shared value model

Examples of shared value model in the following topics:

• The Financial Value of Social Responsibility

  • An organization's CSR practices might also increase employee loyalty, which lowers the cost of turnover; it also helps attract potential employees willing to work for less for a company whose values they share.
  • Harvard professors Michael Porter and Mark Kramer introduced the notion of "creating shared value" (CSV) as a way of thinking about the benefits of corporate social responsibility.
  • By focusing on creating shared value, an organization helps to shape the context in which it competes to its advantage.
  • In this way, the shared value model takes a long-term perspective on the financial benefits of corporate social responsibility.
  • Socially conscious investors may prefer to own shares of a company that demonstrates good CSR, which can lead to higher share prices.

• Defining Values

  • A person will filter all of these influences and meld them into a unique value set that may differ from the value sets of others in the same culture.
  • Modeling period (ages eight to thirteen): The individual's value template is sculpted and shaped by parents, teachers, and other people and experiences in the person's life.
  • This person may therefore be a more efficient employee and a more positive role model to others than an employee with opposite values.
  • Conflict may arise, however, if an employee realizes that her co-workers do not share her values.
  • However, hiring for values is at least as important.

• Interactive Leadership

  • Interactive leaders take the opportunity to meet with followers to explain their vision and persuade them of its value.
  • Interactive leaders value individual contributions and maintain relationships that foster mutual respect.
  • In this way, interactive leaders are role models who exhibit the quality of reciprocal interactions they seek with others.
  • An interactive leader shares information and answers questions to clarify goals and tasks.
  • Explain the importance of interactive leadership in generating motivation and commitment to shared objectives

• Problems with the Rational Decision-Making Model

  • Critics of the rational model argue that it makes unrealistic assumptions in order to simplify possible choices and predictions.
  • Critics of rational choice theory—or the rational model of decision-making—claim that this model makes unrealistic and over-simplified assumptions.
  • Their objections to the rational model include:
  • Prospect theory reflects the empirical finding that, contrary to rational choice theory, people fear losses more than they value gains, so they weigh the probabilities of negative outcomes more heavily than their actual potential cost.
  • Bounded rationality shares the view that decision-making is a fully rational process; however, it adds the condition that people act on the basis of limited information.

• Benefits of Innovation

  • Innovation may be linked to positive changes in efficiency, productivity, quality, competitiveness, and market share, among other factors.
  • Innovation is the development of customer value through solutions that meet new, undefined, or existing market needs in unique ways.
  • Innovation refers to coming up with a better idea or method, or integrating a new approach within a contextual model, while invention is more statically about creating something new.
  • From an organizational perspective, managers encourage innovation because of the value it can capture.
  • Managers who promote an innovative environment can see value through increased employee motivation, creativity, and autonomy; stronger teams; and strategic recommendations from the bottom up.

• The Trait-Theory Approach

  • According to trait leadership theory, effective leaders have in common a pattern of personal characteristics that support their ability to mobilize others toward a shared vision.
  • Personality: Patterns of behavior, such as adaptability and comfort with ambiguity, and dispositional tendencies, such as motives and values, are associated with effective leadership.
  • Zaccoro and others (2004) introduced a model of leadership that categorized and specified six types of traits that influence leader effectiveness.
  • The model rests on two basic premises about leadership traits.
  • The premise suggests that distal attributes (such as dispositional attributes, cognitive abilities, and motives/values) come first and then lead to the development of proximal characteristics.

• Moral Leadership

  • Moral or ethical leadership involves the commitment to doing what is right according to societal and cultural beliefs and values about acceptable behavior.
  • Moral leaders have a clear understanding of their own values and hold themselves accountable for them.
  • Moral leaders also play an important role in communicating an organization's values.
  • They do this as role models of ethical behavior and in how they speak about the moral dimension of their decisions and actions.
  • In this way, moral leaders take responsibility for the moral climate in their organizations and help others understand, share, and act in accordance with those values.

• Introduction to Red Ocean and Blue Ocean Strategy

  • In this case, winning market share is a zero sum game, where the gains of one company are a direct loss of another.
  • For context, illustrates the different models within the blue ocean framework.
  • The second figure illustrates this well, as the substantial value added lies in differentiating into new strategies to capture new market share as opposed to competing for established market share.
  • Other considerations in generating new market share concern identifying non-consumers.
  • The red ocean/blue ocean analogy itself is demonstrating significant staying power, and the observation that differentiation towards innovative business models (not strictly innovative products) is an important objective for future strategists.

• Evaluate Alternatives

  • These range from simple tools such as lists of pros and cons to more complex models such as decision trees and influence diagrams, which can capture more variables and include more data.
  • It includes a value for each alternative, such as a financial outcome, and notes the probabilities that each outcome will occur.
  • Decision trees sometime include the results of financial analysis such as net present value, which determines the present or current value of a stream of incoming cash flows that a project will bring in sometime in the future.
  • Influence diagrams are directly applicable in group decisions because they allow incomplete sharing of information among team members to be modeled and for estimates to be made explicitly.
  • Model potential decision alternatives through utilizing pro/con analysis, influence diagrams, decision trees and Bayesian networks

• Honesty in Leadership: Kouzes and Posner

  • In leadership, honesty is an important virtue, as leaders serve as role models for their subordinates.
  • Integrity and openness are essential to developing trust, and without honesty a leader cannot gain and maintain the trust needed to build commitment to a shared vision.
  • Model the way: Leaders must clarify their values and set an example for their employees to imitate, underscoring the importance of modeling positive characteristics such as honesty.
  • This model was created by Kouzes and Posner to emphasize vital leadership practices.