Here is an interesting article that contains a number of important lessons for Stakeholder Managers – Reconnect business success with social progress.
In my mind, it speaks of the necessity to integrate sustainability thinking into the everyday processes of the organization, whether it is choosing paper for the photocopier or pressing a button spilling effluent into a pristine water ecosystem.
Creating Shared value fits into the Inclusive Stakeholder Management thinking model and is in line with the recommendations of the King 3 Code on Corporate Governance.
In a stakeholder inclusive approach, the organisation considers the legitimate interests and expectations of stakeholders on the basis that this is in the best interests of the company, and not merely as an instrument to serve the interests of the shareholder. What this means in practice is that in the ‘stakeholder inclusive’ model, the legitimate interests and expectations of stakeholders are considered when deciding in the best interests of the company.
The integration and trade-offs between various stakeholders are then made on a case-by-case basis, to serve the best interests of the company. The shareholder, onthe premise of this approach, does not have a predetermined place of precedence over other stakeholders. However, the interests of the shareholder or any other stakeholder may be afforded precedence based on what is believed to serve the best interests of the company at that point.
The best interests of the company should be interpreted within the parameters of the company as a sustainable enterprise and the company as a responsible corporate citizen. This approach gives effect to the notion of redefining success in terms of lasting positive effects for all stakeholders, as explained above.
Creating Shared Value for all.