C HAPTER 14 Strategy and Social Value

T HREE TYPES OF VALUE Economic Value—increases in income, wealth, or profit Social Value—Increases in well-being in non- economic areas –Literacy –Health and sickness –Housing Shared value--when creating economic value also creates social value

S USTAINABLE STAKEHOLDER ADVANTAGES Social value organizations rely on repeat transactions –Universities and legacies –Community agencies and ongoing partners The ability to consistently gather resources from key stakeholders such as donors, volunteers, students, etc.

T HE VALUE NET Customer OrganizationCompetitorComplementor Supplier

CSR: A FIRM ’ S SOCIAL OBLIGATIONS Philanthropic Responsibilities Ethical Responsibilities Legal Responsibilities Economic Responsibilities

T YPES OF SOCIAL ENTREPRENEURSHIP Focus on SE Activities Role of social entrepreneur/ leader Examples Capacity Building Social bricoleur: Combines existing resources to focus value creation Highlander Research and Education Center (USA): adult education for community problem solving in Appalachia BRAC (Bangladesh): organizes and trains poor communities to create economic and social development Products/ Services Social constructor: Develops new models, products, or services Grameen Bank (Bangladesh, Worldwide): developed unique model for delivery/ repayment of micro-credit Unilever (India): Project Shakti uses rural women to sell hygiene products. Improves local health and incomes Institutional Change Social engineers: agitate for change, design more effective social systems Bono (Ireland): becomes a voice for worldwide poverty alleviation Nelson Mandela (South Africa): reconciliation commissions allow wounds from apartheid to heal

S UMMARY Strategy matters for social value organizations Pressure for socially responsible behavior will continue to increase as you enter the workforce Social entrepreneurship represents a new way to make a difference in the world