How the social economy adds business value to corporations – my UNGA takeaways on social entrepreneurship

This is the 2nd time I have attended UNGA week on behalf of @SAP. The first time was actually in 2019. Initially, I was overwhelmed by the sheer number of side events, summits, and workshops during that week. Not to mention many heads of state and government officials giving speech after speech during the General Assembly. However, this year, I came to New York more prepared, focused, and energized. Why? Because recently, we refreshed and realigned our CSR strategy to better meet the changing needs of our business and the world. The main focus areas of our strategy, education and social economy, were also central points on the global agenda presented during UNGA week events. On day 1, I felt prepared to navigate UNGA week jungle with clarity and a clear social impact strategy.??

Throughout the week, I heard this key question repeatedly: How can social economy actors help corporations improve their social and business performance? Teaser alert: it’s not about a singular approach. Instead, discussions about this topic prompt all of us to consider opportunities within our business strategy where? partnerships with social enterprises make sense. To deliver long-term value to all stakeholders, leaders must understand and take into consideration the interdependence of economic, social, and ecological systems. The response to a multi-faceted issue can never be one-dimensional.??

Ultimately, I believe that we must apply a multi-layered approach to integrating social enterprises into your business. This also means we should consider ways to provide non-financial support such as mentoring, training, and networking opportunities to social enterprises. Non-financial support complements pure financial investment, amplifying the impact and longevity of the measures. The benefits of this strategy don’t just impact the social entrepreneurs; all players in the innovation ecosystem win. For example, consider employee volunteers who gain additional expertise through pro-bono consulting, the company itself reaching its ESG goals by working with social enterprises, or engineering departments innovating new business models by partnering with social enterprises. Let me explain.?

• Leadership development programs in partnership with your HR department?

Many corporations are struggling with “The Great Resignation” and “Silent Quitting.” Employees want more from their jobs – they are looking for balance, purpose, and opportunities for professional growth. For the past decade, we have invested in leadership development through global pro-bono consulting, sending top talent employees on an “SAP Social Sabbatical ,” a 2-4 week immersive pro-bono consulting experience. We believed it was our best employee engagement program, but as we celebrated a decade of impact we wanted the data to prove it. We worked with a social impact measurement company, @60 Decibels, to validate that social impact was indeed a leading opportunity to engage, retain, and grow employees. Just take a look at these figures:??

• 74% of employees report a positive long-term impact on their professional careers?
• 90% of supported organizations have a more positive image of SAP as a leading global corporation?
• 96% of supported organizations report positive long-term impact, while 77% of their beneficiaries report improved quality of life.??

With documented success, we knew we needed to expand pro-bono consulting significantly at SAP. Together with @MovingWorlds and alongside @Unilever and @TRANSFORM, we launched the TRANSFORM Support Hub . The hub offers virtual pro-bono consulting opportunities globally connecting corporate employees anywhere to social enterprises everywhere. Although there is no travel involved, these experiences offer as much opportunity for growth to our employees as they do growth for the social entrepreneurs and their businesses themselves.??

• Achieving ESG goals benefits sustainability and business performance??

Many companies are trying to achieve zero waste and net zero carbon emissions targets to name a few, SAP included . You can’t achieve these lofty goals alone, and in fact, integrating social enterprises into your operation can help! Let’s dive into an opportunity from the consumer products space. To help our customers in the consumer products space like BrewDog, Coca-Cola European Partners, and DS Smith, SAP partnered with an Edinburgh-based data analytics social enterprise, @Topolytics, to analyze data from various partners to create recycling and waste management strategies. Co-founder of BrewDog said , “Working with SAP and Topolytics is giving us a clear view on where this material goes and, importantly, what happens to it – in real-time. The resulting insights feed into our zero waste plan […].” Partnerships like this can exist across all of your goals – it’s about forging new relationships with those innovating in your industry or line of business. It makes all the difference.??

• Product innovation and customer retention benefits engineering and Chief Customer Officers??

Engaging with social enterprises can help drive innovation and improve business models. In case you haven’t seen the recent WEF report on the social economy , in Europe alone, the social economy comprises 2.8 million organizations and entities and more than 13 million workers – over 6% of the total workforce. European companies like @IKEA are leading the trend, partnering with social enterprises in product and market development, improving what they bring to market and where. They have even created a handbook to guide you on their methods.??

• Social procurement and the buy-social movement benefits CPOs, your business, and the world!?

Lastly, consider this: Corporations spend an estimated $150B globally on sustainable development compared to more than $20+ trillion on business-to-business procurement transactions and public procurement. Imagine if, as individuals and companies, we could shift even a small percentage of the trillions to suppliers that could meet your needs and reinvest profits into people and the planet? We would collectively accelerate the social economy in a way that could never be achieved through corporate philanthropy – and at the same time, still, receive the quality goods and services our organizations required. Do you want to know how? Below are some concrete examples of how corporations like SAP are partnering with social enterprises through procurement today. (And, I would love to know who you are partnering with too!)?

• HR Staffing + Technical Services: Auticon - Tier 1 supplier for IT and development services connecting neuro-diverse talent, especially those with Autism, to staff technical projects for companies including SAP.??
• Facilities Management + Office Products: in Canada, Australia, the UK, and more, we are working with SAP facilities to introduce social enterprises like Potluck Café and HAVE Culinary Training Society – in Vancouver. We are also integrating sustainably sourced products such as @Change Please coffee ? and @Blue Harlem Beer .??
• Marketing: Blue Dot is transforming the marketing and promotional materials industry, working to swap the products that companies brand for connecting with customers and employees, for good. Blue Dot helps you make the switch, resulting in waste reduction and ensuring that you are sourcing responsbibly in a way that matters to your core company’s values.?

Today, the latest global research from the British Council and others estimates that there are more than 8.6 million social enterprises globally. Having this in mind, I leave New York more convinced than ever. Supporting the social enterprise sector is the right way to drive long-term social and environmental impact, drive innovation, create business value, and meet global ESG goals.??

?While our own journey at SAP began with a single relationship with a social enterprise more than a decade ago, our impact grows as we consider new ways to integrate social economy players into our business. It isn’t just about social procurement or corporate social responsibility, ultimately – this is a conversation about innovation. No one company corners the market on innovation. As cliché as it might sound, we are stronger together and will find solutions to global issues of waste, emissions and inequality when we forge strategic working relationships across the public, private, and social sectors. Social enteprrises, corporations, and the world--it’s a win-win-win for all of us.??

I look forward to continuing the conversation on education with you next week. For now, it’s time to rest, reflect, and reenergize.? ?