presentación michael porter
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Social Progress Imperative #socialprogress
Professor Michael E. Porter Asunción, Paraguay September 5, 2013
DEVELOPMENT STRATEGIES FOR THE 21ST CENTURY: SOCIAL PROGRESS AND COMPETITIVE GROWTH
Social Progress Imperative #socialprogress
HOW DO WE MEASURE A NATION’S DEVELOPMENT?
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Social Progress Imperative #socialprogress
THE DUAL CHALLENGES OF DEVELOPMENT
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Economic Development
Social Development
• In both economic and business development our understanding of success has been incomplete • There is a powerful connection between economic and social development, both positive and negative • Separating business and competitiveness from social progress and societal issues is a serious mistake
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ECONOMIC DEVELOPMENT DEPENDS ON COMPETITIVENESS
• Competitiveness depends on the long-run productivity of a location as a place to do business - Productivity of existing firms and workers - Ability to achieve high participation of working age citizens in the
workforce • Competitiveness is not:
- Low wages - A weak currency - Jobs per se
A nation (or state) is competitive to the extent that firms operating there are able to compete successfully in the regional and global economy while supporting high and rising wages and living standards for the average citizen
Social Progress Imperative #socialprogress
Endowments
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
WHAT DETERMINES COMPETITIVENESS?
Social Progress Imperative #socialprogress 6
WHAT DETERMINES COMPETITIVENESS?
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Social Progress Imperative #socialprogress 7
WHAT DETERMINES COMPETITIVENESS?
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Sound Monetary and Fiscal Policies
Social Progress Imperative #socialprogress 8
WHAT DETERMINES COMPETITIVENESS?
• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Sound Monetary and Fiscal Policies
Microeconomic Competitiveness
Social Progress Imperative #socialprogress 9
WHAT DETERMINES COMPETITIVENESS?
• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Sound Monetary and Fiscal Policies
Microeconomic Competitiveness Sophistication
of Company Operations and
Strategy
Social Progress Imperative #socialprogress 10
WHAT DETERMINES COMPETITIVENESS?
• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Sound Monetary and Fiscal Policies
Microeconomic Competitiveness
Quality of the Business
Environment
Sophistication of Company
Operations and Strategy
Social Progress Imperative #socialprogress
IMPROVING THE QUALITY OF THE BUSINESS ENVIRONMENT
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Context for Firm
Strategy and Rivalry
Related and Supporting Industries
Factor (Input)
Conditions Demand
Conditions
• Sophisticated and demanding local needs – e.g., Strict quality, safety, and
environmental standards
• Many things matter for competitiveness • Successful economic development is a process of successive upgrading, in which the business environment
improves to enable increasingly sophisticated ways of competing
• Access to high quality business inputs – Qualified human resources – Capital availability – Physical infrastructure – Scientific and technological
infrastructure
• Availability and quality of suppliers and supporting industries
• Local rules and incentives that encourage investment and productivity – e.g. incentives for capital investments,
IP protection, sound corporate governance standards
• Open and vigorous local competition − Openness to foreign competition − Strict competition laws
Social Progress Imperative #socialprogress 12
WHAT DETERMINES COMPETITIVENESS?
• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Sound Monetary and Fiscal Policies
Microeconomic Competitiveness
Quality of the Business
Environment
Sophistication of Company
Operations and Strategy
Social Progress Imperative #socialprogress 13
WHAT DETERMINES COMPETITIVENESS?
• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Sound Monetary and Fiscal Policies
Microeconomic Competitiveness
Quality of the Business
Environment
Sophistication of Company
Operations and Strategy
State of Cluster Development
Social Progress Imperative #socialprogress
DEVELOPING CLUSTERS: TOURISM IN CAIRNS, AUSTRALIA
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Restaurants
Attractions and Activities
e.g., theme parks, casinos, sports
Airlines, Cruise Ships
Travel Agents Tour Operators
Hotels
Property Services
Maintenance Services
Government Agencies e.g., Australian Tourism
Commission, Great Barrier Reef Authority
Educational Institutions e.g., James Cook University,
Cairns College of TAFE
Industry Groups e.g., Queensland Tourism
Industry Council
Food Suppliers
Public Relations & Market Research
Services
Local Retail, Health Care, and Other Services
Souvenirs, Duty Free
Banks, Foreign
Exchange
Local Transportation
Sources: HBS student team research (2003) - Peter Tynan, Chai McConnell, Alexandra West, Jean Hayden
Social Progress Imperative #socialprogress
GEOGRAPHIC INFLUENCES ON COMPETITIVENESS
Nation
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GEOGRAPHIC INFLUENCES ON COMPETITIVENESS
Regions and Cities
Nation
• Regions are the most important economic unit for competitiveness in larger countries, especially countries beyond subsistence development
Social Progress Imperative #socialprogress
GEOGRAPHIC INFLUENCES ON COMPETITIVENESS
Neighboring Countries
Regions and Cities
Nation
• Regions are the most important economic unit for competitiveness in larger countries, especially countries beyond subsistence development
“The Neighborhood”
Social Progress Imperative #socialprogress
WHAT DETERMINES COMPETITIVENESS?
