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Lecture 1

Sustainability oriented innovation=

Making intentional changes to an organizations philosophy and values, as well to its products, processes or practices to serve the specific purpose of creating and realizing social and environmental value in addition to economic returns.

Three ways of soi=

Operational optimization, organizational transformation and systems building

Explain Operational optimization

Reduce harm through incremental improvements driven by compliance and pursuit of efficiency gains.

Explain Organizational Transformation

Redefinition of internal and external relationships in terms of social and environmental impact.

Explain Systems Building

Radical shift in philosophy to think beyond the firm.

SILLI

Strategy, innovative process, learning, linkages and innovative organization

How to create shared value opportunities?

Reconceiving products and markets, Redefining productivity in the value chain and enabling local cluster development

Explain reconceiving products and markets?

Create shared value by developing products or services that not only meet consumer demands but also contribute to solving societal challenges.

Explain redefining productivity in the value chain?

Create shared value by implementing sustainable and ethical practices across its value chain.

Explain enabling local cluster development?

Create shared value by activily contributing to the development of local clusters.

List 4 weaknesses of the shared value creation concept?

Unoriginal, ignores the tension between social and economic goals, naive about the challenges of business compliance, shallow conception of the corporations role in society.

What is shared value creation?

Policies and operating practices that enhance competitiveness of a company while simul advancing the economic and social conditions in the communitie in which it operates.

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