ArticleLiterature Review

The Big Idea: Creating Shared Value. How to Reinvent Capitalism—and Unleash a Wave of Innovation and Growth

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Abstract

The concept of shared value—which focuses on the connections between societal and economic progress—has the power to unleash the next wave of global growth. An increasing number of companies known for their hard-nosed approach to business—such as Google, IBM, Intel, Johnson & Johnson, Nestlé, Unilever, and Wal-Mart—have begun to embark on important shared value initiatives. But our understanding of the potential of shared value is just beginning. There are three key ways that companies can create shared value opportunities: By reconceiving products and markets • By redefining productivity in the value chain • By enabling local cluster development • Every firm should look at decisions and opportunities through the lens of shared value. This will lead to new approaches that generate greater innovation and growth for companies—and also greater benefits for society. The capitalist system is under siege. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community. Even worse, the more business has begun to embrace corporate responsibility, the more it has been blamed for society's failures. The legitimacy of business has fallen to levels not seen in recent history. This diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth. Business is caught in a vicious circle. A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. They continue to view value creation narrowly, optimizing short-term financial performance in a bubble while missing the most important customer needs and ignoring the broader influences that determine their longer-term success. How else could companies overlook the well-being of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers, or the economic distress of the communities in which they produce and sell? How else could companies think that simply shifting activities to locations with ever lower wages was a sustainable "solution" to competitive challenges? Government and civil society have often exacerbated the problem by attempting to address social weaknesses at the expense of business. The presumed trade-offs between economic efficiency and social progress have been institutionalized in decades of policy choices.

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... Public confidence in major corporations has dropped precipitously because of the perception that business is focused on maximizing short-term financial targets (Reich, 2009) without regard for a wider group of stakeholders. Consequently, corporations have been viewed as the cause of social ills, environmental disasters, and economic failures; all of which have led to society pondering the legitimacy of business (Porter & Kramer, 2011). At times, firms do not consider the well-being of stakeholders such as their customers, the environment, or suppliers that are vital to their business (Porter & Kramer, 2011). ...
... Consequently, corporations have been viewed as the cause of social ills, environmental disasters, and economic failures; all of which have led to society pondering the legitimacy of business (Porter & Kramer, 2011). At times, firms do not consider the well-being of stakeholders such as their customers, the environment, or suppliers that are vital to their business (Porter & Kramer, 2011). ...
... When this corporate philosophy is taken to the extreme, it can lead firms to commit self-interested acts that harm others in the name of increasing profits. In order to improve society's view of corporations, our work suggests that firms must develop and implement nontraditional business practices (Porter & Kramer, 2011). Although the dogged pursuit of profits is a pervasive concept in the current business world, there are firms that take actions that seem to diminish their profits and benefit other stakeholders besides shareholders. ...
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This paper introduces the concept of strategic caring. As a cross-disciplinary, organizational-level construct, strategic caring describes the actions taken by top managers within the context of ongoing stakeholder relationships to improve the well-being of both the stakeholders and the organization. This paper develops the concept of strategic caring and presents a series of propositions that describe attributes of caring organizations and the anticipated organizational outcomes when this approach is used to satisfy stakeholder demands.
... However, criticism of the use of CSR has not ceased, as this strategy has been considered a means of appeasing negative comments and problems caused [5] and is considered as a commercial strategy used by companies to improve their image and reputation [6,7]. It is for this reason that Porter and Kramer [8] developed a new concept they called "Creating Shared Value" (CSV). The Creating Shared Value concept states that companies can create social and economic value through the creation of new products, company activities and through the formation of a cluster between competitors, suppliers, and customers [8], generating greater benefits for the company and society. ...
... It is for this reason that Porter and Kramer [8] developed a new concept they called "Creating Shared Value" (CSV). The Creating Shared Value concept states that companies can create social and economic value through the creation of new products, company activities and through the formation of a cluster between competitors, suppliers, and customers [8], generating greater benefits for the company and society. This concept has been widely accepted in the academic and business world, becoming one of the articles with the highest impact (2500 citations in the main WOS collection); however, it has not been exempted from academic criticism. ...
... We consider the approach of Porter and Kramer [8] who suggested that the development of company networks is a way to expand the opportunities offered by CSV by driving collaborative innovation and productivity. For this purpose, data were collected from companies belonging to an entrepreneurial ecosystem located in the city of Valencia, Spain. ...
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The effects of companies on society and the practices of Corporate Social Responsibility have been the source of interest for many research studies. Questions concerning the traditional model resulted in Porter and Kramer developing the concept of Creating Shared Value, an approach where companies consider the value of society and the environment in their business models, creating value for all stakeholders. We take the issue of shared value creation in an entrepreneurial ecosystem to determine how clustered companies understand and create shared value, identifying its antecedents and consequences. Using a single case study, we were able to identify that the entrepreneurial ecosystem becomes a favourable scenario for creating shared value, because participants benefit from resources and skills that allow them to grow their businesses, boost competitiveness and innovation and contribute to the economic, social, and environmental growth of their stakeholders.
... Being broader than the shareholder primacy view, this paradigm selects a more targeted group of constituents to prioritize over other interest groups. The selection criteria are normally based on the potential contributions of the stakeholder group to a firm's economic bottom line and strategic competitiveness [71]. Stakeholders are perceived as different in terms of stakeholder salience (the degree of stakeholder claim priority given by the decision-makers) [13]. ...
... Thus, the performance orientation for these executives is having a competitive advantage and sustaining shared value generation, doing well by doing good [26,63,64]. To realize the instrumental value of strategic stakeholder engagement, the effectiveness of responsible leaders within this paradigm is measured by how well executives can identify strategic stakeholders, balance trade-offs of competing interests, and align society-serving activities with a firm's core competencies [15,71]. ...
Article
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To address the question of why corporate executives adopt diverse corporate social responsibility (CSR) strategies, this conceptual paper proposes a decision-frame model to explain how differences in executives’ information-processing templates can lead to different strategic choices concerning CSR. Drawing on managerial cognition research and CSR literature, the CSR decision frame is conceptualized as a three-dimensional configuration. Each dimension depicts a continuum of responses to each of the three fundamental issues related to CSR (i.e., corporate’s objectives, corporate’s stakeholders, and leader’s responsibilities). The key premise is that the specific content and structure of a CSR decision-frame configuration define a leader’s unique stance on environmental and social issues, which, in turn, influence their sense-making process and shape CSR responses and strategies. This CSR decision-frame approach provides a process lens that highlights the cognitive mechanisms of how executives make critical CSR strategic decisions. Furthermore, this paper advances the understanding of the diversity in CSR strategy with a nuanced mental-configuration perspective: CSR means many different things to different leaders depending on the unique content and structure of his or her CSR decision frame; these varying subjective representations of CSR principles contribute to the diverse CSR responses across firms.
... The most visible indicator of this extension is the emergence of CSR oriented purchasing strategies-wherein firms reduce their exposure to risk by prescribing a set of standards that suppliers must meet in order to win or retain their business [5,22]. In effect, this approach seeks to identify supply chain partners that are philosophically aligned, where superior alignment is hypothesized to drive improved performance [23][24][25]. ...
... Their research agenda encourages scholars to investigate the role that CSR plays within the corporate strategy of tourism operators, and to explore factors that drive and impact on CSR within tourism. Drawing on the work of Porter and Kramer [12,24], we would expect that while a better understanding of a firm's CSR orientation is valuable in and of itself, an understanding of how well aligned this orientation is to that of its key stakeholders is especially important within the context of tourism supply chains. Accordingly, we hypothesize that: H2: CSR alignment will impact the commitment-performance relationship. ...
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This paper examines corporate social responsibility (CSR) practices among travel agents and tour operators within the Australia–China tourism supply chain. A sequential, exploratory mixed-methods approach was employed, combining key-informant interviews with a reduced form of discrete choice analysis—best-worst scaling. The findings highlight that while Australian and Chinese travel intermediaries differed significantly in terms of their preferences regarding the different CSR factors, they were unanimous in regard to their belief that commitment to CSR was critical to firm performance. The research also reports universal support for a partial-mediating relationship, suggesting that firm performance is enhanced by strong alignment in the CSR orientation of supply chain intermediaries. This finding reinforces the inter-dependent nature of tourism supply chains, emphasizing that firms and society can benefit from supply chain partners working more closely together.
