Business Case

Thus far, we have performed a detailed value chain analysis, ISO self assessment audit, identified core social areas of focus, framed strategic social objectives, aligned them with business objectives and framed strategic solutions to accomplish / achieve the strategic social goals. The next step involves developing a business case.

But first let us answer what is a business case and why we require one? A business case is a rationale for any undertaking by a business. Such an undertaking can take many form. It can be a new strategic project to meet some business objectives, or social objectives or both. It can be an internal workflow assessment and improvement project or it can be an entire program such as social responsibility program consisting of number of individual projects. It can even be a new organizational policy (i.e. preferential treatment for local sellers – a new procurement policy) or regulation (i.e. new regulation to meet all the fire standards relevant to the business).

In our context, we will create business cases to substantiate and promote sustainable business practices. Such practices can take the forms of an entire program, projects, process improvements, policy and regulatory changes within the organization.   

Business cases have a singular focus. They are financial assessment of the undertaking. To put it simply business cases are basically a cost and benefit analysis of an undertaking. If the benefits outweigh the cost for the undertaking, there is a higher likelihood that an undertaking will be approved by the top management. For sustainable business practices and social responsibility programs, the challenge lies in assessing the ‘full/whole cost and benefits’ from such practices and programs. Traditionally such cost benefit analysis took into consideration direct costs and benefits only. 

For example, suppose a software developer company is considering setting up a computer lab in small government schools and training students in relevant applications as part of their social responsibility program. Some of the major direct costs associated with the projects will be computer hardware and software costs, employee time – measured in hours volunteered to the project. As for benefits, there are no direct financial benefits from the project. Rather the benefits are intangible in terms of goodwill generation amongst the locals, brand awareness and promotion, increased employee commitment and motivation etc. In the traditional methods such intangibles were either ignored or were acknowledged but were not monetized. As a result many of these projects never saw the light of the day. This is the case with majority of the sustainable business initiatives.