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• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Sound Monetary and Fiscal Policies
Microeconomic Competitiveness Sophistication
of Company Operations and
Strategy
Quality of the Business
Environment
State of Cluster Development
Social Progress Imperative #socialprogress
WHAT DETERMINES COMPETITIVENESS?
19
• Productivity ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition revealed at the level of firms, clusters, and regions
• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but is not sufficient to ensure productivity
• Endowments, including natural resources, geographical location, population, and country size, create a foundation for prosperity, but true prosperity arises from productivity in the use of endowments
Endowments
Macroeconomic Competitiveness
Human Development and Effective
Political Institutions Sound Monetary
and Fiscal Policies
Microeconomic Competitiveness Sophistication
of Company Operations and
Strategy
Quality of the Business
Environment
State of Cluster Development
Social Progress Imperative #socialprogress
MEASURING NATIONAL DEVELOPMENT
• There has been a growing recognition of the need to go beyond GDP in measuring a nation’s performance
• A series of indexes have been introduced to do so: - Human Development Index - Millennium Development Indicators - Happy Planet Index - OECD Better Life Indicators - Legatum Prosperity Index
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Social Progress Imperative #socialprogress
SOCIAL PROGRESS INDEX: DESIGN PRINCIPLES
• Separate from economic indicators
• Holistic framework
• Outcomes rather than inputs
• Relevant to all countries
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Social Progress Imperative #socialprogress
WHAT IS SOCIAL PROGRESS?
Social progress is the capacity of a society to meet the basic human needs of its citizens,
establish the building blocks that allow citizens and communities to enhance and sustain the
quality of their lives, and create the conditions for all individuals to reach their full potential.
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Social Progress Imperative #socialprogress
SOCIAL PROGRESS INDEX MODEL
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Social Progress Index
Nutrition and Basic Medical Care
Air, Water, and Sanitation
Shelter
Personal Safety
Access to Basic Knowledge
Access to Information and Communications
Health and Wellness
Ecosystem Sustainability
Personal Rights
Access to Higher Education
Personal Freedom and Choice
Inclusion and Equity of Opportunity
Does a country provide for its people’s most
essential needs?
Are the building blocks in place for individuals and communities to enhance and sustain wellbeing?
Is there opportunity for all individuals to reach
their full potential?
