Presentation on theme: "1 www.haroldgoodwin.info/links.html Harold Goodwin Creating Shared Value."— Presentation transcript:
1 www.haroldgoodwin.info/links.html Harold Goodwin Creating Shared Value
2 www.haroldgoodwin.info/links.html What is the purpose of tourism? Ask not what your country can do for you, ask what you can do for your country.
3 www.haroldgoodwin.info/links.html What is the purpose of tourism? The worlds largest industry – but it needs government support for its marketing Freeloader problem Tourism needs to win support
4 www.haroldgoodwin.info/links.html Different perspectives on the worlds largest industry National International Arrivals Length of stay Foreign Exchange Earnings Net Foreign Exchange Earnings Expenditure Balance of Payments deficit Local Visitor Economy –Shoppers and day visitors travelling from home. –Day excursionists (tourists) travelling in from holiday accommodation –tourists staying in the local economy Local spend - £ $
5 www.haroldgoodwin.info/links.html Responsible Tourism making better places to live in, better places to visit. Cape Town Declaration
6 www.haroldgoodwin.info/links.html A journey to responsibility? Bonding and financial guarantees Repatriation Member discipline Trading standards Health & Safety Sustainability
7 www.haroldgoodwin.info/links.html The Business Case for Responsible Tourism The right thing to do Minimising risk License to operate Product quality Cost savings Staff morale Market Advantage Experience –richer –more authentic –guilt free Differentiation and PR Reputation Referrals Repeats
8 www.haroldgoodwin.info/links.html Responsible Tourism It is not about CSR, –Philanthropy & –Volunteering It is about how the business does its business
9 www.haroldgoodwin.info/links.html Shared Value – Porter The Big Idea Creating Shared Value Porter and Kramer How to reinvent capitalism – and unleash a wave of innovation and growth Harvard Business Review 2011
10 www.haroldgoodwin.info/links.html What is shared value? policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the social and economic conditions in the communities in which it operates. Focuses on identifying and expanding the links between economic and social progress
11 www.haroldgoodwin.info/links.html An outdated approach to value creation Companies have overlooked –the wellbeing of their customers –the depletion of natural resources vital to business –the viability of key suppliers –the economic distress of the communities in which they produce and sell
12 www.haroldgoodwin.info/links.html Companies must bring business and society back together Shared value – creating economic value in a way that also creates value for society by addressing its needs and challenges. Business must reconnect company success with social progress.
13 www.haroldgoodwin.info/links.html Shared value is not Social responsibility Philanthropy Sustainability rather a new way to achieve economic success. Businesses acting as businesses not as charitable donors
14 www.haroldgoodwin.info/links.html Why? A business needs a successful community, not only to create demand for its products, but also to provide critical public assets in a supportive environment. Contrary to self-contained entity idea of the firm the old, narrow view of capitalism.
15 www.haroldgoodwin.info/links.html Shared value societal needs define markets Expanding the total pool of economic and social value Creating a bigger pie of revenue and profits
16 www.haroldgoodwin.info/links.html Competitive advantage Comes from how it configures the value chain. Value is defined as benefits relative to costs, not just benefits alone. Externalities are ignored in conventional economics PPTP: net benefits
17 www.haroldgoodwin.info/links.html What is shared value? policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the social and economic conditions in the communities in which it operates. Focuses on identifying and expanding the links between economic and social progress
18 www.haroldgoodwin.info/links.html What does tourism contribute locally? Employment at a range of skill levels, wages & salaries, progression Enterprise opportunities for sales to tourists and tourism businesses Entrance fees for conservation Donations, Volunteering & mentoring Enables a variety of businesses to thrive which may not otherwise find a large enough local market 18
19 www.haroldgoodwin.info/links.html Shared Value & Tourism Employment –Wages –Training –Progression –& Beyond the sector Infrastructure gain – roads, IT, water. Local sourcing and enterprise development by 1.Tourism Businesses & 2.Tourists
20 www.haroldgoodwin.info/links.html Tour Operating and Creating Shared Value Simon Pickup ABTA