Identifying significant impacts in the value chain as opposed to solely focusing on the supply chain is crucial for businesses seeking sustainable growth AND competitive advantage.  

The value chain approach allows for a more comprehensive understanding of customer preferences and value creation, aiding in strategic decision-making and competitive advantage. Focusing solely on the supply chain may overlook crucial factors that contribute to overall stakeholder satisfaction and market positioning.

Supply chain

The supply chain is essential for ensuring the smooth flow of goods and services from their origin to the end consumer. It involves the management of various processes, including procurement, production, distribution, and logistics. However, while the supply chain is vital for the physical movement of products, it often overlooks the strategic aspects of value creation and customer satisfaction.

Value chain: delve into the intricacies of what stakeholders truly value and how the organisation can meet those needs more effectively

On the other hand, the value chain encompasses a broader perspective, focusing on the series of activities that add value to a product or service from the perspective of the stakeholders (not just the a specific stakeholder, e.g. the customer). It includes both primary activities like inbound logistics, operations, outbound logistics, marketing, and sales, as well as support activities such as procurement, technology development, human resource management, and firm infrastructure. Analysing the value chain enables businesses to delve into the intricacies of what stakeholders truly value and how the organisation can meet those needs more effectively. By understanding the impact of each stage of the value chain on the final product or service, businesses can fine-tune their operations, address stakeholder needs, enhance customer experiences, and differentiate themselves from competitors.

Identification of significant impacts throughout the value chain (Materiality)
Moreover, the value chain approach facilitates a more holistic understanding of the market dynamics and customer preferences. By identifying the activities that contribute the most to the perceived value of the product or service, businesses can allocate resources more efficiently and prioritise investments in areas that directly impact stakeholder satisfaction. For instance, when it comes to customers, a critically important stakeholder, by recognizing that customer service plays a significant role in the overall customer experience, companies can invest in training and technology to improve this aspect of their value chain, thereby enhancing customer retention and brand reputation. Focusing on the value chain also allows businesses to adopt a more customer-centric approach to their operations. By aligning activities to meet specific customer needs and preferences, companies can tailor their products or services to deliver a more personalised and targeted experience. This customer-centric approach enhances brand loyalty and creates a competitive edge, as customers are more likely to remain loyal to companies that consistently meet their needs and expectations.

Identify potential areas for innovation and process optimisation

Additionally, considering the impact across the entire value chain helps businesses identify potential areas for innovation and process optimisation. By recognizing the interconnectedness of activities and their impact on the final product, companies can streamline operations, reduce costs, and improve overall efficiency. This holistic view encourages a culture of continuous improvement and innovation, leading to the development of new products or services that better meet evolving stakeholder demands and market trends.

Creating value for the business, the world and stakeholders

Identifying significant impacts within the value chain is instrumental in enabling organisations to create value not only for their business but also for the world and stakeholders. By comprehensively analysing each stage of the value chain, businesses can strategically align their operations with sustainable practices, reducing their environmental footprint and contributing positively to the world. This may involve implementing eco-friendly production processes, sourcing ethically and responsibly, and minimising waste. Such initiatives not only enhance the brand’s reputation and appeal to socially conscious stakeholder, they foster a healthier and more sustainable environment and value chain resilience. Furthermore, by prioritising value-adding activities that directly impact stakeholder satisfaction and overall societal well-being, organisations can cultivate stronger relationships with stakeholders, including employees, suppliers, and local communities. Through responsible and ethical practices, businesses can promote social welfare, drive economic development, and establish themselves as socially responsible entities, thereby creating a positive impact that extends beyond financial success.

While the supply chain is critical for the physical flow of goods and services, understanding the value chain enables businesses to create a more stakeholder-centric, efficient, and innovative approach to their operations. By identifying significant impacts within the value chain, businesses can build a sustainable competitive advantage and adapt more effectively to changing market dynamics and customer preferences.

The GRI Standards certified course delivered by FBRH ‘Learn how to prepare a 1st Class GRI Sustainability Report’ prioritises the identification of significant impacts across the value chain. This approach equips participants to seamlessly integrate business strategy and value creation with sustainability to create/ deliver value for the business, the world and stakeholders.