Opportunity Foundations of Wellbeing Basic Human Needs
Social Progress Imperative #socialprogress
SPI RANKINGS: 2013
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1. Sweden 2. United Kingdom 3. Switzerland 4. Canada 5. Germany 6. United States 7. Australia 8. Japan 9. France 10. Spain 11. Korea, Rep. 12. Costa Rica 13. Poland 14. Chile 15. Argentina 16. Israel 17. Bulgaria 18. Brazil 19. United Arab Emirates 20. Turkey 21. Dominican Republic 22. Colombia 23. Thailand 24. Peru 25. Mexico
26. Philippines 27. Paraguay 28. Tunisia 29. Georgia 30. Viet Nam 31. Jordan 32. China 33. Russian Federation 34. Kazakhstan 35. Botswana 36. Sri Lanka 37. Morocco 38. Indonesia 39. South Africa 40. Egypt, Arab Rep. 41. Ghana 42. Bangladesh 43. India 44. Senegal 45. Kenya 46. Rwanda 47. Mozambique 48. Uganda 49. Nigeria 50. Ethiopia
Social Progress Imperative #socialprogress 25
SPI RANKINGS: 2013
1. Sweden 2. United Kingdom 3. Switzerland 4. Canada 5. Germany 6. United States 7. Australia 8. Japan 9. France 10. Spain 11. Korea, Rep. 12. Costa Rica 13. Poland 14. Chile 15. Argentina 16. Israel 17. Bulgaria 18. Brazil 19. United Arab Emirates 20. Turkey 21. Dominican Republic 22. Colombia 23. Thailand 24. Peru 25. Mexico
26. Philippines 27. Paraguay 28. Tunisia 29. Georgia 30. Viet Nam 31. Jordan 32. China 33. Russian Federation 34. Kazakhstan 35. Botswana 36. Sri Lanka 37. Morocco 38. Indonesia 39. South Africa 40. Egypt, Arab Rep. 41. Ghana 42. Bangladesh 43. India 44. Senegal 45. Kenya 46. Rwanda 47. Mozambique 48. Uganda 49. Nigeria 50. Ethiopia
Social Progress Imperative #socialprogress
SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
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Social Progress Imperative #socialprogress
SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
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SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
Social Progress Imperative #socialprogress
SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
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OVERALL SPI VS. GOVERNMENT EXPENDITURE (% OF GDP)
Government expenditure source: 2013 Index of Economic Freedom
Social Progress Imperative #socialprogress
THE SOCIAL PROGRESS INDEX: KEY FINDINGS
• Economic development is necessary but not sufficient as a measure of national performance
• Some approaches to economic development are less effective than others in advancing social progress, and even counterproductive
• Just as economic development helps social progress, social progress can enable sustainable economic development
• The amount of government spending (as a percent GDP) is an incomplete explanation for social progress performance
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Social Progress Imperative #socialprogress
TRADITIONAL MEASURES OF NATIONAL PERFORMANCE
GDP/capita ppp US$ 6,100 GDP growth rate 12.5% forecast 2013
Poverty 32.4% of the population Income Inequality (GINI) 4 out of 36 SPI countries Human Development Index 33 out of 50 SPI countries Harvard Competitiveness Model 45 out of 50 SPI countries Global Competitiveness Report 46 out of 50 SPI countries Doing Business Report 33 out of 50 SPI countries
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Sources: CIA World Factbook, GCR, HDR, and World Bank
Social Progress Imperative #socialprogress
SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
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Paraguay
Social Progress Imperative #socialprogress
SOCIAL PROGRESS PARAGUAY SCORECARD OVERALL RANK 27
*Safety net and tolerance and respect for minorities, women, and disadvantaged
Paraguay GDP per capita rank is 35th among sample of 50 countries
Basic Human Needs 32 Foundations of Wellbeing 32 Opportunity 19
Nutrition and Basic Medical Care 36 Access to Basic Knowledge 37 Personal Rights 22 Undernourishment 44 Adult literacy rate 23 Political rights 26 Depth of food deficit 42 Primary school enrollment 46 Freedom of speech 12 Maternal mortality rate 34 Secondary school enrollment 36 Freedom of assembly/association 1 Stillbirth rate 38 Women's mean years in school 29 Private property rights 35 Child mortality rate 32 Women's property rights 1 Prevalence of tuberculosis 25
Air, Water and Sanitation 38 Access to Information and Communications 34 Personal Freedom and Choice 27 Indoor air pollution attributable deaths 28 Mobile telephone subscriptions 29 Basic religious freedoms 1 Outdoor air pollution attributable deaths 5 Internet users 37 Contraceptive prevalence rate 9 Access to piped water 31 Fixed broadband subscriptions 38 Access to childcare 43 Rural/urban access to improved water source 45 Press Freedom Index 17 Freedom over life choices 36 Access to improved sanitation facilities 34 Access to wastewater treatment 36
Shelter 17 Health and Wellness 24 Inclusion and Equity of Opportunity 13 Availability of affordable housing 20 Life Expectancy 33 Equity of opportunity for ethnic minorities 48 Access to electricity 25 Obesity 26 Women treated with respect 43
Cancer death rate 27 Community safety net 20 Deaths from cardiovascular disease & diabetes 19 Tolerance of immigrants 2 Deaths from HIV 30 Tolerance for homosexuals 13 Availability of quality healthcare 22
