The case for socially oriented BM Flashcards
What is the main drawback of the BM?
It is isolated from the society and stakeholders
What is the strategy challenge?
Economic goals are best served by economic efficiency, which can be incompatible with socially motivated measures implemented in parts of the value chain.
Which are the mechanism for delivering social value
Bottom of the Pyramid - Delivering goods/services to the poorest and largest socioeconomic groups.
Pay what you want pricing -Customer has full control of the price he can even pay 0. Allows for enlargement of the customer base by including those who are unable to buy otherwise.
External social enterprises - Social programs and business activities of an enterprise are kept separate so that economic and social goals can be pursued in parallel.
The legitimacy challenge
Social enterprises need to be seen only not as economically fit but also as trustworthy and accountable.
Why is justification important
it provides clear and persuasive accounts of strategy and action and is the basis of legitimation
What is the mission measurement paradox?
Measuring social impact is very hard, in contrast to financial results, which can be easily observed. This a disconnect between the mission, objectives and impact measurements can occur.
What is the governance challenge
Governance defines systems and processes concerned with direction, control and accountability. Determines to what and whom an organization is accountable
SEMC
- making mission values and objectives explicit and establishing a priority among them
- translating mission values and objectives, respectively, into notions of impacts and measurable targets
- differentiating between (and within), non-targeted stakeholders (i.e. partners and affected stakeholders) and targeted stakeholders (i.e. customers and beneficiaries
- keeping into accounts the ways in which targeted stakeholders are involved in the co-creation of value
