This Bachelor Thesis is exploring the Impact of the lately introduced Concept of Creating Shared Value (CSV) on Developing Countries.
CSV has first been published in the key article “The Big Idea: Creating Shared Value” by KRAMER and PORTER. It describes a new approach in the relation between companies and societal needs. The implementation of this concept in developing countries with there particular needs, appears to be promising for the revelation of a high-contrast result.
The Thesis is starting with the usual introductory part prior to giving exact definitions of the term “Developing Country”, CSV and the related concept of Corporate Social Responsibility (CSR). Hereby, CSV is getting critically discussed. Following is the fundamental methodical instrument, the Case Studies. Three CSV-projects are analysed and their impact on the affected developing countries displayed. The fourth Chapter summarises the outcome of the prior sections and presents the results.
The key advantages of CSV are the inclusion of the profit maximisation principle, its accentuated Cooperation between participants and the recognition of Interdependences between the differing areas of impact.
Contrary, there is a vast need for further scientific research. The thesis reveals disadvantages as a deficit in distinct definition of the concept and the question if the advantages of CSV, as increased innovation or new markets, will be sufficient to compete with the current approaches.
Table of Contents
1. Background
2. From Corporate Social Responsibility (CSR) to Creating Shared Value (CSV) - Definitions
2.1. Developing Countries
2.2. Corporate Social Responsibility (CSR)
2.3. Creating Shared Value (CSV)
2.3.1. Companies and CSV
2.3.2. Governments and CSV
2.3.3. Critique
2.4. Differentiation CSV to CSR – Characteristics of CSV
3. Case Studies – CSV in practice
3.1. Selection Criteria
3.2. Analysis and Measurability
3.3. Case Study One – Yara International ASA
3.3.1. Company
3.3.2. Project
3.3.3. Impact in context to CSV
3.4. Case Study two – Thomson Reuters Corporation
3.4.1. Company
3.4.2. Project
3.4.3. Impact in Context to CSV
3.5. Case Study three – CBB Software GmbH
3.5.1. Company
3.5.2. Project
3.5.3. Impact in Context to CSV
4. Impact on Developing Countries
4.1. Summarized Case studies
4.2. Outcome
4.3. Future Challenges
5. Conclusion
Objectives and Topics
This bachelor thesis examines the impact of the "Creating Shared Value" (CSV) concept on developing countries. The research aims to evaluate whether this approach offers a more sustainable alternative to traditional Corporate Social Responsibility (CSR) by integrating social progress with business profit motives, particularly in regions facing severe economic and social challenges.
- The conceptual transition from CSR to CSV in contemporary business management.
- Comparative analysis of CSR and CSV strategies regarding societal impact and profitability.
- Practical application of CSV through case studies in Tanzania, India, and Ghana.
- Assessment of CSV's potential to address systemic issues like poverty, infrastructure deficits, and educational gaps.
- The role of public-private cooperation and stakeholder interdependencies in economic development.
Excerpt from the Book
3.3.3. Impact in context to CSV
In order to analyse the impact of the SAGCOT-project in conjunction with the CSV fundamentals, it will be necessary to examine the significance of the project for Yara International ASA and the society of the involved developing countries.
Starting with the affected developing countries it has to be realised that the results of this long term project will be completely revealed at the end of the project in 2030. Therefore this thesis will adhere to the given outlooks of the SAGCOT-initiative.
The implementation of the SAGCOT-project will have a major long-term impact on the economic structure of the affected countries. The infrastructural improvements are said to increase commercial farming from 110,000 ha to 350,000 ha in 2030. The momentary smallholder orientated farming structure will be maintained and is integrated into the concept. Irrigation systems will allow 215,000 ha to be farmed all year. This will lead to more consistency in economic planning.
Agricultural output is said to be tripled by the end of the project. In conjunction with infrastructural improvements of the transport system and Dar-es-Salam Port new markets will open up. This will enable the affected countries to annual crop exports of about US$0.8bn.
Summary of Chapters
1. Background: Introduces the academic setting and the thesis topic, identifying the need to research CSV impacts on developing countries due to the limitations of existing CSR practices.
2. From Corporate Social Responsibility (CSR) to Creating Shared Value (CSV) - Definitions: Establishes foundational definitions of "Developing Countries," CSR, and CSV, while discussing the shift toward shared value creation and critiquing the current CSR models.
3. Case Studies – CSV in practice: Presents and analyzes three specific projects (Yara International ASA, Thomson Reuters Corporation, and CBB Software GmbH) to evaluate the practical implementation of CSV strategies.
4. Impact on Developing Countries: Synthesizes findings from the case studies, highlighting the interdependence of health, education, and economic structure, and discusses future challenges for the CSV approach.
5. Conclusion: Summarizes the thesis findings, confirming the potential advantages of CSV over traditional CSR, while noting the current scarcity of scientific literature and the need for further research.
Keywords
Creating Shared Value, CSV, Corporate Social Responsibility, CSR, Developing Countries, Economic Structure, Sustainability, Profit Maximization, Infrastructure Development, Poverty Reduction, Public-Private Cooperation, Stakeholder Management, Market Innovation, Agricultural Growth, Value Chain.
Frequently Asked Questions
What is the primary focus of this bachelor thesis?
The thesis investigates the impact of the "Creating Shared Value" (CSV) concept, introduced by Porter and Kramer, specifically within the context of developing nations and their unique societal needs.
What are the central thematic fields covered?
The work centers on the conceptual comparison between CSR and CSV, the role of profit maximization in sustainable development, and the application of business strategies to solve social and economic challenges.
What is the primary goal of the research?
The goal is to determine if CSV is a more effective and sustainable tool for business engagement in developing countries than conventional CSR, which is often criticized for being purely cosmetic or marketing-oriented.
Which scientific methods are employed?
The author uses a qualitative approach, primarily relying on comparative literature analysis and a multiple-case study design to evaluate three different corporate projects in developing countries.
What is analyzed in the main body of the work?
The main body focuses on defining the theoretical framework of CSV, conducting detailed case studies of Yara International, Thomson Reuters, and CBB Software, and assessing their socio-economic impacts.
Which keywords best characterize this research?
Key terms include Creating Shared Value (CSV), Corporate Social Responsibility (CSR), sustainable development, economic structure, poverty reduction, and public-private partnership.
How does the SAGCOT project in Tanzania illustrate CSV?
The SAGCOT project integrates local agricultural improvement with commercial investment, aiming to balance Yara International’s profit goals with the infrastructural and economic development needs of Tanzanian farmers.
What role does the Reuters Market Light (RML) service play in the findings?
RML serves as a case study demonstrating how a company can create shared value by providing critical market information to farmers via mobile technology, thereby enhancing their profitability and productivity.
- Quote paper
- Frank Machens (Author), 2012, Impact of the concept of shared value (SV) on developing countries (Creating Shared Value) , Munich, GRIN Verlag, https://www.grin.com/document/191041
