This submission aims to set out a new conception of value creation. In examining the impact of the downturn on notions of business success, and contemplating potential scenarios…
Abstract
Purpose
This submission aims to set out a new conception of value creation. In examining the impact of the downturn on notions of business success, and contemplating potential scenarios for new measures of corporate value, it is proposed to examine the implications for business in adapting to the new economy.
Design/methodology/approach
The paper is based on Accenture's unrivalled access to business leaders around the world, both through work with leading multinational companies and a survey of over 800 global CEOs conducted on behalf of the United Nations Global Compact – the largest CEO study on sustainability to date.
Findings
In the wake of the financial crisis, significant implications are seen for conceptions of corporate value creation. In examining four potential scenarios for the development of the new economy, it was found that changing notions of business success will demand new capabilities for companies. New skills will be required in creating, measuring and communicating value, from the mechanics of performance management and complex negotiations with stakeholders, often utilising new technologies (such as social networking).
Originality/value
The paper, based on extensive conversations with an unprecedented set of leading global CEOs, posits a new conception of value creation for business in the new economy. By examining the forces shaping businesses' response to societal demands, there are set out some of the ways in which business could respond – and some of the capabilities that will be required to make the transition to a new era of sustainability.
Details
Keywords
This paper seeks to discuss the sustainability of the global economy.
Abstract
Purpose
This paper seeks to discuss the sustainability of the global economy.
Design/methodology/approach
The approach takes the form of a discursive narrative based on practitioner experience.
Findings
It was found that a sustainable economy can be encouraged by thinking in terms of green innovation.
Originality/value
The paper offers original insight into the direction of a major global technology corporation.
Details
Keywords
Tanguy Jacopin and Joan Fontrodona
This paper seeks to question the corporate responsibility (CR) department alignment with the business model of the company to provide some insights concerning the strategic focus…
Abstract
Purpose
This paper seeks to question the corporate responsibility (CR) department alignment with the business model of the company to provide some insights concerning the strategic focus of the CR department, the necessity or not to align the CR department to the business model of the company, and the ability to incorporate CR into the organization as competitive advantage from a specific business model.
Design/methodology/approach
The capacity to discern some key success factors between the alignment of the CR department with the rest of the organization is done in three stages. The methodology sets the emphasis first, on the cognitive process approach of CEOs as strategists and second, on the cognitive process approach of the CR department using in both cases the Kase et al. framework. The third stage consists in crossing the results of the two first stages in a matrix where the alignment and misalignment cases are studied.
Findings
The findings show that embedding CR into the organizations is one of the most challenging issues CR faces today. The question of aligning the CR Department with the business model of the organization can be an option to elapse current obstacles in the deepening of CR.
Originality/value
This paper provides a new framework to analyze the cognitive process of the CR managers and a new matrix to study the alignment of the CR Department strategy with the rest of the organization.
Details
Keywords
This paper aims to reconsider “the crisis” in terms of a failure in dominant economic thinking and to discuss the repercussions for corporate governance.
Abstract
Purpose
This paper aims to reconsider “the crisis” in terms of a failure in dominant economic thinking and to discuss the repercussions for corporate governance.
Design/methodology/approach
The paper provides a rational narrative deconstruction of the crisis.
Findings
The paper suggests a new agenda for collaborative research and activism in the direction of more effective governance.
Originality/value
The paper concludes with a radical agenda for a new way of thinking.
Details
Keywords
This paper seeks to look at “the crisis” in terms of a failure of corporate governance.
Abstract
Purpose
This paper seeks to look at “the crisis” in terms of a failure of corporate governance.
Design/methodology/approach
The paper relies on data summarized from personal interviews with directors of financial institutions in the aftermath of September 2008. It takes an interpretive approach and mediates the date to unpick the crisis in terms of governance at four levels.
Findings
The paper suggests that a multivariate quality management may be a positive reaction to the crisis.
Originality/value
The paper offers insights based on privileged original data from senior managers.
Details
Keywords
Iñaki Vélaz, Alejo José G. Sison and Joan Fontrodona
The purpose of this article is to present how innovations in the social action program of a Spanish savings bank produce strategic changes in the organization.
Abstract
Purpose
The purpose of this article is to present how innovations in the social action program of a Spanish savings bank produce strategic changes in the organization.
Design/methodology/approach
The paper follows a historical approach, first studying Spanish savings banks in general and the Caja de Ahorros de Navarra (CAN) in particular. It then examines the strategic challenges that the CAN faced in 2002 and the organizational response through the “You choose, you decide” initiative. The implementation of the program is chronicled and results evaluated against strategic objectives.
Findings
In embodying the social action program of the CAN, the “You choose, you decide” campaign has successfully differentiated the bank. Customer‐stakeholders have acquired a high degree of identification with the bank since they now decide on the beneficiaries of the social action program as well as their level of prioritization.
Originality/value
This work is of special interest to bank managers who would like to incorporate CSR and increased stakeholder involvement into their strategic and differentiation objectives.
Details
Keywords
Heiko Spitzeck and Erik G. Hansen
This paper aims to explore how stakeholders are voluntarily granted influence in corporate decision making.
Abstract
Purpose
This paper aims to explore how stakeholders are voluntarily granted influence in corporate decision making.
Design/methodology/approach
The stakeholder governance practices of 46 companies were explored in a multiple comparative case analysis, drawing on publicly available sources.
Findings
The research finds that stakeholders are granted a voice regarding operational, managerial as well as strategic issues. The power granted to stakeholders varies from non‐participation to co‐decision making. The majority of engagements found are a combination of low power and low scope of participation, which are limited in their potential to align the views of those inside and outside the corporate boundaries.
Research limitations/implications
The data used in this research relied on publicly available sources, such as company reports, articles and web sites.
Practical implications
By seeing an array of different stakeholder governance mechanisms managers can reflect on their own approach to stakeholders and see how other companies use stakeholder engagement for scenario planning and innovation.
Originality/value
The paper is the first to empirically analyse a broad range of companies regarding their voluntary stakeholder engagement mechanisms. This design allows the creation of a heuristic for stakeholder governance as well as for identifying clusters.
Details
Keywords
Parallel with business and society relationships, the business and government relationship needs greater attention. Business and government relations beyond short‐term lobbying…
Abstract
Purpose
Parallel with business and society relationships, the business and government relationship needs greater attention. Business and government relations beyond short‐term lobbying could be seen as a strategic activity aimed at creating sustainable value for the company. As such it would become much easier to achieve competitive advantage and align the company's commercial with the public interest. This paper seeks to examine this issue.
Design/methodology/approach
The paper aims to scan the issue with a view to further research.
Findings
The economic crisis and the imminent new wave of regulation make a new approach to lobbying more pressing.
Originality/value
The paper is based on political and economic writings and on practical experience in the public and private sector.