Bus&Soc

Company's sense of responsibility towards the community and the environment (ecological and social)

Economic

Environmental

Social

Doing something descretionary or in response to external pressure > integral to competing

Separate from profit maximization > integral to profit maximization

Impact is limited by corp footprint and budget > Realigns the entire company budget

Agenda is determined by reporting and preferences > Agenda is specific and internally generated

EXAMPLE: Fair trade vs transforming procurement to increase yield and quality

Reconceive products and markets (social and environmental linkages with the business - Wells Fargo pay debt and manage credit)

Redefine value chain (modification of activities to have a more positive impact - Walmart reducing packaging and transportation)

Enabling local clusters (how could working in clusters benefit the company and communities - Nestle agricultural, financial and logistical help to coffee farmers)

100 largest economies (49 countries, 51 companies)

MNCs are political actors in many ways: ability to do more and better, political engagement, powerful part of civil society and cosmopolitan universe

Can send signals and issue policies to influence production and supply networks, more impact than governments

People define social problems in a way that overwhelms their ability to change them

Need to identify a series of controllable opportunites

Useful from psychological point of view (less distortion)

Little sign that humanity will yet respond to climate change in a meaningful way

Continued growth and expansion relies on explotation of natural resources

Interdependency across borders

Political institutions 400 years ago

More than half of world's population live in cities

Network of cities already exist (US, Mexican, European conference of mayors, C40 - Cities climate change group)

Mayors: pragmatists, problem solvers, independent, get things done, "home boys" - from the neighbourhood, much higher trust level

80% of carbon emission come from cities

Road from polis to cosmopolis

Shared value = creating economic value in a way that also creates value for society

Company purpose redefinition

Anything more than CSR is seen as an irresponsible use of shareholders money

Interdependency between companies' and societal needs (education, demand, labour)

Expanding total pool of economic and social value

Shared value focusses on the right kind of profits - creating social benefits rather than diminishing them (short vs long term)