Business Ethics Quiz 2

What distinguishes Creating Shared Value [CSV] from other forms of Corporate Social Responsibility [CSR]?

CSR is doing something separate from business and CSV is incorporating the values into the business

How do Tesla, Walmart, Unilever, and Stoneyfield create shared value?

Tesla- wall battery Walmart - provides value to customers Danone - ecosystem clusters

How does creating shared value relate to capitalist goals?

Through business strategy, profitability and corporate social responsibility create shared value.

Valeant

a pharmaceutical company

shared value

approaches business decisions with understanding that economic gains and social progress are interconnected

spaces of design thinking

inspiration, ideation, implementation

Design spaces because...?

not in sequential order

VALEANT stakeholders

patients, drug companies, drug stores (CVS etc), insurance companies

three ways to create shared value plus examples

reconceiving products and markets- new revenue source redefining productivity in value chain- reduce cost enabling local cluster development- community support

What's the difference between shareholder capitalism and stakeholder capitalism?

shareholder capitalism wants to only maximize profit for shareholders while stakeholder capitalism wants to create social, environmental, financial value.

What's at stake in balancing stakeholder and shareholder interests within the healthcare industry?

shareholders normally want to maximize profits, while stakeholders want the price of the drug to be minimized, so normally both cannot be happy

do Toyota, Tesla, Walmart, Unilever, Patagonia, Nike, Toms, and Oliberte create shared value or represent another form of CSR?

the represent CSV because they are intertwining their good for the social needs into the business

growth of valeant's business

they continuously raised the price of drugs that were used by a small percentage of the population, but were detrimental to health of those patients- jacked up prices 300-700%