Download as PDF, PPTX
Uploaded byEdward Erasmus
Shared Value and Sustainable Entrepreneurship
This document outlines a presentation on increasing shared value through sustainable entrepreneurship. It discusses the myth of infinite growth and resources and the need for sustainability. It introduces concepts like corporate social responsibility, innovation, smart ventures, and shared value. It provides an overview of Aruba's current challenges and proposes new forms of entrepreneurship like ecopreneurs, sociopreneurs, creativepreneurs, and globopreneurs to help address these challenges in a sustainable way. The presentation emphasizes integrating economic, social and environmental priorities to achieve a balanced, diversified economy for Aruba that meets present needs without compromising future generations.
In this document
Powered by AI
Exploration of sustainable entrepreneurship and its context, including CSR, innovation, and shared value.
Discusses the unrealistic belief in infinite economic growth and resources throughout history. Highlights increasing global economic activity and the explosion of choice and consumption in modern society.
Impending pressures on ecosystems, food, water, and land, alongside sustainability discussions starting from the 1980s.
Addresses specific socioeconomic challenges faced by Aruba including stagnation, health issues, and crime.
Calls for a new economic model focused on sustainability and community involvement. Presents principles for achieving sustainability, integrating economic, social, and environmental factors. Explains the evolution and importance of Corporate Social Responsibility and the concept of shared value.
Identifies proposed new entrepreneurial approaches including ecopreneurs, sociopreneurs, and globopreneurs.
A reminder of shared responsibility for sustainability and an encouragement for innovative thinking.
Provides references and acknowledgments for the research and contributions used in the presentation.
More Related Content
Similar to Shared Value and Sustainable Entrepreneurship
Shared Value and Sustainable Entrepreneurship
- 1. Increasing shared valuethrough sustainable entrepreneurship Corporate social responsibility Innovation Smart ventures Edward Erasmus MA University of Aruba Faculty of Accounting, Finance and Marketing March 11, 2013
- 2. Outline presentation The myth of infinite growth Sustainability • Sustainable entrepreneurship • Corporate Social Responsibility • Shared Value • Aruba’s challenges • New forms of ‘preneurship’ for Aruba • •
- 3. The myth ofinfinite resources • Every society clings to a myth by which it lives… • Ours is the myth of infinite economic growth
- 4. The myth ofinfinite resources • God provided infinite land, food and resources for Europeans to exploit… Discovery of America
- 5. The myth ofinfinite resources • Science will solve all of the world’s problems Renaissance
- 6. The myth ofinfinite resources Industrial revolution
- 7. It fueled rapideconomic progress
- 8. “Global economic activity (GDP)has increased by a factor of 40 since the start of the Industrial Revolution.” ~Intergovernmental Panel on Climate Change (IPCC), Special Report on Emissions Scenarios, 2001
- 9. The myth ofinfinite resources
- 10. Cross border exchangeof… Goods…. People…. Capital… Culture…
- 11. …and cross borderexchange of… Information….
- 12. Dramatic increase inproduction capacity
- 13. Era of unlimitedchoice…
- 14. More than wecan process or consume… How many t.v. channels do you have in your cable package?
- 15. More than wecan process or consume… How many apps for the iPhone?
- 16.
- 17.
- 18. In the next40 years the pressure on Earth’s ecosystems will increase dramatically
- 27. The competition forFOOD, WATER, LAND and ENERGY will intensify.
- 31. Addressing sustainability • Firstlyseriously discussed in the 1980s • Led by the United Nations • Focus on critical issues of environment and development • Strengthen international cooperation • Population, food security, the loss of species and genetic resources, energy, industry, and human settlements are all interrelated
- 32. Sustainable Development “Development whichmeets the needs of the present, without compromising the ability of future generations to meet their own needs.” - Our Common Future The Brundtland Commission Report (1987)
- 36. The world isusing the equivalent of one and a half planet to support life on Earth
- 37. “Our consumption ofthe Earth’s natural resources is depleting the planet’s ability to replenish itself - and to sustain life on earth.” - WWF Global Report
- 38. • 3/4 ofthe world’s fisheries are over-fished • Half of the world’s original forest has been destroyed. Additional 2% lost every year. • Species extinction is currently 1,000x the natural evolutionary rate • 1/4 of all the birds and mammals on earth are in danger of extinction. • Climate change is already happening, and poses a threat unlike any other facing civilization.
