C HAPTER 14 Strategy and Social Value. T HREE TYPES OF VALUE Economic Value—increases in income,...
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Transcript of C HAPTER 14 Strategy and Social Value. T HREE TYPES OF VALUE Economic Value—increases in income,...
CHAPTER 14
Strategy and Social Value
THREE TYPES OF VALUE
• Economic Value—increases in income, wealth, or profit
• Social Value—Increases in well-being in non-economic areas– Literacy– Health and sickness– Housing
• Shared value--when creating economic value also creates social value
SUSTAINABLE STAKEHOLDER ADVANTAGES
• Social value organizations rely on repeat transactions– Universities and legacies– Community agencies and ongoing partners
• The ability to consistently gather resources from key stakeholders such as donors, volunteers, students, etc.
THE VALUE NET
Customer
OrganizationCompetitor Complementor
Supplier
CSR: A FIRM’S SOCIAL OBLIGATIONS
Philanthropic Responsibilities
Ethical Responsibilities
Legal Responsibilities
Economic Responsibilities
TYPES OF SOCIAL ENTREPRENEURSHIP
Focus on SE Activities
Role of social entrepreneur/ leader
Examples
Capacity Building Social bricoleur: Combines existing resources to focus value creation
Highlander Research and Education Center (USA): adult education for community problem solving in Appalachia
BRAC (Bangladesh): organizes and trains poor communities to create economic and social development
Products/ Services Social constructor: Develops new models, products, or services
Grameen Bank (Bangladesh, Worldwide): developed unique model for delivery/ repayment of micro-credit
Unilever (India): Project Shakti uses rural women to sell hygiene products. Improves local health and incomes
Institutional Change Social engineers: agitate for change, design more effective social systems
Bono (Ireland): becomes a voice for worldwide poverty alleviation
Nelson Mandela (South Africa): reconciliation commissions allow wounds from apartheid to heal
SUMMARY
• Strategy matters for social value organizations
• Pressure for socially responsible behavior will continue to increase as you enter the workforce
• Social entrepreneurship represents a new way to make a difference in the world