“Efforts to discover shared value in operational practices and in social dimensions within the competitive context have the potential not only of fostering economic and social development, but of changing the way in which companies and society mutually think of each other”
Governments, NGOs, activists and communication media have become adept at pursuing accountability from companies for the social consequences of their operations.
Multiple organizations prepare business rankings on matters relating to corporate social responsibility (CSR), but which lack a clear interrelation with its surrounding context. They receive significant attention, result of which is that CSR becomes an unavoidable priority for entrepreneurial leaders worldwide.
Diverse companies undertake important efforts to improve the social and environmental impacts of their operations, but these efforts are far from being as productive as they could be; one of the main reasons is that companies feel the e pressure of thinking about CSR in a generic manner, instead of focusing on their own business strategy, a much more adequate approach.
Entrepreneurial approaches are disconnected from the business and the strategy, which prevents taking advantage of the best available opportunities for companies to benefit their surrounding context. If, alternatively, the companies would internalize a new conception of entrepreneurial management that includes not merely the financial side, but also the social and environmental aspects, under the same frameworks which guide their business decisions, namely a Triple Impact business management strategy, a significant source of business opportunities, innovation, competitive advantages and management of risks may be identified, which would enable obtaining profitability in different areas such as financial, social and environmental.
For developing this triple impact consultancy for business management, we propose a new way of understanding the relationship between the company and its surrounding context, which does not focus entrepreneurial success and well-being of the surrounding context as a zero-sum game, but seeks to maximize the results on all three areas. We will present a methodology that enables companies to identify all externalities (positive and negative), which affect their surrounding context, thus determining which to tackle and the best way to do so.
The stages to be approached for an adequate implementation of the methodology are as follows:
- Training for top executives (directors, managers, heads).
- Creation of a triple impact policy (board of directors).
- Definition of the triple impact strategy and sustainable balance score card.
- Creation of shared value.
- Report on sustainability.