Emile cambry social devcamp
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20-Oct-2014 -
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Transcript of Emile cambry social devcamp
Disclaimer!
•None of these arguments are political. It’s about economics, institutions, new practices and patterns, management, and ethics
The Last Decade Has Not Created
• Net jobs
• Growing median income
• Shareholder value
• Net Wealth
What It Has Created
• Towns, countries, and Households going broke
• Banks boosting margins
• Debt fueled hyper-consumption
• Productivity spiking
• Dwindling empathy, trust, and a sense of meaning in work, life, and play
This versus Thick Value Creation
Borrowed from Umair Haque, Michael E. Porter, and Mark R. Kramer from Harvard Business School
Adam Smith
“All for ourselves and nothing for other people”
Wealth of Nations
Capitalism can do better
Capitalists have to aspire to matter
Industrial age capitalism was about extracting
EducationH
ealthcareFinance
Food
Tran
spor
tatio
nEnergy
Myths of the 21st Century
• Firms exist only to create value for owners
• Financial profits is the best representation of enduring profit
• Competitiveness arises from extracting value from competitors by beating, bashing, and crushing rivals instead of creating a thicker, more broadly shared value
Ignoring the broader influences that determine long-term success
• Depletion of natural resources
• Viability of key suppliers
• Economic distress of the communities served
• Shifting activities to locations with even lower wages
Make a better product
Make a better service
Process Innovation
Shared/thick value has the power to unleash the next wave of global growth and innovation
Three ways to create shared value opportunities:
• By preconceiving products and markets
• By redefining productivity in the value chain
• By enabling local cluster development
21st Century Thick Value Arithmetic
Social Responsibility
Social Responsibility
The Enterprise
Neo-Classical Model: max(me), ~(you)
21st Century Paradigm Shift
The Enterprise
The Enterprise
SocialResponsibility
Companies Currently Pivoting
• GE: Investing in Education, the Environment, and Disaster Relief
• Wal-Mart: Environmentally Friendly Stores• Intel• Johnson & Johnson• Nestle• Unilever• Google• Apple• Nike• Starbucks
The archetype evil company?
Real Value vs. Perceived Value
Principles Shapes Behavior: Beyond Strategy
Social Leadership
• Don’t exploit resources
• Don’t race to the bottom
• Willingness to disrupt yourself
• Focusing on everyone’s outcomes/externalities
Blurring the Profit/Nonprofit Boundary
21st Century Youth Project
Chicago International Social Change Film Festival
21st Century Entrepreneurial Institute