... While some experts believe that branding is no longer as relevant as it once was in the face of rapid technological, market and societal change, others believe that brands continue to have a significant impact-not only on markets, but also on society today (Campbell and Price 2021). At the corporate level, stakeholders -and consumers in particular -expect brand managers to bring about change and reconnect business and society -and this is more pronounced than ever before (Porter and Kramer 2011). ...
... For example, researchers are interested in how green marketing initiatives or corporate social responsibility (CSR) can influence consumer response, create competitive advantage and enhance corporate and brand value (e.g. Luo and Bhattacharya 2006;Peloza et al. 2012;Porter and Kramer 2011). Other researchers adopt a systems perspective. ...
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The aim of this Special Edition of six papers is to advance our knowledge of the role that brands can adopt in meeting various objectives of sustainability. Each article advances important insights on complementary aspects of sustainability and branding which we frame around a capabilities framework that reflects the dynamic need to meet shifting societal expectations. Specifically, the papers highlight the need to critically research, understand and communicate effectively to key audiences before investing in sustainability or corporate social responsibility (CSR). Each of the papers represents one or more capabilities. The first capability represents achieving a relevant brand fit of values—whether via green environmentalism, via establishing corporate brand impressions, or through adopting types of CSR whose effectiveness might vary between luxury and mass-market brands. The second capability represents acquiring sensitivity to worldview beliefs or through careful framing of CSR that can impact differentially on commitment and brand attitudes. The third capability represents alignment of stakeholder values through collaboration. Finally, we suggest future research directions of sustainable brand practices, including studies into the internal capabilities of brands and how different groups of stakeholders might interact with brands.
... The key role of firms in this transition has been widely acknowledged, as they are the largest holders of resources and capabilities (Nidumolu et al., 2009;Porter and Kramer, 2011). Research has argued that the incremental improvements in products and processes are insufficient for the quick transition required (Abdelkafi and Täuscher, 2016; , thus firms need to look into significant ways of aligning their operations with long term sustainability, which might be found in the design and implementation of novel business models for sustainability, i.e. ...
... Thus, an urgent shift towards a sustainable trajectory is required. The key role of firms in this transition has been widely acknowledged, as they are the largest holders of resources and capabilities ( Nidumolu et al., 2009 ;Porter and Kramer, 2011 ). Research has argued that the incremental improvements of products and processes are insufficient for the quick transition required ( Abdelkafi and Täuscher, 2016 ; Short et al., 2014 ), thus firms need to look into significant ways of aligning their operations with long term sustainability, which might be found in the design and im- plementation of novel business models for sustainability, i.e. ...
Thesis
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In recent years, the circular economy has gained traction as a promising contributor to sustainable development. However, the implementation of sustainable and circular business models remains relatively low. Although the related literature is rapidly evolving, there is still a lack of understanding of the complex process of circular business model innovation, a need for concrete guidelines for firms and calls for more empirical studies. This thesis explores three related questions: what is known about circular business model innovation? how does it happen? and how to facilitate it? To this end, first, a systematic literature review on the emergent field of circular business model innovation is combined with a multiple-case study on ten firms. A summary framework of present and future research is offered, framing and assessing current literature and identifying major research gaps. Secondly, building on the theory of dynamic capabilities, the multiple-case study data is abductively analyzed to identify 26 best practices for circular business model innovation. These are grouped in twelve microfoundations of dynamic capabilities, and highlighting practices such as the adoption of a lifecycle perspective and ecosystem collaboration. Thirdly, 21 innovation cases are analyzed to identify 10 drivers and 25 barriers that affect the different types of circular business innovations. And finally, following an action design research approach, a design thinking-based process framework for guiding the design and implementation of circular business models is developed, including twelve specific tools. This thesis provides an improved understanding of business model innovation for the circular economy, offering concrete guidance for practitioners and a set of context-adaptable tools to support firms in their sustainability transformations.
... nability 2022, 14, x FOR PEER REVIEW 14 of 19 Figure 10. A visualized output of the co-citation cluster analysis [35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54]. ...
... In this paper, we detect changes in burst words over time through CiteSpace, and the 20 burst keywords in Figure 11 show that, first, the keywords "business ethic" (2005-2017) and "capability" (2007-2016) have the longest Figure 10. A visualized output of the co-citation cluster analysis [35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54]. burst durations of 12 and 9 years, respectively, indicating their long-term impact on the CSR and innovation domains. ...
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The relationship between corporate social responsibility (CSR) and innovation has received considerable attention in the last two decades. While several studies have explored the impact of CSR on innovation. While several studies have explored the impact of CSR on innovation, few studies have attempted to use bibliometric methods to analyze and visualize the evolution and trends in the CSR and innovation fields. In this research, 1279 Web of Science (WoS) published papers on CSR and innovation were collected and analyzed using VOSviwer, CiteSpace, and Bibliometrix R-package and the MK trend test. The analysis was conducted in terms of the number of articles published per year, most productive journals, authors, and countries, as well as collaboration between countries and authors, keyword analysis, co-citation clustering analysis, and research frontiers. The results showed that: (a) The MK trend test shows that the amount of CSR and innovation research is increasing. The top three journals in terms of productivity are Sustainability, Journal of Cleaner Production, and Corporate Social Responsibility and Environmental Management. The collaboration between authors forms a loose network and Ahmad, N has the most extensive network of international collaborations. There is close cooperation between countries, with a predominance of Asian, European, and North American collaborations, and the MK trend test shows that each country’s publications on the relationship between corporate social responsibility and innovation in the past 20 years have an obvious upward trend. (b) Through the analysis of keywords, it is necessary to research “corporate social responsibility”, “sustainability”, “innovation”, “financial performance “, and other topics associated with these themes. (c) The intellectual structure of CSR and innovation establishes five core clusters, including social innovation, CSR practice, sustainable global value chain, sustainable business model, and buyer–supplier collaboration. (d) Two forward-looking directions for future CSR and innovation research are proposed, and the limitations of the research are discussed.
... Such a grounding legitimizes meaningful, dynamic, and long-term engagement of other stakeholders besides the shareholders for a firm's success (Fatemi et al., 2018). Consequently, a good performance on ESG can have much wider implications to improve corporate economic performance (Fujii et al., 2013) and provide a competitive advantage to create 'shared value' (Porter and Kramer, 2011), for example, for European firms (Ahsan and Qureshi, 2021;Qureshi et al., 2020) and US firms (Matsumura et al., 2013). As the cultures are socially constructed, therefore, due to different degrees of perceived compatibility between CEP and firm value in cross-cultural and institutional settings (Ramanathan et al., 2018;Usunier et al., 2011), stakeholders find it difficult to assess this long-run value proposition (Broadstock et al., 2019). ...
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Climate change discourse integrates 3Ps – People, Planet, and Profit. However, we do not find any empirical study that integrates 3Ps. Therefore, using a large global panel dataset from 46 countries this study intends to fill this gap by providing empirical evidence about investors’ value proposition of corporate climate performance in different cultural environments. The results show that Hofstede’s cultural dimensions affect corporate climate performance and its market pricing. We find that in cultures with high power distance, low individualism, high masculinity, high uncertainty avoidance, high long-term orientation, and high restraint, the investors generally penalize the firms disclosing higher environmental performance. Strangely enough, corporate waste production is universally value irrelevant. Our results indicate some policy implications.
... In essence, this framework makes it easier for mainstream companies to incorporate sustainable development into operational systems. According to Stubbs and Cocklin [25] and Porter and Kramer [26], BMI can systematically support and create sustainable developments [27]. BMI is increasingly considered the key to social and environmental sustainability in the corporate system [27]. ...
Article
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This study examines pharmaceutical companies in the context of BMI. The purpose is to develop an SBM for the pharmaceutical industry and then to validate the causal relationships of the variables in such a business model. This study used purposive sampling by issuing questionnaires to 12 companies. The research consisted of the following four studies: Study 1: construction of dimension conceptualization. The conceptualization of BMI consists of three dimensions, i.e., technological, social, and organizational. Study 2 and study 3 are about process development and the construction of a unique BM. Study 2 explores the evolution of innovations in an SBM on the basis of a balance scorecard. Study 3 develops a unique SBM by referring to a focus group comprised of senior executives. Study 4: model validation. This stage is about the synthesis of research frameworks in the literature on BMI and an empirical study on the causal relationships in the context of SBMI.