- 39. So what doesit all mean for a small country like Aruba?
- 40. Our current challenges… Real GDP per capita remained virtually flat since 1990. Uneven income distribution. • Population density: 550 inhabitants per square kilometer. • Individuals aged 60+ will double between now and 2025. • 42% of Aruba’s population is currently chronically obese. • A public health care deficit that is growing. • Educational performance below expectations. • Increased crime and other social problems. • Huge government deficits. • •
- 41. Finding the rightbalance… Balance Preserving Improvement natural of lifestyles resources and well- and being ecosystems We should strive to maintain a delicate balance between our need to improve lifestyles and feeling of well-being on one hand, and preserving natural resources and ecosystems, on which we and future generations depend on the other hand.
- 42. So where dowe go from here?... It’s more than obvious that a new economic, social and environmental (strategic) model needs to be implemented…… Sustainability should be the primary focus
- 43. Abo dicidi awe,nos Aruba di mañan Nos Aruba 2025
- 44. • To involvethe broad community in creating Why Nos Aruba 2025? together a vision for Aruba’s future. • Stimulate sustainable development. • National Integrated Strategic Plan (NISP). • To stimulate coordination and dialogue between all stakeholders.
- 45. The process… Discovery Dream Design Destiny Design of the ways Destiny - Building Discovery of the Dream of the this can be brought the plan to achieve Positive Core desired future about this future
- 47.
- 48. Principles • We integrateeconomic, social, community and environmental priorities. • We respect and live within the natural resources and limits of our island. • We must achieve a diversified and dynamic economy (beyond tourism). • We honor our culture and values • We make decisions based on meeting the present needs without compromising the needs of future generations. • Everyone — individuals, families, communities, businesses and government — has accountability for achieving a sustainable Aruba.
- 49. Some great initiativesas a result of Nos Aruba 2025 However, more needs to be done…
- 50.
- 51. Unsustainable business models never pay off in the end….
- 58. An outdated approachto business and value creation • Companies have overlooked the wellbeing of their customers the depletion of natural resources vital to business the viability of key suppliers “the economic distress of the communities in which they produce and sell”
- 59. New leadership callsfor a new approach to conducting business Visionary leaders think ‘sustainable’….
- 60. Think sustainable…. • Environmentalresources are limited and are quite sensitive to everything that we do. • We are starting to experience the effects of the actions of generations that came before us. To make sure that future generations will not experience worse, we need to be aware of the ideals and requirements of sustainability….
- 61. Corporate Social Responsibility (maatschappelijk verantwoord ondernemen) Also known as: sustainable entrepreneurship …..the integration of business operations and values, whereby the interests of all stakeholders including investors, customers, employees, the community and the environment are reflected in the company's policies and actions.
- 62. Sustainable enterprises 1. Incorporatingprinciples of sustainability into each of their business decisions. 2. Supplying or consuming environmentally friendly products or services that replaces demand for non green products and/or services. 3. Greener than traditional competition. 4. Enduring commitment to environmental principles in their business operations.
- 63. Why practice CSR? •Companies have learned the hard lesson that without a sustainable society, there is no sustainable business…. • So in instead of focusing on short-run returns • Companies focus on contributing to long- term societal well-being in which everybody can develop and grow.
- 64. The evolution ofresponsibility Late 2000s 1980s Responsible Philanthropy Competitiveness 1970s Shareholders Early 1990s Early 2000s Corporate Corporate Governance Accountability Late 1990s Stakeholders Engagement
- 65. The evolution ofresponsibility Late 2000s 1980s Sustainable markets Health & safety 1970s Quality management Early 1990s Early 2000s Environmental Triple bottom line management Late 1990s Health, safety & environment
- 66. Focus CSR Planet People Profit
- 67. CSR towards anew approach? Corporate Corporate Social Sustainability & Responsibility Responsibility Philanthropic Collaborative Risk-based Reward-based Image-driven Performance-driven Specialized Integrated Standardized Diversified Marginal Scalable Western Global
- 68. CSR towards anew approach? CSR can only be resilient if it CSR is part of the DNA of an Value organisation, i.e. CSR will Creation only survive the vagaries of fickle markets, fluctuating Good Governance profits, financial crises and leadership whims if it is Societal totally embedded in the Contribution corporate culture, strategy and governance systems” Environmental Integrity – Wayne Visser, 2008
- 69. Let’s start fromthe very beginning.... Porter and Kramer Harvard Business Review 2011 How to reinvent capitalism – and unleash a wave of innovation and growth
- 70. Companies must bringbusiness and society back together • Shared value – creating economic value in a way that also creates value for society by addressing its needs and challenges. • “Business must reconnect company success with social progress.”
