Social or Business? Developing a Social Impact Strategy for "KANCHA" /
Gerhard, Tobias
Social or Business? Developing a Social Impact Strategy for "KANCHA" / Tobias Gerhard - 74 S. Ill., graph. Darst.
Berlin, Humboldt-Viadrina School of Governance, Masterarbeit, 2013
This paper analyzes the potential and limits of business to serve a social function by means of three conceptual approaches derived from the literature: the philanthropic CSR approach, the shared value approach and the social business approach. While each of these approaches considers business a driving force for the common good, the shared value approach is unique in connecting social goals to a business case and thereby achieving social impact within the system of profit-maximizing businesses without rendering either social goals (as in the philanthropic CSR approach) or economic goals (as in the social business approach) at best a side product of business practice. The subsequent case study scrutinizes the startup KANCHA, which was co-founded by the author of this study, against the criteria of a shared value business. It is found that while the initial motivation of the founders resembles the social business approach, KANCHA largely qualifies as a shared value type business, because it takes the social and economic situation as a starting point for a business case that strives to create value as much within as beyond the organization. In order to streamline the social impact strategy, it is recommended to maintain the focus on value creation, to further extend social impact activities along the supply chain, and to start measuring impacts against costs as soon as possible.
Social or Business? Developing a Social Impact Strategy for "KANCHA" / Tobias Gerhard - 74 S. Ill., graph. Darst.
Berlin, Humboldt-Viadrina School of Governance, Masterarbeit, 2013
This paper analyzes the potential and limits of business to serve a social function by means of three conceptual approaches derived from the literature: the philanthropic CSR approach, the shared value approach and the social business approach. While each of these approaches considers business a driving force for the common good, the shared value approach is unique in connecting social goals to a business case and thereby achieving social impact within the system of profit-maximizing businesses without rendering either social goals (as in the philanthropic CSR approach) or economic goals (as in the social business approach) at best a side product of business practice. The subsequent case study scrutinizes the startup KANCHA, which was co-founded by the author of this study, against the criteria of a shared value business. It is found that while the initial motivation of the founders resembles the social business approach, KANCHA largely qualifies as a shared value type business, because it takes the social and economic situation as a starting point for a business case that strives to create value as much within as beyond the organization. In order to streamline the social impact strategy, it is recommended to maintain the focus on value creation, to further extend social impact activities along the supply chain, and to start measuring impacts against costs as soon as possible.