Identification of significant impacts throughout the value chain (Materiality)

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post Redefining Value: Synchronising Business Strategy with ESG/ Sustainability appeared first on SustainCase - Sustainability Magazine.

Grameen Bank is a micro-finance organization founded by Muhammad Yunus in Bangladesh in 1983. The bank provides small loans to low-income individuals who lack access to traditional banking services. The loans are typically used to start small businesses, such as farming or handicrafts, and help individuals generate income and improve their standard of living.

Grameen Bank’s approach to micro-finance is unique in that it prioritises the needs of its clients over profits. The bank provides loans without requiring collateral, and borrowers are encouraged to form groups to support each other and share knowledge. This approach has proven successful, with Grameen Bank disbursing over $27 billion in loans to more than 9 million borrowers since its inception.

By providing micro-finance services, Grameen Bank is addressing two key social issues: poverty and economic growth. Poverty is a pervasive issue in developing countries, and access to credit is often limited for those living in poverty. By providing loans to low-income individuals, Grameen Bank is helping to alleviate poverty by providing individuals with the resources they need to start businesses and generate income.

In addition to addressing poverty, Grameen Bank’s micro-finance services also promote economic growth. By enabling individuals to start small businesses, the bank is helping to create jobs and stimulate economic activity. This can have a ripple effect, as the increased economic activity can lead to further investment and growth in the local economy.

Grameen Bank’s approach to micro-finance is a prime example of how businesses can create shared value by addressing societal issues while also creating economic value. By prioritising the needs of its clients and focusing on providing access to credit, the bank is creating economic and social benefits that go beyond traditional profit-seeking business models.

Grameen Bank has created shared value by providing micro-finance services to low-income individuals in developing countries. By addressing social issues such as poverty and economic growth, the bank is creating economic and social benefits that go beyond traditional profit-seeking business models. This approach to business is in line with Michael Porter’s Shared Value concept, and serves as a model for how businesses can create value by addressing societal issues.

References:

1. Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard business review, 89(1/2), 62-77.
2. Yunus, M. (2018). A world of three zeros: The new economics of zero poverty, zero unemployment, and zero net carbon emissions. PublicAffairs.
3. Grameen Bank. (2022). About Grameen Bank. Retrieved from https://www.grameen.com/about-grameen-bank/
4. Prahalad, C. K. (2004). Fortune at the bottom of the pyramid: Eradicating poverty through profits. Pearson Education.

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post Creating Shared Value: Grameen Bank’s Microfinance Solution for Poverty and Growth appeared first on SustainCase - Sustainability Magazine.

Patagonia is a clothing and outdoor gear company that has become well-known for its prioritisation of sustainability in their supply chain and operations. The company’s dedication to sustainability can be seen through their use of environmentally friendly materials, responsible production practices, and support for environmental causes. Through their sustainability efforts and activism, Patagonia has created shared value for both the company and society as a whole.

Michael Porter’s concept of shared value describes a business strategy that creates value for both the company and society. In the case of Patagonia, the company has prioritised sustainability in their supply chain and operations, which has created value for the environment and society. By sourcing environmentally friendly materials and implementing responsible production practices, Patagonia has reduced their environmental impact and contributed to a more sustainable future. This focus on sustainability has also helped to attract environmentally conscious consumers, contributing to the company’s success.

Patagonia has also prioritised environmental protection and conservation through their activism. The company’s activism includes campaigns to protect public lands, combat climate change, and support sustainable agriculture. Patagonia’s sustainability action plan includes the 1% for the Planet programme, where the company donates 1% of their sales to environmental organizations.

Through their sustainability efforts and activism, Patagonia is also contributing to the achievement of the United Nations Sustainable Development Goals (SDGs). The SDGs are a set of 17 goals adopted by the United Nations to achieve a more sustainable future for all. Patagonia’s sustainability efforts and activism contribute to several SDGs, including Goal 12: Responsible Consumption and Production, Goal 13: Climate Action, and Goal 15: Life on Land.

Patagonia has created shared value by prioritising sustainability in their supply chain and operations, while also advocating for environmental protection and conservation through their activism. By adopting sustainable practices, Patagonia has reduced their environmental impact and attracted environmentally conscious consumers. Through their activism, Patagonia is also contributing to the achievement of the UN SDGs. Patagonia’s commitment to sustainability and environmental protection is a powerful example of how businesses can create shared value for both the company and society.