... авт.). п. друкер, по сути, обращается к почти забытому основному закону капитализма: «прибыль… лишь иллюзорная форма проявления прибавочной стоимости» [Маркс, Энгельс, 1964, с. 60], что подтверждает актуальность этого закона, по крайней мере, до тех пор, пока капитализм не будет «изобретен заново» (re-invented) в терминах портера -крамера [Porter, kramer, 2011]. ...
Article
The article deals with the phenomenon of “private label” (PL) in the environment of retail chains and presents the methodology for its study. The evolution of this phenomenon is briefly described as a voyage of PLs from a sort of consumer perceived trade-off between price and quality towards converting them into competitive brands. Some features of PLs are noted that give them the opportunity to become mediators of a new culture of responsible consumption. Multidimensionality and complexity of representing the PL as a sustainability brand are shown, that leads to the need to apply an interdisciplinary approach to research and development of relevant curricula/courses. Understanding the function of a sustainability brand as a mediator of a new culture predetermines the need for a methodological approach based on the highest form of interdisciplinarity, viz. the transdisciplinarity. A conceptual model of sustainability branding for retail chains is presented, which considers additional factors that go beyond the seller-buyer interface: impacts of state and public institutions and consumer brand experiences, mainly accumulated in the respective online brand communities. The persistence of the problem of ensuring the adequacy of the semantic Russian-language terminological system of sustainability branding is emphasized. Possible practical applications of outputs of this work are proposed and directions for further research are outlined.
... Other useful studies and interdisciplinary research that shed light on sharing and CC-related business models were investigated byAlbinsson and Perera (2012),Belk (2010),Benkler (2004), and Botsman and Rogers (2010b). Additional investigations are equally valuable and encompassFirnkorn and Müller (2011), Loose et al. (2006), McGuire (1991), and Truffer (2003.From academic and practitioners' perspectives, investigations that popularized and replicated sharing-and CC-based systems encompassBarbasi (2003), Botsman andRogers (2010a,b),Gansky (2010),Lee (2022),Li et al. (2022a, b),Shirkey (2009), and Porter and Kramer (2011. Related works that bring interdisciplinary and multifaceted character of this discussion and review-based studies includeAnderson (2006),Eisenmann et al. (2011),Rojanakit et al. (2022), Surowiecki (2004, and ...
Article
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The purpose of this paper is to analyze and discuss the topics of sharing economy and collaborative consumption (CC) within the domains of global entrepreneurial opportunities, strategic issues, and emerging online businesses. Both topics remain immensely rich and intertwined because of their interdisciplinary perspectives and multifaceted issues. The sharing economy and CC-based digital platforms clearly support and complement today’s business models, corporate expansion, and entrepreneurial growth. The sharing economy and CC models continue to grow yet can be disruptive in international entrepreneurship. The paper investigates the sharing economy as well as CC in ten sectors (73 firms) from the perspective of “commercial sharing systems” (Lamberton and Rose 2012, p. 109). Findings of the paper reveal that the two topics distinctly remain interconnected when dealing with their business models, entrepreneurial initiatives, and consumers in global markets. The work systematically lays the foundation for future research in the international entrepreneurship literature and its related areas. Companies that pursue the areas of sharing-based systems tend to be inherently innovative and venturesome in their business models and digital platforms. The paper also provides a research agenda and managerial implications of this timely discussion that continues to grow in international entrepreneurship.
... The recipients of CSR investments are often stakeholders who are internal (employees) or external (local community, consumers, natural environment and other stakeholders having salience outside the organisation) to the entity (Werther and Chandler, 2010) and accordingly, CSR can be either internal or external CSR (Farooq et al., 2017). Corporates are always looking at ways to use both internal and external CSR to enhance their competitive advantage and create "shared value" (Porter and Kramer, 2011) for all the stakeholders including employees (Barnett, 2007). However, each type of CSR affects the attitudinal and behavioural disposition of employees differently (Hameed et al., 2016). ...
Article
Purpose Drawing on both social identity theory and signalling theory, this paper aims to theorize and empirically examine a moderated mediation model that investigates the underlying mechanism through which perception of Corporate social responsibility (CSR) influence employee affective commitment (AC) (micro-CSR) in case of companies that are among the highest spenders on CSR initiatives targeted at external stakeholders (macro-CSR). Design/methodology/approach The hypotheses were tested on 444 employees of top five banking and four information technology Indian companies. Partial least squares structural equation modelling was used to test the measurement model, whereas moderated mediation analysis was done through Hayes PROCESS Macro (v.4). Findings Findings suggest that employees develop a positive attitudinal disposition towards organisations CSR activities even when targeted only at external stakeholders. The research findings support advancement of CSR literature by suggesting that expenditure on CSR initiatives of business sends strong signals to employees of the care and empathy it has for stakeholders and due to prestige, that comes along with it, their self-concept gets accentuated. Lack of influence of employee volunteering (EV) on CSR outcomes highlights the need of integration of CSR initiatives with CSR strategy and human resource policies. Originality/value Results indicate that perception about CSR is directly related to AC, but its influence improves if it is routed through perceived organisational support and organisational trust in that order. Furthermore, the serial mediation of the model is not moderated by EV.
... Although we have not explicitly addressed it here, many of the proposed indicators facilitate the evaluation of landscape multifunctionality, and respective outcomes over a wide range of sustainability themes. Analysing the multifunctionality of agri-food value chains is also relevant for sustainability, as it can expose strategic and operational misalignments within chains, misallocation of resources, and opportunities for creating not only economic, but also environmental and social value (Fearne et al., 2012;Porter and Kramer, 2011). Hence, we recognise that the present approach could benefit from a more explicit representation of value chain networks, and respective indicator metrics to measure multifunctional value along them, from farmer to consumer (e.g., Fagioli et al., 2017). ...
Article
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Agriculture plays a central role in achieving most Sustainable Development Goals (SDGs). Sustainable intensification (SI) of agriculture has been proposed as a promising concept for safeguarding global food security, while simultaneously protecting the environment and promoting good quality of life. However, SI often leads to context-specific sustainability trade-offs. Operationalising SI thus needs to be supported by transparent sustainability assessments. In this article, we propose a general systematic approach to developing context-specific frameworks for integrated sustainability assessment of agricultural intensity change. Firstly, we specify a comprehensive system representation for analysing how changes in agricultural intensity lead to a multitude of sustainability outcomes affecting different societal groups across geographical scales. We then introduce a procedure for identifying the attributes that are relevant for assessment within particular contexts, and respective indicator metrics. Finally, we illustrate the proposed approach by developing an assessment framework for evaluating a wide range of intensification pathways in Europe. The application of the approach revealed processes and effects that are relevant for the European context but are rarely considered in SI assessments. These include farmers’ health, workers’ living conditions, cultural heritage and sense of place of rural communities, animal welfare, impacts on sectors not directly related to agriculture (e.g., tourism), shrinking and ageing of rural population and consumers’ health. The proposed approach addresses important gaps in SI assessments, and thus represents an important step forward in defining transparent procedures for sustainability assessments that can stimulate an informed debate about the operationalisation of SI and its contribution towards achieving SDGs.
... This is an approach to solve the problems highlighted by stakeholders' theory and Agency Theory. Where, stakeholders theory proposes that organization should satisfy all stakeholders, directly and indirectly affected by the operations of firm (Porter & Kramer, 2011). So, the survival of firms is possible through satisfying the various stakeholders (Javed et al., 2020). ...
Article
This study examines the influence of perceived corporate social responsibility (CSR) on corporate financial performance (CFP). Based on win-win paradigm, this study uncovers the mediating role of Quality of Work Life (QWL) on CSR-CFP nexus. A questionnaire based cross-sectional survey was conducted to accumulate data from 355 employees working in public and private sector banks of Pakistan. Structural Equation Modeling (SEM) was used to examine the hypotheses. The results depict that CSR is positively related with CFP, and employee QWL partially mediates this relationship. According to our noesis, the review of previous literature regarding the association of CSR and CFP reveals that QWL has not been empirically tested as a mediator between these two variables. This study findings proposes that banks engaged in CSR activities are actually establishing a healthy work environment for their employees which ultimately helps the banks to improve their financial performance. This study highlights the importance of CSR activities for enhancing the CFP of the banking sector in the developing countries. Keywords: Corporate Social Responsibility, Quality of Work Life, Agency Theory, Financial Performance.
