Shared value and corporate impact

Our work in Shared Value and Corporate Impact recognises that the company is the most powerful and innovative economic engine ever invented. But when companies start to think beyond narrow shareholder value to the creation of shared value, they can also become potent drivers of inclusion, development, social progress and sustainability.

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Expertise Areas

Shared value, transformation and inclusive business

As the world searches for a more inclusive form of capitalism, companies and investors need new commercial models and strategies with high positive social and environmental impact.

We work with leading companies and investors to design societal strategies and business models, not as corporate charity, but at the commercial core of the business.

In South Africa, we advise on meaningful transformation strategies including enterprise and supplier development, inclusive employment, and working with communities.

Corporate impact

Impact can be assessed for a company, an investment, a project, or a sector and is an important tool in strategy, project implementation, regulatory advocacy, staff motivation and reputation management.

We are leaders in helping companies and investors conceptualise, measure and articulate the social, economic and environmental value created (or destroyed) by a company, sector or investment.

The quality of our work lies in economic rigour supported by a full set of conceptual, modelling and research tools, as well as a keen eye for producing compelling and truthful strategic narratives.

Impact can be assessed for a company, an investment, a project or a sector and is an important tool in strategy, project implementation, regulatory advocacy, staff motivation and reputation management.

Public policy

We advise companies across the continent on public and governmental affairs. We help them to understand and navigate the political economy, and to craft positive public policy strategy, supported by strong technical research and positions.

Public policy services include stakeholder mapping, policy and regulatory analysis, position papers, dialogue facilitation, and strategies for the mitigation of political, regulatory and legislative risk.

We help corporate clients to better understand and engage with external stakeholders like government, regulators, trade unions, NGOs and communities based on shared value principles.

Economic modelling

Our work is supported by a full set of conceptual, modelling and research tools (both qualitative and quantitative) including:

  • Social Accounting Matrix (SAM) modelling
  • Computable General Equilibrium (CGE) modelling
  • Cost Benefit Analysis (CBA)
  • Social Return On Investment (SROI)

These tools allow us to assess the potential economic impact of policies, regulations, projects and company operations with the aim of enabling decision-making that is driven by evidence and data.

Our modelling principles are based on transparency and a depth of understanding within each of the sectors that we work. We believe that the quality of model results is heavily dependent on the quality of input into the model and the applicability of the assumptions that drive the model. As such we take great care in crafting model input that is accurate, reliable and credible.

Economic impact assessment

In economics there are always trade-offs. Changes in policies, laws, and regulations, and every government intervention creates both positive and negative impacts, winners and losers.

Good government requires that these impacts are mapped and understood, so that responsive policy can be crafted to maximise the positive while minimising the negative.

This requires analysis that is independent, rigorous, balanced and fair, analysis that understands the power of markets and pain of social challenges equally, and is not swayed by vested interests of lobby groups.

Genesis works across the continent with governments, law-makers, and the private sector to provide this analysis. We help our clients to understand potential economic, social, environmental and health impacts of policy and legislation on markets and people.

Our reputation as leading economic impact experts is built on rigorous, fact-based analysis that is independent, robust, persuasive and which retains credibility with all parties.

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Strategic stakeholder engagement and dialogue

Solving complex business and societal problems today requires coalitions of diverse stakeholders, private, public, and social, to come together in partnerships. We design and facilitate dialogue in complex social and economic situations, often involving multiple stakeholders.

We help corporate clients to better understand and engage with external groups like government, regulators, trade unions, NGOs and communities. We research the needs of these stakeholders and draw up a corporate engagement strategy based on shared interests.

Projects

Unlocking lower-cost housing opens up $1.5-billion market

Project name:
How can a bank solve the need for low-income housing?

Service:
Shared value and corporate impact

Sector:
Financial services

Area of Expertise:
Shared value, transformation and inclusive business

Client:
Confidential

Date:
2018

Country:
South Africa


Land reform is the most pressing and emotional political issue in South Africa. Genesis Analytics was approached by a banking client to design a solution to support urban land reform and the transformation of urban housing markets. We worked on this with our partners, Consulting for Sustainable Solutions.

First, a core problem was identified. Simply put, the available stock of entry-level homes was too expensive for 70% of the population. Besides being a critical social issue, this also presented a missed market opportunity for banks and their corporate clients. If homes were more affordable, financial institutions could service new markets at the base of the pyramid with mortgage loans, while financing corporates to build new homes.

To make the business case clear, we quantified the potential size of the missed market at $1.5billion a year by 2030. Thereafter, we undertook an analysis of why entry-level housing is so expensive, then designed a commercial fund on shared-value principles to solve the challenges identified.

