Innovating For Shared Value

Corporate Social Responsibility
Innovating for Shared Value -Mark Pfitzer, Valerie Bockstette & Mike Stamp (FSG)
Group 10 Section B
ABOUT THE AUTHORS

Marc Pfitzer and Valerie Bockstette are managing directors, and Mike Stamp is a senior consultant, at FSG, a non-profit consulting firm that specializes in helping organizations develop solutions to challenging social issues. Angela Barmettler, an associate at FSG, helped conduct the research for this article.
Introduction
Problems faced by firms in creating shared value
Social problems present daunting constraints to their operations and vast opportunities for growth
Firms are struggling to design and implement initiatives that deliver both social and business benefits
Often companies have not been guided by a social mission Dont know how to research social problems at the level needed to drive change Leaders lack experience in measuring and linking social and business results
REASONS of Failure
Building networks of external stakeholders that include unfamiliar organizations can be challenging
Framework for creating sustainable social enterprise
Embedding a social purpose

Co-creating with external stakeholder s
Rigorously defining the social need
Creating the optimal innovation structure
Measuring the social and business value
Creating shared value entails embedding a social mission in the corporate culture and channelling resources to the development of innovations that can help solve social problems.
Embedding a Social purpose
In some cases, this is a matter of reemphasizing a firms founding social mission

Turning the pursuit of shared value opportunities into a regular activity requires defining a clear social purpose, publicizing it internally and externally, and embedding it in core processes such as strategic planning and budgeting This establishes a culture that unleashes the best in employees and helps mobilize external partners that have similar goals
Danone - Innovation, People, Nature and Danone for all Dow - Canola & Sun flower seeds Beckton Dickinson Needleless Injection Systems
To recognise the importance of gaining insight into the needs to be addressed, understand the underlying social conditions and how best to change them. To conduct extensive research for developing a comprehensive view of the problem the people affected and their numbers the barriers to progress the options for driving change and
Defining the Social need
the parties that can help

Such knowledge provides the basis for anticipating resource requirements, developing the business case, and identifying the necessary execution capabilities inside and outside the company
Helped millions of malnourished families in India and other countries by providing inexpensive micronutrient-reinforced spices, which are a fastgrowing, profitable business
No Universal system for measuring social and business value exists Estimate the business and social value: anticipating how a degree of change in a social condition will drive profits, through either incremental sales or reduced costs, and linking those benefits to the resources needed to achieve them It is an iterative process that considers how much social change is needed to unlock business value, strategies for achieving that change, and the possibility of getting others to invest in the initiative Establish intermediate measures and track progress Assess the shared value produced
Measuring the Social and Business value
Coca Cola, Brazil Coletivo initiative
Integrate with a legacy business
Leveraged its expertise in water chemistry to tackle the challenge of making water intensive industries more efficient in water and energy
Creating an Optimal Innovation structure
Create a semiautonomous unit
Identified 11 diseases from the portfolio and provided essential medicines and health services to 42 million people in 33,000 rural villages in India through a social business model that became profitable after 31 months
Obtain philanthropic or
government support
Extended mobile banking services to 14 million people in East Africa through M-Pesa, one of the companys most important offerings
Creating an Optimal Innovation structure
Finance external entrepreneurs

Making More Health Program
GE & Embrace Low Cost Incubator (from $2000 to $200)
Involving stakeholders in identifying all the dimensions of a problem and designing and implementing solutions Enlist a wide range of stakeholders Clinton Health Access Initiative , MoH Kenya & HP Data Sharing to speedup diagnosis and treatment for HIV patients Mars & World Agro forestry Centre Improved Cocoa Farming in Ivory Coast
Co-Creating with External Stakeholders
Leverage others capabilities Tapping partners for their delivery capabilities
Co-Creating with External Stakeholders
Nestle & Drishtee Foundation Distribution System Novartis Arogya parivar Microfinancing for doctors and pharmacists
Dow Chemicals
Removed 600 million tons of trans fats and saturated fats from the U.S. diet and created a major business with its Nexera sunflower and canola seeds
Novartis
Intel
Trained more than 10 million teachers in the use of technology to improve educational outcomes, turning education into a profitable business for the company
Becton Dickinson
Protected millions of health workers by creating needleless injection systems, which are now a $2 billion business for BD, accounting for 25% of the companys revenue
Catalyzed a cross sector coalition to transform farms and surrounding communities in Ivory Coast with the aim of avoiding looming cocoa shortages
Embedding a Social Purpose
Defining the social need
The Solution
Defining the optimal Innovation Structure
Measuring the shared value

Estimating the social value and assessing the shared value
Co-Creating with external stakeholders
Questions?
Thank You!!!

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Corporate Social Responsibility

ABOUT THE AUTHORS

Framework for creating sustainable social enterprise

Embedding a social purpose

Rigorously defining the social need

Creating the optimal innovation structure

Measuring the social and business value

Embedding a Social purpose

In some cases, this is a matter of reemphasizing a firms founding social mission

Defining the Social need

the parties that can help

Measuring the Social and Business value

Coca Cola, Brazil Coletivo initiative

Integrate with a legacy business

Creating an Optimal Innovation structure

Create a semiautonomous unit

Creating an Optimal Innovation structure

Finance external entrepreneurs

GE & Embrace Low Cost Incubator (from $2000 to $200)

Co-Creating with External Stakeholders

Leverage others capabilities Tapping partners for their delivery capabilities

Co-Creating with External Stakeholders

Embedding a Social Purpose

Defining the social need

Defining the optimal Innovation Structure

Measuring the shared value

Co-Creating with external stakeholders

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