References:

Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard business review, 89(1/2), 62-77.

Patagonia. (2022). The Activist Company. Retrieved from https://www.patagonia.com/the-activist-company.html

United Nations Development Programme. (n.d.). Sustainable Development Goals. Retrieved from https://www.undp.org/sustainable-development-goals

Patagonia. (n.d.). Footprint Chronicles. Retrieved from https://www.patagonia.com/footprint-chronicles/

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

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This shared value approach aligns with the United Nations Sustainable Development Goals (SDGs) that seek to end poverty, promote gender equality, and create sustainable economic growth. It also supports the SDG goal of promoting inclusive and sustainable economic growth, as it creates economic opportunities for women in rural areas who otherwise may not have access to such opportunities.

Through its shared value approach, Unilever has been able to develop a loyal customer base and improve brand reputation while creating a positive impact on the communities it operates in. This demonstrates that by creating shared value, businesses can make a positive contribution to society while also achieving economic success.

Unilever’s shared value approach in India has created economic opportunities for women in rural areas while also contributing to the achievement of the SDGs. This approach has proven to be successful, and it serves as an example of how businesses can create shared value by addressing societal challenges while also achieving their business objectives. Unilever’s initiative demonstrates that by creating shared value, businesses can make a positive impact on society while also achieving economic success, which is essential for creating a sustainable future.

References:

1. Unilever. (2022). Our strategy. Retrieved from https://www.unilever.com/about/who-we-are/our-strategy/
2. Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.
3. Unilever. (2021). Unilever’s commitment to sustainable living. Retrieved from https://www.unilever.com/sustainable-living/
4. Forbes India. (2019). How Unilever is creating a sustainable supply chain in rural India. Retrieved from https://www.forbesindia.com/article/special/how-unilever-is-creating-a-sustainable-supply-chain-in-rural-india/573

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post Unilever’s Sustainable Success: Empowering Women and Achieving Business Objectives in India appeared first on SustainCase - Sustainability Magazine.

CEMEX has integrated the shared value concept into its business model, focusing on creating sustainable solutions that contribute to the SDGs. The company’s commitment to sustainability is reflected in its operations and initiatives, which aim to reduce the environmental impact of its operations, promote social development, and create economic growth in the communities it serves.

In line with the SDGs, CEMEX has established ambitious targets to reduce its carbon footprint and promote sustainable construction practices. The company has invested in alternative fuels and renewable energy sources, and has implemented programmes to reduce energy consumption and greenhouse gas emissions. Additionally, CEMEX has launched initiatives to support social development and economic growth in the communities it operates in, including programmes to improve education, health, and infrastructure.

Building Homes, Building Futures: CEMEX’s Patrimonio Hoy Programme

CEMEX’s Patrimonio Hoy programme is an example of the company’s commitment to creating shared value and contributing to the SDGs, particularly SDG 1, which aims to eradicate poverty. Patrimonio Hoy is a housing programme that provides low-income families in Mexico with affordable and accessible building materials, credit, and technical assistance to help them build their own homes. The programme allows families to gradually build their homes and pay for the materials over time, reducing the financial burden of homeownership.

The Patrimonio Hoy programme has had a significant impact on poverty reduction in Mexico. Since its launch in 1998, the programme has provided affordable housing solutions to over 1.2 million families, improving their quality of life and contributing to the economic development of the communities where they live. The programme has also created job opportunities in the construction industry, promoting economic growth and reducing inequality.

Overall, the Patrimonio Hoy programme is a prime example of how private sector companies like CEMEX can contribute to poverty reduction and the SDGs. By using its core competencies and resources to create sustainable solutions, CEMEX is not only generating economic value but also promoting social and environmental progress, making a positive impact on the communities it serves.

CEMEX’s efforts to create shared value and contribute to the SDGs have been widely recognised. The company has been included in the Dow Jones Sustainability Index for 17 consecutive years, and has received numerous awards for its sustainability initiatives, including the United Nations Global Compact’s CEO Water Mandate and the U.S. Environmental Protection Agency’s ENERGY STAR Partner of the Year award.

