Shared Value Initiative India
-
Upload
chrgydv1993 -
Category
Economy & Finance
-
view
105 -
download
0
Transcript of Shared Value Initiative India
![Page 1: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/1.jpg)
SharedValueInitiativeIndia
http://sharedvalue.in
![Page 2: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/2.jpg)
2
How the World Thinks About Capitalism?
• [-] Big Businesses are Not Clean; Not Ethical • [-] Poor gets Poorer in Capitalist Economies• [-] Favour Protectionist Measures rather than ‘Open Economies’
• [+] Free Enterprise System Better for Poverty Alleviation than Government• [+] Government should invest more on infrastructure than welfare benefits
• [+-] India – Business and Society’s Interests Match Well; Other Nations do not agree.
Source: https://social.shorthand.com/montie/3C6iES9yjf/what-the-world-thinks-of-capitalism
![Page 3: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/3.jpg)
3
WhatisChangingGlobally?
• GlobalDevelopmentAgendas– SDGs• Globalization&BaseofthePyramidBusinessModels• ImpactInvestors,IncubatorsandAccelerators• BetterConnected,BetterInformed- Internet&Telecom
• EnvironmentalDegradation• RisingPopulationandConsumptionTrends• IncreasingScarcityofResources• SignificantPopulationinExtremePoverty
![Page 4: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/4.jpg)
Global Focus on UN Sustainable Development Goals (2014-2030)
4
Source: www.un.org
![Page 5: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/5.jpg)
5
Reality Check - The Bottom 4 Billion
• Significant Unmet Needs
• Dependent on Informal or Subsistent Livelihoods
• Live and Transact in an Informal Economy
• Face BoP Penalty
• Need Scalable & Replicable Solutions • Government, NGOs, CSOs lack ability to scale and implement market oriented
business models
![Page 6: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/6.jpg)
Businesscanengagewithsocietyinthreeways
“Giving Back”
Business must fulfill community obligations
Shared ValueCorporate Philanthropy
“Finding business opportunities in social problems”
Meeting social needs can be a source of
profit and competitive advantage
“Minimizing harm to society and the
company”
Business should be responsible
Corporate Responsibility
Past efforts have emphasized the friction between business and society instead of the synergy
![Page 7: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/7.jpg)
• Thelong-termcompetitivenessofcompaniesdependsonsocialconditions− Aneducatedandskilledworkforce− Safeworkingconditions− Sustainableuseofnaturalresources− Aflourishing localeconomy
•Businesshasanessentialroletoplayinsolvingsocialproblems− Onlycompaniescancreateprosperity thatfundsgovernmentandcivilsociety− Companiescancreatesolutionstomanysocialproblems inwaysthatgovernmentsandNGOscannot− Companieshavetheincentivetotakerisk− Competitions fuels innovation,efficiency,andadoption− For-profitmodelsarescalableandsustainable
Societalandcorporatesuccessareinextricablylinked
![Page 8: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/8.jpg)
• Sharedvalueisdefinedaspoliciesandpracticesthatenhancethecompetitivenessofcompanieswhileimprovingsocial&environmentalconditionsintheregionswheretheyoperate
• Itisabusinessstrategyfocusedoncompaniescreatingmeasurableeconomicbenefitbyidentifyingandaddressingsocialproblemsthatintersectwiththeirbusiness
WhatisSharedValue?
