Presented byC.GnanasekaranManager –Central HRD

Innovating for shared value-Article in HBR (Sep- 2013) by Mark Pfitzer, Valerie Bockstette & Mike

Stamp ( FSG)

Framework for creating sustainable social enterprise

1. Embedding a social purpose2. Rigorously defining the social

need3. Measuring the social and business

value4. Creating the optimal innovation

structure5. Co-creating with external

stakeholders

1.Embedding a social purpose

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.

In some cases, this is a matter of reemphasizing a firm’s 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, andembedding it in core processes such as strategic planning

and budgetingThis establishes a culture that unleashes the best in

employees and helps mobilize external partners that have similar goalsDanone – Nutrition FoodDow – Canola & Sun flower seedsBeckton Dickinson - Needleless Injection Systems

2.Defining the Social need 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 problemthe people affected and their numbersthe barriers to progressthe options for driving change andthe parties that can help

Such knowledge provides the basis foranticipating resource requirements,developing the business case, andidentifying the necessary execution capabilities inside and

outside the companyNestle – Focus on Malnutrition in IndiaMars – Cocoa Production in West Africa

3.Measuring the social and business value

a) Estimate the business and social valueanticipating 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

b) Establish intermediate measures and track progress

c) Assess the shared value producedCoca Cola,Brazil - Coletivo initiative

4.Creating the optimal innovation structure

a) Integrate with a legacy business Kemira Chemicals- New Water treatment

solutions

b) Create a semiautonomous unit Novartis - Arogya Parivar

c) Obtain philanthropic or government support Vodafone – M-pesa mobile banking services

d) Finance external entrepreneurs Boehringer Ingelheim – Making More Health

Program GE & Embrace – Low Cost Incubator ( from

$2000 to $200)

5.Co-Creating with External StakeholdersInvolving stakeholders in identifying all the dimensions of a problem and designing and implementing solutionsEnlist a wide range of stakeholders

Clinton Health Access Initiative,MoH Kenya & HP – Data Sharing to speedup diagnosis and treatment for HIV patinets

Mars & World Agroforestry Center – Improved Cocoa Farming in Ivory Coast

Leverage others’ capabilitiesTapping partners for their delivery capabilities

Nestle & Drishtee Foundation – Distribution SystemNovartis Arogya parivar – Microfinancing for doctors and

pharmacists

Dow ChemicalsRemoved 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

Helped millions of malnourished families in India and other countries by providing inexpensive micronutrient-reinforced spices, which are a fast-growing, profitable business

Nestle

NovartisProvided 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 monthsMars

Catalyzed a cross sector coalition to transform farms and surrounding communities in Ivory Coast with the aim of avoiding looming cocoa shortages

IntelTrained more than 10 million teachers in

the use of technology to improve educational outcomes, turning education into a profitable business for the company

Becton DickinsonProtected millions of health workers by

creating needleless injection systems,which are now a $2 billion business for BD, accounting for 25% of the company’s revenue

VodafoneExtended mobile banking services to 14

million people in East Africa through M-Pesa, one of the company’s most important offerings

How does this relates to AECS?

1. Embedding a social purpose Rigorously

2. defining the social need

3. Measuring the social and business value

4. Creating the optimal innovation structure

5. Co-creating with external stakeholders

Eliminating Needless blindness

Prevalence and Magnitude and Market Conditions

Periodical review, Quality control, Annual review

Systems and processes, Outreach, Vision Centre, IT Intervention

Working with community, INGOs, Corporates

SummaryThe problem

Social problems present daunting constraints to their operations and vast opportunities for growth

Many are struggling to design and implement initiatives that deliver both social and business benefits

ReasonsOften companies have not been guided by a social missionDon’t know how to research social problems at the level

needed to drive changeleaders lack experience in measuring and linking social

and business resultsand building networks of external stakeholders that

include unfamiliar organizations can be challenging

Summary….Solution

Framework to create profitable social enterprisesembedding a social purpose,rigorously defining the social need,measuring the social and business

value, creating the optimal innovation

structure, and co-creating with external stakeholders

Discussion

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