The Redwoods Group 2014 Social Audit

THE REDWOODS GROUP 2014 SOCIAL IMPACT AUDIT

Audit Conducted by Mallory White MBA, Duke University The Fuqua School of Business mallory.white@duke.edu February 2015

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Introduction Executive Summary: From Symptoms to Systems Methods SWOT Analysis Governance Community Stakeholders: Customers, Partners, Vendors Engagement in the Community and Philanthropy Employees Environment Recommendations Conclusion Appendix

INTRODUCTION The Redwoods Group (Redwoods) believes that business can be a tool for positive social change and wishes to measure its social impact each year. To do so, Redwoods commissions an external auditor to assess the company’s social impact on its stakeholders, community and the environment. This document serves to measure the progress of Redwoods impact in 2014 and to identify strengths, weaknesses, threats and opportunities Redwoods faces in relation to its social impact performance.

The Redwoods Group is a privately held social enterprise that provides property and casualty insurance underwriting, risk consulting and claims services. Redwoods clientele consist of child-­‐serving organizations, such as YMCAs, JCCs, and camps. Redwoods’ mission is to protect and improve the quality of life in the communities it serves.

EXECUTIVE SUMMARY: FROM SYMTOMS TO SYSTEMS The Redwoods Group continues to make positive contributions to society both through its business functions and in philanthropic efforts. 2014 proved to be an important year for the organization both in its shift of focus from “Symptoms to Systems,“ its recertification as a B Corporation and its numerous social impacts.

In its insurance, risk management consulting and claims operations, The Redwoods Group has maintained significant impact in its customer’s safety awareness and risk management practices during 2014. Of note, Redwoods enhanced its risk consulting by shifting its focus from “Symptoms to Systems” to build safety into an organization’s operations instead of only identifying smaller signals of safety issues. In doing so, Redwoods hopes to help its customers take a more proactive rather than reactive approach to ultimately prevent danger before it occurs. This shift will increase the value Redwoods brings to its customers and allow it to better compete with its competitors in the market.

Redwoods certified again as a B-­‐Corp in 2014, receiving a score of 102.2 which is well above the requirement to be certified as a sustainable business (80 points) and 5.2 points above the average B Corp (97 points). This score is a decrease from the 2012 score of 117.9. Though the B-­‐Corp score has gone down, this is due largely to changes in the assessment criteria. As such, this decline in score does not necessarily reflect a negative change in Redwoods impact that it makes on its clients and communities throughout the United States.

2014 TRG B Corp Score 2014 Average B Corp Score Total

102.2

97

Throughout 2014, The Redwoods Group maintained its commitment to its employees and improving society by deploying multiple forms of philanthropic capital totaling in a value of $760,381.

Though this amount has decreased from the total of $848,040 that Redwoods distributed in 2013, it is a clear testament to the organization’s commitment to positive social impact. Also, The Redwoods Group Foundation acquired Green Plus, a nonprofit organization that has and will continue to change the way Redwoods will impact the communities it serves. Green Plus shows considerable potential in how Redwoods will help society at large and the environment.

Philanthropic Efforts Value Intellectual Capital $88,239 Financial Capital $176,269 Human Capital $113,205 Social Capital $361,142 Physical Capital $21,525 Total $760,381

METHODS The 2014 Social Audit assesses The Redwoods Group in terms of its social impact internally and externally. Internally, it analyzes the company’s governance and treatment of employees. Externally, it examines Redwoods impact on its community, customers, partners, suppliers and the environment. The assessment builds upon the B Impact Assessment that Redwoods successfully completed in the winter of 2014. It assesses the data in the B Corp Assessment while supplementing with more in-­‐depth data on the company’s treatment of ALL stakeholders and its philanthropic impacts. The data was collected by surveying and interviewing of internal and external stakeholders. The following impacts were measured in this audit.

B Corp Impact Assessment Criteria Governance Community Consumers Employees Environment

Safety

Philanthropic Efforts

Drowning Prevention

Intellectual Capital

Child Sexual Abuse Prevention

Financial Capital

Sauna Safety

Human Capital

Van Safety

Social Capital

Slips, Trips & Falls

Physical Capital

ANALYSIS OF STRENGTHS, WEAKNESSES, OPPORTUNTIES The Redwoods Group and its Foundation’s work has strengths, weaknesses, opportunities and threats.