• SharedValueIS:
‒ Strategiesthatsimultaneouslycreatevalueforthebusinessandforsociety
• SharedValueisNOT:
‒ Sharingthevalue alreadycreated
‒ Personal values
‒ Balancing stakeholderinterests
![Page 9: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/9.jpg)
Sharedvalueisself-sustainingandscalable
• Creating new opportunities for the business by meeting societal needs• Impact scalable because shared value is self sustaining
• Redistribution of value to meet societal needs• Impact dependent on scale of finite resources
CSR and Philanthropy Shared Value
![Page 10: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/10.jpg)
Businesshasanessentialroletoplayinsolvingsocialproblems
−Onlycompaniescancreateprosperity thatfundsgovernmentandcivilsociety
− CompaniescancreatesolutionstomanysocialproblemsinwaysthatgovernmentsandNGOscannot− Companieshavetheincentivetotakerisk− Competitionsfuelsinnovation,efficiency,andadoption− For-profitmodelsarescalableandsustainable
Societalandcorporatesuccessareinextricablylinked
![Page 11: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/11.jpg)
Allprofitisnotequal
11
• Profitinvolvingsharedvalueenablessocietytoadvance andcompaniestogrowfaster
• Profitattheexpensesofsocietyisself-defeating
• Incorporatingsocietalissuesintostrategyandoperationsisthenextmajortransformation inmanagementthinking
Sharedvaluethinkingrepresentsthenextcompetitivefrontierofcapitalism
Allprofitisnotequal
![Page 12: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/12.jpg)
SharedvaluecreatesavirtuouscycleSharedvaluecreatesavirtuouscycle
![Page 13: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/13.jpg)
AddingaSocialDimensiontoStrategy
• Sharedvalueopensupnewneeds,newmarkets,andnewvaluechainconfigurations
• Thiscreatesnewstrategicpositions,andnewopportunitiesforextendingexistingpositions
• Companiesshouldincorporateasocialdimensiontotheirvalueproposition• Sharedvaluecanreinforceandevenanchoracompany’sstrategy
Thesocialdimensionofstrategycanbemoresustainablevs.competitorsthanconventionalcostandqualityadvantages
Addingasocialdimensiontostrategy
![Page 14: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/14.jpg)
14
Defining Shared Value
• Policies and practices for Competitive Advantage
• Corporate Strategy for creating unique business value by integrating socio-environmental benefits with economic gains
• Not Philanthropy or CSR Activity
Reconceiving Products and
Markets
Redefining Productivity in Value Chains
Enabling Local Cluster
Development
![Page 15: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/15.jpg)
Sharedvalueoperatesatthreelevels
Reconceiving Needs, Products, and
Customers
• Meetingsocietalneedsthroughproducts
• Addressingunderservedcustomers
• Drivingproductivitythroughbetterutilizingresource,employees,andbusinesspartners
Redefining Productivity in the
Value Chain
• Improvingskills,supplierbase,andsupportinginstitutions inthecommunitieswhereacompanyoperates
Enabling Local Cluster Development
1 2 3
Theselevelsareoverlappingandmutuallyreinforcing
![Page 16: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/16.jpg)
• Shared value can be created by producing goods and services that directly benefits the underservedsections of the society
Example – VisionSpring
• VisionSpring’s mission is to ensure affordable access to eyewear across the globe. The company identified the need forvision treatment at the bottom of the pyramid
• Reconceived products and created distribution channel in the developing countries to make affordable eyeglassesaccessible
• Reaches people through two differentmodels:• Partnership Model: Partner with hospitals, NGOs & Corporations across India. Works at the village level and trains
thousands of village level entrepreneur in dispensing eyeglasses• Hub & Spoke Model: Started its standalone optical stores and got associated with leading eye hospitals to set-up
their stores on their premise. Also partners with eye hospitals for effective community outreach activities
• The company has distributed nearly 2,763,000 eyeglasses & have created $280 million in economic impact• People using their glasses have reported an increase of about 20% in their income and 35% increase in their productivity
Reconceivingproductsandmarkets
![Page 17: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/17.jpg)
17
![Page 18: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/18.jpg)
AravindEyecare(1976)• Toeliminateneedlessblindnessirrespectiveofthepayingcapacity.• Outreach:4000beds,32millionpatients,3millionsurgeries• 2009-10:2.5millionoutpatients,0.3millionsurgeries,1.2millionIOLs
Uniquefeatures• McDonald factorybasedmodelfordiagnostics, surgery&productofferings• 30:70(Paying:Non-Paying)• Training/Capacitybuilding (>300ophthalmologists &>600paramedicsperyear)• 2600operationsperyearbyeachdoctor(6timestheaverage)– 10minperoperation• Strongcommunityoutreachandsetup(8hospitals;40Visioncenters;Aurolab; LAICO)
18SimultaneoussurgeriesatAravind Manufacturingintra-ocularlensesatAurolab
![Page 19: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/19.jpg)
19
![Page 20: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/20.jpg)
