Investing 101 for Corporations)

Foundations & DFIs can…

1. Support cross-sector collaboration by helping to convene future cross-sector workshops, conferences & events

2. Support development of training seminars for both corporations and impact sector (e.g. Impact Investing 101 for Corporations)

Advisors can…

1. Educate both sides & bridge the “language gap”

2. Facilitate the “right” type of business-based collaboration & partnerships based on clients’ needs

3. Develop training curricula for corporations, foundations, DFIs, investors and social enterprises

Advisors can…

1. Educate both sides & bridge the “language gap”

2. Facilitate the “right” type of business-based collaboration & partnerships based on clients’ needs

3. Develop training curricula for corporations, foundations, DFIs, investors and social enterprises

Social Enterprises can…

1. Better prepare themselves for partnerships with corporations

2. Develop plans to scale capacity & operations

3. Recognize they are not alone and don’t “know it all”

4. Seek help from impact investors, DFIs and advisors

Social Enterprises can…

1. Better prepare themselves for partnerships with corporations

2. Develop plans to scale capacity & operations

3. Recognize they are not alone and don’t “know it all”

4. Seek help from impact investors, DFIs and advisors

Impact Investors can…

1. Identify & focus on investing in priority industries & value chains

2. Build deep, long-term relationships with corporations in those industries (e.g. apparel, coffee & agriculture)

3. Invest along side and/or in collaboration with corporations

Impact Investors can…

1. Identify & focus on investing in priority industries & value chains

2. Build deep, long-term relationships with corporations in those industries (e.g. apparel, coffee & agriculture)

3. Invest along side and/or in collaboration with corporations

We brainstormed around potential solutions & roles…

Corporations can…

1. Prioritize collaboration with the impact sector on all initiatives

2. Make it second nature to reach out to advisors and ask “Who’s doing related work in the impact space?” for all projects & initiatives

3. Advise & work with social enterprises early on to help them develop realistic plans to scale

4. Build partnerships with impact investment funds and identifying aligned interests & investment priorities

Corporations can…

1. Prioritize collaboration with the impact sector on all initiatives

2. Make it second nature to reach out to advisors and ask “Who’s doing related work in the impact space?” for all projects & initiatives

3. Advise & work with social enterprises early on to help them develop realistic plans to scale

4. Build partnerships with impact investment funds and identifying aligned interests & investment priorities

We brainstormed around potential solutions & roles…

We discovered the catalytic role that advisors can play…

Corporate Advisors…

(BSR, FSG, Saatchi & Saatchi S, Natural Logic)

• Have pre-existing relationships with a wide range of corporate clients

• Advise corporations on design & development of CSR, impact & sustainability strategies

Corporate Advisors…

(BSR, FSG, Saatchi & Saatchi S, Natural Logic)

• Have pre-existing relationships with a wide range of corporate clients

• Advise corporations on design & development of CSR, impact & sustainability strategies

Together they…

• Speak both languages (corporate & impact)

• Know the risk tolerance and pain points of each actor

• Can build partnerships that create value while mitigating risk for all

• Understand the challenges related to scale & can develop coordinated strategies leveraging multiple types of capital to share the lifting

Together they…

• Speak both languages (corporate & impact)

• Know the risk tolerance and pain points of each actor

• Can build partnerships that create value while mitigating risk for all

• Understand the challenges related to scale & can develop coordinated strategies leveraging multiple types of capital to share the lifting

Impact Sector Advisors…

(I-DEV, ANDE, SoCap )

• Know the impact sector landscape, key actors & priorities at each level

• Have existing relationships & contacts at each level

Impact Sector Advisors…

(I-DEV, ANDE, SoCap )

• Know the impact sector landscape, key actors & priorities at each level

• Have existing relationships & contacts at each level

+ =

We came up with additional creative ideas…

Incorporate corporate impact

curriculum into MBA programs

Incorporate corporate impact

curriculum into MBA programs

Yelp-type site designed to highlight proactive/

effective teams

Yelp-type site designed to highlight proactive/

effective teams

Case studies geared toward

CFOs highlighting impact & returns

Case studies geared toward

CFOs highlighting impact & returns

Internal education & programs at

corporations on impact sector

Internal education & programs at

corporations on impact sector

Sharing/ diversifying risk among players

Sharing/ diversifying risk among players

Corporate mentoring programs for

social enterprises

Corporate mentoring programs for

social enterprises

We outlined clear next steps…

• Advisors agreed to meet regularly post-workshop to build closer cross-sector ties and develop a plan for collaboration

• I-DEV, FSG, BSR, Saatchi & Saatchi S & Natural Logic

• Meetings already in progress

• Advisors agreed to meet regularly post-workshop to build closer cross-sector ties and develop a plan for collaboration

• I-DEV, FSG, BSR, Saatchi & Saatchi S & Natural Logic

• Meetings already in progress

1) Collaboration Between Advisors

• Incorporate similar workshops into future conferences to continue conversation & build additional cross-sector connections

• Foundations & DFIs to move this forward

• I-DEV/BSR to build on SoCap workshop at BSR conference (11/6) via interactive session on Impact Investing

• Incorporate similar workshops into future conferences to continue conversation & build additional cross-sector connections

• Foundations & DFIs to move this forward

• I-DEV/BSR to build on SoCap workshop at BSR conference (11/6) via interactive session on Impact Investing

2) Convene Additional Workshops

We outlined clear next steps…

• E.g. Impact Investing 101 for Corporations, Scaling Social Enterprises for Corporate Partnership (for top-tier social enterprises)

• Foundations expressed interest in supporting this with advisors

• E.g. Impact Investing 101 for Corporations, Scaling Social Enterprises for Corporate Partnership (for top-tier social enterprises)

• Foundations expressed interest in supporting this with advisors

3) Develop Training Seminars & Workshops