1. 1 CSR and Creating Shared Value Mridula Joyner, CFRE & Vicki Cummings YMCA of Greater Toronto LACA Conference September 28, 2011

2. Overview Why has CSR become so important to governments, corporations and charities? Impact of a changing global community North American vs Latin American and Caribbean context re: CSR Positioning the YMCA and its collaborations with other NGO’s as a good CSR partner How to engage Practical Tactics Final thoughts/questions/discussion

3. Why has CSR become so important to governments, corporations and charities? Continued high levels of inequalities and social mobility have perpetuated high levels of poverty, lack of education, unemployment, heath care and environmental issues Increasingly difficult for governments alone to deal with these problems –Current environment of high sovereign debt loads will further amplify this issue Charities and NGO’s, often independently or in partnership with government, provide service delivery at the community level and struggle to cope with increasing demands and shoe-string budgets Corporate sector understands that their success depends on the success and health of the communities they serve and their business decisions need to reflect that understanding

4. Impact of a Changing Global Community

5. What’s driving this change? Demographics Technology Economy Environment Politics Business Consumer

6. A Corporate Perspective Brand differentiation –Separate from competition –Customer loyalty Human Resources –Employee engagement, recruitment and loyalty Environmental Sustainability –Impact of corporate footprint Risk Management –Reputation and best practices Government/Stakeholder Relations –Leverage to influence policy and regulation

7. Business has changed. 10 years ago, corporate marketing and philanthropy were two separate strategies Today, companies are more focused and strategic regarding the social, environmental and economic impact of the business This has lead to an alignment, and in many cases, an integration of philanthropic, marketing and operational dollars

8. The need for a different approach Recent economic crisis has created unprecedented sovereign debt issues Demographic shifts (i.e. the global aging of baby boomers) Governments alone cannot solve the problems Corporations alone will not solve the problems Individuals alone are unable solve the problems 8

9. North American vs Latin American and Caribbean Context North American CSR movement is more mature and structured CSR strategies in Latin American are being developed to start addressing very basic human needs in order to create sustainability Identify and leverage key multinational companies (e.g. Procter & Gamble and Nestlé) with successful CSR models to share learnings and help build capacity Key learnings from North America model can be shared and leveraged to build framework for Latin America CSR strategies –This forum can be the beginning of a dialogue and information exchange to help facilitate change 9

10. Creating Shared Value Create Social Value Investment that address social/environmental issues Create Business Value Investment in long-term competitiveness Create Public Sector Value Investment in long-term sustainability 10

11. Positioning the YMCA and its collaborations with other NGO’s as a good a CSR partner Strength of the YMCA’s and partner NGO’s is their strong connection to community They are often acutely aware of the social and economic issues impacting their communities and provide many of the essential programs/services required to address critical needs This allows for strategic leveraging with government and the corporate sector with respect to their critical role Through innovative/creative approaches the YMCA’s/partner NGO’s can create a ‘shared-value’ proposition for both public and private sector consideration –E.g. YMCA Diabetes programs in YMCA of Metropolitan Milwaukee and YMCA Buffalo Niagara 11

12. Education and Development Social Services Health, Fitness and Recreation Employment Healthy Community Provides programs/services in 4 key areas that are aligned with 6 social issues we’ve identified as critical to building healthy communities: 1.Poverty 2.Obesity 3.Youth unemployment 4.Access to child care 5.High school drop out rates 6.Diversity and social inclusion Financial development strategies are being repositioned to align with this framework YMCA of Greater Toronto 12

13. 13 Practical Tactics Vision –Have a clear understanding of your organization as a catalyst for creating shared value and social change Strategy –A robust strategy that identifies a clear focus and articulates ambitious goals Delivery –Effective delivery that leverages assets and expertise across functions and service areas within your organization as well as external partners and stakeholders Performance –Management of performance that seeks to measure and learn from results, bring successful efforts to scale and communicate progress Discuss example of YMCA of Greater Toronto strategy with sanofi-aventis and diabetes program

14. How to Engage Determine the key social issues affecting your community (poverty, unemployment, health care (such as childhood/youth obesity, etc.) Identify which YMCA/community programs align with these issues (e.g. Access to child care in the Greater Toronto area and increase in YMCA child care centres) Create a mechanism for measuring goals, outcomes and impact both current and future –May be able to access partner resources to facilitate Explore how can these programs be leveraged to further social and economic change in your community (e.g. Nestlė and Procter & Gamble engagement in Latin America) Research companies your community that may have an interest in aligning with your organization to address these issues –Approach Canadian Embassies in your areas to assist in identifying potential Canadian corporations doing business in you area (Canadian Government recently concluded trade mission to Latin America) –Engage your volunteers –Shared learnings and potential partnership with Canadian YMCA’s Begin a dialogue with potential corporate partners to assess potential for support 14

15. final thoughts/questions/discussion 15

16. Thank you! 16