session 10 - shared value & social innovation

Question 1

what is the current fall of business legitimacy?

Answer 1

• companies are increasingly perfeceived to be propering at the expense of the broader economy
• businesses are seen as a major cause of social, environmental and economic problems
• government and civil society often attempt to solve societal issues at the expence of business
  -> even though CSR activties are growing

Question 2

why is there a disconnect between growing CSR activties and fall of legimitacy?

Answer 2

due to the narrow model of economic value creation, where societal issues are outside of the scope of busiensses
BUsinesses: profit and growth
society: economic and social development

Question 3

what is shared value?

Answer 3

enhance competitiveness of a company while silmutaneously advancing economic spcial conditions in the communities it operates

Question 4

what are three examples on how to create shared value?

Answer 4

1. reconceive products and markets
2. redefine productivity: societal problems with costs in value chain
3. build supportive industry clusters

Question 5

What are two ways to create shared value through reconceiving (rethinking) products and markets?

Answer 5

1. products and services: adress societal needs
2. new markets: serving unmet needs in underserved communities (BoP business models)

Question 6

WHy can reconceiving products and markets be a way for companies to create shared value?

Answer 6

• businesses are potentially more ffective than governments and NGOs
• new opportunities to differentiate, innovate and grow
• emergence of social entrepreneues (often faster than mainstream businesses)

Question 7

WHat are ways to redefine proudctivity in the value chain to create shared value?

Answer 7

• energy use
• water use
• health
• safety
• employee skills
  etc.

Question 8

How can you create shared value by building supportive industry clusters?

Answer 8

1. find out what suppliers are missing locally or what institutional weaknesses/ communitiy deficits create internal costs for the firm
2. start collaborative work between companies and local cluster
   - strengthen the link between a company’s success and community success

Question 9

what are the four cornerstones of shared value?

Answer 9

1. clear purpose (define objective, mission and values)
2. corporate engagement (infolve different company departments)
3. collaborative co-creation (innovative ideas with StHs)
4. communication to stakeholders (get a compeitive advantage)

Question 10

What is the main purpose behind shared value?

Answer 10

Regaining legitimacy of business:

• opportunity to transform thinking and practice om the role of corporations in society
• far broader approaches to economic value creation
• next wace of innovation, productivity enhancement and economic growth
• businesses acting as business not as charitable givers: most powerful force

Question 11

What are the difference between CSR and CSV?

Answer 11

Question 12

WHat are strengths and weaknesses of CSV?

Answer 12