India’s Ministry of Corporate Affairs released new guidance on their corporate social responsibility (CSR) law, which legally mandates that companies spend two percent of their average net profit for the past three years on CSR activities. The CSR rules in Section 135 of India’s Companies Act, 2013 provide a broad framework for companies to undertake… CONTINUE READING >>
Over the past decade, international corporate philanthropy has undergone a significant transformation. Overseas gifts by U.S.-based companies were once made only in the face of natural disasters or violent conflicts. However, the globalization of business and the burgeoning zeitgeist that corporations must not only do well – but also do good – has led influential… CONTINUE READING >>
This piece was originally featured on the US Chamber of Commerce Foundation’s blog here. A simple paradox has presented itself across the globe in the realm of rural farming: How can smallholder farmers increase their productivity and incomes, when they do not have the financing and training needed to grow a substantial yield in the… CONTINUE READING >>
On Thursday, September 24, 2015, Pope Francis addressed a joint session of the U.S. Congress for the first time in history, and made a “radical” statement about the dire circumstances that refugees are facing across the world — “Do unto others as you would have them do unto you”. Yes, that’s right, the Golden Rule…. CONTINUE READING >>
We can all stop holding our breath — the much anticipated McWhopper is not going to happen. The proposed jointly- created “peace burger” between Burger King and McDonald’s to celebrate the International Day of Peace on September 21st seems to have eluded us this time around– instead McDonald’s and Burger King… CONTINUE READING >>
Energy is necessary for the industrialization and economic development of all nations, and according to the World Bank, it is also a key component to reducing poverty. Some 600 million people in Africa still don’t have access to electricity, which means they have limitations on things that industrialized nations take for granted. They don’t have refrigerators to store food, their main activities are mostly limited to daylight hours, and they still have to carry their water and collect wood and other biomass fuels by hand. All of these factors force them to solely focus on their day-to-day survival and restrict their time, their potential to learn, and their ability to develop and work their way out of poverty.
This is the first article in a series entitled “The Intersection of Philanthropy.” The series will focus on the changing notion of ‘corporate social responsibility’ in the private sector and how businesses are moving toward a more integrative and strategic approach.
In recent years the concept of shared value has gained significant traction in the international business development community. As we have highlighted on previous posts, innovative companies such as IHG and Coca-Cola have implemented shared value initiatives in emerging markets and have boosted economic performance while creating quantitative social outcomes that benefit local communities. As the concept of shared value moves from an early adopter phase to mainstream acceptance, and corporations begin the process of integrating corporate philanthropy into their day to day business operations, several key issues should be addressed.
As illustrated by the Coca-Cola Coletivo initiative (highlighted in our September 30 newsletter), innovating on a platform of ‘good’ to create tangible social impact and profitable financial returns in a competitive context is being adopted by companies with the purpose of gaining a first-mover advantage. Coca Cola’s selection of youth unemployment among recent high school graduates is an ‘outside-the-box’ social issue to identify that requires an innovative approach to structure a business initiative on.
While creating strategy on youth unemployment is highly complex and differentiates a company from the competition, how does a company innovate on a social issue that is directly linked to a company’s business model and already generates a great deal of publicity?
How does a company innovate on a social issue that is directly linked to a company’s business model and already generates a great deal of publicity?
In our last article on shared value on July 23, 2013, we discussed how innovative companies are gaining a defendable competitive advantage while simultaneously creating tangible social benefit by using their ‘doing good’ platforms (CSR, philanthropy, etc.) in a strategic context. This week, we will focus our attention on Coca Cola’s Coletivo initiative in Brazil.
In this case study, we examine how Coca-Cola strategically collaborates with a local Brazilian NGO as a ‘distribution partner’ on educating and training low-income youth with the objective of reducing unemployment among low-income youth while simultaneously increasing product sales.
For those not familiar with the rapidly evolving business strategy concept of Creating Shared Value, it can be best defined as an approach by which an organization creates economic returns by developing solutions to solve social problems. Multinationals (MNCs) such as Coca-Cola, Nestle, Intel, Intercontinental Hotels Group & Nova Nordisk are embedding shared value into their global business platforms and demonstrating measured impact both to the bottom line and community. Meanwhile, proactive nonprofits are quickly identifying new impact measurements and funding opportunities to evolve with the change.