Ecosystem Sustainability 30 Access to Higher Education 27
Ecological footprint of consumption 31 Tertiary school enrollment 25 CO2 emissions per capita 11 Female tertiary enrollment 27 Energy efficiency (use per $1,000 GDP) 49 Water withdrawals per capita 8
*
Personal Safety 34
Homicide rate 37 Level of violent crime 24 Perceived criminality 16 Political terror 23
Social Progress Imperative #socialprogress
TRADITIONAL MEASURES OF NATIONAL PERFORMANCE
GDP/capita ppp US$ 6,100 GDP growth rate 12.5% forecast 2013
Poverty 32.4% of the population Income Inequality (GINI) 4 out of 36 SPI countries Human Development Index 33 out of 50 SPI countries Harvard Competitiveness Model 45 out of 50 SPI countries Global Competitiveness Report 46 out of 50 SPI countries Doing Business Report 33 out of 50 SPI countries
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Sources: CIA World Factbook, GCR, HDR, and World Bank
Social Progress Imperative #socialprogress
SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
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OVERALL SPI VS. GOVERNMENT EXPENDITURE (% OF GDP)
Government expenditure source: 2013 Index of Economic Freedom
Social Progress Imperative #socialprogress
THE SOCIAL PROGRESS IMPERATIVE: DRIVING TO ACTION
The Social Progress Imperative is not just an Index, but a global effort designed to catalyze action at the country level. It aims to form and support National Committees of leaders and stakeholders in each country, and work jointly
with them to mobilize policy changes and private sector initiatives.
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Social Progress Imperative #socialprogress
THE ROLE OF THE NATIONAL COMMITTEE
• Interpret and disseminate country level priorities for social progress improvement
• Pursue policy changes in priority areas for social progress, through cross-sector collaboration
• Foster improvements in local data collection and relevant research
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Social Progress Imperative #socialprogress
THE ROLE OF BUSINESS IN SOCIETY
• Only business can create wealth and prosperity
• Business is facing growing scrutiny as the cause or a contributor to many of today’s societal challenges
• Corporate social responsibility efforts are greater than ever, but the legitimacy of business has fallen
• Government and NGO’s alone lack sufficient resources and capabilities to fully meet social challenges
We need a new approach
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Social Progress Imperative #socialprogress
• Compliance with community standards
• Good corporate citizenship
• “Sustainability”
• Mitigate risk and harm
Corporate Social Responsibility
(CSR)
Creating Shared Value (CSV)
Philanthropy
THE ROLE OF BUSINESS IN SOCIAL AND ECONOMIC PROGRESS
• Donations to worthy social causes
• Volunteering
• Address societal needs and challenges with a business model
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Social Progress Imperative #socialprogress
SOCIAL NEEDS AND ECONOMIC VALUE CREATION
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• Social deficits create economic costs for companies
• Social needs represent the largest market opportunities
Company Productivity
Skills
Worker Safety
Environmental Improvement
Education
Water Use
Energy Use
Health
Affordable Housing
Community Economic
Development
Social Progress Imperative #socialprogress
CREATING SHARED VALUE IN PRODUCTS AND MARKETS JAIN IRRIGATION SYSTEMS
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• Drip irrigation equipment for small farmers in Africa and India • Serves more than 4 million farmers worldwide as of 2012
• Reduces water use by over 40%
• Enables higher crop yields that improve food security while raising farmers’ income
• Jain is now a $820 million company that is rapidly growing
Social Progress Imperative #socialprogress 44
SHARED VALUE IN THE VALUE CHAIN FIBRIA, BRAZIL
• Fibria, a large manufacturer of pulp for paper, utilizes planted eucalyptus trees rather than native and old growth forests
• The company supports and encourages small-scale producers near its mills to plant eucalyptus in conjunction with other crops, assisting them with technical training and inputs
• Fibria achieves far greater resource efficiency versus old growth forest production, with eucalyptus yielding 30 times higher yield per acre of wood pulp
• Small scale producers contribute 27% of the raw material volume utilized in Fibria mills, improving efficiency
• 4000 households have significantly increased their income
Social Progress Imperative #socialprogress 45
ENHANCING LOCAL COMMUNITIES ARCA CONTINENTAL, MEXICO
• Arca Continental is the second largest bottling company in Latin America, and one of the largest Coca-Cola bottlers in the world
• It established a program to train and invest in the micro-entrepreneur retailers who sell more than 60% of the Company’s products, including management, sales and marketing and merchandising
• Invests in low energy use coolers and fixture improvements
• Participating small retailers register sales increases of 25% or more, with improved customer satisfaction, leading to similar increases in the sales of Arca’s products
• Local communities benefit from better access to goods and services