While the following list is not exhaustive, the 2014 Social Audit suggests that Redwoods has a number of strengths and weaknesses that can help guide its strategic plan for the coming years.

Strengths Products and services that are inherently mission-­‐driven Employee engagement and positive work environment Personalized customer experience of those who have had to make claims Well-­‐respected convener in the safety and social impact space

Weaknesses

Data collection techniques and clarity on how to use data effectively (e.g. benchmarking and measuring) for both business and mission driven work Communication of mission driven work to internal and external stakeholders Diversity Execution of past recommendations

Opportunities

Leverage existing access to data and strengthen data collection and analysis to improve business Use Green Plus methods to help improve internal sustainability, particularly in terms of environmental impact Use Green Plus methods to promote new kinds of impact-­‐driving behavior changes Continue to measure and improve employee engagement Engaging Symptoms to Systems approach to stand out in the market place and ultimately prevent accidents before they occur

Threats Commoditization of insurance products and competition copying risk-­‐consulting services Fundraising for mission driven work is difficult Reliance on partners to scale mission driven work

The B Corp Assessment highlights many strengths of Redwoods, namely in its treatment of workers and impact on consumers. In particular, Redwoods excelled for its creation of a positive work environment for its employees. It also shined in the fact that its products and services are inherently mission driven. Despite Redwoods’ above average performance on the B Corp Assessment, the following sections of this audit demonstrate that Redwoods community impact spans in many positive directions beyond those metrics used by B Lab, particularly in the disbursement in many forms of philanthropic capital.

Though it would be nearly impossible for a company to achieve a perfect score on the B Corp Assessment, Redwoods results highlight a few areas where Redwoods could improve its impact. In particular, Redwoods should work on its governance, impact in low-­‐income communities and measurement of its environmental impact.

TRG B Corp Score

Average B Corp Score

Difference

Workers

31.2

26

5.2

Community

20.8

44

-­‐23.2

Consumers

32.3

18

14.3

Environment

6.8

13

-­‐6.2

Total

102.2

97

5.2

GOVERNANCE

In 2014, The Redwoods Group made improvements to its governance by selling stock to employees, which has given employees the access to more information on the governance and high-­‐ level decisions of the company. The Redwoods Group Foundation also began exploring bringing on board members from outside Redwoods, a process which is still ongoing. Overall, both of these efforts show awareness and improvement in governance. That said, compared to other B Corps, Redwoods has room to improve including creating an advisory board for the whole organization and better advertisement of its whistle-­‐blowing policy. The recommendation section of this audit highlights a few actionable areas where Redwoods can improve its governance.

TRG B Corp Score

Average B Corp Score

Governance

11

14

STAKEHOLDERS: CUSTOMERS, PARTNERS, AND VENDORS Stakeholder Overview In 2014, The Redwoods Group continued to engage stakeholders in meaningful ways -­‐ stakeholders feel a connection to Redwoods’ Social Mission and have benefitted from its mission-­‐driven work. Despite Redwoods’ efforts to use their social mission as a value proposition to business partners, its social enterprise status does not play a strong role in stakeholders’ choice to engage with The Redwoods Group. A recommendation from the 2013 Social Audit was to create more direct communication channels to stakeholders about Redwoods’ social enterprise status. The consulting team has done so explicitly in their presentations to prospective clients. Even so, communication of the social enterprise status as a differentiator should be one of Redwoods’ priorities as demonstrated by one client’s feedback: “Was not aware so clearly making a buying decision on other facts.” Below are the results from a survey of eleven community stakeholders, including customers, community partners and vendors. Below are results from conversations with Redwoods employees and external stakeholders: customers (6), community partners (4), and vendors (1).

Connection to Mission

Do you draw a connection between The Redwoods Group's 'Serve Others' mission and your relationship with Redwoods?

Yes

100%

Is your organization’s social mission aligned with The Redwoods Group 'Serve Others' mission?

