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%