• Arca Continental recovers its investment in 6 months or less
• Beginning in Mexico, the program is being extended to Argentina and Ecuador
Social Progress Imperative #socialprogress
SKILL AND SUPPLIER DEVELOPMENT RIO TINTO, CANADA
Rio Tinto’s Diavik Diamond mine has helped create a variety of community based training partnerships with communities, contractors, governments and educational institutions in remote Northern Canada
• Education: Promotes careers in diamond mining. Offers apprenticeships that employ and train students
• Worker training: Partners with communities, colleges and government to train workers in mining related activities
• Supplier development: Sources local inputs and capacity building for local providers of goods and services
• Rio Tinto hires 62% of its employees locally
• The company sources 71% of goods and services locally
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Social Progress Imperative #socialprogress
Government • Regulate how businesses
operate • Operate social programs
• Tax businesses
PARTNERING FOR SHARED VALUE
NGOs
• Hold business accountable • Seek donations
• Partner with business to implement and scale shared value solutions
• Invest with companies, NGOs and government to enable shared value solutions
Foundations • Donate to charitable causes
• Regulate to encourage market solutions
• Partner to deliver shared value solutions to social services
• Jumpstart market solutions through minimum purchases or subsidies
• Invest in infrastructure to enable shared value approaches (e.g. roads, skills)
• Partner on business environment improvements
Competitors • “Brand” social initiatives
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Social Progress Imperative #socialprogress
CREATING SHARED VALUE: DECIDING WHERE TO CONCENTRATE NESTLÉ
Water Rural Development
Nutrition
• Opportunities to create shared value are inevitably tied closely to a company’s particular businesses
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Social Progress Imperative #socialprogress
FROM PRODUCT TO PURPOSE
Traditional Positioning New Positioning
• Food and Beverage Company
• Nutrition Company Nestlé
• Footwear Company • Health and Fitness Company Nike
• Scientific and Laboratory Instruments Company
• Making the World Healthier, Cleaner, and Safer
Thermo Fisher
• A broader sense of social purpose opens up new opportunities for growth and profitability, while motivating and attracting employees, consumers, business partners, shareholders, and the public
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Social Progress Imperative #socialprogress
REDEFINING CORPORATE PURPOSE DANONE
• Danone realized that it had drifted away from its origins as a manufacturer of healthy foods
• Sold off its beer, meat and cheese units
• Refocused the company on dairy and water
• Acquired medical nutrition and baby foods businesses
• Created Innovation Committees in business units to provide “healthy food for as many people as possible”
Bringing health through food to as many people as possible by refocusing on four complementary business lines and expanding into fast-growing new regions
Vision Mission
The ‘dual economic and social’ project, creating economic value by creating social value
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Social Progress Imperative #socialprogress
THE PURPOSE OF BUSINESS
• Our purpose in business is to create shared value for society, not economic value for its own sake
• Businesses acting as businesses, not as charitable givers, are arguably the most powerful force for addressing many of the pressing issues facing our society
• Shared value will give rise to far broader opportunities for economic value creation
• Shared value thinking will drive the next wave of innovation, productivity, and economic growth
• A transformation of business practice around shared value will give purpose to the corporation and represents our best chance to legitimize business again
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Social Progress Imperative #socialprogress
THE SOCIAL PROGRESSCOMMITTEE IN PARAGUAY
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• Paraguay has taken the lead among countries applying the SPI as a formal measure of national performance
• The government issued a Presidential Decree on July 26, 2013, making the SPI an official measure of national performance
Social Progress Imperative #socialprogress
THE SOCIAL PROGRESS NETWORK: PARAGUAY COMMITTEE
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• La Asociación de Empresarios Cristianos
(ADEC)
• La Federación de la Producción, la Industria y el Comercio (FEPRINCO)
• La Fundación Paraguaya
• La Fundación Moisés Bertoni
• La Fundación Desarrollo en Democracia (DENDE)
• Fundación Avina
• La Universidad Católica- Programa de Maestría en Administración de Empresas
Paraguay has already organized a local committee to deploy SPI at all levels
Social Progress Imperative #socialprogress
THE SOCIAL PROGRESS COMMITTEE IN PARAGUAY
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• The local social progress committee has already started work in three priority areas
• If we get more of you to join the effort, we could expand and deal with many more.
