Exploring Shared Value in Global Health and Safety Workshop Summary (2016) / Chapter Skim
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2 Shared Value: Understanding Its Evolution and Opportunities to Improve Global Health
2 Shared Value: Understanding Its Evolution and Opportunities to Improve Global Health
Pages 7-28
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From page 7... ...
Derek Yach and Ali Mokdad expanded on the potential for creating shared value in global health by identifying where there is the greatest need and opportunity for increased corporate-sector engagement to address the current and future major contributors to the global burden of disease. This chapter summarizes their presentations.
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From page 8... ...
Innovation is central to shared value creation, Kramer stressed, emphasizing that to meet the needs of new and emerging markets and to operate business in a way that aligns with the needs of society is a very different exercise from traditional business strategy. Kramer provided examples of companies founded on shared value innovation, including the company VisionSpring, which has developed a new approach to marketing eyeglasses in communities that lack access to optometrists.
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From page 9... ...
The second example engaged business, met a social need, and was considered a success, but only the first which engaged business through a profitable shared value framework went to scale. Returning to the example of Yara in Tanzania, Kramer pointed out that questions sometimes arise about why a private-sector company should be making investments in areas like infrastructure instead of the government.
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From page 10... ...
Elaborating on the role of government, Kramer stressed that there are very positive examples of government investing in innovation that then spurs shared value opportunities. One such example is Grand Challenges Canada, which is a venture capital undertaking sponsored by the Canadian government focused on funding early stage companies with shared value innovations and then supporting those companies on a trajectory to be acquired by larger multinationals to take the innovation to scale.
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From page 11... ...
The shared value shift to thinking about beneficiaries as customers requires a departure from finding solutions that sound good toward conducting research to understand how to meet their needs in ways that they actually want. When asked to identify the internal stakeholders within a company that need to be engaged in discussions about creating shared value, Kramer noted that the CEO's support for shifting strategy toward shared value is critical as it requires expenditures of capital, undertaking risk, and new ways of working that the organization has not dealt with before.
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From page 12... ...
He feels this new way for business and society to work together can achieve progress on issues of global health and poverty, among many others that the world has grappled with throughout history, and perhaps achieve more progress within the coming decades than society has for centuries. Shining a light on the potential for shared value opportunities in health, Kramer noted that many current companies were developed based on business models and product design that predated both the more recent thinking about shared value opportunity and many discoveries about the health consequences and health outcomes that are determined by behavior, socioeconomic conditions, lifestyle, diet, and the physical environment.
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From page 13... ...
Some of the most prevalent risk factors for preventable death are smoking, physical inactivity, diet, blood pressure, and cholesterol. From Mokdad's perspective, addressing these risk
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From page 14... ...
Yach outlined these opportunities and potential impacts by describing how public health leaders have historically interacted with the private sector and health; how market forces and the power and reach of corporations can theoretically advance global health; why rigorous metrics and reporting systems are the drivers for this transition; and how the core products and services of companies from diverse sectors influence population health. What Do Public Health Leaders Say About the Private-Sector Role in Health?
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From page 15... ...
Given this, Yach suggested it is time to acknowledge that corporations, with their powerful impact on societal norms and individual behavior, must engage in the conversation to change global health trends. How Can Market Forces and the Power of Corporations Advance Global Health?
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From page 16... ...
Ensuring a healthy consumer base enables productive and sustainable relationships between companies and consumers.3 Despite these shared value opportunities for companies to improve health, Yach noted that continued distrust between the public and private sectors is not yet yielding beneficial results to populations. NCD risks and related challenges require a shift in the way public health interacts with the private sector.
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The coalition promotes communication about value creation in the evolution of corporate reporting, and provides a framework for integrated reporting based on six capi tals. It does not provide specific indicators or standards.
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In this way, Yach suggested, health is a fundamental driver of a successful business model. The IIRC framework highlights the importance of six capitals as being inputs and outcomes of corporate actions.
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SOURCE: As presented by Derek Yach on December 3, 2016. Adapted from International Integrated Reporting Council.
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From page 20... ...
Yach noted metrics that measure a company's culture of health and the health and well-being of its employees, or "input" metrics, need to be evidence based to ensure they reflect risk material to the bottom line. Metrics, Yach suggested, also need to focus on risks that are amenable to workplace interventions to incentivize companies to invest in employee health and well-being over time.
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From page 21... ...
Yach noted that minimal modifications in the salt, sugar, and saturated fat contents of products consumed by billions, reduced levels of alcohol in a popular global beer brand, and improved adherence to antihypertensive medication all have the potential to benefit human health. If leveraged through market forces, Yach suggested these actions could achieve health gains at substantially lower cost than many governmentled initiatives.
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From page 22... ...
Measuring Success Measuring success requires looking at the impact of these measures on population health. Yach presented a table showing a list of the most prominent risk factors, including hypertension, childhood underweight, tobacco, alcohol, high BMI, physical inactivity, and lack of fruits and vegetables (see Table 2-2)
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From page 23... ...
Yach suggested that these examples reflect the IIRC framework for a successful business model by ensuring that health is both a driver and product of economic success. These assessments help investors, consumers, and asset managers measure the impact of human capital through a health lens and give them a better understanding of the overall health of a company, including employee health and well-being as an input and the health impact of products and services as an output.
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From page 24... ...
24 TABLE 2-1 The Potential Influence on Health of Core Products and Services from Diverse Sectors Revenue Employee Sector Company (millions) Population Consumer Reach Retail Tesco 101,580 500,000 More than 80m shopping trips every week Walmart 485,651 2,200,000 260m customers/week Food & Bev.*
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From page 25... ...
SOURCES: As presented by Derek Yach on December 3, 2015. Data found at http://fortune.com/global500.
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From page 26... ...
Within a Decade Hypertension 9,395,860 Pharma/medical devices/ 6,384/5,628/5,760 Better screening, treatment, drug distribution and medicine adherence Childhood underweight 860,117 Food/retail 27,240/3,840 Bottom of pyramid innovation Tobacco 6,297,287 Tobacco/retail 3,840/3,840 Reduced risk products Alcohol 4,860,168 Alcohol/retail 4,692/3,840 Road safety and responsible drinking High BMI 3,371,232 Food/retail/pharma/sports 27,240/3,840/6,384/4,920 Healthier nutrition and calorie reduction Physical inactivity 3,183,9400 Sports 4,920 Active transport and reduced sedentary behaviors Dietary lack (fruits and F = 4,902,242 Retail/food 3,840/27,240 Increase average daily vegetables) V = 1,797,254 portions by 1 (e.g., 2 to 3)
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From page 27... ...
Using examples from Global Alliance for Vaccines and Immunization (GAVI) and PATH, Dzau summarized the guidelines and procedures that these organizations are using to address COIs.
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From page 28... ...
, a nonprofit organization hosted by Duke University and founded by Duke Medicine, McKinsey & Company, and the World Economic Forum while Dzau was Chancellor at Duke University; dealing with personal COI at Duke University and as the CEO of Innovations in Healthcare; and lastly dealing with COI policies as the President of the NAM. When asked who is responsible for responding to questions and addressing public reactions about Innovations in Healthcare hosted by Duke University, Dzau answered that depending on the level of inquiry, the management team responds, which consists of communicators, lawyers, faculty, and others.
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