The best motivational basis for writing an insightful and useful thesis is indisputably personal interest. Therefore, I have chosen this topic, as there are several reasons why I regard this to be an interesting field of research.
Firstly, I myself have developed an interest for the country of South Africa, as I have spent my semester abroad at the DUT in Durban. This results in deeper insight into the society at hand and the people who having to deal with the social problems. As an international business student one consequently questions the way business is done in this country and the means of corporate engagement. Resulting from our Business Ethics class, in which we were given the assignment to write about an ethical issue in a foreign country, I have already acquired knowledge about the ethical landscape in South Africa. I realized that this field is especially difficult and broad regarding the Apartheid stricken country. Discussions and meetings with South African locals in Durban who have a certain insight into the governmental and/or business practices underlying the theory have then further deepened my desire to pursuit further research in this direction.
As to the scientific relevance, corporate engagement still constitutes an immensely important role and even more so in emerging economies. So companies are constantly looking for ways of improving their responsible behavior in society. Companies seldom have the desire to analyze all the concepts available in the pool of corporate social engagement approaches. This thesis is supposed to give companies a guideline on how to successfully integrate one of these concepts and thereby generate social and economic leverage in the environment of a developing economy that is South Africa.
Table of Contents
1. INTRODUCTION
1.1 PERSONAL MOTIVATION, RELEVANCE AND HYPOTHESIS
1.2 METHODOLOGY
1.3 LIMITATIONS AND TIMEFRAME
1.4 THIS THESIS IS SUBJECT TO SEVERAL RESTRICTIONS AND LIMITATIONS, WHICH COULD NOT BE AVOIDED, AND INFLUENCE THE OUTCOME AND CHARACTER OF THE RESEARCH.
2. THEORETICAL FRAMEWORK
2.1 DEVELOPMENT OF CORPORATE ENGAGEMENT
2.2 TERMINOLOGY OF PORTER & KRAMER
2.2.1 Corporate Philanthropy
2.2.2 Corporate Philanthropy and Competitive Advantage
2.2.3 Competitive Advantage and CSR
2.2.4 Creating Shared Value
3. RESEARCH
3.1 SOUTH AFRICAN CONTEXT
3.2 EXPLANATION OF COMPANY SELECTION
4. COMPANY ANALYSIS
4.1 DIAGRAMMATIC OVERVIEW
4.2 BEST PRACTICES
4.2.1 Nestlé
4.2.2 Vodacom
4.2.3 SABMiller
4.2.4 Coca-Cola
4.2.5 Anglo American
4.2.6 Woolworths
4.2.7 Standard Bank
4.2.8 BMW
4.2.9 GlaxoSmithKline
5. CONCLUSION
5.1 CRITIQUES
5.2 RECOMMENDATION
6. OUTLOOK
Research Objectives & Topics
The primary objective of this thesis is to provide a strategic framework for companies operating in South Africa to address complex social issues by integrating "Creating Shared Value" (CSV) into their core business operations. The research explores how businesses can move beyond traditional corporate social responsibility to generate both social and economic leverage within the unique constraints of an emerging economy.
- Development and application of the Creating Shared Value concept
- Analysis of the South African business environment and social context
- Evaluation of international and local best practices in corporate engagement
- Assessment of critiques regarding the effectiveness of CSV strategies
- Recommendations for strategic implementation in developing markets
Excerpt from the book
Creating Shared Value
At the top of the value creation pyramid lays the newest concept by Porter and Kramer: Creating Shared Value. This paper deals mainly with the application of this here concept, as it constitutes a maximum creation of shared value with minimal no-return investments (See Figure 2).
In the eyes of the authors, CSV reinvents capitalism as a whole and thereby releases an outburst of innovational and growth forces. (Porter & Kramer; 2011: p.1) It is often believed the problem with societal engagement of companies is that businesses is pressured and forced into certain paths of being engaged with society. While this is certainly true, some faults are sourced on the company side. Their outdated attempt of breeding value still focusses on short term effects directly producing economic results. In the process they often ignore opportunities based on real customer needs, as well as stimulants and effects triggered by and influencing business gravely (Porter & Kramer; 2011: p.4). Porter and Kramer have found out that many companies are stuck in a social responsibility mentality which treats societal issues as being extraneous and disconnected from the core of business (Schneider; 2012: p.139). The solution they found is called CSV and all in all, the concept targets the creation of economic value by also creating societal value and offering solutions for the deficiencies and problems. At the center of all a connection between business and society is again propagated, but additional focus is applied to an overall expansion of the value pool instead of a reallocation of resources from profits to social support (Porter & Kramer; 2011: p.5). From the authors’ perspectives there are three basic ways of approach:
Summary of Chapters
INTRODUCTION: Presents the author's motivation for researching corporate engagement in South Africa and establishes the research hypothesis focusing on Porter & Kramer’s CSV concept.
THEORETICAL FRAMEWORK: Examines the evolution of corporate social engagement concepts, culminating in the specific definitions and categories of Creating Shared Value as proposed by Porter and Kramer.
RESEARCH: Provides an overview of the South African socio-economic context, including its unique challenges, and explains the methodology for selecting the best-practice companies analyzed.
COMPANY ANALYSIS: Evaluates how selected international and South African companies apply CSV principles in their respective industries, supported by diagrams and performance assessments.
CONCLUSION: Addresses academic and practical critiques of the CSV theory and synthesizes findings into actionable recommendations for businesses.
OUTLOOK: Discusses the future trajectory of corporate engagement, emphasizing the ongoing shift toward sustainable business models in emerging environments.
Keywords
Corporate Social Responsibility, Creating Shared Value, South Africa, Emerging Markets, Business Strategy, Competitive Advantage, Value Chain, Social Engagement, CSV, Sustainability, Stakeholder Management, Inclusive Banking, Corporate Philanthropy, Economic Leverage, Development.
Frequently Asked Questions
What is the core focus of this thesis?
This work focuses on how companies in South Africa can effectively address social issues by applying the "Creating Shared Value" (CSV) framework to align social engagement with core business objectives.
What are the central themes of the research?
The research explores the transition from traditional, peripheral corporate philanthropy to integrated, strategic CSV, with a specific focus on the complex socio-economic landscape of South Africa.
What is the primary research goal?
The goal is to provide a strategic guideline for companies to generate both social and economic leverage by focusing on intersections between societal needs and corporate core competencies.
What scientific methods are utilized?
The thesis utilizes a qualitative research approach, combining a comprehensive literature and theory analysis with detailed case studies of various multinational and local companies.
What does the main part of the thesis cover?
The main part covers the development of CSV theory, an analysis of the South African context (including the informal sector and infrastructure challenges), and an in-depth review of industry-specific best practices.
Which keywords best characterize the work?
Key terms include Creating Shared Value, Corporate Social Responsibility, South Africa, Business Strategy, Competitive Advantage, and Inclusive Development.
How does the author justify the selection of companies like Nestlé and Standard Bank?
Companies were selected based on their prominence in social reporting and their ability to demonstrate, through different industries, how CSV can be integrated into core business models.
Does the thesis address the limitations of the CSV concept?
Yes, the conclusion provides a thorough discussion of critiques regarding the theory's potential for "cherry-picking" and its perceived applicability limitations for smaller enterprises.
Why is the South African market particularly relevant for this study?
South Africa represents a unique, diverse environment with significant social challenges and a "two-tiered" economy, making it an ideal case study for applying strategic, high-leverage engagement models.
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- John-Patrick Grande (Autor:in), 2014, Corporate Social Engagement in South Africa, München, GRIN Verlag, https://www.grin.com/document/284642