... In this context, the pursuit of sustainability has begun to reshape the competitive landscape (Nidumolu et al., 2009), which ultimately leads enterprises to change their strategy of managing products, services, technologies and business models (Sayem, 2012). Such a new revolution has inspired companies to incorporate sustainability into their business processes, including professional development of employees, the management of supply chains and new product development (Manyika et al., 2011;Porter & Kramer, 2011). According to Kuckertz and Wagner (2010) Sustainability orientation translates the level of awareness regarding the protection of the environment and individuals ' social responsibility. ...
... Over the last decade, there has been a growing concern with the ethics and legitimacy of the full internalization and exploitation of innovation outcomes by private organizations [2,24]. This stream of research gained momentum with the seminal article of Kramer and Porter [30] advocating the "shared value" that should be the target of any innovation, which should generate prosperity in the entire ecosystem [31]. ...
Article
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Open innovation (OI) has been implemented to develop competitive advantages based on the management of innovation with external players. As such, it is expected that the generalized adoption of OI practices needs to be nurtured by governmental public policies in order to enhance OI-based ecosystems. The role of open innovation ecosystems is known by the importance of multiple synergies among players/stakeholders, which are expected to be supported by regulations and funding to consolidate firms’ innovation results. This paper analyzes the role of regulations and funding on firms’ innovation performance using the double-hurdle estimation procedure. The results show that, in the first tier, inbound knowledge flows positively affect performance, and, in the second tier, public funds further reinforce innovation performance and fiscal and security regulations. In contrast, as regulations are perceived as barriers, they fail to impact innovation performance. With this paper, we manage to shed light on the importance of public policy funds in the support of thriving OI-based ecosystems as enhancers of firms’ innovation performance.
... This study examines whether ecosystem firms do well by doing good, in the sense of generously ceding resources to partner firms. In this way, we are linked to the literature that argues that doing good and well should be addressed in a firm's interactions with all its stakeholders because firms and their stakeholders are interdependent (Meyer, 2015;Porter & Kramer, 2011;Sacconi, 2007). We first theorize a conceptual model to explain the mediating role of inbound openness and outbound openness in the relationship between a firm's ecosystem interconnectedness and its competitive advantage. ...
Article
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Innovation ecosystems are formed by interconnected firms that coalesce in interdependent networks to jointly create value. Such ecosystems rely on the norm of reciprocity—the give-and-take ethos of sharing knowledge-based resources. It is well established that an ecosystem firm can increase its competitive advantage by increasing interconnectedness with partners. However, much research has focused heavily on the positive role of inbound openness or ‘taking’ resources from ecosystem partners. The positive role of outbound openness or ‘giving’ resources to ecosystem partners remained less explored and often misunderstood as eroding competitive advantage. We address this gap by first developing a conceptual model about the mediating role of inbound openness and outbound openness in the relationship between a firm’s ecosystem interconnectedness and competitive advantage. We then test this model on a large sample ( n = 794 managers) from Silicon Valley (USA) and Macquarie Business Park (Australia). Results indicate that outbound openness is a more important mediator than inbound openness for ecosystem firms seeking competitive advantage. Our findings suggest that the effect of outbound openness goes beyond merely generating tit-for-tat reciprocity to generating strategic benefits in their own right. The study adds to knowledge about the ethics of innovation ecosystems by showing that outbound openness to partners improves competitive advantage. Ecosystem firms, thus, do well by doing good when they increase their outbound openness.
... Environmental responsibility and climate protection will have an increasing priority not only because of regulations, but above all because of growing risks. In addition to climate neutrality, biodiversity conservation is another issue that urgently needs to be addressed [29]. ...
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As a research hypothesis, it was assumed that micro-, small-, and medium-sized enterprise SMEs undertake Corporate Social Responsibility (CSR) mainly guided by the benefits obtainable from this activity. The aim of the study was to identify the achievable and achieved benefits of undertaking CSR by SME enterprises. SMEs are not obliged to report this activity. The exploration included literature studies and empirical research, according to the expert method, in three stages: (1) selection of experts, (2) collection of information using the CAWI and CATI method, (3) development and interpretation of research results. Research has indicated that CSR is becoming closer to SMEs. The research has shown that experts are implementing CSR and gaining benefits from it. It has also shown that experts’ knowledge of CSR is insufficient, which results in many opportunities resulting from the implementation of this activity being overlooked. The European Commission (EC) guidelines introduced an obligation of reporting CSR only for listed companies; indirectly, this obligation will also affect other companies. Voluntary reporting will increase the knowledge of CSR and bring many benefits to SMEs, provided that a legal framework is created to facilitate the implementation of CSR and its reporting.
... The emphasis on profit arguably makes food system actors answerable to the consumer, thereby ostensibly providing the opportunity to give the consumer power over the food system and the markets. In this neoliberal performance logic, markets provide the governance solution for pretty much everything and anything, including sustainability [22]. Others, like Sandel, argue that some things have an innate value which cannot be supported by the current market system of purchasing and receiving, the what 'I get for what I give' dynamic [23]. ...
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The values associated with food are framed and constructed by market-based systems that assign attributes to different foods across the marketplace. The aim of the paper was to conceptualize the range of non-financial aspects associated with food in the literature examined and a typology was introduced to position a new set of non-financial food values, the alter-values, which support the creation of a more holistic approach to visualize and reimagine a more sustainable, resilient food system that readdresses and respects such values. The four alter-values of interest, intrinsic, production-related, supply chain related, and emotio-cultural values, were discussed in the context of changing food environments, and a visualization of the typology was presented to explain them. By focusing especially on intrinsic and emotio-cultural values, an adaptation of the current food environment beyond pecuniary-based emphasis was possible. Such an approach helps to challenge the structure of the conventional food system towards a more citizen-driven sustainable model, altering priorities, with a drive towards embedding values and going beyond perceiving food only in terms of exchange value, to considering food as a vital aspect of life.
... (Rangan, 2015) 2 (The Business Roundtable, 1997) 3(Herzog, 2017) 4 (The Business Roundtable, 2019) 5(Porter and Kramer, 2011) ...
Technical Report
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The present report is the result of the analysis of 25 interviews with prominent leaders of organizations acting in Portugal in 2019. These interviews were conducted between May and August and focused on the topic of “Leadership Challenges”. Sub-topics ranged from the personal journey of the leader, business and society challenges, talent management challenges, as well as digital challenges and work-life balance.
... It is not on the margin of what companies do, but at the center . . . " [20]. In this definition, the emphasis given to shared value is on the continuous creation of value over time to all stakeholders and goes beyond simply being socially responsible, philanthropic or sustainable, but does not necessarily exclude them. ...
Article
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Overall, climate concerns have been on the global agenda for many years now. However, the aviation sector’s impact on climate change has been receiving increased attention recently. This is primarily due to the adoption of the 2016 carbon offsetting and reduction scheme for international civil aviation (CORSIA) which was introduced by the international civil aviation organization (ICAO). The aims of our study are to analyze ICAO’s carbon offsetting reduction scheme through the lens of the triple bottom line (TBL) value creation dimensions and to explore implementation issues relevant to its success and alignment between regulatory and commercial capabilities. Findings from our analysis were presented to a pilot focus group to further our understanding of the area. After cross-examination of the carbon emission reduction implementation issues against the TBL dimensions, we show the gap between regulatory schemes and the realities of the sustainable commercial aviation sector to meet climate goals. By highlighting the regulatory versus commercial social capabilities, our study illuminates the dimensions which need to be considered in regulatory practice, emphasizing the necessity for commercial sustainability. We finally provide recommendations to be considered for the successful implementation of CORSIA.
