Tag Archives: shared value

November 6, 2014 · 6:20 pm

Re-conceiving Corporate Sustainability and Responsibility for Education

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(This contribution also appeared on CSRwire)

During their learning journey, individuals acquire knowledge and skills that ought to be relevant for their prospective employment. The provision of their education is the responsibility of national governments. Yet, business and industry seldom offer continuous professional development and training to their human resources that supplement formal education (although they are rarely involved in setting outcomes of curriculum programmes). Very often, companies have to respond to challenging issues such as skill mismatches where candidates lack certain competencies that may be too deep to bridge through corporate training courses. Perhaps, global businesses may compensate to a certain extent as they can shift their operations elsewhere to tap more qualified employees. However, the constraints on their growth can be halted by the broad impact of inadequate education and training in some industries or regions. Therefore, corporations may possibly become a key player in addressing unmet needs in education. Several companies have the resources and the political influence to help improve educational outcomes which will in turn help them to nurture local talent. Leading businesses are already devising Corporate Sustainability and Responsibility (CSR) programmes that are actively supporting education across many contexts:

For instance; Cisco (a provider of networking equipment), has created more than 10,000 networking academies in 165 countries. 4.75 million individuals have improved their employment prospects as they attended training to become network administrators. At the same time, these individuals have increased the demand for Cisco’s equipment. Similarly, SAP and Verizon have often partnered with local universities and education institutions in order to deliver courses, career coaching and customised degrees on site for employees. The companies have discovered that employees that pursue such programmes are more likely to remain loyal to their company. Naturally, it is in the interest of employees to attend educational programmes that may ultimately lead to their career progression and better prospects. Moreover, continuous professional development and training may considerably reduce high employee turnover. Interestingly, SAP employs people with autism in technology-focused roles. In doing so, SAP concentrates on these individuals’ unique strengths. This way, the company can gain access to a wider pool of untapped talent that will help to foster a climate of creativity and innovation. In a similar vein, Intel has also invested in training programmes and partnerships that strengthen education. The company has recognised that its business growth is constrained by a chronic shortage of talent in science, technology, engineering, and maths (STEM) disciplines. Through programmes like Intel Math and Intel Teach, the global multinational has delivered instructional materials, online resources, and professional development tools for hundreds of thousands of educators across the United States. The students’ have acquired STEM and other 21st century skills, including critical thinking with data as well as scientific inquiry. This is a relevant example of a corporate business that has successfully addressed its workforce needs. Intel has recognised specific skill gaps in its central areas like technology and engineering. Accordingly, the company has committed itself for further investment in education. The company has created higher education curricula in demand areas like microelectronics, nanotechnology, security systems and entrepreneurship. Undoubtedly, Intel’s efforts affected millions of US students. At the same time, the company has increased its productivity and competitiveness. In addition, there are many big businesses that contribute in stewardship, charitable and philanthropic causes. In the past, the GE Foundation has supported systemic improvements in urban school districts that were close to GE’s business. These investments have surely helped to close the interplay between corporate sustainability and responsibility (CSR) and corporate philanthropy, while strengthening GE’s long-term talent pipeline.

In a nutshell, this contribution redefines the private sector’s role in the realms of education. It posits that there are win-win opportunities for companies and national governments as they cultivate human capital. Indeed, companies can create synergistic value for both business and society. In the main, such a strategic approach can result in new business models and cross-sector collaborations that will inevitably lead to operational efficiencies, cost savings and significant improvements to the firms’ bottom lines. Notwithstanding, the businesses’ involvement in setting curricula may also help to improve the effectiveness of education systems in many contexts. Businesses can become key stakeholders in this regard. Their CSR programmes can reconnect their economic success with societal progress.

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July 10, 2014 · 2:44 pm

Generating Synergistic Value for Business and Society

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Synergistic value integrates insights from the stakeholder theory [1] [2] [3] and the resource based view theory [4] [5].

The stakeholder theory [1] provides opportunities to align business practices with societal expectations and sustainable environmental needs. Businesses ought to reconcile disparate stakeholders’ wants and needs (e.g. employees, customers, investors, government, suppliers etc.). Firms can create synergistic value opportunities by forging alliances with internal and external stakeholders.  This may lead to an improvement in mutual trust and understanding. As a result, there are also benefits for corporate reputation, brand image, customer loyalty and investor confidence. This societal engagement also responds to third party pressures, it lowers criticisms from the public and minimises regulatory problems by anticipating legal compliance.