The fund was designed for financial institutions and corporates acting together to invest in alternative building technologies, green tech, modular housing, inner-city rental refurbs, more social and student housing, and the support of black property developers.

This solution fully encapsulates shared value: we helped our client and the sector to innovate a response to a major social problem while using the company’s core expertise, generating commercial returns and opening new markets.

Raising the drinking age to 21: Pros and cons

Project name:
Evaluating the economic, health and social impacts of the proposed Liquor Amendment Bill, 2017

Service:
Economic impact assessment
Shared value and corporate impact
Regulatory economics and accounting

Sector:
Health
Manufacturing
Public and Social

Area of Expertise:
Socio-economic and regulatory impact assessment
Corporate impact
Financial modelling
Impact of regulatory decisions

Client:
National Economic Development and Labour Council (NEDLAC)

Date:
2017

Country:
South Africa


Most South Africans do not drink alcohol yet the consumption per capita is extremely high by international standards. In other words, those who do drink, drink to excess. Binge drinking is typical and levels of youth drinking are also high.

Based on this, government (led by the Department of Trade and Industry and supported by the Department of Health) proposed amendments to the national Liquor Act, 2003, including:

  • Raising the legal drinking age from 18 to 21;
  • Banning alcohol advertising;
  • Introducing vicarious liability for manufacturers, distributors and retailers of alcohol.

Genesis was asked by the National Economic and Development Labour Council (NEDLAC) to conduct an independent study on the likely economic, health and social impacts of proposals.

The team produced the most comprehensive review to date of the alcohol industry and of alcoholic consumption patterns. It found that South Africa faced four main challenges.

First, while most South Africans do not drink those who do, drink to excess - thus heavy binge drinking is a big challenge.

Second, there is a worryingly early uptake of alcohol by children and high levels of binge drinking by teens and young people. This is particularly dangerous for the cognitive development of the brain, which is only complete at 24.

Third, much hazardous drinking occurs in the large unlicensed sector.

Finally, we found evidence that existing liquor laws are poorly enforced.

Using seven approaches to estimate impact, we found that the proposals would reduce consumption of between 3.2% and 7.4%. This was also in line with the views of the major alcohol companies.

The proposals will help to bring down levels of hazardous drinking over time, slow the uptake of drinking by young people and create public health savings of up to R1.9 billion a year. We also estimated that about 185 lives a year would be saved from alcohol-related traffic fatalities.

We further estimated that the alcohol industry would create fewer jobs (between 645 and 1 500 fewer jobs in the next 10 years). The advertising industry would lose about R400 million (about 1% of its current revenue), and the media would lose about R800 million in revenue. Hardest hit would be SABC, e.tv and Multichoice.

Moreover, advertising spending by the bigger liquor companies will move from above-the-line to below-the-line marketing like store promotions, events, and competitions. This would crowd out smaller firms that tend to use below-the-line marketing, which would negatively affect competition in the alcohol industry.

Genesis’s technical inputs across three practices produced a rigorous, independent and objective study that provided the social partners and the government with facts and evidence to further debate the merits of the amendments.

Genesis’s report provides a full and balanced view of the pros and cons, in line with our company purpose to help leaders make better decisions, fairly and fully informed.

Why Nedlac wants a new study to quantify cost of liquor

Government wants to ban liquor ads

Full report

Turning around South Africa’s rust belt

Project name:
Vaal Region Rejuvenation Project

Service:
Shared value and corporate impact

Sector:
Manufacturing
Infrastructure

Area of Expertise:
Shared value, transformation and inclusive business
Public policy

Client:
Standard Bank

Date:
2018

Country:
South Africa


Like many steel and manufacturing hubs around the world, the Vaal region south of Johannesburg had faced years of company closures, ageing infrastructure and rising unemployment. The Vaal was rapidly turning into a rust belt.

The CEOs’ Initiative, a grouping of 60 top CEOs, asked Genesis Analytics to diagnose the challenges in the region and come up with a solution. Our team worked with the government and big businesses in the region to design a rejuvenation plan.

Funded by Standard Bank and chaired by Nampak, the work was unique in several ways. First, it used a technique to diagnose challenges that included demographic profiling, economic case studies of firms that had closed down, an audit of infrastructure stock, and a survey of the largest companies in the area. Second, the problems were approached by businesses and the government working together in a developmental partnership. Third, the action plan walked the line between the two extremes of doing nothing and unhealthy protection for uncompetitive industries, neither of which were sustainable in the long term.

The CEOs’ Initiative delivered the regeneration action plan to the President and Minister of Finance.