CEMEX is a leading example of how businesses can create shared value and contribute to the SDGs. By integrating sustainability into its business model and operations, CEMEX has demonstrated its commitment to creating economic, social, and environmental value. As a result, the company has earned a reputation as a sustainability leader in the building materials industry and has become a model for other companies to follow.

References:

1. Harvard Business School. (2011). Creating Shared Value. Retrieved from https://www.hbs.edu/faculty/Publication%20Files/Creating%20Shared%20Value_The%20HBR%20Interview_6a8d3fa3-173a-42c5-8466-8a48e1e7805d.pdf
2. United Nations. (2021). Sustainable Development Goals. Retrieved from https://www.un.org/sustainabledevelopment/sustainable-development-goals/
3. Dow Jones Sustainability Indices. (2021). DJSI World. Retrieved from https://www.spglobal.com/esg/csa/djsi-world
4. CEMEX (2021). Patrimonio Hoy, Building Together. Retrieved from https://www.cemex.com/documents/11979/13126817/Patrimonio+Hoy%2C+Building+Together_ENG.pdf/965a24d7-6599-9ac7-25fb-8f6a70df1302
5. United Nations Global Compact. (2021). CEO Water Mandate. Retrieved from https://www.unglobalcompact.org/take-action/action/water/ceo-water-mandate
6. U.S. Environmental Protection Agency. (2021). ENERGY STAR Partner of the Year. Retrieved from https://www.energystar.gov/about/content/2021_energy_star_awards_partners_of_the_year
7. CEMEX (2021). Patrimonio Hoy, Building Futures. Retrieved from https://www.cemex.com/documents/11979/13126817/Patrimonio+Hoy%2C+Building+Futures_ENG.pdf/1e987e2c-007d-9eb1-f010-e261f390c492

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post Concrete Solutions for a Sustainable Future: CEMEX’s Commitment to the SDGs appeared first on SustainCase - Sustainability Magazine.

In recent years, the company has adopted a shared value approach to their business strategy, as proposed by Professor Michael Porter. Shared value involves creating economic value while also addressing societal and environmental needs.

Nestle has implemented shared value in various ways, such as by improving the livelihoods of farmers who supply Nestle with coffee beans. They do this by providing training and resources to help farmers increase their yields and incomes, which in turn improves the quality of the coffee beans.

In addition, Nestle has also addressed environmental concerns by implementing sustainable farming practices, reducing water usage, and minimising waste in their supply chain. This not only benefits the environment but also creates economic benefits for the company by reducing costs and increasing efficiency.

By adopting a shared value approach, Nestle is not only meeting their business goals but also contributing to the United Nations Sustainable Development Goals (SDGs). SDGs are a set of 17 goals that aim to eradicate poverty, protect the planet, and promote prosperity for all.

Through shared value, Nestle is directly addressing SDGs such as no poverty, decent work and economic growth, and responsible consumption and production. This approach helps to create a sustainable future and contributes to the overall well-being of society.

In conclusion, Nestle’s adoption of shared value is a great example of how businesses can create economic value while also addressing societal and environmental needs. By addressing the SDGs, Nestle is not only improving their brand reputation but also contributing to a sustainable future for all.

References:

1. Nestle. (2021). Creating Shared Value. Retrieved from https://www.nestle.com/csv
2. Nestle. (2021). Our Commitment: Coffee. Retrieved from https://www.nestle.com/csv/impact/coffee
3. Porter, M., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.
4. United Nations Development Programme. (n.d.). Sustainable Development Goals. Retrieved from https://www.undp.org/sustainable-development-goals
5. United Nations Global Compact. (n.d.). Sustainable Development Goals. Retrieved from https://www.unglobalcompact.org/what-is-gc/sdgs
6. Wille, A. (2021). Nestle offers farmers price incentives for greener coffee production. Reuters. Retrieved from https://www.reuters.com/business/sustainable-business/nestle-offers-farmers-price-incentives-greener-coffee-production-2021-07-15/

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post Brewing Shared Value: How Nestle is Changing the Game with Coffee Beans appeared first on SustainCase - Sustainability Magazine.

