Bachelorarbeit, 2014
62 Seiten, Note: 1,0
1. INTRODUCTION
1.1 PERSONAL MOTIVATION, RELEVANCE AND HYPOTHESIS
1.2 METHODOLOGY
1.3 LIMITATIONS AND TIMEFRAME
1.4 THIS THESIS IS SUBJECT TO SEVERAL RESTRICTIONS AND LIMITATIONS, WHICH COULD NOT BE AVOIDED, AND INFLUENCE THE OUTCOME AND CHARACTER OF THE RESEARCH.
2. THEORETICAL FRAMEWORK
2.1 DEVELOPMENT OF CORPORATE ENGAGEMENT
2.2 TERMINOLOGY OF PORTER & KRAMER
2.2.1 Corporate Philanthropy
2.2.2 Corporate Philanthropy and Competitive Advantage
2.2.3 Competitive Advantage and CSR
2.2.4 Creating Shared Value
3. RESEARCH
3.1 SOUTH AFRICAN CONTEXT
3.2 EXPLANATION OF COMPANY SELECTION
4. COMPANY ANALYSIS
4.1 DIAGRAMMATIC OVERVIEW
4.2 BEST PRACTICES
4.2.1 Nestlé
4.2.2 Vodacom
4.2.3 SABMiller
4.2.4 Coca-Cola
4.2.5 Anglo American
4.2.6 Woolworths
4.2.7 Standard Bank
4.2.8 BMW
4.2.9 GlaxoSmithKline
5. CONCLUSION
5.1 CRITIQUES
5.2 RECOMMENDATION
6. OUTLOOK
The primary objective of this thesis is to provide a strategic framework for companies operating in South Africa to address complex social issues by integrating "Creating Shared Value" (CSV) into their core business operations. The research explores how businesses can move beyond traditional corporate social responsibility to generate both social and economic leverage within the unique constraints of an emerging economy.
Creating Shared Value
At the top of the value creation pyramid lays the newest concept by Porter and Kramer: Creating Shared Value. This paper deals mainly with the application of this here concept, as it constitutes a maximum creation of shared value with minimal no-return investments (See Figure 2).
In the eyes of the authors, CSV reinvents capitalism as a whole and thereby releases an outburst of innovational and growth forces. (Porter & Kramer; 2011: p.1) It is often believed the problem with societal engagement of companies is that businesses is pressured and forced into certain paths of being engaged with society. While this is certainly true, some faults are sourced on the company side. Their outdated attempt of breeding value still focusses on short term effects directly producing economic results. In the process they often ignore opportunities based on real customer needs, as well as stimulants and effects triggered by and influencing business gravely (Porter & Kramer; 2011: p.4). Porter and Kramer have found out that many companies are stuck in a social responsibility mentality which treats societal issues as being extraneous and disconnected from the core of business (Schneider; 2012: p.139). The solution they found is called CSV and all in all, the concept targets the creation of economic value by also creating societal value and offering solutions for the deficiencies and problems. At the center of all a connection between business and society is again propagated, but additional focus is applied to an overall expansion of the value pool instead of a reallocation of resources from profits to social support (Porter & Kramer; 2011: p.5). From the authors’ perspectives there are three basic ways of approach:
INTRODUCTION: Presents the author's motivation for researching corporate engagement in South Africa and establishes the research hypothesis focusing on Porter & Kramer’s CSV concept.
THEORETICAL FRAMEWORK: Examines the evolution of corporate social engagement concepts, culminating in the specific definitions and categories of Creating Shared Value as proposed by Porter and Kramer.
RESEARCH: Provides an overview of the South African socio-economic context, including its unique challenges, and explains the methodology for selecting the best-practice companies analyzed.
COMPANY ANALYSIS: Evaluates how selected international and South African companies apply CSV principles in their respective industries, supported by diagrams and performance assessments.
CONCLUSION: Addresses academic and practical critiques of the CSV theory and synthesizes findings into actionable recommendations for businesses.
OUTLOOK: Discusses the future trajectory of corporate engagement, emphasizing the ongoing shift toward sustainable business models in emerging environments.
Corporate Social Responsibility, Creating Shared Value, South Africa, Emerging Markets, Business Strategy, Competitive Advantage, Value Chain, Social Engagement, CSV, Sustainability, Stakeholder Management, Inclusive Banking, Corporate Philanthropy, Economic Leverage, Development.
This work focuses on how companies in South Africa can effectively address social issues by applying the "Creating Shared Value" (CSV) framework to align social engagement with core business objectives.
The research explores the transition from traditional, peripheral corporate philanthropy to integrated, strategic CSV, with a specific focus on the complex socio-economic landscape of South Africa.
The goal is to provide a strategic guideline for companies to generate both social and economic leverage by focusing on intersections between societal needs and corporate core competencies.
The thesis utilizes a qualitative research approach, combining a comprehensive literature and theory analysis with detailed case studies of various multinational and local companies.
The main part covers the development of CSV theory, an analysis of the South African context (including the informal sector and infrastructure challenges), and an in-depth review of industry-specific best practices.
Key terms include Creating Shared Value, Corporate Social Responsibility, South Africa, Business Strategy, Competitive Advantage, and Inclusive Development.
Companies were selected based on their prominence in social reporting and their ability to demonstrate, through different industries, how CSV can be integrated into core business models.
Yes, the conclusion provides a thorough discussion of critiques regarding the theory's potential for "cherry-picking" and its perceived applicability limitations for smaller enterprises.
South Africa represents a unique, diverse environment with significant social challenges and a "two-tiered" economy, making it an ideal case study for applying strategic, high-leverage engagement models.
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