• These priorities are:
– Nutrition (meet the nutrtional needs of 1,000,000 additional paraguayans)
– Water and sanitation
– Shelter
Social Progress Imperative #socialprogress
THE ROLE OF BUSINESS IN SOCIAL PROGRESS
• Now it is time for business leaders in Paraguay to walk alongside government in fostering social progress, in creating many instances of shared value, and in developing the competitive strategies that will lift this country to its full potential
• The new government creates an opportunity for a new public-private relationship
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Social Progress Imperative #socialprogress
www.socialprogressimperative.org
Twitter: @socprogress #socialprogress
Social Progress Imperative #socialprogress
Algeria
Angola
Argentina
Armenia Azerbaijan Bangladesh
Belarus
Bolivia Brazil
Chile
China
Colombia
Costa Rica
Côte d'Ivoire
Croatia
Dominican Republic
Egypt
El Salvador
Georgia
Honduras
Indonesia
Kazakhstan
Kyrgyz Republic
Latvia
Lithuania
Macedonia Madagascar
Mali
Mauritania
Mexico
Moldova
Mongolia
Pakistan
Panama Paraguay
Peru
Philippines
Poland
Romania
Russia
Serbia
South Africa
Sri Lanka
Swaziland
Thailand
Tunisia
Turkey
Uganda
Ukraine
Uruguay
Vietnam
20
25
30
35
40
45
50
55
60
65
-10 -5 0 5 10 15 20
Change in Index of Inequality, 2009 versus 2001
Improving Worsening
High inequality
Low inequality
INCOME INEQUALITY 2009 Needs formatting
Algeria
Angola
Argentina
Armenia Azerbaijan Bangladesh
Belarus
Bolivia Brazil
Chile
China
Colombia
Costa Rica
Côte d'Ivoire
Croatia
Dominican Republic
Egypt
El Salvador
Georgia
Honduras
Indonesia
Kazakhstan
Kyrgyz Republic
Latvia
Lithuania
Macedonia Madagascar
Mali
Mauritania
Mexico
Moldova
Mongolia
Pakistan
Panama
Peru
Philippines
Poland
Romania
Russia
Serbia
South Africa
Sri Lanka
Swaziland
Thailand
Tunisia
Turkey
Uganda
Ukraine
Uruguay
Vietnam
20
25
30
35
40
45
50
55
60
65
-10 -5 0 5 10 15 20
Index of Inequality, 2009*
Change in Index of Inequality, 2009 versus 2001
Social Progress Imperative #socialprogress
FULL SOCIAL PROGRESS INDEX MODEL
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Basic Human Needs Opportunity Nutrition and Basic Medical Care § Undernourishment § Depth of food deficit § Maternal mortality rate § Stillbirth rate § Child mortality rate § Prevalence of tuberculosis Air, Water, and Sanitation § Indoor air pollution attributable deaths § Outdoor air pollution attributable
deaths § Access to piped water § Rural vs. urban access to improved
water source § Access to improved sanitation
facilities § Access to wastewater treatment Shelter § Availability of affordable housing § Access to electricity Personal Safety § Homicide rate § Level of violent crime § Perceived criminality § Political terror
Access to Basic Knowledge § Adult literacy rate § Primary school enrollment § Secondary school enrollment § Women’s mean years in school Access to Information and Communications § Mobile telephone subscriptions § Internet users § Fixed broadband subscriptions § Press Freedom Index Health and Wellness § Life expectancy § Obesity § Cancer death rate § Deaths from cardiovascular disease
and diabetes § Deaths from HIV § Availability of quality healthcare Ecosystem Sustainability § Ecological Footprint of Consumption § CO2 emissions per capita § Energy use per $1,000 GDP § Water withdrawals per capita
Personal Rights § Political rights § Freedom of speech § Freedom of assembly/
association § Private property rights § Women’s property rights
Personal Freedom and Choice § Basic religious freedoms § Contraceptive prevalence rate § Access to childcare § Freedom over life choices Inclusion and Equity of Opportunity § Equity of opportunity for ethnic
minorities § Women treated with respect § Community safety net § Tolerance of immigrants § Tolerance for homosexuals
Access to Higher Education § Tertiary school enrollment § Female tertiary enrollment
Social Progress Index
Foundations of Wellbeing