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The quest for social value

The narrative of IKEAs partnership with social entrepreneurs

Written by K. Wellén

Paper category

Bachelor Thesis


Business Administration>Entrepreneurship




Bachelor Thesis: The concept of creating shared value By incorporating a larger perspective of the company’s mission to solve social problems into its economic business strategy, the concept of creating shared value has had a huge impact on the actual reshaping of corporate social responsibility, moving towards a more advanced and innovative Direction development. Profitability. This concept was proposed by Harvard University scholars Michael Porter and Mark Kramer, and is often published in Harvard Business Review. The concept was first proposed in 2006 and further explained in 2011. The focus of the 2006 article is to explore a strategically advanced CSR framework to fundamentally improve the relationship between the company and society based on the company's advantages. The reason for the failure of previous corporate social responsibility efforts is said to be that society and enterprises are indeed interdependent, but they are opposed to each other. The second reason is that CSR is not regarded as a core value incorporated into the basic business strategy. If we reconsider, it will reveal innovative opportunities for business and social value creation. The framework is created by mapping the social impact of the corporate value chain, which is all the activities involved in conducting business. In this way, the company can identify and deal with the negative and positive results of its operations. Their strategic approach makes it possible to make positive efforts for corporate social responsibility, to push companies beyond just being a good corporate citizen, and to fundamentally change the way companies participate in social issues while increasing brand value. This includes the opportunity to create shared value (CSV) (Porter and Kramer 2006: 1-10). In the 2011 article, the concept of CSV was expanded and explained. They framed it as "Big Idea-Creating Shared Value". How to reshape capitalism-and trigger a wave of innovation and growth" (Porter and Kramer 2011: 1). Facts have proved that it has become a key management concept because it brings new insights and ideas from the company to society. They further claim that the practice of corporate social responsibility is not an inherent part of the business strategy, but only a peripheral function, which makes the enterprise fall into the social responsibility operation mode, and the social impact is limited. For them, the enterprise must lead the transformation of the reintegration of the enterprise and the society, thereby Have a new way of creating economic value while creating social value. For them, a successful and prosperous society depends on a successful and prosperous enterprise, and vice versa. 3.2 Critical views on creating shared value Fleming and Jones published an influential book with a strong opening statement stating that C SR never really started. This is a basically supported view that economic profitability is the primary capitalist economy and a systematic way of operating. Existing corporate social responsibility efforts will never have any substantial positive impact on the creation of social value. The core concept of the corporate social responsibility paradox is to first solve the problems arising from the enterprise. They fundamentally reject C SR and business ethics. They believe that all C SR activities are based on maximizing profits and strengthening corporate brands. For them, CSR has brought false moral values ​​to the inherent antisocial forms of multinational companies. Claiming that behind the veil of society and the environment, we will maintain a good state. This is because it takes into account the correct logic and the necessity of examining corporate social responsibility. Because of the capitalized society in which they operate, their financial profitability, Efforts have been made in terms of brand value and company strength (Fleming and Jones 2012: 11-18, 27). Regarding the role of social entrepreneurs, this view is skeptical of the company’s interest in “unleashing” its potential, and now recognizes opportunities for “new markets” in disadvantaged or developing communities because these have been regarded as unviable markets. Because of corporate capitalism. Empha s is e d believes that this is an enhanced marketing practice to increase brand value (Fleming and Jones 2012: 111-112). A key work that recognizes the concept of CSV as an idea that will constitute "enlig hte nedse lf-interest", the term is used to describe corporate behavior that is beneficial to society and enterprises, resulting in a "win-win" situation. However, "improving self-interest" is the normative goal declared by Fleming and Jones, which systematically requires companies to play an internal role through their corporate social responsibility efforts. CSV basically applies to the dangerous ideology of the “win-win” outcome of such activities, which ultimately provide more power to already powerful companies (Fleming and Jones 2012: 39-40). In this criticism, the concept of win-win is more related to social practice, and social practice provides the impetus for the idea of ​​"ethical company". Read Less