The synergistic value model [6] as featured in Figure 1. presents the potential effect of the government’s relationship on the organisation’s slack resources. Moreover, scarce resources are a facilitator for quality and innovation. Therefore, discretionary expenditures in laudable practices may result in strategic CSR [7] outcomes  including; effective human resources management, employee motivation, operational efficiencies and cost savings (which often translate in healthier financial results) [6]. business-comment_05_temp-1359037349-510143a5-620x348(source: Camilleri, 2012)

This promising notion suggests that there is scope for governments in their capacity as regulators to take a more proactive stance in promoting responsible behaviours. They can possibly raise awareness of social and sustainable practices through dissemination of information; the provision of training programmes and continuous professional development for entrepreneurs [6]. They may assist businesses by fostering the right type of environment for responsible behaviours; through various incentives (e.g. grants, tax relief, sustainable reporting guidelines, frequent audits et cetera) [6].

 

Synergistic value implies that socially responsible and environmentally-sound behaviours will ultimately bring financial results – as organisational capabilities are positively linked to organisational performance. Synergistic value is based on the availability of slack resources, stakeholder engagement and regulatory intervention which transcend strategic CSR benefits for both business and society.

References:

[1] Freeman, E.E. (1994). The Politics of Stakeholder Theory: Some Future Directions Business Ethics Quarterly, 4(4), 409

[2] Jones, T. M. (1995). Instrumental stakeholder theory: A synthesis of ethics and economics. Academy of Management Review, 20(2), 404–437.

[3] Donaldson, T., and Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, Evidence and implications. Academy of Management Review, 20(1), 65–91.

[4] Orlitzky, M., Siegel, D. S. and Waldman, D. A. (2011). Strategic Corporate Social Responsibility and Environmental Sustainability. Business & Society, 50(1), 6-27.

[5]McWilliams, A. and Siegel, D. 2011. Creating and capturing value: Strategic corporate social responsibility, resource-based theory and sustainable competitive advantage. Journal of Management, 37(5), 1480-1495.

[6] Camilleri, M. A. (2012). Creating shared value through strategic CSR in tourism.. University of Edinburgh. https://www.era.lib.ed.ac.uk/handle/1842/6564 accessed 10th July 2014.

[7] Werther, W. and Chandler, D. (2006). Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. London: Sage Publications.

[8] Porter, M. E. and Kramer, M.R. (2011) Creating shared value. Harvard business review 89.1/2 (2011): 62-77.

 

Links:

http://www.timesofmalta.com/articles/view/20131010/business-comment/Unleashing-shared-value-through-content-marketing.489766

http://www.timesofmalta.com/articles/view/20130523/business-comment/Leveraging-organisational-performance-through-shared-value-propositions.470940

http://www.timesofmalta.com/articles/view/20130124/business-comment/Creating-shared-value-for-long-term-sustainability.454548

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January 28, 2014 · 10:35 am

Davos 2014 calls for corporate responsibility

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Davos 2014 calls for Corporate Sustainability and Responsibility: #CSR brings benefits to both business and society! #SharedValue

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September 14, 2013 · 8:47 am

Unleashing Shared Value through Content Marketing

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Companies have to deal with different stakeholders’ opinions, attitudes and perceptions about their behaviour. They need to strike a balance in satisfying numerous stakeholders’ expectations. Businesses can’t please everyone. However, they should try to engage in fruitful and collaborative working relationships with external stakeholders, as dialogue often leads to improvements in mutual trust and understanding. Continuous communication also translates to benefits for the businesses’ reputation, its brand image, customer loyalty and investor confidence. Companies cannot afford to overstate or misrepresent their Corporate Responsibility (CR) initiatives. Although, they often manage to control their internal communication paths, it is much harder to control external media. As a result, it has never been more necessary to turn the businesses’ stakeholders into potential advocates for both the cause and the company. This can happen if CR realms are a good fit for the businesses’ mission and vision. It is advisable that CR communications reflect the ethos of the practicing organisations. Therefore CR (and sustainability) reporting should be clear in their intentions, with specific and relevant information featuring the companies’ credentials, and how stakeholders will benefit.

