Creating Shared Value - Fair Trade Software Foundation

Report
Konza Technology City, Kenya
From this
To this
Fair Trade Software
Building knowledge economies
Creating Shared Value
Short Introduction of Ernst van Weperen
2
© 2012 Deloitte The Netherlands
“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...
Ability to sustain our planet
A growing group of
people...
..becoming more
affluent...
...on a finite source
Ecological degradation
Social instability
Economic Scarcity
The ability to sustain a company
in the long run very much depends on:
Source; ethical leaders in action
The ability to identify structural
trends on the markets you operate
A thorough understanding of
how these trends will affect you
and (the relationship with) your
stakeholders
Creating Shared Value (CSV)
Takes away the unnatural
segregation of business and society
Not business value “or” societal
value
...but business value “and” societal
value
..or even business value “because of”
societal value
“Societal needs, not just
conventional economic needs,
define markets, and social
harms can create internal costs
for firms”
CSV vs CSR
CSR
• Value: doing good
CSV
• Value: economic and
societal benefits relative
to cost
• A limited CSR budget
• Realigning the entire
company budget
• Separate from profit
maximization
• Integral to profit
maximization
CSV vs Fair trade
But
Fair
trade’s
primary Shared
driver isValue
to create
protectshared
producers
(and
as awill
potential
Both
aimed
at Creating
Whereas
CSV’s
value,
which
often result
increased
value
throughand
higher
quality
produce)
translate to
protection
higher
prices
for producers
CSV vs Impact Sourcing
Source: the rockefeller foundation
Impact
Sourcing,
or Socially
Responsible
Outsourcing,
is also
But
suffers
from the
same (image)
problems
as CSR (bolted
on vs
aimed at creating shared value
integrated)
Creating Shared Value
Source; ethical leaders in action
The ability to identify structural
trends on the markets you operate
A thorough understanding of
how these trends will affect you
and (the relationship with) your
stakeholders
Andy Haxby
British Entrepreneur
Director, Competa IT
Open Source Advocate
Multiple
perspectives
One solution
Developing countries import high-value goods and
services, and export low-value.
How can we reverse this trading imbalance?
Photo: Banana Republic / Harriet Lamb and Andy Kenworthy
Global Information Technology Report 2013
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.
How can individual people, consumers, help make the world better?
you want to do something, but it’s difficult?
or not?
Supermarket
vs.
Bank
How can corporations show their CSR commitment?
How can they avoid Greenwash criticism?
easier for some companies than others?
How can small and medium size IT companies stay competitive?
how can they take part in the global market?
One solution
Create Shared Value
Fair Trade Software is
Some tech stuff
Agile
development
methods
Open
source
tools
Internet connectivity
in developing
countries
Level of IT skills
in developing
countries
Fair Trade Principles
1. Improving market access
2. Equitable trading
partnerships
3. Capacity building &
empowerment
4. Consumer awareness
raising & advocacy
5. Fair Trade as “Social
Contract”
6. ….
Large corporate
enterprises, governments
and large organizations
Small IT companies in
developing countries
IT Partners
Customers
IT Providers
Small and medium IT
companies in OECD
countries
Collaborative partnership
between IT companies in developed and developing countries
Moderated by FTS Foundation
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.
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.
Virtuous Circle of SVC
Market access & training
IT companies in developing
countries
USP
IT companies in
developed countries
Development
Knowledge Economies
Purchasing preference
Customers’ contribution
CSR solution and quality endorsement
Companies buying software solutions
Q. why did
we do this?
A. Self interest
get
involved
Join the circle
Sustainable Partnerships
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