From Sharing the Pie to Growing the Pie
How businesses can move beyond fairness to drive lasting societal change.
Previously on Giuseppe’s Glimpse: In the last episode, we explored the significance of mindset over mere skill and examined how leaders can harness human potential in an AI-driven world by prioritizing creativity and adaptability. Missed it? Catch up here! 🌟
Buongiorno everyone! 👋
The other day, I came across an interview with Alex Edmans—Professor of Finance at London Business School, non-executive director, author, and speaker—conducted by the IVY Team, and it really got me thinking.
He didn’t just talk about business as usual but tapped into something deeper—how companies can move from merely balancing the books to shaping the future.
It’s not just about corporate responsibility in the traditional sense, but a broader, more intriguing question: how can businesses create real societal impact while still thriving? 🤔
Today, I’d like to unravel this idea, exploring how fairness, value creation, and innovation intersect in ways that might just surprise you.
The business of shared value
In today’s business discourse, fairness is a recurring theme—whether it’s about fair wages, fair taxes, or fair pricing. 💰
While these are of course important considerations, they only scratch the surface of what companies can achieve.
The real conversation should move beyond fairness to focus on creating new value, or as Edmans puts it, growing the pie. 🥧
This is the philosophy behind “creating shared value”, a concept championed by Michael Porter, which challenges businesses to think beyond compliance and focus on how they can actively contribute to societal progress based on their skills and strengths.
Take Vodafone’s M-Pesa initiative, for example.
In 2007, the telecom giant used its mobile technology to provide financial services to millions of unbanked individuals in Kenya.
Rather than simply filling an existing need, they created a new market, offering financial inclusion to those excluded from traditional banking. 🏦
This wasn’t just about avoiding harm or bad press—it was about making a proactive difference. Without this bold move, the loss in potential societal value would have been enormous.
Aligning strengths with purpose
The lesson from Vodafone’s success is clear: businesses can drive significant positive change when they align their unique strengths with societal needs. 🤝
This requires leaders to ask themselves a fundamental question: What are we uniquely good at, and how can we use these capabilities to solve a pressing social challenge?
The aim is not just to avoid harm or meet minimum standards but to think creatively about how to make a lasting impact.
This brings us to the power of focused purpose. 🎯
Defining a clear, purpose-driven mission is not just about identifying what your business should do; it’s also about deciding what it shouldn’t do.
When a company channels its core strengths toward societal challenges, the impact is exponential, as seen with Vodafone’s modest £1 million investment in M-Pesa.
While a relatively small sum for a company of its size, the investment’s alignment with Vodafone’s technological capabilities resulted in profound social and financial returns. 📈
The multiplier effect of shared value
This approach contrasts sharply with traditional corporate social responsibility (CSR) models, where businesses often donate large sums to charity without a long-term strategy.
While philanthropy has its place, it doesn’t generate the same multiplying effect that shared value creation does.
If a company donates £1 million to a charity, that’s the immediate impact—but when a company applies its expertise to societal problems, the return on that investment can grow beyond expectations. 🌱
The beauty of shared value lies in its ability to benefit both society and shareholders.
By focusing on areas where their core strengths intersect with societal needs, businesses can unlock value far beyond their initial outlay.
The challenge for today’s business leaders is to find these intersections and leverage them effectively. 🔍
This doesn’t only apply to businesses—it’s a principle that individuals can adopt too.
Empowering change: Lessons from UNICEF NextGen
I’ve personally seen how this approach works through my involvement with UNICEF’s NextGen program, a community of philanthropists, influencers, and creatives dedicated to leveraging their resources to improve children’s lives. 👶
By using our collective financial power, influence, and networks, we’ve raised over $78 million globally to support projects in mental health, climate, and education.
The power of this initiative lies not in the financial donations alone but in how we mobilize our collective expertise to create long-term, sustainable impact.
This is a perfect example of how aligning purpose with capability can lead to exponential change. ✨
Businesses—and individuals—who identify their unique strengths and apply them in the right contexts have the potential to create a legacy of shared value that benefits society while driving growth.
This evolving conversation around purpose and shared value is one I’m deeply passionate about. ❤️
It’s a challenge to think critically about how we, as leaders, can contribute more than just efficiency or profit, but make meaningful changes that benefit society at large.
Reflecting on this, I find myself wondering: How can we rethink the way we measure success—not just in profit margins, but in lasting impact? What would it take for businesses to see themselves as key players in creating a more balanced and equitable society? ⚖️
And perhaps the most important question of all: How do we, as individuals and leaders, start to bridge the gap between ambition and action?
Stay curious! 🙌
-gs
Oh, wow! You made it to the end. Click here to 👉 SHARE this issue with a friend if you found it valuable.