CR behaviour is directed at the organisations’ stakeholders comprising human resources, suppliers, customers and the community at large. Well laid down policies and initiatives are usually communicated through formal statements in annual reports as well as through corporate websites. CR reporting cover areas like training and development opportunities for employees, employee consultation and dialogue, health, safety and security issues and also measures for work-life balance. Apparently, business organisations are increasingly pledging their commitment for more innovative environmental investments. For instance, energy and water conservation, waste minimisation and recycling, pollution prevention, environmental protection as well as sustainable transport options. These sustainable practices bring strategic benefits such as operational efficiencies and cost savings. Several empirical studies (including mine) have indicated that discretionary investments in CR, whether they are driven from  strategic intents or from ‘posturing behaviours’ often result in improved relationships with internal and external stakeholders. The rationale for societal engagement is to anticipate third party pressures, lower the criticisms from the public and to minimise legal cases through compliance with regulations.  

CR should not be merely presented as goodwill or as a philanthropic venture. It should be featured as a realistic business case for stakeholders. This shared value proposition requires particular areas of focus within the businesses’ context. Yet, at the same time it looks after the society’s wellbeing. This notion contributes towards sustainability by addressing societal and community deficits. Presumably, shared value can be sustained only if there is a genuine commitment to organisational learning, and if there is a genuine willingness to forge relationships with key stakeholders, including customers and employees. Free publicity and informal word of mouth can either bring supportive or damaging effects. There is scope for businesses to foster strong relationships with particular community and marketplace beneficiaries. Such stakeholders can possibly serve as a buffer against potentially negative and harmful reviews. Recently, companies are increasingly focusing their attention on content and inbound marketing. In a nutshell, content marketing necessitates an integrated marketing approach through different channels of communication with stakeholders. This has to be carried out at all times. Many local businesses are becoming proficient in their customer engagement. They realise that this marketing approach brings customer loyalty, particularly if the business is delivering consistent, ongoing business propositions. In a similar vein, inbound marketing tactics also draw customers to businesses. Successful businesses are continuously coming up with informative yet interesting, original content through innovative marketing and interactive methods such as blogs, podcasts and social media networking, enewsletters et cetera. Online content comprise refreshing information which tell stakeholders how to connect the dots. It goes without saying that corporate internet sites are serving their purpose. The general public is continuously presented a better picture of the companies’ communications; containing the latest news, elements of the marketing mix endeavours and marketing fads. It transpires that content marketing has become a valuable tool for CR communications. Businesses who make use of the right content to explain their CR behaviours will gain a competitive advantage relative to others. On the other hand, stakeholders have become acquainted with businesses communicating their motives and rationale behind CR programmes. CR practices provide a good opportunity for businesses to raise their profile through their laudable behaviours.

At times, businesses can obtain decent coverage by third parties, especially media enterprises who are renowned for their sense of objectivity. Strategic communications help to improve the corporate image of firms, leading to reputational benefits and rapports of trust with stakeholders. This short contribution suggests that content and inbound marketing can be successfully employed for CR communications and to enhance customer and employee engagements.

DrMarkCamilleri.com

Google News

Times of Malta

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July 5, 2013 · 7:50 pm

Developing Social Marketing Plans

Corporate Social Marketing differs from other marketing activities as it focuses on responsible behaviours that help society and the environment. This contribution suggests that there are many benefits for businesses who carry out laudable initiatives. Social marketing raises the businesses’ profile as it strengthens the brands’ positioning relative to others. It improves the financial performance of firms, especially if it supports the firms’ marketing goals and objectives.

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Of course there may be many cynics among stakeholders (including customers) who view social marketing campaigns as none of your business. Therefore, developing and supporting social marketing campaigns will surely involve more than writing a cheque.

Businesses ought to pick an issue which is closely related to their individual organisation’s core business. The organisation’s resources and the corporate marketing strategies should focus on initiatives that have the potential for long-term sustainability. In addition, every member of staff should be encouraged to engage in socially and environmentally responsible behaviours. Perhaps, there is also scope in forging alliances with the public sector and non-profit organisations. Such external stakeholders can possibly provide relevant expertise, credibility and extended reach into promising customers. For instance, non-governmental organisations can easily identify the needs and wants of the communities around businesses. Finally, strategic marketing entails sequential planning processes which will involve consumer and competitive research as well as the effective utilisation of marketing mix tools.

