Creating Societal Value

Creating enterprise societal value begins with a focus on definition and agreement across the C-Suite as it relates to all forms of societal value creation, including your core business products and services; your ESG or sustainability policies and programs; and your choices about corporate activism or advocacy. Collectively, these should form a recognizable and coherent whole that can be used to communicate the enterprise commitment to a comprehensive approach to societal value creation.

What You Do

1. Define corporate purpose to include societal value.
   • A corporate purpose statement should answer the questions “Why do we exist?” and What value do we create? In this context, there is an opportunity to think more broadly about value created, not just for customers, partners, employees and shareholders, but for society at large. Societal value can come from ESG initiatives, employee volunteerism, donations, matching grants, etc., but also, and most importantly, it can and should come from the company’s core business products and services.
   • Example: Philips has redefined itself as a health technology company focused on improving people’s health and enabling better outcomes across the health continuum.
   • This is clearly reflected in their mission: “At Philips, we strive to make the world healthier and more sustainable through innovation. Our goal is to improve the lives of 3 billion people a year by 2030.”
2. Analyze corporate impact and sustainability.
   • Answer the question: How do our business policies and operations impact the environment, natural resources, communities, diversity, privacy, human rights (e.g. through our supply chain) or anything that could enable the enterprise to sustain its long-term value creation? Then determine where policies should be adjusted or where programs can be created, both to mitigate negative effects on society and to accelerate positive ones.
   • Examples:
     • Recognizing that the availability of fresh water can be impacted by its use in brewing beer, AB InBev has made this commitment: “By 2025, 100% of our communities in high-stress areas will have measurably improved water availability and quality.”
     • As more and more companies go digital, IBM is pledging its commitment to help people prepare for an increase in “new collar jobs” that often don’t require a four-year college degree.
3. Consider corporate activism.
   • Be prepared to respond in the event that employees or other stakeholders expect or demand that the company takes stands on social or policy issues beyond corporate interests in regulatory and economic policy.
4. Integrate with corporate brand and culture.
   • Incorporate societal value creation attributes into the brand definition and attributes; and ensure that employees understand the company’s commitment to societal value and the ways they can contribute to it (e.g. through volunteerism programs).
5. Shape the societal value story and communicate it to all stakeholders.
   • Build your societal value and sustainability story, supported by solid data, and tell it in a targeted way (earned, owned, shared and paid) to key constituencies, including investors and employees.
   • Example: An enterprise commitment to education might include investments in curriculum development, scholarships, paid and earned media promotion of activities and employee volunteerism.
   • Report on the company’s policies, practices and track record