Yes

100%

Has your organization directly benefitted from The Redwoods Group’s mission driven work?

Yes

91%

No

9%

Have you participated in any of the following initiatives due to your relationship with The Redwoods Group?

Partnering in Prevention -­‐ Stewards of Children Training 80% Free or subsidized Learn to Swim initiatives 20%

Mission as a Value Proposition for Business Partnerships

About 50% of Redwoods business partnerships are influenced by Redwoods’ social enterprise status, which is significant, and supports Redwoods’ decision to better advertise its status to potential clients.

When you consider alternative business relationships, does Redwoods Social Enterprise status (including B Corp and Green Plus certifications) influence your decision?

Yes, very strong influence to stay with Redwoods 20% Yes, somewhat strong influence to stay with Redwoods 20% Yes, somewhat strong influence to pursue alternative business relationships 10% Yes, very strong influence to pursue alternative business relationships 0% No, does not influence my decision 50%

Customers The Redwoods Group continues to deliver personalized insurance and consulting services to its customers. In fact, in 2014, it altered its model in risk consulting to deliver more tailored results to its clientele. Specifically, Redwoods’ consulting team presents to prospective clients Redwoods’ mission and highlights its status as a certified B Corporation. Furthermore, the risk consulting team has transformed its deliverables to help clientele with addressing “systems” instead of “symptoms”; in addition to identifying the areas where an organization needs to improve its safety, the consulting team now focuses on recommending ways to embed safety and risk mitigation practices in an organization’s operations. The consulting team also changed the formats of its deliverables to be convenient for client organizations to communicate to its employees and stakeholders. The ultimate goal in the pivot in risk consulting services is to bring additional value to customers by providing a proactive approach to safety and thereby decreasing the number of incidents that ever even occur.

In terms of customers, Redwoods’ strength continues to be its personalized service, as evidenced in customer feedback. Unfortunately, in 2014 Redwoods lost the most customers it has in its existence due mostly to competitive forces in the market. As such, data collection around safety (e.g. van safety, sauna safety and slips, trips and falls) could not be quantified. Due to this loss in customers, Redwoods has struggled to provide year-­‐over-­‐year changes in safety metrics because it did not track decreases in safety-­‐related metrics (e.g. number of saunas that have sprinklers or the number of clients that transport children in passenger vans) versus decreases in number of clients. This issue suggests Redwoods should strengthen its data collection and measurements so it can track year-­‐over-­‐year impact it has with its customers in terms of safety.

Safety Figures

Redwoods has continued to educate its customers on the importance of proactive safety, for example encouraging them to add sprinklers to saunas and decrease the use of passenger vans for transporting children. Though data does not track the change from last year, in 2014 there were an increasing number of clients who have engaged in more safe practices in regards to saunas and passenger vans. The impact of this education is critical – for example, the average loss from a fire in a sauna with a sprinkler is $14,333 versus the average loss for a fire without a sprinkler of $686,183. The

range for losses with sprinklers is $774 to $41,337, whereas the range for losses without sprinklers is $17,660 to $3,900,946. Clearly, these numbers indicate the financial and safety-­‐related importance of Redwoods group focus on addressing adding sprinklers.

Van safety

2014

# of Passenger Vans

7

# of Accounts using Passenger Vans

3

Sauna Safety

2014

# of saunas with sprinklers

146

#of saunas without sprinklers

600

Customer Feedback Customer feedback shows that Redwoods’ strength is in its personalized service. Customers are satisfied with the company’s individually tailored services, most particularly in times of crisis.

My most positive experience with The Redwoods Group in 2014 was ...

“The added value of training and on-­‐site support during a crisis is excellent” “A positive meeting with your consultants and sharing data just about us for the sake of sharing info-­‐ this was a happy visit and I would like to have more of them!”

“Recovery from a major fire, they have been key to our rebuilding process” “Direct engagement with the PIP initiative.”

“Redwoods has a wonderful team. Individually and collectively they are a fine group of people.”

It is also apparent that some customers would like more timely feedback with incident responses.

My recommendation, concern or idea to strengthen Redwoods customer/vendor/broker/community partner engagement is ...

