Measuring Shared Value: How to Unlock Value by Linking Social and Business Results

Measuring shared value allows companies to maximize opportunities for innovation, growth, and social impact at scale. This article explains the specific purpose of shared value measurement and offers a step-by-step process and pragmatic approaches to measurement with examples from leading companies

Corporate Sustainability Indexes: FTSE 4 Good Index Report on Nestle

Corporate sustainability and economic business activities are focused on the social and environmental impacts. In this sense, the economic activity created by the businesses is to pursue social and environmental impacts, and producing information related to these effects is essential for the formation of structure for a sustainable business. Sustainability indices are structures edited on first generation sustainability indicators, which are structures constructed in order to share information with consumers and businesses. The most important benefits are improvements in transparency without the need for regulation of the sustainability index, better understanding of the social and environmental impact of companies and the guidance for arrangements to minimize the negative side effects of company activities. FTSE4Good is a responsible investment index designed to help investors identify companies that meet globally recognised corporate responsibility standards. It is the only index of its kind since it includes specific criteria on the responsible marketing of breast milk substitutes. Key Words: Corporate sustainability, FTSE4 Good, Index, Nestle

Shared Value in Chile: Increasing Private Sector Competitiveness by Solving Social Problems

Over the last few decades, Chile has experienced rapid and sustained economic, social, and institutional development. Crucial challenges remain, however, in the form of social inequity, lack of opportunity, mistrust, and social unrest. The Chilean private sector is at an inflection point in its relationship with society. The corporate sector has both contributed to and benefited from the growth and development of the last decades, but remaining social challenges pose significant constraints to the continued growth of the private sector. High levels of mistrust regarding the role of business in society reflect a widespread belief that profit making activities are merely a demonstration of corporate greed. The Chilean private sector faces a frequently antagonistic relationship with government and civil society that will likely worsen unless companies are able to find ways to authentically link their businesses to efforts to solve Chile's social problems. On the other hand, if government and civil society conclude that the private sector has no contribution to make to the country's social and economic development strategy, Chile will squander an important engine for creating shared prosperity. The good news is that there does not need to be a trade-off between private sector competitiveness and greater prosperity for all Chileans. Shared value, a concept explained in Harvard Professor Michael Porter and Mark Kramer's Harvard Business Review articles, suggests an approach for companies to increase their competitiveness and profitability by helping to solve social problems. The public sector and civil society can increase the social benefits from shared value by thoughtfully partnering with the private secto

Towards Sustainability Through Incremental Innovation of a Low Cost Product: The Nespresso Case

With the increase of the population, it is imperative to expand the production of goods and services to meet the needs of individuals. Aggressive production practices are destroying and diminishing the world’s natural resources, without any consideration about its consequences and impact on future generations. In order to minimize this problem, organizations need to develop innovations, which focus on and address the economic, social and environmental dimensions, or Triple Bottom Line. This article presents a case study on Nespresso, and investigates their strategy of developing an innovative recyclable aluminum coffee capsule, and a closed-loop recycling process, with the purpose of meeting the Triple Bottom Line. Data collection was done through secondary data, video testimonies and public documents. The collected data was analyzed and validated using the Theoretical Framework of Sustainability. With the understanding of this case, it was sought to answer the following research question: How can a low-cost incremental innovation contribute to sustainability in a gourmet coffee company? The main finding is that a low-cost product with incremental innovation, designed to meet the purpose of the Triple Bottom Line and coupled with a value-sharing strategy, is capable of delivering economic, social, and environmental benefits.

Corporate sustainability and responsibility : creating value for business, society and the environment

Today’s corporations are increasingly implementing responsible behaviours as they pursue profit-making activities. A thorough literature review suggests that there is a link between corporate social responsibility (CSR) or corporate social performance (CSP) and financial performance. In addition, there are relevant theoretical underpinnings and empirical studies that have often used other concepts, including corporate citizenship, stakeholder management and business ethics. In this light, this contribution reports on how CSR is continuously evolving to reflect contemporary societal realities. At the same time, it critically analyses some of the latest value-based CSR constructs. This review paper puts forward a conceptual framework for corporate sustainability and responsibility. It suggests that responsible business practices create economic and societal value by re-aligning their corporate objectives with stakeholder management and environmental responsibility.peer-reviewe

Creating Shared Value (CSV)in East Java, Indonesia: A critical analysis of CSV impacts on dairy farming communities

Porter and Kramer introduced the concept of Creating Shared Value (CSV) in 2006, as a win-win solution in the relationship between business and society. They argued that CSV addresses social needs and provides opportunities for companies to create economic value. According to Porter and Kramer CSV transforms business thinking, reshapes capitalism and its relationship with society. They also argued that CSV advances previous Corporate Social Responsibility (CSR) approaches, which they criticised as trapping business in a vicious circle and having little positive impact on society. This thesis analyses CSV based on a case study of Nestlé Indonesia’s CSV initiatives in dairy farming communities in East Java, Indonesia. Nestlé is a transnational company known for being a pioneer of CSV theory and for adopting CSV as part of the company’s business strategy. Nestlé established CSV initiatives, including financial and technical support, to help farmers increase milk quality. Nestlé argued that the increase in milk quality would automatically increase farmers’ income because Nestlé offered a higher price for better quality milk, which in turn improves the quality of life in the communities. This thesis found that CSV initiatives created economic value for the company. The thesis also found that these CSV initiatives do not automatically improve social conditions in dairy farming communities in East Java, Indonesia. The case study demonstrated that the micro-economic lens of CS in addressing social issues limited the effectiveness of CSV as the win-win solution. Social value will only be created through CSV initiatives, if it creates economic value for business. This thesis provides empirical evidence that CSV is consistent with the neoclassical economic understanding of business-society relationships. Therefore, this thesis argue that CSV does not advance CSR theory. Rather, it repackages neoliberal logic as a new rational discourse of CSR. Keywords: Creating Shared Value (CSV), Nestlé, Dairy farming, Indonesi

A conceptual framework for corporate sustainability and responsibility

This paper deliberates on the business case for CSR. It contends that corporations could implement responsible behaviours as they pursue their profit-making activities. A thorough literature review suggests that there is a link between corporate social responsibility (CSR) or corporate social performance (CSP) and financial performance. In addition, there are relevant theoretical underpinnings and empirical studies that have often used other concepts, including corporate citizenship, stakeholder management and business ethics. In this light, this contribution reports on how CSR is continuously evolving to reflect contemporary societal realities. Therefore, it raises awareness of key latest constructs representing strategic CSR, creating shared value and corporate sustainability and responsibility (CSR2.0) perspectives. This conceptual paper posits that responsible business practices (corporate responsibility) could be re-aligned with improvements in corporate sustainability (in terms of economic performance, operational efficiency, higher quality, innovation and competitiveness).peer-reviewe

Measurement of sustainability metrics in oil & gas and food industries: industry specific context

An empirical comparison of two companies from different industries in terms of their reported sustainability metrics in the supply chain context. The thesis shows how the two companies differ in their emphasis for sustainability matters. This creates a premise on how the two industries potentially differ in terms of their approach to sustainability