... pozyskiwanie energii ze źródeł odnawialnych, alternatywne sposoby pozyskiwania i eksploatacji surowców, gospodarowanie w obiegu zamkniętym, tworzenie ekoinnowacji i produkcja ekologicznej żywności. W ten sposób klastry wpisują się w koncepcję tworzenia wspólnej wartości (Creating Shared Value -CSV) [Porter, Kramer, 2011], zgodnie z którą przewaga konkurencyjna jest uzyskiwana dzięki zaspokajaniu potrzeb w otoczeniu przedsiębiorstwa, co prowadzi do zrównoważonego rozwoju [Weresa, Kowalski, Sieńko-Kułakowska, 2017]. ...
Book
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Pandemia COVID-19 oraz podjęte przez rządy i organizacje międzynarodowe decyzje i działania zmieniły w diametralny sposób warunki konkurowania w gospodarce światowej. Jedną z kluczowych cech umożliwiających osiągnięcie wysokiej pozycji konkurencyjnej stała się odporność (resilience) na kryzys, wzrosło również znaczenie zrównoważonego wymiaru konkurencyjności. Te nowe tendencje wyznaczają główny cel niniejszej monografii, którym jest określenie pozycji konkurencyjnej polskiej gospodarki w dobie pandemii COVID-19, z uwzględnieniem najważniejszych elementów składających się na konkurencyjność zrównoważoną. Cele szczegółowe monografii obejmują zaś: ƒ przedstawienie podstaw teoretycznych konkurencyjności międzynarodowej w dobie kryzysu, w tym przede wszystkim znaczenia konkurencyjności zrównoważonej i zagadnienia odporności (resilience) i podatności (vulnerability) na kryzysy; ƒ określenie zdolności konkurencyjnej Polski, zwłaszcza w kontekście oceny rozwoju poszczególnych czynników konkurencyjności, takich jak: zasoby ziemi i wody, inwestycje, siła robocza, innowacje i rozwój technologiczny oraz instytucje; ƒ wyznaczenie międzynarodowej pozycji konkurencyjnej Polski na tle innych państw członkowskich Unii Europejskiej, z uwzględnieniem konkurencyjności dochodowej, konkurencyjności w handlu zagranicznym oraz konkurencyjności zrównoważonej (obejmującej elementy środowiskowe i społeczne).
... A collective value system is formed, including capitalism as a form of capital optimization, social care that emerges from the crisis, and an understanding of social values. All of these things bring a management transformation in the management of MSMEs (Porter & Kramer, 2011); (Chell et al., 2016). ...
Article
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As a region that relies on the tourism sector as the priority then, when the Covid-19 pandemic hit the world, Bali became one of the most affected regions. Efforts are being made to drive the MSME sector in overcoming the financial crisis. The problem discussed was how the impact of MSMEs as the economy spearhead in the Covid-19 pandemic situation. The urgency of this research is to contribute to the practice of community empowerment through the MSME sector. The research method used is a qualitative method with a case study approach, to explore and comprehensively describe the phenomena that occurred in the MSME sector. This research was conducted in Bali Province, the determination of informants was carried out purposively. The results showed that MSMEs had become the economy spearheaded during the pandemic, become a solution to economic growth, accommodated the process of quadrant shifting from tourism performer into MSME performer, implemented economy digitization at various stages, and business activities. The sharing economy pattern has been formed in MSME business practices, through various related business sectors. The findings of this study are (1) a change in the mindset of the people who initially had a mentality as workers, now have an entrepreneurial spirit, and (2) the application of the sharing economy as an exchange of values in the MSME sector. The limitation of the research is that the research location is only in one area. The social implication is that MSME becomes a solution to prevent the potential social vulnerability.
... Esto implica, por ejemplo, que el gobierno debe promover inversión y cooperación internacional para emprendedores locales, favoreciendo aquellas empresas que produzcan valor compartido para ellos y la sociedad. Esto significa que, si bien las empresas producen ganancias para sus accionistas, también deben ayudar a satisfacer las necesidades sociales locales(Porter y Kramer, 2011). ...
Preprint
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Resumen Este capítulo ofrece un marco general para dialogar sobre el desarrollo de nuestras comunidades, y la responsabilidad de los diferentes actores económicos y políticos para alcanzar este objetivo común, temas que se abordan a lo largo de libro. El capítulo ubica al desa-rrollo económico como uno de tres factores que determinan el logro del bien común de una comunidad política. El argumento central de este capítulo es que solo a través de un círculo virtuoso de respeto de los derechos humanos, desarrollo económico centrado en la persona humana y consolidación de la paz, las sociedades pueden prosperar. Un desarrollo económico desconectado de estos otros elementos impedirá la consolidación del bien común. Los formuladores de polí-ticas públicas y legisladores locales y nacionales son los responsables de incentivar y regular las conductas empresariales para que contri-buyan positivamente a la consolidación del círculo virtuoso del desarrollo, los derechos humanos y la paz. Palabras clave Bien común, derechos humanos, desarrollo, paz. * Partes de este capítulo fueron previamente publicadas en inglés en el artículo "The role of business in a thriving society" del mismo autor, pero el argumento central es inédito. El autor cuenta con el permiso para su publicación.
... For businesses, SDGs represent an opportunity to renew and discover more avenues for growth aligned with benefits for the society and the environment (Scheyvens et al., 2016). The Business and Sustainable Development Commission estimated that new economic opportunities of engaging with SDGs could amount up to US$12 trillion, hence the rhetoric of creating shared value (Porter and Kramer, 2011). Business consultancies, such as Ernst & Young, emphasise that harnessing the SDGs can help to drive growth, manage risks by re-examining the supply chains, and attract capital as the investment flows are expected to follow the global development challenges (E&Y, 2017). ...
... Another suggestion for improving the implementation of carbon reduction strategies in the procurement process is the need for a high level of innovation in the construction procurement process in New Zealand. This finding is in line with the studies by [9,10,47], confirming that the procurement strategies and requirements should encourage innovation as it creates benefit and value for all actors in the procurement process towards providing environmental improvement solutions. Carbon reduction innovations are new technologies, processes, and products in design and construction. ...
Article
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In light of climate change, the construction industry plays a crucial part in alleviating carbon emissions and other environmental impacts. The focus on improving the public procurement process poses an important opportunity for the successful implementation of carbon reduction strategies in construction projects. There is a growing body of literature mapping green and sustainable procurement practices in construction. However, previous studies have not treated the implementation of procurement in a particular area, such as carbon reduction, in much detail. This study aims to investigate the implementation of construction procurement incorporating carbon reduction strategies, with a specific focus on the public sector in New Zealand. The research was conducted through 13 semi-structured interviews with construction procurement experts in New Zealand. The results shed light on the current implementation of carbon reduction strategies in construction procurement and its challenges, such as a lack of knowledge and ambiguous procurement guidelines and documents. It also emphasises the importance of (1) well-developed carbon reduction evaluation criteria, (2) specifying a budget for carbon-related initiatives, and (3) the prerequisite of a high level of innovation in the procurement document. The study adds to the rapidly expanding field of carbon reduction construction procurement by providing a deeper insight into the way carbon reduction strategies are effectively implemented in the procurement process.
... 20-21. Even within its systematic constraints (de Bakker et al., 2020), CSR research along with the practice thereof continue to evolve and inform our understanding of a firm's broader ethical obligation to society (Carroll, 2021) as well as the strategic role of ethical CSR in the realm of the shared values between business and society (Porter & Kramer, 2011). In this regard, a pivotal development pertains to emphasizing an element of governance quality. ...
Article
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The interconnected relationships between a business and its various stakehold-ers have been the beneficiaries of widespread research over the past few decades. Consequently, corporate social responsibility (CSR) and organizational justice have gained much prominence within management and organizational research. Yet, there remains less visibility into how they may interact to influence employee attitudes. Combining insights from social exchange and social identity theories, we develop and validate a mediated moderation model: organizational identification's mediation accounts for the interactive effect of ethical CSR (i.e., perceptions of whether firms act according to the generally accepted norms, standards, and principles of society) and interactional justice (i.e., perceptions of equity in the relationship between employees and those with authority over them) on employee job satisfaction. Using structural equation modeling on a sample of 293 employees, we find support for our proposed relationships. This research contributes to the existing knowledge at the intersection of CSR and organizational justice literature and reveals useful takeaways germane to accruing ethical capital with employees.