"Better and faster communication-­‐ we did not receive a report from our pool incident for months-­‐ totally unacceptable” “Visit their partner's on a more regular basis” “Help us connect with like-­‐minded partners” “More timely communication especially after an incident” “A great company with great people. I see them as true partners not as a vendor.”

Community Partners

Redwoods’ community partners are pleased with their relationship with the company.

Redwoods also excels at serving as a liaison to other organizations that value triple-­‐bottom line business

practices. For example, Redwoods helped R+M, a local socially conscious marketing agency, become certified as a B Corp by connecting them to the proper people and resources. Overall, Redwoods maintains an influential role in the social impact space, and should continue to leverage that in its engagements with community partners.

My most positive experience with The Redwoods Group in 2014 was …

“How much time do you have? It's a long list. “ “Kevin Trapani is not just a participant in our mission, but he is a leader who communicates to others reasons that it makes business and social sense to be involved.

He is a valuable partner for us in many ways.”

“Associates have always been engaged with us well beyond our annual employee giving campaign. Many are volunteer leaders and advocates for our community solutions.”

My recommendation, concern or idea to strengthen Redwoods customer/vendor/broker/community partner engagement is ...

“We have very complementary perspectives. Invite us to learn more and share how we are both working to solve social issues and increase civic engagement.”

“Redwoods has a very strong identity and lives the talk.”

Vendors

The Redwoods Group did not make significant changes to its relationships with vendors during 2014. Its continuity in business with its vendors in itself demonstrates that Redwoods values its relationships with its suppliers. Furthermore, vendors appreciate The Redwoods Group mission, as demonstrated in one supplier’s feedback on Redwoods’ mission: “I view that mission as part of the core value and branding of Redwoods.”

ENGAGEMENT IN THE COMMUNITY AND PHILANTHROPY Beyond its core business, The Redwoods Group deployed multiple forms of capital that prove its commitment to improving the quality of life the communities it served in 2014. Relative to its other scores, Redwoods did not perform as well in the “Community” section of the B Lab Impact Assessment when compared to the average B Corp assessment. In reality, Redwoods excelled in Civic Engagement and Giving and Local Involvement, but according to B Lab standards, there is a need to improve in the areas of Diversity, Job Creation and Supplier, Distributors and Product.

TRG B Corp Score Average B Corp Score Community

20.8

44

The Redwoods Group did however earn the highest possible points for its disbursement of capital to the community in the Community portion of the B Corp assessment. This portion of the 2014 social audit serves to quantify the positive aspects of the financial capital and the other four forms of capital that Redwoods deployed in 2014 that may not have been measured in the B Lab Impact Assessment. These results demonstrate that Redwoods is committed to improving its community. Below is a more detailed explanation of these efforts and Redwoods’ progress in its philanthropic efforts.

Philanthropic Efforts Intellectual Capital Financial Capital Human Capital Social Capital Physical Capital Total

Value $88,239 $176,269 $113,205 $361,142 $21,525 $760,381

Intellectual Capital For the purposes of this audit, intellectual capital is defined as in-­‐kind knowledge and expertise to the community through serving as a guest speaker, panelist or providing specific professional resources to Redwoods Foundation or other nonprofit organizations. Intellectual capital also captures the convening work of Redwoods and the JCCA. In 2014, 15 Redwoods employees provided intellectual capital to their community and other stakeholders in the nonprofit space. The total hours disbursed and value this effort have exceeded 2013’s contribution of $50,146 significantly with a total of $88,239 in 2014. A creative example of Redwoods’ intellectual capital for 2014 was their partnership with Organic Transit, the creator of the ELF vehicle, to help them afford labor while helping give work to unemployed young adults.

Hours Distributed

JCCA 131

Intellectual Capital Foundation Engagement 337.5

Speaking Engagements

Total

570.5

701.5

Value of Time

$6,229

$19,033

$62,977

$88,239

Financial Capital The Redwoods Group continues to make grants to organizations in its community and focus areas for impact (such as safety). Grant decisions are made by Redwoods employees and go through a comprehensive grant assessment process. In 2013, Redwoods granted $211,705. The total has decreased to $176,269, largely due to the fact that a multi-­‐year commitment from Redwoods to a large nonprofit organization was completed in 2013. Despite the decrease in total dollars granted, this amount is significant and demonstrates Redwoods’ social responsibility.