NovartisAarogya Parivar(2007)• Enableaccesstohealthawarenessandaffordablemedicinestoruralfamilies• Outreach:10states,100medicinetypes,0.5millionvillagers(healthawareness,diagnosis)
Uniquefeatures• Focusonhealtheducationandawareness,diagnostics, affordableandreliablemedicines• Stronglinkwith22000doctors&reaching28000pharmacies inremoteareas• Adaptability - Communication, productpackaging andtrainingasperlocalconditions• Scalableacross statesandcountries- Vietnam, Indonesia,Kenya• Localskillbuildingandengagementashealthworkers
20
![Page 21: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/21.jpg)
21
![Page 22: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/22.jpg)
Selco(1995)• Enablingaccesstocustomizedcleanenergysolutionsfortheunderserved.• Outreach:Sixstates;>2,00,000households;5000Institutions;4solarentrepreneurs
Uniquefeatures• Solutionbasedapproach– Customproductoffering,door-stepfinancing, &support• SetupSelcoFoundationandSelcoIncubationLab• ScalingbyImpactbasedinnovationsandofferings• Localengagementandembeddedness– Micro-entrepreneurs,localsasemployees• Strongcommunityoutreachandsetup(45energycenters;30financial partners;25communitypartners)
22
![Page 23: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/23.jpg)
Example– NarayanaHrudayalaya• Thehospitalsgroupismodelforaccessible&affordablehealthcarethatprovideshealthcarefacilitiesatanominalcost,especiallythecardiacsurgeries
• Onanaverage,aheartsurgeryinthishospitalcosts$2000whereasasimilarsurgerywouldcost2-10timesofthecostinotherhospitals
• EconomiesofScale:Largernumberofoperationsandsharingofresourceslowersthecostperoperation
• Ithas32hospitalsin20citieswith6498bedsand1861doctors• Inaddition,tocardiacsurgeryfacilities,thehospitalalsoperformsothersurgerieslikebonemarrowtransplant,neurosurgery,etc.andprovidesotherfacilitiesliketeleradiologyandfreetelemedicine
Affordablehealthcarefacilities
![Page 24: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/24.jpg)
Example– ICICILombard• InIndia,theruraleconomyfacesstrainduetothevariationsintherainfallfromseasontoseasonthatleadstocropfailures.Itoftenresultsinfarmersunderheavydebts
• Onrecognizingthisneed,ICICILombardcameupwithweather-basedcropinsuranceprogram• Theinsuranceprogramprotectsthefarmersfromtheadverseclimateeffectsthatmayleadtocropfailure
• Filingclaimsisahasslefreeprocessandpaymentsarereleasedoncertifyingdeviationsfromnormalconditionsmeasuredbyweatherdatacollectedfromindependentthirdparties
• Bymid– 2010ithadimplementedthemodelin14states,comprising64districtsandcovering26cropvarieties
Cropinsurance forfarmers
![Page 25: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/25.jpg)
25
![Page 26: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/26.jpg)
JantaMeals(2013)• Tomakenutritious,hygienicallypreparedandaffordable foodavailable totheurbanlow-incomeworkingclassandmigrantlabourers– healthbenefitsandcostsavings
• Served10.8millionmealstilldate
Uniquefeatures• HubandSpokemodelwithcentralkitchenandfranchises• Localengagementandskill-buildingasmicro-entrepreneurs;womenforcooking• FSSIcertifiedsuppliers,licensedinfrastructure
26
![Page 27: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/27.jpg)
• Redefining how value is created and sustained through supply chains (for example, throughrepurposing or recycling products to reduce waste, while creating new cost savings or revenuestreams)
Example HUL – Project Shakti
• Hindustan Unilever is implementing shared value by tapping opportunities into their value chain and expanding theirreach through
• The project empowers underprivileged rural women by training them in health and hygiene and allowing them toundertake income-generation activities
• Project Shakti Entrepreneurs who are commonly known as Shakti Ammas reach out to over 4 million households across1,65,000 villages spread over different states
• HUL provides a means of livelihood to approximately 70,000 women entrepreneurs and ensures a source of revenue foritself
Redefiningproductivityinthevaluechain
![Page 28: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/28.jpg)
Example– MotherDairy• MotherDairy’sbusinessphilosophyisinherentlylinkedwiththeco-operativemovementinIndiaandisfocusedonservingfarmers,ruralsocieties,andconsumersfairly
• ThebusinessmodeladoptedbyMotherDairyassuresaplatformforfarmerstoselltheirproducts• Theyhaveasimpleprocessofsourcingmilkfromthefarmersbyprovidingthebestpriceforit.Nearly80-85%oftherevenueaccruedbythecompanygoesbacktothefarmer
• MotherDairyensuresthatmilkproducersandfarmerscontinuallyreceivemarketpriceforofferingmilk,milkproducts,andotherfoodproducts
• Addressingthesocialchallengesintheareaofagriculturetheyhavepositivelyimpacted250,000individualsacrossthecountryandhavespentmorethan1600crores ontheseactivities(asofFY2013)
Redefiningproductivityinthevaluechain
![Page 29: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/29.jpg)
29
![Page 30: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/30.jpg)
Mirakle Couriers(2009)• 6%Indians(10million)aredeaf;66%(6million)unemployed• Missiondrivenfor-profitbusinessthatemployslow-incomedeafyouthinthelogisticsspace(courierdelivery)
Uniquefeatures• Trainingandengagingdeafyouthforback-office anddeliveryoperationstherebyenablingfinancial independenceandempowermentforthedeafcommunity.