... Although our findings do not indicate that sustainability matters for NZ investors in the context of COVID-19, we still share the view that there is untapped value in creating shared value [57]. ...
Article
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This paper aims to investigate whether the environmental, social, and corporate governance (ESG) score of New Zealand-listed companies is associated with their stock performance during the COVID-19 pandemic. The idea of socially responsible investing is commonly accepted in New Zealand, and past academic literature has argued for the positive (though often weak) relationship between companies’ stock returns and their ESG profile. The methodology of the research is threefold. First, the average daily return for 11 New Zealand Exchange (NZX) market sectors and the S&P/NZX50 index during the COVID-19 panic and rebound periods are compared. Then, the impact of the COVID-19 outbreak on the average daily return of 11 broad NZX sectors in relation to the average ESG score for a given sector is checked. Finally, the relationship between the daily average performance of 56 NZX-listed companies and their ESG scores proxied by Refinitiv's ESG Combined Score is determined. The analysis reveals no support for the idea that the returns of firms with higher ESG scores are greater than those with a low ESG ranking during the COVID-19 pandemic. The results show a negative, though statistically insignificant, correlation between the ESG score and annualized stock return both on the sector and individual company levels. Even though our reported findings do not confirm the believed positive correlation of the analyzed measures (based on previous studies), they clearly show that high ESG performance does not harm financial performance even in the context of crises.
... Social value: A latent endogenous variable estimated through five indicators: SMEs' commitment to the creation of social and economic value [106][107][108][109], the quality of the SMEs' products [110][111][112], process efficiency and anticipation of changes in the environment, knowledge about the client satisfaction index. ...
Article
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In the business world, the improvement of employee well-being in organizations is important, as there is empirical evidence that it brings social value and economic benefits to organizations. To advance in this line of research, we considered SMEs as the object of study due to their importance in Spanish businesses and the scarcity of empirical studies on the subject. We use the partial least squares structural equation modeling (PLS-SEM) to analyse the measurement models and the structural model. Our research focuses on the importance of influential variables on well-being, but also considers how they affect financial performance. In the model that we present, there is a direct effect between the latent variables HPWS, well-being, reputation and financial performance, which represents how human resource management based on good practice in small and medium-sized enterprises (SMEs) positively affects well-being by creating a good reputation and generating more business wealth. Our findings confirm the direct relationships proposed in the model, as well as the relevance of well-being and reputation as mediating variables.
... Environmental performance incentives may complement shareholder value development and perhaps serve as a foundation for competitive advantage. Thus, we can develop a compensation plan that enables firms to pursue profit and nonprofit motives (Porter and Kramer 2011). Fig. 3, professional managers 1 and 2 receive the most income when both firms 1 and 2 employ professional managers with environmental performance incentives. ...
Article
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As corporations’ environmental impacts come under greater scrutiny from global financial, regulatory, and societal stakeholders, management scholars have increasingly focused on the role corporate governance plays in undertaking corporate environmental responsibility (CER). This paper combines managerial incentives and CER in a dynamic environment to formulate a differential game model of managerial incentive design in a duopolistic market, investigating whether companies with profit-maximizing interests are motivated to provide their professional managers with incentives related to CER and the impact of such incentives on corporate profitability, social welfare and emissions reduction. The results demonstrate the following: (1) Employing professional managers increases the emissions reduction efforts of firms and giving incentives to professional managers further increases the emissions reduction level of firms. (2) When a firm employs a professional manager and pays him or her a fixed salary, it generates slightly less income than it does when a manager is not employed; however, if the professional manager is given CER-related incentives, the firm’s income is greatly increased. (3) As long as professional managers are employed, social welfare increases regardless of whether professional managers are given incentive pay. (4) The emissions reduction of a firm increases with an increase in the income distribution coefficient π1. This paper extends the existing CER decision-making model by considering different managerial incentive designs, providing new insights into CER and enterprise organizational strategy and offering useful policy recommendations and a scientific basis for environmental governance, which is expected to be useful for finding ways to balance economic development and environmental protection. Graphical abstract
... Barnett et al. (2020) use the literature on development economics to highlight the need to assess not only immediate outputs from CSR activities (e.g., number of beneficiaries served, emissions, and financial performance) and outcomes associated with CSR activities (i.e., correlational evidence on societal outcomes such as reduced emissions and improved work environment), but more importantly, causal impacts attributable to CSR activities (i.e., societal outcome improvement caused by CSR activities). Innovation is a key outcome of social impact due to its power in generating positive social change (Porter & Kramer, 2011), thus future research on social impact can draw upon theoretical perspectives on responsible innovation (Stilgoe et al., 2013) and sustainable innovation (Adams et al., 2016;Varadarajan, 2017) to predict, measure, and monitor the outcomes of social and sustainable innovation attributable to CSR activities. Finally, behavioral change is an essential aspect of social impact since for many social issues, ranging from health to diversity to environmental protection, it is often the behavioral change adopted by individual stakeholders that creates the most lasting impact in the effort to solve the issue. ...
Article
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In this article, the co-editors of the corporate responsibility: quantitative issues section of the journal provide an overview of the quantitative CSR field and offer some new perspectives on where the field is going. They highlight key issues in developing impactful, theory-driven, and ethically grounded research and call for research that examines complex problems facing businesses and the society (e.g., big data and artificial intelligence, political polarization, and the role of CSR in generating social impact). By examining topics that are under-researched, forward-looking, and socially oriented, scholars can expand the boundary of CSR’s substantive domain and produce research that helps businesses act in a long-term, socially responsible way in this quickly evolving, turbulent environment. They also discuss ways to enhance the methodological rigor of quantitative CSR research and encourage scholars to employ cutting-edge, innovative methods to shed light on the micro-level mechanisms of CSR and reveal patterns and relationships hidden in unstructured big data.
... Second, businesses must create shared value and not just shareholder value (Kramer & Pfitzer, 2016;Porter & Kramer 2011). We advocate a societal marketing approach where the objective is to promote mindful consumption as opposed to encouraging or influencing more consumption (Sheth et al., 2011;Sisodia et al., 2007;Uslay & Erdogan, 2014). ...
Article
Definition precedes measurement. The authors define and discuss value, customers and processes to create value. To do so, they distinguish between three business philosophies (product-centric, competition-centric and customer-centric), three types of customers (user, payer and buyer) and three primary types of value (performance, affordability and service) based on these customers’ preferences. They introduce and give examples of 10 unique ways of creating value for customers and conclude with research questions for creating enduring customer value.
... However, the acquisition of competencies and tools is not always the most appropriate, meaning that solutions to problems are sought based on the immediacy and benefit of the results, instead of developing strategies that involve the entire project development process. Along the same lines, [65] and [66] consider that the SDGs should be deemed as key inputs to the business strategy and not as an additional external cost to the company, integrating them into the project life cycle. On the opposite side, other authors question the ability of the SDGs to determine project success. ...
Article
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The purpose of this article is to help to bridge the gap between sustainability and its application to project management by developing a methodology based on artificial intelligence to diagnose, classify, and forecast the level of sustainability of a sample of 186 projects aimed at local communities in Latin American and Caribbean countries. First, the compliance evaluation with the Sustainable Development Goals (SDGs) within the framework of the 2030 Agenda served to diagnose and determine, through fuzzy sets, a global sustainability index for the sample, resulting in a value of 0.638, in accordance with the overall average for the region. Probabilistic predictions were then made on the sustainability of the projects using a series of supervised learning classifiers (SVM, Random Forest, AdaBoost, KNN, etc.), with the SMOTE resampling technique, which provided a significant improvement toward the results of the different metrics of the base models. In this context, the Support Vector Machine (SVM) + SMOTE was the best classification algorithm, with accuracy of 0.92. Lastly, the extrapolation of this methodology is to be expected toward other realities and local circumstances, contributing to the fulfillment of the SDGs and the development of individual and collective capacities through the management and direction of projects.
... Strategic ESG competency involves promoting innovations that eventually benefit the corporation and society (Becker-Olsen et al., 2006). ESG also improves economic and social reputation by generating "shared value" in the communities (Porter and Kramer, 2011). ESG includes a broad list of environmental (e.g., energy, carbon emission, water usage, climate change), social (e.g., human rights, gender equality, product safety, health and safety, fair trade) and governance (e.g., corruption, bribery, reporting and disclosure, board independence, shareholder protection) issues. ...
