new stakeholder roles & relationships
Government and NGOs are facing limited resources and difficulty in scaling social solutions. Businesses have resources and capacity that dwarf those of other stakeholders. However, businesses can’t do it alone.
NGOs need to collaborate with business, bringing new expertise and deep relationships with stakeholders. Governments need to invest in infrastructure, jumpstart markets, and regulate in ways that encourage shared value. For example, the Kenyan government modified banking regulations, which supported the launch and expansion of a revolutionary mobile phone-based money transfer and loan service for low income people.
While the right kind of government regulation can encourage companies to pursue shared value, the wrong kind works against it and even makes tradeoffs between economic and social goals inevitable.
|
Traditional Roles |
New Roles |
|
Philanthropists
|
Donate to charitable causes |
Partner with companies and NGOs to catalyze shared value initiatives |
|
NGOs
|
Receive grants to deliver social services |
Partner in implementing new shared value business models |
|
Governments
|
Tax and regulate business; operate social programs |
Make platform investments and support shared value strategies; regulate to encourage shared value solutions |
|
Companies
|
Donate to charitable causes or ESG program |
- Partner with NGOs and government to initiate and scale shared value strategies
- Partner with other companies to leverage impact in shared value
|