Vaal Region Rejuvenation Action Plan

Vaal Region Rejuvenation Action Plan (Information pack)

Impact of multi-billion move from sugar to corn syrup

Project name:
Socio-economic impact assessment of a new production plant, and impact on BEE transformation

Service:
Shared value and corporate impact
Transaction advisory
Market analysis and positioning

Sector:
Manufacturing
Agriculture and Agribusiness

Area of Expertise:
Economic impact assessment
Corporate impact
Public policy

Client:
Confidential

Date:
2018

Country:
South Africa


Genesis was appointed to evaluate the economic pros and cons of a multi-billion-rand mega-transaction in the FMCG sector.

Two of the world’s biggest consumer goods brands wanted to build a new multi-billion-rand production plant and switch from using sugar to corn syrup produced from maize.

The transaction was one of the biggest BEE deals in history and would also source one third of maize from emerging farmers.

Genesis was appointed to undertake an independent assessment of the economic costs and benefits of the new project, measured in a net contribution to GDP and employment.

Genesis was also asked to evaluate whether the deal would be good for transformation of the economy and what impact it would have on food security.

Our work found that the project would create a net positive growth of the economy, and would be a net positive for transformation. This had to be balanced, however, by harm done to the sugar industry. It was net neutral for food security.

The independent report was used to present the pros and cons of the project to the policy-makers to secure government and regulator support for the transaction.

What value does Airbnb add to the South African economy?

Project name:
Airbnb in South Africa: Hospitality/tourism Area of Expertise: Economic modelling and impact assessment

Service:
Shared value and corporate impact

Sector:
Hospitality and tourism

Area of Expertise:
Corporate impact
Economic impact assessment
Economic modelling

Client:
Airbnb

Date:
2018

Country:
South Africa


Since its launch in 2015 Airbnb has grown rapidly in South Africa. Like other disruptive businesses, it has faced pushback from the traditional hospitality industry.

To establish the contribution of Airbnb, the Shared Value practice at Genesis Analytics was asked to undertake an independent study to quantify the benefit of Airbnb to the economy.

The report found that since Airbnb’s founding, two million guests have arrived at listings on Airbnb in South Africa, and over 3.5 million guests have arrived at listings across Africa as a whole. Roughly half of these arrivals occurred in the past year. Cape Town remains the top destination by a long way, followed by Johannesburg and Durban.

Among other things, Genesis estimated that in 2017/2018 host and guest activity on Airbnb generated about R8.7 billion ($678 million) for the economy, which corresponds to support 22,000 jobs.

Read the report

Airbnb host earnings in smaller SA towns soar

Designing a shared-value agri fund to finance rural land reform

Project name:
Why hasn’t a black commercial farming class emerged? What can a bank do to help?

Service:
Shared value and corporate impact

Sector:
Agriculture and Agribusiness
Financial services

Area of Expertise:
Shared value, transformation and inclusive business
Rural and agricultural finance

Client:
Confidential

Date:
2018

Country:
South Africa


Land reform is the most pressing and emotional political issue in South Africa. Genesis Analytics was approached by a banking client to design a solution to support rural land reform and to transform the farming sector. The purpose of the fund was to support the transformation of sustainable large-scale commercial agricultural businesses owned by black South Africans.

The core problem was identified: that black farmers hold very little of the most highly productive and valuable land. Our research found that there were barriers to black farmers right along the value chain: from poor access to land, poor access to investment finance, poor access to working capital, poor access to markets, and to insufficient technical support.

Solving one of these would not be sufficient; all five gaps needed to be solved by one fund simultaneously.

Based on this, we designed a commercial agricultural investment fund based on Shared Value principles to allow banks, agricultural input companies, food retailers, and technical bodies to act and invest together to solve all five issues.

This was a shared-value solution: creating partnerships that together can innovate to find a solution to a major social challenge, using the private sector’s core expertise while generating commercial returns.

The client took the fund design to the banking industry CEOs, who overwhelmingly approved the fund and they will invest R8.9 billion in it over 10 years.

Economic impact of Emirates on South Africa

Project name:
Quantifying the economic impact assessment of global airline in South Africa

Service:
Shared value and corporate impact
Economic impact assessment

Sector:
Transport and Logistics
Hospitality and tourism

Area of Expertise:
Corporate impact
Economic impact assessment
Public policy

Client:
Emirates

Date:
2016

Country:
South Africa


Emirates, one of the world’s largest airlines, sought to demonstrate to policy-makers, regulators and the public, that it creates high value for South Africa’s economy.

Emirates asked Genesis to quantify the value that the airline created in South Africa and then to model the impact of a number of expanded business scenarios.