Article
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The aims of this study are threefold. Firstly, it examines the long-term improvement in the corporate environmental, social and governance (ESG) performance. Secondly, it highlights the favourable financial implications of the higher corporate ESG performance disclosure. The third aim is to provide insight into the industrial impact on the relationship between corporate ESG performance disclosure and financial performance. This study uses a sample of all Australian publicly listed companies between 2007 and 2017 and conducts a panel regression analysis. It also performs several robustness checks to address the methodological, sample selection and endogeneity issues concerning corporate ESG performance disclosure. The findings show a tangible improvement in Australian companies' corporate ESG performance disclosure, favourably
... Sustainable economic performance means that companies should be more responsible for the influence they exert on society and the environment [56,66]. Contributing to sustainable consumption and production also leads to enhancing economic outcomes for organizations [67], and to shared value [68]. The "win-win assumption" implies the common ground between economic and non-financial aspects of sustainability: "saving the world and making a profit is not an either/or proposition. ...
Article
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Profitable and dynamic, the cosmetics industry strives to conform to the environmental ideals and practices of the 21st century. For years, NGOs, the media, and consumers have accused cosmetics brands of pollution, environmental disasters, and safety concerns. These allegations can spread faster in the online environment and cause genuine brand crises. Many cosmetic company managers continue to assess the necessity of accelerating their business toward sustainability initiatives and being more consumer centric. Therefore, this paper aims to examine the impact of economic , social, and environmental sustainability on brand attachment and brand attractiveness, which may result in a positive WOM, enhance purchase intention, and finally lead to the intention to join online brand communities. To implement the research scope, the authors developed a conceptual model based on the triple bottom line (TBL) and the Stimulus-Organism-Response (SOR) approach. To assess the conceptual model, the authors have conducted quantitative research, through an online questionnaire, with data being collected from consumers via an online survey platform. The snowball sample comprised 1632 valid responses from consumers of sustainable cosmetics brands. Further on, the conceptual model was assessed employing structural equations modelling via SmartPLS. The results confirm the impact of the three pillars of TBL (i.e., economic, social, and environmental sustainability) (stimuli) on brand attachment and brand attractiveness (organ-ism), which finally generates positive WOM, triggers purchase intention, and enhances consumers' intention to join an online brand community (response). From a theoretical perspective, our research contributes to extending knowledge based on the SOR approach and TBL applied to sustainable cosmetics brands. Considering the significant effects of economic, social, and environmental sustainability on consumer perception and intention, the study also pinpoints some major management implications for the cosmetic industry.
... Furthermore, this model serves as a means of disseminating good CSR practices and allows companies to take socially responsible actions without incurring in additional costs, which makes the strategic case for CSR more compelling (Figure 3). Social responsibility is implemented by creating shared value (CSV) with the primary goal of combining business with social values (Porter & Kramer, 2011). ...
Article
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Although food waste reduction has been recognized as an important method for managing the environment in the past, it has not received much attention from the hotel business sector. This article reveals that food waste hierarchy is an important strategy for hotels, as it helps them to reduce food waste at the generation point, while reducing food costs and protecting the environment. The process of food waste reduction can be holistically integrated with the distribution process. The study found that there were significant differences related with hotel size in the 7-step food distribution process. The mean distribution process of large hotels is higher than the one of medium and small hotels. The results also show that the hierarchy of food waste management motivates the hotel business sector to implement food waste reduction by ensuring that hotel operations achieve Corporate Social Responsibility (CSR) goals in the form of Creating Shared Value (CSV). The primary goal of CSR is to align corporate and social values.
... It also motivated many countries to build regulatory frameworks (Grove-White, 1997), and the societal pressure on firms to develop and adopt alternate technologies (Rashid Khan et al., 2021;Töbelmann and Wendler, 2020) to help increase their eco-efficiency (Henri and Journeault, 2010;Michelon et al., 2020). Researchers observe that social demand and regulations (Choi and Luo, 2021;Grove-White, 1997;Jeppesen, 2021) foster the adoption of environmental technologies (Popp, 2010) to provide a competitive advantage to the firms through product and process innovation to enhance their environmental and financial performance (Porter and Kramer, 2006;Porter and Kramer, 2011). As such, eco-innovative solutions help integrate economic, social, and environmental benefits (Hopwood et al., 2005). ...
Article
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Climate change and CO2 emissions intertwine corporations and society in current political, social, environmental, and economic debates, specifically in Europe. The climate action plan formulated by the European Commission aims to achieve net zero emissions through eco-innovation by 2050. The objective of this study is to investigate the impact of the European eco-innovation index on CO2 emissions produced by European firms. Using a dataset of 735 firms from 17 European countries listed during 2010–2018, we found a significant negative association between the country-level eco-innovation index and CO2 emissions directly produced by the European firms. We also found a significant negative association between the eco-innovation index and indirect CO2 emissions produced by the value chain of these firms. The results provide evidence that via eco-innovation, supportive steps taken by European countries provide a conducive environment for the European firms to adopt eco-innovative strategies that significantly reduce their direct and indirect CO2 emissions per dollar of their corporate assets and make their value chains eco-friendly. The results also reveal that financial development brings in some environmental monitoring that cultivates a supportive culture for the corporations to promote corporate efforts to reduce CO2 emissions.
... Broadly speaking, the concept of sustainability is among the most important themes to has emerged in the last decade at the global level. Similarly, (Porter & Kramer, 2011) emphasize that sustainability is important because it creates a connection between the corporation and the community within which it operates. In fact, they state that there should be a push towards creating shared value between the corporation and the community within which it operates. ...
Article
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In today's context (globalization, competition, knowledge economy, technological changes, external environmental factors), knowledge management and business intelligence on the tourism level have received increased attention aiming to identify smart performance factors and change the structure of organizations. Similarly, the tourism industry has experienced important development during the past decades. Moreover, sustainability is becoming increasingly important for society and the creation of the tourism industry is one area where sustainability is critical. It is well known that sustainability is required when it comes to carrying out any activity. The aim of this paper was to study the relationship between knowledge management in its operations and business intelligence systems on the sustainability performance among the tourism industry in Algeria. A total of 126 questionnaires were distributed to the sample of the study. A multiple regression analysis was used to test the hypotheses of the study. The study concludes that there was a positive relationship between knowledge management processes and sustainability performance. Moreover, the components of business intelligence had positive impacts on sustainability performance. The results can facilitate utilizing the KM process and the implementation of BI in the Algeria tourist industry.
Article
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The effects on climate change and environment, sustainability in transportation should be the primary goal of every transportation systems. The city of Penang is failing to cope with the old transportation infrastructure due to the rapid economic growth and the boost of migration for work. The involvement of stakeholders in the deliverance of mass transport services is necessary to meet public needs. The findings from the case study reveal that Penang is in an acute need for a well-connected and robust sustainable transport system. The current structure of creating government policies is inadequate for the handling of the congestion along with policies it needs integration of the transport systems with rail systems. The authors propose that the adoption of a Public Value measurement framework can significantly improve the desired outcomes. The framework enables public managers to understand the needs of citizens and deliver a right balance of infrastructure development and amendments needed in policy that can help Penang achieve a value-based sustainable transportation system.
Article
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In a scenario of growing demand for energy, technology applications that monitor industrial companies' energy consumption will support the integration of the value chain of suppliers, companies, and clients in a process of eco-innovation. We relate the drivers of eco-innovation to the key factors of internationalization of business models based on supporting industrial companies' energy efficiency. From a dynamic perspective, this study allows us to highlight that an entrepreneur's preestablished personal network, the lack of opportunities in domestic markets, and the fast-changing environment complicate the international growth pattern of eco-innovations.
