Creating Shared Value beyond Corporate Social Responsibility (A study of Iranian Enterprises' experiences)

Document Type : علمی - پژوهشی

Authors

University of Tehran

Abstract

Objective: The purpose of this study is distinguishing shared value activities from corporate social responsibility activities in Iranian enterprises. Through examining the social activities experiences of Iranian enterprises, focusing on activities which have characteristics of creating shared value, we identified several types of social activities of Iranian enterprises. Methodology: Due to the lack of a similar model, we used Grounded Theory until we could explore the traveled path of social activities of Iranian companies, using practical experiences of 37 interviews with managers and other related experts.  Finding: The final model suggests 6 types of social activities in Iranian enterprises, displaying Iranian creating shared values in a spectrum. The first two types didn’t have the capability of creating shared value, but on the other hand, the other four categories can create shared value with different intensity and effectiveness. Conclution: Results suggest that Iranian companies created shared value through four ways (enhancing reputation and legitimacy through social activities, decreasing risks and costs through environmental protection activities, increase in revenue through creating economic opportunities due to solving social issues, and increase in revenue through enhancing transmitted benefits of stakeholders). 

Keywords

References

  1. Carroll, A. B. (1979). A three-dimensional model of corporate performance. Academy of Management Review, 4(4), 497-505.
  2. Clarkson, M. E. (1995). A Stakeholder Framework for analyzing and evaluating corporate social performance. Academy of Management Journal 92-117.
  3. Coelho, P. R. P., McClure, J. E. & Spry, J. A. (2003). The Social Responsibility of Corporate Management: A Classical Critique. American Journal of Business, 18(1), 15–24.
  4. Creswell, J. W. (2012). Educational research: planning, conducting and evaluating quantitative and qualitative research. Pearson Prentice Hall: Upper Saddle River, NJ.
  5. Davis, K. (1973). The case for and against business assumption of corporate responsibility. Academy of Management Journal, 16(2), 312-22.
  6. Fortune. (2015). Change the World list. Retrieved from http://fortune.com/change-the-world/
  7. Glaser B. G. & Strauss A. L. (1967). The discovery of grounded theory: the strategies for qualitative research. Aldine Transaction, New Jersey.
  8. Glaser B., (1978), Theoretical sensitivity: advances in the methodology of grounded theory", sociology press, Mill Valley, CA.
  9. Handy, C. B. (1997). The Hungry Spirit: Beyond Capitalism, A quest for purpose in the modern world. Hutchinson, London. (In Persian).
  10. Jazani, N., Barati, A., & Parsamehr, V. (2015). The impact of social responsibility on internal brand Resonance of organization. Journal of business management perspective, 13(20), 107-121. (In Persian).
  11. Jones, T. M. (1995). Instrumental stakeholder theory: a synthesis of ethics and economics. Academy of Management Review, 20(2), 404-37.
  12. Karnes, R. E. (2009). A change in business ethics: the impact on employer-employee relations. Journal of Business Ethics, 87(2), pp. 189-97.
  13. Koller, T. Goedhart, M. & Wessels, D. (2010). Valuation: measuring and managing the value of companies. McKinsey & Company's. (In Persian).
  14. Laszlo, C. (2003). The Sustainable Company, How to Create Lasting Value Through Social and Environmental Performance. Island Press.
  15. McWilliams, A. & Siegel, D. (2001). Corporate social responsibility: a theory of the firm perspective. Academy of Management Review, 26(1), 117-27.
  16. Memery, J. Megicks, P. & Williams, Jasmine. (2005). Ethical and social responsibility issues in grocery shopping: a preliminary typology. Qualitative Market Research: An International Journal, 8(4), 399–412.
  17. Michelini, L. & Fiorentino, D. (2012). New business models for creating shared value. Social Responsibility Journal, 8(4), 561–577.
  18. Porter, M. E. & Kramer, M. R. (2006). The link between competitive advantage and corporate social responsibility. Harvard business review, 84(12), 78-92.
  19. Porter, M. E. & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, 2011-11-30.
  20. Price Waterhouse Coopers (PwC). (2002). Sustainability Survey Report. Retrieved from http://www.pwc.fr/2002_pricewaterhousecoopers_sustainability_survey_report1.html
  21. Strauss A. L. & Corbin J. (1998). Basics of qualitative research: grounded theory procedures and techniques. Newbury Park, CA: Sage. (In Persian).
  22. Urip, S. (2010). CSR Strategies, Corporate Social Responsibility for a competitive edge in emerging markets. John Wiley & Sons.
  23. Vandermerwe, S. & Oliff, M. D. (1990). Customers drive corporations green. Long Range Planning, 23(6), 10-16.
  24. Visser, W. Matten, D. Pohl, M. & Tolhurst, N. (2007). The A to Z of Corporate Social Responsibility. John Wiley & Sons Ltd.
  25. Yunus, M. & Weber, K. (2010). Building Social Business: the new kind of capitalism that serves humanity's most pressing needs. PublicAffairs, New York City.

Files

History

  • Receive Date: 23 November 2019
  • Revise Date: 08 January 2021
  • Accept Date: 31 December 2020

Share

How to cite

Statistics