- 71.
- 72. Aruba entrepreneurs Competition oriented (no differentiation) Same products in same markets • Fear of trying out new things • Lack of motivations (comfort zone) • Technically challenged (so much more • out there) •
- 73. Basic conclusion A changein the fundamental entrepreneurial thinking on Aruba should happen quickly, otherwise the small and medium business sector will autodestruct itself through far- going cannibalization… Innovation and sustainable entrepreneurship is the key…
- 74. Developing smart ventures Innovation Sustainability • Diversification • Productivity (resource efficient) • Smart growth • High-skilled jobs • Driven by technology • Shared value • •
- 75. New forms of‘-preneurs’ • Aruba government economic policy is geared towards the development of new entrepreneurial ventures.
- 76. New forms of‘-preneurs’ Key areas in Aruba that require Ecopreneuers entrepreneurial innovation Sociopreneuers Creativepreneurs Globopreneurs
- 77. Ecopreneurs • Commercial ventures Ecological entrepreneurs geared towards solving ecological and environment problems Entrepreneurial areas
- 78.
- 79. Ecopreneurs (in Aruba) Wasteseparation plant Barcadera Free Zone Waste separation and export of recyclable products (paper, plastic, aluminum, etc.)
- 80.
- 81.
- 82. Sociopreneurs • Entrepreneurs with Social entrepreneurs innovative business solutions to society’s most pressing social problems. Entrepreneurial areas
- 83.
- 84. Sociopreneurs (Aruba) Green Vibes Sustainability, Land & Energy NV. https://www.facebook.com/dogoodaruba
- 85. Creativepreneurs • One who undertakes the Creative entrepreneurs creation/production and distribution of an original creative work and is able to create wealth through an established business Entrepreneurial venture. areas
- 86.
- 87. Creative industries takingover... Added value: approximately € 7.1 billion in the Netherlands
- 88.
- 91. Globopreneurs • Developers and/or Global entrepreneurs distributors of products and services destined for export (competing in the Entrepreneurial global market space). areas
- 92. Globopreneurs Export expands theeconomic pie, generates flow of foreign currency, attracts new technologies and creates new forms of employment.
- 93. Globopreneurs (in Aruba) •Utilizing Aruba’s unique socio- economic resources and geo- political position within the Kingdom of the Netherlands to develop new economic opportunities. • Positioning Aruba as a strategic hub (gateway) for European businesses doing business in Latin America.
- 94. Globopreneurs (in Aruba) •Moving towards a knowledge- driven economy. • Attracting foreign investment with focus on innovation and sustainability. • Synergy free zone, airport and harbor.
- 95. We share anawesome responsibility, you and I, a responsibility that transcends this time and this place.
- 96. Final thought… Instead of thinking “outside the box”, just get rid of the box…
- 98.
- 99. Edward M. Erasmus,MA [email protected] [email protected] Facebook: http://www.facebook.com/edwardmerasmus Twitter: http://www.twitter.com/em_erasmus LinkedIn: http://www.linkedin.com/in/edwardmerasmus Blog: http://edwardmerasmus.wordpress.com
- 100. Acknowledgements • Government ofAruba, Ministry of Economic Affairs, Social Affairs and Culture: The Green Gateway: http://www.freezonearuba.com/docs/The-Green-Gateway-Economic- Vision-and-Policy.pdf • Green Aruba: http://www.greenaruba.org/ • Lindgren, Anders. Six Forces. Shaping our Present and Future Lives. www.slideshare.com: anderslindgren4u • Nos Aruba 2025: http://www.nosaruba2025.aw • Porter, Michael and Mark R. Kramer, Creating Shared Value: http://hbr.org/2011/01/the-big-idea-creating-shared-value