Thesis
Im wissenschaftlichen Diskurs nimmt die Zahl der Methoden, mit denen Organisationen auf normative Erwartungen ihrer Stakeholder reagieren und sie berücksichtigen können, weiter zu. Bei eingehender Betrachtung zeigen sich allerdings konzeptionelle Lücken, die nicht nur die Wirksamkeit der Methoden einschränken, sondern zusätzliche Gefahren für Organisationen bergen. Es fehlt ein Ansatz, wie Organisationen die normativen Erwartungen ihrer Stakeholder integrativ und ganzheitlich berücksichtigen können. Auf Basis bestehender Literatur wurde – unterstützt durch vier konzeptionelle und empirische Forschungsprojekte – ein auf den persönlichen Werten der Stakeholder basierender Ansatz (SVBM) abgeleitet, der normative und vor allem erwünschte Stakeholder-Erwartungen prädiktiv und damit indirekt abbildet. Durch die Positionierung im normativen Management sorgt er zum einen für die Integration der Aktivitäten im Management. Zum anderen gewährleistet er durch die Ausrichtung an den persönlichen Werten sowie die Einnahme einer integrativen Stakeholder-Perspektive die notwendige Ganzheitlichkeit bzgl. der Auswahl der normativen Erwartungen und der Bestimmung der Stakeholder. Mittels der Übertragung des Ansatzes in das konzeptionelle Framework des Higher Purpose kann mit dem SVBM nicht nur möglicher Schaden durch eine Nichterfüllung abgewandt werden: Unterstützt durch die mit dem Higher Purpose verbundene Wertepositionierung und die daraus folgende Identifikation der Stakeholder mit Organisationen können auch nachhaltige Differenzierungs- und Erfolgsfaktoren geschaffen werden. In dieser Konsequenz und Deutlichkeit macht der Ansatz des SVBM – nach bestem Wissen des Autors – erstmalig die persönlichen Werte der Stakeholder von Organisationen zum Fundament deren Managements, um die normativen und vor allem die erwünschten Erwartungen der Stakeholder prädiktiv und damit indirekt im Management zu berücksichtigen. Die Arbeit hebt sich damit von bestehenden Konzepten und Methoden ab und ergänzt diese. Sie bildet zugleich den Ausgangspunkt für weitere Forschung sowie für die praktische Anwendung in Organisationen und schafft Wert für weitere gesellschaftliche Anwendungen und Bereiche.
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Unlocking after lockdown in the current COVID-19 pandemic has apparently resulted in a new normal way of living, but its impact on mental health is still unexplored. The present study tried to explore the mental health status of the general population in India during the current unlocking phase of the COVID-19 outbreak. Furthermore, it aimed at examining the mental health burden in different age groups and finally to find out the association between psychological distress and education loss, financial loss, exposure and acquaintance of COVID-19. The study was conducted from Unlock phase 3.0 to Unlock phase 8.0 on 200participants. A Google form was created and circulated on different online and social media platforms. The measures used were: the Impac to f Event Scale (IES), Depression, Anxiety, and Stress Scale (DASS-21). The data was analyzed with the help of SPSS v21. Results clearly show that the mental health burden of the majority of the population fell into the normal category and a few into the mild category. As far as stress, anxiety, depression, and IES in the unlock phase are concerned, they still exist but in lower figures as compared to lockdown phases. Without a doubt, the burden on mental health has been greatly reduced, but it still exists among the general population.
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La Responsabilidad Social (RS) surge como un instrumento que permite a las empresas afrontar nuevos retos, para que sus expectativas ya no solo sean obtener un beneficio econó- mico, sino también beneficios ambientales y sociales que involucren a las personas y las co- munidades en las que trabajan. Debido a ello se realizó una investigación considerando una fuente documental, de laboratorio, con corte longitudinal y un alcance descriptivo, todo con la finalidad de analizar la evolución como elemento característico de la RS. Se concluyó que la evolución que muestra la RS se ve reflejada en el interés de los inversionistas sobre las empresas en las que invierten, considerando enfoques relacionados con lo social, ambiental y económico. Derivado de ello, nace una nueva bifurcación de la RS, la Inversión Socialmen- te Responsable (ISR), también conocida como ESG, por sus siglas en inglés (Environmental, Social and Governance).
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La Responsabilidad Social (RS) surge como un instrumento que permite a las empresas afrontar nuevos retos, para que sus expectativas ya no solo sean obtener un beneficio econó- mico, sino también beneficios ambientales y sociales que involucren a las personas y las co- munidades en las que trabajan. Debido a ello se realizó una investigación considerando una fuente documental, de laboratorio, con corte longitudinal y un alcance descriptivo, todo con la finalidad de analizar la evolución como elemento característico de la RS. Se concluyó que la evolución que muestra la RS se ve reflejada en el interés de los inversionistas sobre las empresas en las que invierten, considerando enfoques relacionados con lo social, ambiental y económico. Derivado de ello, nace una nueva bifurcación de la RS, la Inversión Socialmen- te Responsable (ISR), también conocida como ESG, por sus siglas en inglés (Environmental, Social and Governance).
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India is in the second position in terms of population and the third-worst-affected country in the world in the total number of confirmed COVID-19 cases. COVID-19 was marked by low case fatality rates and strong recovery rates in India, as well as an increase in public-private partnerships in the health sector. Technological advancements have aided in the containment of this epidemic. The virus's growth rate was halted by an early lockdown policy, however, super events are increasing infection rates due to the breakdown of COVID protocol behavior. This COVID-19 pandemic is caused by the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). It contributes to worldwide healthcare issues and overstretched healthcare resources. As people recovering from this disease, it is of utmost importance to establish knowledge of healthcare issues surrounding them. COVID-19 is a multi-organ disease and there are reports of permanent and prolonged effects of this disease. So it is very important to understand COVID-19, the post-COVID effect and the status of the administration and individuals dealing with this situation. The present chapter discusses the knowledge regarding COVID-19, and various post-COVID-19 symptoms reported all over the world, especially in India in terms of professional status, financial status, mental status and status of the government and people dealing with this pandemic situation. Key Words: COVID-19, Post-COVID effect, Pandemic, India, management
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This paper investigates whether there exists a clear relationship between ESG indicators and financial performance with specific reference to the CoVid-19 crisis and to discover what are, if any, the key takeaways for issuers that emerge from such relationship. To assess this connection, we carried out an ESG scores based long-short portfolio analysis in the spirit of Fama and French (1992) on the European market in the period 2016‒2021. The results indicate that there is robust evidence that the bottom decile portfolio provides negative alphas and some weak evidence that the long-short portfolio provides some positive abnormal returns compared to all three most prominent asset pricing models (CAPM, Fama-French three-factor model and Fama-French five-factor model).
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As a disruptive paradigm, especially with the Covid-19 emergence, digital transformation (DT) becomes a main area of interest for many organizations. From a trend perception to an obligation, digital transformation implementation requires many changes, adaptations, and updates. Its success depends on many levers, the most important of which remains the design and implementation of a digital transformation strategy (DTS). Indeed, lacking capabilities to embrace DT can lead to the disappearance of the company. However, and despite relevant research, the formulation, implementation, and evaluation of the digital transformation strategy as a key to successful digital transformation remain vague and blurred. Thus, this article aims to draw up a literature review on DTS with a general approach guiding the implementation of digital transformation. The focus on the experience of the AssetCo company as a monographic study will serve to concretely describe the formulation and the implementation of the digital transformation strategy, its stages, as well as a conclusion on the main key factors of success. Thus, this article intends to contribute to a better understanding of the stages of the digital transition of companies. While many recent works have proposed constructive models for the implementation of DT, these remain specific to a particular industry or business model. In this respect, the general approach proposed in this article is intended to be more generalist, and under certain contextualization, is also intended to be adaptable to any company.
Book
COVID-19 is not only a medical science issue, but it is also a critical issue for other experts such as social scientists, economists, technologists, psychiatrists, statisticians, sociologists, policymakers, politicians, and administrators, among others. Therefore, it is important to make collective efforts to deal with this pandemic. Interdisciplinary research is one of the best ways to achieve this. Interdisciplinary research is capable of bridging traditional divides between disciplines and also combines research excellence with relevant impact. Interdisciplinary research should be treated as policy research. The quality of the interdisciplinary research structure not only provides new ideas and areas of research, but also flexibility and expanded possibilities for traditional disciplines. This manuscript will likely inspire researchers and policymakers to further their interdisciplinary research on the coronavirus pandemic. In the present book, authors from diverse backgrounds have expressed their views on this specific problem. They have contributed their ideas on how the pandemic has affected every aspect of human life, including education, economics, social life, finance, information technology, etc.
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