Financial Capital Grant Making Area Dollar Amount Safety Grants $29,700 General Support Grants $48,100 United Way Grants $90,000 Employee Match $4,569 Dollars for Doers $2,000 Other $1,900 Total $176,269

Human Capital Human capital is defined as the capital distributed to better society through employee volunteer hours. The Redwoods Group requires that all employees give 40 paid volunteer hours throughout the year. Human capital also includes the work of employees in the Emerging Leaders program at the United Way and the RCO curriculum, which is a program that prepares Redwoods employees to serve on the board of local nonprofit organizations. Compared to the $155, 854 that Redwoods Group employees allocated in 2013, the total number has decreased to $113,205 in 2014. This decrease is largely due to fewer employee volunteer hours that were documented in 2014. It is possible that employees engaged in volunteer hours but did not track them, once again highlighting the need for more discipline with data collection. Despite the decrease in the total, Redwoods engagement in the Emerging Leaders program increased significantly, for it only dedicated 38 hours to the program in 2013. Similarly, actual hours served on boards and with RCO increased from 275 to 518.5.

Human Capital

Hours Distributed Value of Time

Employee Volunteer Hours 1903 $58,898

Emerging Leaders 240 $8,640

RCO & Board Positions 518.5 $45,667

Total 2661.5 $113,205

Social Capital Social capital is the provision of time and other resources used to help community partners scale their impact, including The Redwoods Group collaborations with St. Baldrick’s and the United Way. In 2013, the social capital Redwoods committed to the community was $407, 805 and this amount decreased to $361,142 in 2014.

Social Capital United Way Campaign St. Baldrick's Campaign

Total

Hours Distributed

60

0

60

Employee Fundraising Value

$59,285 $61,142

$300,000 $300,000

$359,285 $361,142

Physical Capital Physical capital is capital that is donated in-­‐kind for community organizations to have space to convene. Redwoods provides both meeting space and individual desk space to stakeholders in the community. In 2014, Redwoods allowed stakeholders to use a total of $21,525 worth of meeting space.

This total has decreased since the 2013 amount of $22,530, but this decrease is due partly to the fact that it in 2013 it allowed two groups to use individual desk space in 2013 and discontinued that partnership in 2014.

Space

Physical Capital Hours

Rate*

Value

Martin Luther King Room 363.5 $50 $18,175 Gandhi Room 134 $25 $3,350 Total 497.5 -­‐ $21,525 *Daily rate determined using a daily rate shared office space or desk. http://bullcitycoworking.com/prices/

EMPLOYEES The Redwoods Group excelled in its impact on employees in 2014 as it has for many years prior.

In order to maintain this level of satisfaction, Redwoods has continued programs like the Community Support Leave, Charitable Matching, Redwoods Community Outreach, competitive benefits and flexibility in the work place. As a result, Redwoods ranked well on the B Lab Impact Assessment particularly due to the work environment. It also ranked well in Compensation, Benefits & Training and Worker Ownership.

TRG B Corp Score

Average B Corp Score

Workers

31.2

26

Data collected in an employee survey (37 respondents) and in-­‐person interviews with 11 employees suggests that employee engagement is one of Redwoods’ strengths. Employee engagement is demonstrated by the intent to stay with Redwoods, employees’ connection with the mission, and their understanding of the overall vision and strategy.

Retention The Redwoods Group demonstrates significant employee engagement through the intent to stay with Redwoods, their connection with the mission, and their belief that Redwoods invests in them.

Would you like to be working at Redwoods one year from today?

Yes

97%

No

3%

How would you describe working at Redwoods to your friends?

Looking forward to growing with Redwoods in many areas of life and developing lifelong friends and relationships along the way.

In the short time I've been here, I've gotten a lot of support from my supervisor and other colleagues. It's a great place to work, and I truly feel valued both as a person, and for the work I'm doing.