Shared value refers to a business strategy that aims to create both economic and social value. Rather than focusing solely on maximising profits, companies that pursue shared value seek to create social and environmental benefits that also deliver economic returns. According to Professor Porter, creating shared value is not just a matter of philanthropy or corporate social responsibility. It is an integral part of a company’s overall business strategy, and can be a source of competitive advantage.

Microsoft’s approach to education is a prime example of how a company can create shared value. The company’s education programmes are designed to provide students and educators with the skills and tools they need to succeed in a rapidly changing world. By investing in education, Microsoft is not only contributing to the development of human capital, but also creating a pipeline of skilled workers who can help drive the company’s future growth.

One of Microsoft’s key education initiatives is its YouthSpark programme. This programme is designed to provide young people with access to technology and resources that can help them develop the skills they need to succeed in the digital economy. Through YouthSpark, Microsoft has committed to providing more than $500 million in cash, software, and other resources to non-profit organizations around the world that are working to improve access to technology and digital skills training.

In addition to its work with young people, Microsoft also invests in the professional development of educators. The company’s Microsoft Educator Community is a platform that provides free professional development resources to educators around the world. Through this platform, educators can access a wide range of training materials and resources that can help them integrate technology into their teaching and better support their students.

Microsoft’s education programmes have not only had a positive impact on the students and educators they serve, they also created economic value for the company. By investing in education, Microsoft is helping to create a pool of skilled workers who are more likely to be employed in the technology sector. This, in turn, can help drive innovation and growth in the industry, creating new business opportunities for Microsoft and other companies in the sector.

In conclusion, Microsoft’s investment in education is a prime example of how a company can create shared value. By providing students and educators with the tools and resources they need to succeed in a digital world, Microsoft is not only creating social benefits, but also contributing to its own long-term success. As Professor Porter has noted, creating shared value is not just a matter of doing good, but also of creating economic value. Through its education programmes, Microsoft has demonstrated how these two objectives can be achieved in tandem.

References:

1. Porter, M.E. and Kramer, M.R. (2011) ‘Creating shared value: how to reinvent capitalism and unleash a wave of innovation and growth’, Harvard Business Review, 89(1/2), pp. 62–77. Available at: https://hbr.org/2011/01/the-big-idea-creating-shared-value (Accessed: 14 February 2023).
2. Microsoft (n.d.) YouthSpark. Available at: https://www.microsoft.com/en-us/philanthropies/youthspark (Accessed: 14 February 2023).
3. Microsoft (n.d.) Microsoft Educator Community. Available at: https://education.microsoft.com/en-us (Accessed: 14 February 2023).
4. United Nations (2015) Transforming our world: the 2030 Agenda for Sustainable Development. Available at: https://www.un.org/en/development/desa/population/migration/generalassembly/docs/globalcompact/A_RES_70_1_E.pdf (Accessed: 14 February 2023).
5. World Business Council for Sustainable Development (2010) Vision 2050: The new agenda for business. Available at: https://www.wbcsd.org/Overview/Panorama/Articles/Vision-2050-The-new-agenda-for-business (Accessed: 14 February 2023).
6. McKinsey & Company (2019) The business case for sustainability. Available at: https://www.mckinsey.com/business-functions/sustainability/our-insights/the-business-case-for-sustainability (Accessed: 14 February 2023).
7. Investopedia (n.d.) Sustainable investing. Available at: https://www.investopedia.com/terms/s/sustainable_investing.asp (Accessed: 14 February 2023).
8. Sustainable Brands (n.d.) What is sustainability? Available at: https://sustainablebrands.com/about/sustainability (Accessed: 14 February 2023).
9. United Nations Global Compact (n.d.) The ten principles of the UN Global Compact. Available at: https://www.unglobalcompact.org/what-is-gc/mission/principles (Accessed: 14 February 2023).

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

• Exclusive FBRH template to begin reporting from day one
• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
• Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

The post Creating Shared Value through Education: Microsoft’s Approach appeared first on SustainCase - Sustainability Magazine.

Harvard professor Michael Porter and Mark R. Kramer argue that the capitalist system is, under siege. Business is increasingly viewed as a major cause of social, environmental, and economic problems and companies are widely perceived to be prospering at the expense of the broader community.

