Fair Trade Software

Building knowledge economiesCreating Shared Value

Konza Technology City, Kenya

From this To this

© 2012 Deloitte The Netherlands

Short Introduction of Ernst van Weperen

2

“Our Common Future” (1987)

“Sustainable development is development that meets the needs of the present

without compromising the ability of future generations to meet their own needs”

An adjective..

Capable of being maintained in existence without interruption or

diminution

Sustainability =The ‘ability’ to

‘sustain’:..yourself...

....a (global) system......or a company...

A growing group of people...

..becoming more affluent...

...on a finite source

Ecological degradation Social instability

Ability to sustain our planet

Economic Scarcity

The ability to sustain a company in the long run very

much depends on:

A thorough understanding of how these trends will affect you and (the relationship with) your stakeholders

The ability to identify structural trends on the markets you operate

Source; ethical leaders in action

Creating Shared Value (CSV)

Takes away the unnatural segregation of business and society

...but business value “and” societal value

“Societal needs, not just conventional economic

needs, define markets, and social harms can create internal costs for firms”

Not business value “or” societal value

..or even business value “because of” societal value

CSR• Value: doing good

• A limited CSR budget

• Separate from profit maximization

CSV• Value: economic and

societal benefits relative to cost

• Realigning the entire company budget

• Integral to profit maximization

CSV vs CSR

CSV vs Fair trade

Both aimed at Creating Shared Value But Fair trade’s primary driver is to protect producers (and as a potential result increased value through higher quality produce)Whereas CSV’s primary driver is to create shared value, which will often translate to protection and higher prices for producers

CSV vs Impact Sourcing

Source: the rockefeller foundation

Impact Sourcing, or Socially Responsible Outsourcing, is also aimed at creating shared valueBut suffers from the same (image) problems as CSR (bolted on vs integrated)

Creating Shared Value

A thorough understanding of how these trends will affect you and (the relationship with) your stakeholders

The ability to identify structural trends on the markets you operate

Source; ethical leaders in action

Andy HaxbyBritish EntrepreneurDirector, Competa IT Open Source Advocate

Multiple perspectives

One solution

Photo: Banana Republic / Harriet Lamb and Andy Kenworthy

Developing countries import high-value goods and services, and export low-value.

How can we reverse this trading imbalance?

We discussed the digital divide, we sent old computers, we paid for universities and we built internet

infrastructure. Now what? There’s not enough work –

highly educated and highly disappointed.

Global Information Technology Report 2013

you want to do something, but it’s difficult? or not?

How can individual people, consumers, help make the world better?

easier for some companies than others?

Supermarket

Bankvs.

How can corporations show their CSR commitment?

How can they avoid Greenwash criticism?

how can they take part in the global market?

How can small and medium size IT companies stay competitive?

One solution

Create Shared Value

Fair Trade Software is

Open source tools

Internet connectivity in developing

countries

Level of IT skills in developing countries

Fair Trade Principles1. Improving market access2. Equitable trading

partnerships3. Capacity building &

empowerment4. Consumer awareness

raising & advocacy5. Fair Trade as “Social

Contract”6. ….

Some tech stuff

Agile development

methods

Collaborative partnership between IT companies in developed and developing countries

Moderated by FTS Foundation

IT Partners

IT Providers

Customers

Small IT companies in developing countries

Small and medium IT companies in OECD

countries

Large corporate enterprises, governments and large organizations

It’s not outsourcing – It’s a co-development partnership

This approach increases job opportunities in a mutually inclusive and collaborative way: it retains jobs in developed countries while growing capabilities in developing nations.

It’s not about Fair Trade – It’s using F T to create value

This is not about Fair Trade per se. Fair trade is used as the key to shared value creation because it is a recognisable

brand. This extends Fair Trade, in a way that adds value not cost.

Development Knowledge Economies

Market access & trainingIT companies in developing

countriesUSP

IT companies in developed countries

CSR solution and quality endorsement Companies buying software solutions

Purchasing preferenceCustomers’ contribution

Virtuous Circle of SVC

Q. why didwe do this?

A. Self interest

Sustainable Partnerships

Images by:

Join the circle

get involved