The best working environment I have ever been in.

Great culture and atmosphere. Really enjoyable place to work.

The organization makes investments to make me more successful.

Strongly Agree 28% Agree Neither Agree nor Disagree

50% 19%

Disagree Strongly Disagree

3% 0%

Connection to Mission The employees of The Redwoods Group feel a strong connection to Redwoods’ mission and their daily work. Despite this strong connection, the survey results suggest that employee engagement and business results could be enhanced through more formal and informal cross-­‐departmental communication and understanding. The Redwoods Group Foundation plays a big role in this connection to the mission. In 2014, 90% of employees that engaged in work with the Foundation found it important to their professional experience at Redwoods.

Do you draw a connection between Redwoods’ Serve Others mission and your daily work responsibilities? Please explain in the comments below.

Yes

94%

No

6%

How did the social enterprise curriculum impact your connection to Redwoods Mission?

Very Positive Impact 26% Positive Impact 40% Neither Positive nor Negative Impact 31% Negative Impact 3% Very Negative Impact 0%

Was your foundation work important to your professional experience at Redwoods? (61% of participants engaged in work with TRG Foundation in 2014) Very important 40% Important Neither Important nor Unimportant Unimportant Very Unimportant

50% 10% 0% 0%

Understanding of Goals and Vision Employees at Redwoods understand the vision and goals of the company and how they need to execute to achieve them.

I understand Redwoods company goals and how they relate to my job.

Strongly Agree 50%

Agree Neither Agree nor Disagree

44% 3%

Disagree Strongly Disagree I am not familiar with the company goals

3% 0% 0%

Employee Recommendations Despite its positive performance with employee engagement, Redwoods employees have suggested a few areas where Redwoods can improve. Specifically, several Redwoods employees would like to see more team bonding experiences and cross-­‐departmental communication channels.

My recommendation, concern or idea to strengthen Redwoods Group employee engagement is …

Find a way to get more efficient alignment with our risk partners. The current system is terrible.

Team building, understanding roles in the office, education of others’ jobs.

More team building workshops.

To have more team building activities across disciplines. Not just an all-­‐employee meeting, but also use that time to connect with each other.

Having the whole Redwoods team (all departments) together for different functions, meetings, training.

The area I would address is the actual completion of work groups. I have participated on a couple of work groups and they never came to an end nor have I seen ideas specifically implemented.

Better communication of why it is important and clearer communication of how to be engaged.

Help new employees understand how important it is to know folks better in each department.

Many are coming out of industries that discouraged moving away from their desk and socializing.

Include more Redwoods sponsored activities such as the Food Pantry and Habitat for Humanity.

Help supervisors engage with their employees.

ENVIRONMENTAL IMPACT The Redwoods Group has room to improve in its environmental impact. The B Corp Impact Assessment Score for Redwoods is lower, in part, due to the fact that Redwoods is not a social enterprise whose mission explicitly states environmental stewardship. Redwoods can improve in the measurement of its environmental impact such as creating a written environmentally preferable purchasing policy. Furthermore The Redwoods Group could improve its environmental impact by first making concerted efforts to measure and monitor inputs and outputs so that it can diagnose where it can make improvements.

TRG B Corp Score

Average B Corp Score

Environment

6.8

13

THE REDWOODS GROUP FOUNDATION

In 2014, The Redwoods Group Foundation has made significant progress in its impact areas of child sexual abuse prevention and drowning prevention. It has played a role in direct delivery of trainings, but most significantly, it has focused on convening groups and serving as a catalyst for discussion and awareness to develop for the prevention of child sexual abuse and drowning. As such, it has been able to contribute to the larger discussion of Redwoods’ mission. It also acquired Green Plus which shows significant potential for increasing Redwoods Foundation’s impact going forward.

Drowning Prevention In 2014, the Learn to Swim initiative took an interesting turn for The Redwoods Group Foundation. The Redwoods Foundation initiated an effort in 2013 that emphasized how Learn to Swim can greatly reduce the risk of drowning to local YMCAs. As a result of these conversations with the Foundation, those YMCAs brought a proposal to YMCA USA that led to the creation of a task force dedicated to drowning prevention. This in itself was an accomplishment for Redwoods Foundation in that it spurred a major stakeholder into broader action around swim lessons and drowning prevention.

