By Michael E. Porter, the Bishop William Lawrence University Professor at Harvard Business School, and Mark R. Kramer, cofounder and managing director of FSG
Shared Value is not social responsibility, philanthropy or sustainability, but a new way for companies to achieve economic success Michael E Kramer and Mark Porter Creating Shared Value, Harvard Business Review
Shared Value is about Strategy and Scale Sharing Value Created = Creating Shared Value CSI/ Philanthropy; compliance spend; risk mitigation; brand enhancement; staff retention Meeting specific societal needs to unlock new growth and productivity gains Subject to Strategy Object of Strategy
Shared value is increasingly about collective impact Collective impact is the commitment of a group of important actors from different sectors to a common agenda for solving a specific societal problem at scale 1 Common Agenda 3 Mutually reinforcing activities 5 Backbone Support 2 Shared Measurement 4 Communication
The Goals for Sustainable Development
Shared Value is found at the Nexus of Business Opportunities, Corporate Assets and Social Needs Shared Value Social Need Opportunity Corporate Assets and Expertise Business Opportunities Enter BBBEE
The Green Business Value Chain: Unlocking Micro Enterprise sustainability in the Green Economy A Case Study in Shared Value
Our Water Security is at Risk Working for Water: biggest Green programme in the World! We should be spending R12 billion annually to solve the problem of usable water captured by invasives Between 48 and 72,000 people employed in the sector
Small business involvement is currently not sustainable Seasonal Low business acumen Significant capital outlay Onerous tender and procurement processes
There s a disconnect inherent in the increase of the sector Employment days vs Efficiencies
We need to look at the ecological and economic value chain at the same time
Participation from the private sector creates powerful opportunities Social Need Corporate Assets and Expertise Business Opportunities Green business opportunities Social and financial returns Not just money talent, too
Business will reap specific rewards from involvement Manage the water security risk into the future Access invasive biomass for commercial opportunities BEE compliance for Enterprise and Supplier Development
Opportunities to uncover green investment to decrease water risk and increase economic value New opportunities within the green sector Increase water security within the current value chain Contribution to Sustainable Development Goals Compliance to legislation Opportunity for growth in new customers, products and services Increased stability because of predictable, reliable income stream Offer stable employment Target investment to enable value chains to: Increase job creation Stimulate small business activity Build robust economy Social and economic benefits to communities
The Green Business Value Chain Programme will: Catalyse a strong Biomass Economy by stimulating demand for invasive biomass as an input into value-adding processes, that will.. accelerate the eradication of invasive biomass enhancing utilisation of and growth potential for SMME s engaged in the Green Value Chain and driving clear understanding of roles and responsibilities, and contributions of public and private sector And therefore Strengthen South Africa s water security
Catchment geographies are targeted to where it will make the most impact Gauteng: Crocodile West and Molopo catchments (urban) Mpumalanga: Olifants Catchment (rural and periurban) Eastern Cape/Southern KZN: Umzimvubu catchment (rural and peri-urban) includes government land, privately owned land and communal land
GBVC - Theory of Change Value Chain Knowledge Inputs Activities Outputs Compost & Coal Knowledge, expertise and R&D Outcomes Impact Timber, fibre, wood pulp Invasive vegetation value chain mapping Bio-fuels Sustainable supply chain Biomass economy & carbon off-set Small Business Development Corporate Talent and Innovation Economic value chains Unblocked supply chain Brains & Investment Value chain simulation Local SMMEs Training & Mentorship Sustainable SMMEs SMMEs in vertical & horizontal supply chains Land user take-off agreements Value Chain Ecological Invasive Biomass Value Chain Procurement process (portal) Sustainable livelihoods Market for invasive vegetation biomass High value invasive vegetation 3 Catchment areas Copyright Avocado Vision (Pty) Ltd 2017 Invasive vegetation clearing Natural area restoring Restored ecological services Virtuous ecological cycle Water security