Our analysis demonstrated that Emirates created significant value for the economy through its own operations as well as through partnerships with other airlines. Particularly its wide and well-priced global connectivity creates quantifiable additional arrivals in South Africa, with measurable benefits for tourism, business and trade.

We went further to calculate the impact that could not be replaced and that was additional. In other words, the impact that is unique to Emirates’ business model.


Download fact sheet

Download full report

Emirates' study warns of losses to tourism

Creative content can drive more inclusive supply chain

Project name:
How can a media company build a more inclusive supply chain?

Service:
Shared value and corporate impact

Sector:
Communications and Media

Area of Expertise:
Shared value, transformation and inclusive business

Client:
Confidential

Date:
2018

Country:
South Africa


Genesis was asked by a pan-African television and media company to design a more inclusive supply-chain strategy.

This request came at a time of major disruption in the TV industry: entry of new competitors like Netflix, new platforms like internet and mobile TV, new technology like AI, and rapidly changing consumer habits.

We advised the company to move away from a reliance on ad hoc, low impact, sub-economic supplier development based on a mentality of charity. We advised that it link the inclusive supplier strategy directly to the disruptive challenges faced by the business – an archetypal shared-value solution.

In the television and film industry it is well known that “content is king”, so we proposed that the company link the inclusive supply chain to the creators and producers of local and vernacular TV content.

We proposed the establishment of creative spaces around the continent, based on the concept of the “YouTube Spaces” in which young, trendy, previously disadvantaged creatives and ideators - who happen to be exceptionally well attuned to the target market – can create, present, test and produce content ideas for new TV and film.

This would enable the company to build up previously disadvantaged suppliers as content producers, racially transforming the industry (the social impact) while building a portfolio of local content to gain an edge on foreign competitors (the business impact).

Economic impact of De Beers on Botswana

Project name:
Evaluating the socio-economic impact of De Beers in Botswana

Service:
Shared value and corporate impact
Economic impact assessment

Sector:
Mining

Area of Expertise:
Corporate impact
Economic impact assessment
Public policy

Client:
De Beers

Date:
2015

Country:
Botswana


De Beers, the world’s largest diamond miner, has been in partnership with the government of Botswana for 50 years - arguably the world’s most successful public-private partnership.

De Beers asked Genesis and PwC to produce an independent report to analyse the economic contribution of the partnership to Botswana.

The report included the history of the partnership from 1967 and an analysis of the economic contributions in 2014.

The findings were launched at a Chatham House conference in Gaborone in 2015. More than 1 000 people tuned into the live feed of the conference and the website was viewed 1 600 times over the two days. With over 2 300 unique mentions on social media, the hashtag #Botswana2015 was seen more than 12.5 million times.

Ryan Short presents findings at Chatham House conference in Gaborone

Download the report

Meet the Team

Areas of Service Expertise

  • Shared value, transformation and inclusive business
  • Corporate impact
  • Public policy
  • Economic modelling
  • Economic impact assessment
  • Strategic stakeholder engagement and dialogue

Related Sectors

Read more about our work

Our Shared Value and Impact practice works where markets, government and society collide. Read more about our work: Download the brochure

Genesis affiliates to Shared Value Initiative

The Shared Value Initiative (SVI) was launched as a Clinton Global Initiative Commitment to Action with the support of Professor Michael Porter of Harvard Business School.

The initiative furthers the understanding and practice of a business concept by mixing business strategy and social impact.

The SVI is the world’s leading shared-value network with the 27 member countries across the world. It serves as a global knowledge and learning hub for accredited practitioners in SVI strategies of practice. Genesis became the only accredited affiliate in Africa in 2016.

Partner Ryan Short attended the Creating Shared Value programme at Harvard Business School. He is photographed above with Michael Porter.

Genesis Analytics becomes only Africa-based affiliate of Shared Value Initiative

Ryan Short outlines the Shared Value course at GIBS

Genesis partner unpacks role of Shared Value

Projects

Project

Unlocking lower-cost housing opens up $1.5-billion market

Land reform is the most pressing and emotional political issue in South Africa. Genesis Analytics was approached by a banking client to design a solution to support urban land reform and the transformation of urban housing markets.

View Project
Project

Raising the drinking age to 21: Pros and cons

The National Economic and Development Labour Council (Nedlac) commissioned Genesis Analytics to conduct an urgent independent study on the likely economic, health and social impacts of some of the amendments proposed in the Liquor Amendment Bill, 2017.

View Project

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Leading the team

Ryan Short

Partner (Shared Value)

Ryan Short
Partner (Shared Value)
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