The Redwoods Group Foundation is now focusing on a project, for which the USA Swimming Foundation provided $9,500 in funding, to collect data around the impact swimming lessons have on children. So far, anecdotes from YMCAs and public school partners suggest that swim lessons may increase confidence, health and academic success of children. The Redwoods Group Foundation partnered with schools in three communities and has launched pre and post surveys for children who are receiving swimming lessons at their local YMCA as part of their school day. The results could potentially convince stakeholders (schools and YMCAs alike) to engage in this type of programming and expand access to the best form of drowning prevention – knowing how to swim. By creating ways for children to learn to swim, the Foundation’s work in drowning prevention is another example of how the Redwoods Group has shifted its focus from Symptoms to Systems.

Child Sexual Abuse Prevention

The Foundation’s work in Child Sexual Abuse Prevention in 2014 has been particularly impressive. Despite the challenges surrounding the sensitivity of child sexual abuse, its efforts in sharing the Partnering in Prevention model have gained considerable momentum as demonstrated in the figures below. Also of note is that the Foundation did not continue a large focus on statewide efforts because they did not see as much impact in these partnerships as with engaging on a more focused basis with those communities that were best positioned to drive the training to scale.

Child Sexual Abuse Prevention

2013

2014

Increase

YMCAs Partnered in PIP

174

273

57%

# of states in PIP

23

29

26%

# of state-­‐wide efforts

10

10

0%

46,164

77,788

69%

# of people trained in PIP

Green Plus Acquisition The Redwoods Group Foundation acquired Green Plus in July of 2014. Green Plus aims to help organizations achieve sustainability by finding ways to improve their bottom line from social, financial and environmental perspectives. Green Plus aids its member organizations by performing a diagnostic on their current practices and helping them create and implement a strategy to have sound practices in governance, finances, stakeholder engagement, environmental sustainability and marketing.

Organizations that achieve a specified level of competence in these areas can receive a Green Plus certification. The Green Plus acquisition seems to be another concerted effort to address Systems instead of Symptoms, due to its focus on creating the sustainability of organizations and improving the impact they have on the communities they serve.

Green Plus was established in 2009 and has 399 business members made up of 286 businesses, 73 nonprofits, 40 sole proprietors or startups in 19 different states in the United States. Of these members, 85 are Green Plus certified. Due to the acquisition in 2014, the growth in memberships was only eight organizations in the 2014 calendar year, but the organization joining Redwoods offers an interesting opportunity for Redwoods to become more sustainable both internally and in its external efforts to scale positive change. Green Plus, in collaboration with Redwoods Staff and Foundation Staff, has a strategic plan for 2015 that includes: 1) recruiting new organizations; 2) developing partnerships with other organizations in the social enterprise space (e.g. B Lab); 3) fostering relationships with public entities, businesses and nonprofit organizations (e.g. Chambers of Commerce); and 4) delivering curriculum to nearby colleges in order to tech the next generation of business leaders about the practice of social entrepreneurship.

RECOMMENDATIONS The Redwoods Group has made progress on its social impact from the past year and it has many exciting opportunities for improvement in 2015. Overall, The Redwoods Group needs to improve upon actual implementation of social impact goals and create a better approach to collecting and tracking data throughout the organization.

The top recommendations from the 2014 Audit are:

1) Determine a social impact strategy using the recommendations form the Social Audit and employee input and a course of action of how to implement it.

2) Determine a strategy for data collection and measurement in the safety and social impact components of the organization and conduct quarterly data audits to make sure data is being entered correctly and measuring intended goals.

Redwoods did not make significant progress on the recommendations from the 2013 Audit, in some cases because it determined the recommendations were outside of the organization’s strategic priorities, but also in part due to lack of management of the process. Several Redwoods employees started efforts to implement recommendations but then lost track throughout the year. Below is table outlining the progress made on last year’s recommendations and a list of actionable items in each B Corp area (Governance, Workers, Community, Consumers, and the Environment). Recommendations are based on B Lab standards and research conducted in the 2014 Audit.

