Sustainability in Economic and Social Context -

Transcript:Sustainability in Economic and Social Context -:
Sustainability in Economic and Social Context - Rocky Mehera, USQ Multiple Case Explorations of Australian Banking Organisations Creating Social and Economic Value: Application of Shared Value Framework International Sustainability Conference Cairns, 17-19 Jan Harvard Academics in Value Creation Total firm-value leading to maximisation of social welfare (Jensen, 2010) Collective Impact movement (Kania and Kramer, 2011) for competitive advantage investments in long-term business competitiveness that addresses social and environmental objectives (Bockstette and Stamp, (2011) points of leverage to redefine corporate business strategies for emerging markets (Hill et al., 2012) embedding social purpose in strategic planning and optimal innovation agenda for co-creation (Pfizer et al.,2013) Customers’ and investors' interests (Simmons, 2013) Shared Value Creation Model: Definition, Positioning and Avenues Definition: Shared value is a business model encompassing "policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates" (Porter & Kramer, 2011, p. 66). Positioning: Interactive zone of strategy, competitiveness, and innovation for solving unmet social problems while simultaneously creating social and economic value (Presenter, 2018) interactive arena of social value (social and environmental investments) and business value (competitiveness investments) [Bockstette and Stamp, 2011] Avenues: new products/services, customer value/base, efficiency of value chain (Lee et al., 2012) improving the financial health, extending banking services to financially excluded segment, and impact investing for industry, and regional community (Bockstette et al. 2014) Three Levels: Shared Value Model Re-conceiving products and markets -upgrading value propositions for satisfying unmet social needs by embedding social dimensions in to the socially-aligned commercial product Re-defining the value-chain- re-configuration of operational practices and productivity (input access, resource utilization, innovation and efficiency) and reduction of socio-environmental constraints in the value chain Enabling Local Cluster Development- aligning innovative business interests with broader socio-economic issues to strengthen competitive context of regionally concentrated firms and interconnected communities Figure: Social and Economic Value Creation - Shared Value Model F Level 1: Re-conceiving Products and Markets - Literature competitive market advantage (Junge, 2011) and value for shareholders/stakeholders (Verboven, 2011) new product development opportunities for multifunctional user-centric product design (Viswanathan and Sridharan, 2011) product/entrepreneurial innovation (Drucker, 2012) knowledge sharing and accessing skills during innovative new product development (Wu, 2014) resource and capabilities for enhancing competencies (Hanson et al., 2014) basic health and nutritional issues (Breidbach and Maglio, 2016) stakeholders as co-creators (Ramaswamy and Ozcan, 2014) Re-conceive Products and Markets: (financial health and