Corporate Social InnovationSolving Social Challenges through Collaborative Leadership

OVERVIEW

According to Johnson et al (2014), there are 4 billion people around the world beneath the poverty income threshold of less than $2 a day.

However, the aggregate wealth of these people in terms of income is more than $2,000 billion per year.

Corporate Social InnovationIf companies can develop new capabilities to serve the huge lower income markets, they can help bridge the gap between the poor and the rich.

Furthermore, through partnership with other organisations, companies can help solve social problems. (Phillis et al., 2008).

Social Problems

•The Primary Social Problem is mainly Poverty.

Social Issues Common in Developing Countries:

Nutrition Heath Care Education Economic

Opportunities

Possible Solutions • Training in Agriculture• Links to better Markets• Access to Credit (Microfinance)• Forming Community Business Groups• Produce Affordable Nutritious Products

The overall goal is to solve a social problem while achieving business success at the same time.

Examples of Collaborative Leadership• Grammen Dannone Food Project

https://www.youtube.com/watch?v=ZDkTDcI53hg

Examples of Collaborative Leadership• Coca-Cola

Company Colativo Project

• Coca-Cola Company Project Nurture

https://youtu.be/3J8osOFQ2t4

Corporate Social Innovation Strategies

Reconceiving a Product or Service

• The Product must have a Social Benefit

• The Product must be designed to solve a social Problem

Through the Dannon Food Project, Dannon Foods of France partnered with Grameen Bank of Bangladesh to produce a Yorgut fortified with essential nutrients and vitamins aimed at addressing nutritional needs of small children in poor communities of Bangladesh.

Redefining Productivity in Value Chains

Through Project Nurture, the Coca-Cola Company allowed small business to access the company’s value chain to supply raw materials (Mango and Passion fruit Puree) in Kenya and Uganda.

Building Strong Local Clusters through Collaborative Leadership

Investing outside the operations of an organisation to solve problems connected with its growth and productivity.

No business can solve all problems or bear the cost of doing so hence the need to create partnerships.

For example Private Public Partnership, Project Based Partnerships( e.g. Project Nurture).

References• Jenkins. B and Fries. L, (2012). PROJECT NURTURE: Partnering for Business Opportunity and Development Impact.

HARVARD Kennedy School, Corporate Responsibility Initiative.• Johnson. G, Whittington. R, Scholes. K, Angwin. D, Regner. P (2014), Exploring Strategy: Text and Cases, 10th Ed:

Edinburgh: Pearson Education Limited.• Mbando. D (2016). How the world’s Largest companies can help Africa’s farmers. Retrieved from

https://www.weforum.org/agenda/2016/03/how-the-world’s-largest-companies-can help-africa’s -farmers• Michelini, L. (2012). New social product development: The process and critical success factors, in social innovation and

new business models: Creating shared value in low-income markets. London: Springer• Porter. E. M and Kramer. R.M, (2011). Creating Shared Value; How to reinvent capitalism- and unleash a wave of

innovation and growth. Harvard Business Review, January-February 2011, pp 2-17• Shared Value Initiative (2016). Project Nurture Partnership Invests in Africa’s Smallholder farmers. Retrieved on 13

December 2016 from http://sharedvalue.org/examples/project-nuture-partnership-fruit-juice-production-africa• Smith. D, Chandrasekhar. R, Parkhurst. M, Sud. P. (2014). Case Study; Thirsty for more: Coca-Cola’s Shared Value

Approach with communities Across Brazil: Shared Value Initiative.• The Coca-Cola Company (2016). How Coca-Cola and African Mango farmers are creating Shared Value. Retrieved on 13

December 2016 from http://www.Coca=-Colacompany/coca-cola-and-african-farmers-produce-shared-value-through-mango

• The Coca-Cola Company 2014/2015 Sustainability Report. Retrieved 13 December 2016 from http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2015/09/2014-2015-sustainability-report.pdf.

• Warshauer. W. (2016). Project Nurture: Lifting African Farmers out of Poverty One Mango at a time, retrieved from http://www.technoserve.org/blog/project-nurture-lifting-african-farmers-out-of-povert on 13/12/2016

• WTO/World Bank (2016). Project Nurture Case Study: ’Aid for Trade’. Retrieved 13 December 2016 from https://www.oecd.org/aidfor trade/48367101.pdf