• Communication isdoneusingISL(IndianSignLanguage)alongwithSMSandemails.• Deliveryandcollectiondoneviapublictransport leadingtolowcarbon footprint• Settingabetterrolemodelandinspiration forcorporatesandsociety
30
![Page 31: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/31.jpg)
• Companies can use clusters for supporting their long-term growth through the development of theirsuppliers and other stakeholders being impacted by their business operations
Example – Godrej Industries
• Godrej Good and Green initiative, which moves beyond business and plans to have trained and provided useful skills tothousands of rural and semi-urban youth.
• In FY 2013, Godrej under its various verticals have trained nearly 16800 people with a particular job skill will impede businessgrowth
• The group has set a goal to train 1 million youth by 2020• The skill development initiative ensures overall development of society by ensuring a source of income for the youth and
commercial success for the business
Enabling localclusterdevelopment
![Page 32: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/32.jpg)
32
![Page 33: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/33.jpg)
Jaipur Rugs(1978)• Offeringhand-knottedrugsglobally,whicharebeingmanufacturedbytapping intothecreativecapabilitiesofanetworkofartisansacrossthevillages
• 20+branches,40000+artisans(6states,600villages), anddistributionacross40countries
Uniquefeatures• Unskilledruralpooraremaderugartisansbycommunitymobilizationandskilltraining• Fairwages,noexploitation,trainingandsustainablelivelihoodatdoorstep• Accesstoglobalmarkets,doorstepdeliveryofrawmaterialandcollectionofrugs• Financial independence&empowermenttoruralwomen&flexibilitytoworkfromhome• In-personconnectartisanswithcustomers
33
![Page 34: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/34.jpg)
34
![Page 35: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/35.jpg)
Adani AgriFresh(2006)• Settingupanintegratedapplesupplychainempoweringtheapplefarmerswhiledeliveringhighqualityapplestoconsumers
• 3ControlledAtmospherefacilities(23000MT), networkof15000+farmers,700+villages
Uniquefeatures• Empowerment,Fairwages,noexploitation,trainingandsustainablelivelihoodatdoorstep• Promotinggoodhealthandwell-beingoffarmersthrough ruralhealthcareunits• Fully-automatedtechnologydrivenprocessesforhighqualityapplesgrading&selection• Makingavailablescientificorchidmanagementtechniquesandagri-inputsneartofarms
35
![Page 36: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/36.jpg)
36
![Page 37: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/37.jpg)
UnderTheMangoTree(2009)• Promotesbeekeepingtoincreaseagriculturalproductivity, enhanceincomesandimproveslivelihoodsofmarginal farmersinIndiawhileofferingall-naturalhoneytoconsumers
• 6states,3000farmers,agricultural productivity increaseoflocalplantsduetopollination
Uniquefeatures• Utilizesthepowerofmarketforcestoprovidepoorfarmerswithalucrativeincomestreambytraining themonbee-keepingandestablishingmarketaccessforthehoneyproduced.
• Focusontheindigenousbee,theApis cerana indica,anexcellentpollinator.• Providetraining, sustainablelivelihood andimprovedagriculturalproductivity (duetocross-pollination) forthefarmersandmarginalizedcommunities
• Partnershipswithruralorganizations, technicalexperts,corporateentities
37
![Page 38: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/38.jpg)
Socialinnovationisessentialtobreaktrade-offsbetweenmeetingsocialneedsandmaintaining
profits
Sharedvalueisessentialtoinvestsufficientlytoovercomemanysocialproblems
Innovationisessentialtocreatingsharedvalue
Social Innovation
at Scale
Shared Value
Innovationisessentialtocreatingsharedvalue
![Page 39: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/39.jpg)
SocialNeed
BusinessOpportunities
CorporateAssetsandExpertise
SharedValueOpportunity
Sharedvalueisfoundatthenexusofbusinessopportunity,corporateassetsandsocialneed
![Page 40: Shared Value Initiative India](https://reader030.fdocuments.in/reader030/viewer/2022020213/587c06ab1a28ab03768b48f7/html5/thumbnails/40.jpg)
ThankYou
U24/8,DLFPhaseIII,Gurgaon– 122022,Haryana,India