2014 Recommendations Governance Complete and implement a diversity policy.

2014 Actions Started diversity policy, but did not complete it

2015 Recommendations Complete and implement diversity policy (could include efforts to hire locally or from low-­‐income communities)

Establish SMART goals for social mission. Begin tracking social impact.

-­‐

Create and/or better advertise whistle blowing policy, consumer warranty/client protection policy, written identification of material owners and investors of the company

Create an advisory board, board of directors or governing body for The Redwoods Group

2014 Recommendations Employees Create a plan for follow through on strategic committees and communicate that to employees.

Partners

2015 Recommendations Implement additional employee engagement policies considered best practices by B Lab, like provide performance related bonuses, increase paternity leave Improve feedback mechanisms (e.g. increase % of internal promotion, opportunities for 360 Degree Feedback, formal routine communication channels for contractors to give/receive post-­‐contract performance feedback)

Develop cross-­‐ departmental service and engagement opportunities.

-­‐

Increase teambuilding exercises and create formal cross-­‐departmental communication channels to improve departmental and cross-­‐ departmental communication.

Develop a volunteer/service board for employees to share when and how they are volunteering.

Complete and implement a vendor code of conduct similar to Toms Shoes.

Further educate customers about Redwoods social enterprise status through direct communication channels.

-­‐

Increase the employee volunteer hours donated back to 2013 levels and implement policies to make sure hours are documented thoroughly.

-­‐

Create vendor code of conduct with an emphasis on purchasing from suppliers that are local or from underrepresented populations Improve ways to communicate mission, vision and "Symptoms to Systems" approach to consumers and other stakeholders beyond initial presentations and increase speed of responses with customers

2014 Actions -­‐

Social enterprise status was presented in initial presentations with customers.

Bank with a certified B Corp, CDFI, an independently owned bank, a cooperative or bank union, a member of the Global Alliance for Banking on Values, or a local bank committed to serving the community

Have insurance services certified by an accreditation body

2014 Recommendations Environment Investigate easy ways for the company to continue to reduce environmental impact.

Foundation and Charitable Giving

2014 Actions -­‐

Consider vendor partnerships with other third-­‐party certified companies.

-­‐

Create tools, metrics, and benchmarks to assess progress and measure impact and outcomes.

Continue to support and communicate the foundation's work to keep employees engaged.

Based on the feedback from the employee survey, engage more and new employees in foundation's work.

Worked to focus impact and prioritize actions.

2015 Recommendations Monitor and Record usage of energy, water usage, indoor environmental quality, and outputs and record Create environmental management system that states Redwood's commitment to the environment and details plans to conserve energy (e.g. create efficiency improvements in the corporate facilities, and increase the % of energy use that comes from renewable sources), targets for these measurements and regularly monitor Create a written and circulated environmentally preferable purchasing (EPP) policy Create a strategic plan for the foundation that has clear actions, measurements and deliverables that can be put onto one page and distributed to staff and communicated in the newsletter.

Continue engagement efforts with consulting team to leverage value proposition to customers and create a plan for how Green Plus can be involved with consulting services

Continued engagement and communication efforts through newsletters.

The Foundation Bring on board members outside The engaged 61% of Redwoods Group Redwoods employees in its work.

CONCLUSION

Overall, 2014 proved to be a year full of social impact and progress for The Redwoods Group.

Redwoods’ shift in focus from “Symptoms to Systems” has affected almost all aspects of its business.

This pivot in the business is promising in that it hopes to support organizations to find the root causes of safety issues and improve their systems to address those causes and be able to be more proactive and self-­‐correcting. With a clear strategic plan and data collection methods to monitor that plan, Redwoods’ new approach to safety for child-­‐serving organizations is truly promising.

APPENDIX

The Redwoods Group B Corp Assessment

Source: Redwoods Group B Impact Assessment http://b-­‐lab.force.com/bcorp/CompanyReports

B Corp Assessment Weighting

Source: Redwoods Group B Impact Assessment http://b-­‐lab.force.com/bcorp/CompanyReports