A cohesive approach is necessary to ensure successful results. Therefore, the following steps and principles are highly commendable for the successful implementation of social marketing plans which will eventually reap fruit in the long term:

  1. Determine a vision for social behaviour: Who is the main sponsor of this concerted effort? What is the purpose of doing this? What social and environmental issue(s) will the plan address and why?
  2. Conduct a situation analysis, which triggers a SWOT analysis: What are the internal strengths and weaknesses? What are the external opportunities and threats?
  3. Segmenting target audiences: Which individuals and/or organisations in the community have the greatest need? Are these potential segments readily accessible?
  4. Set behavioural objectives and change management goals: A key success factor is the setting of specific, measureable, achievable, realistic and timely (SMART) objectives that become the core of campaign effort.
  5. Determine potential pitfalls to behaviour change: Perform a cost-benefit analysis of the desired behaviour. At this stage that it is also necessary to look at the competitors’ behaviours. The target audiences can also change their attitudes and perceptions about products and services over time.
  6. Draft a positioning statement: Are the businesses’ target audiences valuing socially and environmentally responsible behaviour?
  7. Develop the marketing mix, marketing strategies and tactics: Businesses need to respond to the barriers (and motivations) that target audiences may have. Some customers may be sceptical of the businesses real intentions. A few issues to consider in each of the 4Ps include: (i) Product – provide tangible products or services in the social marketing campaign, ones that will add value to the brand. (ii) Price – non-monetary forms of recognition can add value to the exchange transaction.(iii) Place – look for ways to enhance the distribution of the product (or service) by reaching out to the desired target market in a convenient way.    (iv) Promotion – develop marketing communication messages prior to selecting media channels. Messages have to be clear, understandable and relevant to particular target audiences .
  8. Develop a plan for evaluation and monitoring: Evaluation of target segments. Where there any behavioural changes in customers? Is the social marketing campaign successful?
  9. Allocate budgets and find additional funding sources: There may be scope in corporate partnerships (for philanthropy) with all sectors in society: e.g. public agencies, non-profit organisations, foundations and special interest groups.
  10. Complete an implementation plan: A three to five year plan may be required to educate staff, dedicate financial resources for infrastructures, change attitudes and perceptions to support behavioural change.

Also Published by the Times of Malta (18th July 2013)

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March 2, 2013 · 6:13 pm

Creazione di Valore Sinergetico per la Sostenibilita’ delle Aziende

La letteratura sulla responsabilità sociale ed ambientale suggerisce che ci sono benefici ottimali per l’ imprese che si comportano con integrita. Con questo in mente, la metodologia integra intuizioni della teoria degli stakeholder (stakeholder theory) e la teoria delle risorse (RBV theory) per affinare la base strategica per gli investimenti lodevoli. Image

Inoltre, la tesi fa riferimento alla nozione di Porter e Kramer (2011) e della UE (2011). Tecniche di ricerca di triangolazione sono state usate per scoprire come le imprese turistiche stanno sfruttando la creazione di valore condivisi per se stessi e per la società. L’analisi quantitativa ha testato la relazione tra i benefici che risultano dalle responsabilita sociali ed ambientali in confronto alle risorse che dedicano (risorse umane, finanziarie e investmenti sostenibili nel ambiente). In secondo luogo la fase qualitativa di questo studio e stata effettuata attraverso la realizzazione di interviste con proprietari / gestori nel settore turistico e con esperti governativi che sono responsabili per la regolamentazione politica e per formulare le linee guida per la sostenibilità. I risultati hanno indicato che un comportamento responsabile delle imprese ha portato a risultati ottimali (finanziari e strategici), gestione efficace delle risorse umane, efficienza operativa e risparmi sui costi. Finalmente, la tesi presenta un modello empirico che puo condurre a la ‘creazione di valore sinergetica’  per la società e per l’imprese stesse.  (Dottor Camilleri ha completato la sua tesi alla universita d’Edinburgo, in Scozia).

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