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Symposium 2010

Shared Value and Sustainable Business Strategy

The Challenge

In the recent world wide economic crisis, the moral position of business in society has received renewed attention. Business enterprises around the world have begun to embrace greater responsibility for a sustainable, value-oriented society. These goals need to be reconciled with profit maximizing activities in order to assure the continued survival of enterprises operating in competitive environments.

Achieving such reconciliation requires at least following factors:

  1. Strengthening the new sense of corporate responsibility for society and identifying fields for shared-value activity in accordance with customers, suppliers, employees and the broader public.
  1. Developing specific business models that better allow combining profit maximizing with the provision of shared value for society. These business models may vary according to the relative significance of the commercial compared to the social component, reaching from largely commercial firms with a commitment to shared value, to social entrepreneurs making a living out of serving social interest.
  2. Re-organizing corporations internally, to ensure that the impact of corporate operations on society is duly considered, and to establish the commitment toward provision of shared value throughout the firm.

In turn, successful provision of shared value can help making societies more sustainable (e.g., by backing the endorsement for entrepreneurial activity in society, by stabilising fragile states, by contributing to the rebuilding of failed states) and can help securing options of choice for future generations. And again in turn, a sustainable society by fostering the growth of the whole economy may further social entrepreneurship and shared value.

What kind of shared value is required? How can businesses best use their core competences in the interests of society? What government policies and civil society initiatives are necessary to overcome political or even mental constraints? What barriers are to be removed to reap the social benefit of social entrepreneurship? For instance, are there unnecessarily complicated license and permission procedures? Should new forms of organisation be installed, or existing ones (e.g., cooperatives) reinforced to better serve the requirements of shared value business? What support could be offered to firms to be active and efficient in this field (e.g., alliances between commercial firms and social entrepreneurs, joint ventures, PPP)? To what degree does the internal re-organisation of corporations require long-range planning and finding a new balance between short- and long-term business goals?

    Solutions

    Solution
    Symposium 2010

    Use government regulation and promote public awareness to safeguard basic values in business.

    Use government regulation and promote public awareness to safeguard basic values in business.

    Use government regulation and promote public awareness to safeguard basic values in business.

    Polity, Civil Society
    Solution
    Symposium 2010

    Strengthen the sense of corporate responsibility for society by supporting global initiatives for shared value creation and by inculcating corporate responsibility in business education.

    Strengthen the sense of corporate responsibility for society by supporting global initiatives for shared value creation and by inculcating corporate responsibility in business education.

    Strengthen the sense of corporate responsibility for society by supporting global initiatives for shared value creation and by inculcating corporate responsibility in business education.

    Business
    Solution
    Symposium 2010

    Develop business models that are suitable for pursuing activities of shared value.

    Develop business models that are suitable for pursuing activities of shared value.

    Develop business models that are suitable for pursuing activities of shared value.

    Polity, Business
    Solution
    Symposium 2010

    Companies should follow the same code of conduct in all their operations around the world and provide accounts of the success of such targets.

    Companies should follow the same code of conduct in all their operations around the world and provide accounts of the success of such targets.

    Companies should follow the same code of conduct in all their operations around the world and provide accounts of the success of such targets.

    Business

    Proposals

    Proposal
    Symposium 2010

    Industrial policy has to be sustainable

    Economic, ecological and social aspects are the foundation for long-term success of a company and society Current political discourse is often peppered with the terms “green” and “non-green indu ...

    Economic, ecological and social aspects are the foundation for long-term success of a company and society Current political discourse is often peppered with the terms “green” and “non-green industries". The greens are considered to be the good guys because they supply products focusing on resource efficiency and climate protection like windmills and solar cells. The others are the bad guys because they don't produce such “green” products. For instance, the EU Commission targets in its economic strategy EU 2020 the promotion of a "low-carbon, resource-efficient, greener and competitive economy". Other EU politicians talk about the “green industries” as the industries

    Business
    Proposal
    Symposium 2010

    Shared Value and Sustainable Business Strategy

    A larger common denominator for the legal frameworks that business is working on A code of conduct that all companies that operate internationally are signing and adhering to Continued increase in the ...

    A larger common denominator for the legal frameworks that business is working on A code of conduct that all companies that operate internationally are signing and adhering to Continued increase in the publicity that offending companies will receive

    Business
    Proposal
    Symposium 2010

    Business Schools' Responsibility for a Sustainable and Value-Oriented Society

    Business Schools' Responsibility for a Sustainable and Value-Oriented Society In the recent global economic crisis, the moral position of business in society and related to this discussion the legitim ...

    Business Schools' Responsibility for a Sustainable and Value-Oriented Society In the recent global economic crisis, the moral position of business in society and related to this discussion the legitimacy of business schools and the role of managers have received considerable attention. In fact, these three actors: enterprises, business schools, and managers have greater responsibility for a sustainable and value-oriented society. In this part, the role of business schools is discussed and using business schools that educate future leaders in a responsible way by using an innovative curriculum and advocate the position of business in society is presented as

    Business
    Proposal
    Symposium 2010

    The Firm: It's mutual

    At its most fundamental the principle stakeholders in an enterprise are the employees and the customers. Good and motivated employees lead inexorably to satisfied and happy customer, and hence success ...

    At its most fundamental the principle stakeholders in an enterprise are the employees and the customers. Good and motivated employees lead inexorably to satisfied and happy customer, and hence successful companies. There are of course other factors of production; raw materials, suppliers and capital. None of this implies the need for disinterested shareholders, or rather shareholders whose sole interest is profit maximisation; the return on investment. Arup (www.arup.com) is a 10,000-strong technology, planning, design and business consulting company owned by employee-beneficiary trusts. (EBTs). Founded over 60 years ago, it has delivered uninterrupted and reasonable prosperity to its members, without debt

    Business
    Proposal
    Symposium 2010

    Create a Center for Information Literacy to Tackle World's Uncertainty

    In the era of internet, everyone on the globe needs information literacy to "survive". Especially in the current financial meltdown, the skill is vital to tackle daily uncertainty. For example, comp ...

    In the era of internet, everyone on the globe needs information literacy to "survive". Especially in the current financial meltdown, the skill is vital to tackle daily uncertainty. For example, companies want to hire those who can not only acquire accurate informations on the web but also make a strategic scenario with them to foresee the future. Furthermore, we'd better be able to modify the scenario according to new informations to be acquired in each fragile and changing situation. We can call such a skill to accomplish that "information literacy". Information literacy consists of the following two elements: The one is Open

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2010

    Shared Value and Sustainable Business Strategy

    Proposal 1 Implement a new composite framework for measuring corporate success, which encompasses both financial performance and the value created by organizations in environmental and social dimensio ...

    Proposal 1 Implement a new composite framework for measuring corporate success, which encompasses both financial performance and the value created by organizations in environmental and social dimensions. by Asheesh Malhotra “What gets measured gets improved.” For business enterprises to embrace greater responsibility for a sustainable, value-oriented society, the current way of measuring their success needs to change. The current system falls short in terms of measuring value created by an organization in environmental and social dimensions. The perceived importance of environmental, social and governance programs has soared in recent years, as executives, investors and regulators have grown increasingly aware that

    Polity, Business