A big part of the problem lies with companies themselves. They remain trapped in an outdated approach to value creation that emerged over the past few decades. Companies continue to view value creation narrowly, optimising short-term financial performance while missing key customer needs and ignoring the broader impacts that determine their longer-term success. As a consequence, they frequently overlook the wellbeing of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers and the economic distress of the communities in which they produce and sell.

Businesses must take the lead in bringing business and society back together. The solution lies in the principle of shared value  Tweet This!, i.e. creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses acting as businesses – and not as charitable donors – are the most powerful force for addressing the pressing issues we are currently facing. Accordingly, the purpose of the corporation must be redefined as creating shared value, not just profits. This will drive the next wave of innovation and productivity growth in the global economy and will also reshape capitalism and its relationship to society.

Shared value is not about personal values. Nor is it about “sharing” the value already created by firm. It is about expanding the total pool of economic and social value. A good example of this difference in perspective, is the fair trade movement in purchasing, which seeks to increase the proportion of revenue that goes to poor farmers by paying them higher prices for the same crops. Although this may be a noble sentiment, fair trade is mostly about redistribution rather than expanding the overall amount of value created. A shared value perspective, instead, would focus on improving growing techniques and strengthening the local cluster of supporting suppliers and other institutions, so as to increase farmers’ efficiency, yields, product quality, and sustainability. This would lead to a bigger pie of revenue and profits, benefiting both farmers and the companies buying from them. Early studies of cocoa farmers in the Côte d’Ivoire, for example, show that while fair trade can increase farmers’ incomes by 10% to 20%, shared value investments could raise their incomes by over 300%.

How is shared value created?

Companies can create economic value by creating societal value. There are three different ways to achieve this: by a) reconceiving products and markets, b) redefining productivity in the value chain, and c) building supportive industry clusters at the company’s locations. Every one of these is part of the virtuous circle of shared value. Improving value in one area, generates opportunities in the others. By better connecting companies’ success with societal improvement, the concept of shared value resets the boundaries of capitalism and opens up many ways to serve new needs, gain efficiency, create differentiation, and expand markets.

Redefining productivity in the value chain

The following are some of the most important ways in which shared value thinking transforms a company’s value chain. They are not independent, but often mutually reinforcing:

• Energy use and logistics: The use of energy throughout the value chain is being re-examined
• Resource use: Heightened environmental awareness and advances in technology are catalysing new approaches
• Procurement: By increasing access to inputs, sharing technology, and providing financing, companies can improve supplier quality and productivity
• Distribution: Companies are beginning to re-examine distribution practices from a shared value perspective
• Employee productivity: The focus on holding down wage levels, reducing benefits, and offshoring is giving way to an awareness of the positive effects a living wage, safety, wellness, training, and opportunities for advancement for employees have on productivity

Case study: How Nestlé tackled coffee sourcing challenges

Obtaining a reliable supply of specialised coffees is extremely challenging. Most coffees are grown by small farmers in impoverished rural areas of Africa and Latin America, trapped in a cycle of low productivity, poor quality, and environmental degradation that limits production volume.

To address these challenges, Nestlé redesigned procurement, working intensively with its growers, providing advice on farming practices, guaranteeing bank loans, and helping secure inputs such as plant stock, pesticides, and fertilisers. Additionally, Nestlé established local facilities to measure the quality of the coffee at the point of purchase. This enabled Nestlé to pay a premium for better beans directly to the growers and, thus, improve their incentives. Greater yield per hectare and higher production quality increased growers’ incomes, and the environmental impact of farms was reduced. At the same time, Nestlé’s reliable supply of good coffee grew significantly. Shared value was created.

As this examples show, reimagining value chains from the perspective of shared value provides important new ways to innovate and unlock new economic value that most businesses have missed.

 

FBRH’s GRI, CPD and ISEP Certified Sustainability Reporting Course helps participants understand shared value and how they can implement their own sustainability strategies, with all-round benefits and value for the business.

Double materiality
Participants are taught how to conduct double materiality to define their report content and address all important impacts, even if these do not seem to affect their business success. A practical solid plan of action is a core takeaway. Participants can start their sustainability report and take action ASAP.

This article is based on published information by Harvard Business Review. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the publication’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://hbr.org/2011/01/the-big-idea-creating-shared-value

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