Summary Week 3 Lecture Videos BSS MCM

A snapshot of the summary - Week 3 Lecture Videos BSS MCM

• 1 Porter & Kramer, 2011

• What is shared value? As argued by Porter & Kramer (this is not their literal definition of it as taken up in the article however)

  Shared value focuses on the connections between societal and economic progress. Shared value refers to initiatives that create both economic and societal value.

• 1.1 Shared value in practice

• Interface Net-Works is a project that was designed to create shared value. Short- and long-term benefits can be distinguished. What are some of these?

  Short-term benefits: in terms of the environment = cleaning up the oceans/getting the nets out, creation of jobs so people;e save money. 
  Long-term benefits: attitude changes, they put a monetary value on the nets and get an attitude change. 
• What is for example a long-term benefit with regards to initiatives of organisations around plastic?

  Showing people that plastic should not be thrown away, but it can have value in use for other things.
• What are limitations regarding the Interface Net-Works program?

  • Initiatives are changing the way they are making fishing nets, it is questionable whether they still provide value when they are not made of plastic. So the limitation is focusing on one type of product.
    
  • What happens if the company leaves the community? Limitation is dependency of community on company.
  • What if everything is clean? 
  • Is it scalable? 
• How do you measure the success of such an Interface Net-Works program?

  • Success for firm reputation, difficult to measure however.
    
  • Success in how clean the oceans are.

• 1.2 Creating shared value

• What do Porter & Kramer argue in their 2011 paper in terms of creating shared value and its relationship to capitalism?

  They argue that creating shared value is a way of using capitalism for society.
• What is the main difference between CSR and CSV?

  CSR is about doing good with the funds that you have from profitable operations, redistributing what you already have. CSV is about increasing the amount of value by looking at opportunities for social and economic progress a.k.a. Joint company and community value creation.

• 1.2.1 CSR vs. CSV

• What is the value for CSR and CSV?

  CSR: doing good; CSV: economic and societal benefits relative to cost.
• In terms of what a company does when it comes to CSR and CSV, what are the differences?

  CSR: citizenship, philanthropy and sustainability; CSV: joint company and community value creation.
• In terms of what brings about CSR and CSV, what are these two movements responses to?

  CSR: discretionary or in response to external pressure; CSV: integral to competing.