'Leveraging Corporate Responsibility': The Stakeholder Approach to Maximizing Social Value
Episode Description
"Do well by doing good" is now a mantra for many leading companies. Yet C. B. Bhattacharya, Sankar Sen and Daniel Korschun, authors of Leveraging Corporate Responsibility: The Stakeholder Route to Maximizing Business and Social Value, offer research showing that very few stakeholders -- including consumers, investors and employees -- are aware of what companies are doing to be socially and environmentally responsible. Wharton management professor Witold Henisz spoke with two of the authors, Bhattacharya and Sen, about why caring about the social and environmental concerns of your stakeholders makes good business sense. đź“‚ Leadership
Brief Summary
CB Bhattacharya and Shenar Khosrowpour discuss corporate responsibility's growing importance and its impact on business strategy and stakeholder engagement.
Key points
- The Rise of Corporate Responsibility. Stakeholders demand more from companies, pushing corporate responsibility to the forefront.
- Awareness is Key. Low awareness of corporate responsibility efforts hinders consumer reward.
- The Three U's Model. Understanding, usefulness, and unity drive stakeholder loyalty and positive outcomes.
- Communicate Outcomes, Not Inputs. Focus on tangible results in corporate responsibility messaging to gain trust.
- Social Value First. Creating social value is essential before achieving business value through responsibility.
- The Value of Corporate Responsibility. Understanding stakeholders is key to capturing value from corporate responsibility initiatives.
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Episode highlights
- The Rise of Corporate ResponsibilityStakeholders demand more from companies, pushing corporate responsibility to the forefront.“Stakeholders today are increasingly conscious of where products come from.”0:46Jun 5, 2012
- Awareness is KeyLow awareness of corporate responsibility efforts hinders consumer reward.“If people don’t know what you’re doing, there’s no way they can reward you.”0:57Jun 5, 2012
- The Three U's ModelUnderstanding, usefulness, and unity drive stakeholder loyalty and positive outcomes.“We call it the three U's model: understanding, usefulness, and unity.”8:08Jun 5, 2012
- Communicate Outcomes, Not InputsFocus on tangible results in corporate responsibility messaging to gain trust.“Tell, don’t sell; focus on outcomes, not inputs.”9:56Jun 5, 2012
- Social Value FirstCreating social value is essential before achieving business value through responsibility.“Creating social value is a prerequisite to creating business value.”15:36Jun 5, 2012
- The Value of Corporate ResponsibilityUnderstanding stakeholders is key to capturing value from corporate responsibility initiatives.“If you really understand your stakeholders, you can deliver on their needs.”19:24Jun 5, 2012
- Long-Term StrategyCorporate responsibility should be viewed as a long-term strategy, not a quick fix.“You cannot make a difference in the immediate run.”21:41Jun 5, 2012
- Sincerity MattersThe sincerity of a firm is crucial for stakeholders to perceive a genuine impact.“The sincerity of the firm has to be unquestionably there.”22:09Jun 5, 2012
