{"id":887,"date":"2021-12-16T09:52:16","date_gmt":"2021-12-16T09:52:16","guid":{"rendered":"https:\/\/blogs.bath.ac.uk\/business-and-society\/?p=887"},"modified":"2021-12-16T09:52:16","modified_gmt":"2021-12-16T09:52:16","slug":"bathbhr-do-creating-shared-value-initiatives-really-improve-human-rights-and-create-sustainable-societies","status":"publish","type":"post","link":"https:\/\/blogs.bath.ac.uk\/business-and-society\/2021\/12\/16\/bathbhr-do-creating-shared-value-initiatives-really-improve-human-rights-and-create-sustainable-societies\/","title":{"rendered":"BathBHR: Do \u2018Creating Shared Value\u2019 initiatives really improve human rights and create sustainable societies?"},"content":{"rendered":"<p><em>To mark <a href=\"https:\/\/www.un.org\/en\/observances\/human-rights-day\">Human Rights Day<\/a> on the tenth of December, we will spend this month exploring business and human rights. The Centre for Business, Organisations and Society will also host the webinar \"<a href=\"https:\/\/www.bath.ac.uk\/events\/business-and-human-rights-a-scholarly-contribution-to-the-decade-of-action\/\">Business and Human Rights: A scholarly contribution to the \u2018decade of action\u2019<\/a>\" where academics will share lessons from their research, revealing how businesses can implement effective human rights practices and policies.<\/em><\/p>\n<p><a href=\"https:\/\/link.springer.com\/article\/10.1007\/s10551-020-04511-7\"><i><span style=\"font-weight: 400\">New research<\/span><\/i><\/a><i><span style=\"font-weight: 400\"> from <\/span><\/i><a href=\"https:\/\/people.unipi.it\/elisa_giuliani\/wp-content\/uploads\/sites\/117\/2021\/10\/Elisa-GIULIANI-CV-2021_final-october.pdf\"><i><span style=\"font-weight: 400\">Elisa Giuliani<\/span><\/i><\/a><i><span style=\"font-weight: 400\">, <\/span><\/i><a href=\"https:\/\/www.unibo.it\/sitoweb\/annamaria.tuan\"><i><span style=\"font-weight: 400\">Annamaria Tuan<\/span><\/i><\/a><i><span style=\"font-weight: 400\"> and Jos\u00e8 Calvimontes explores how effective \u2018Creating Shared Value\u2019 projects are at balancing the financial and ethical responsibilities of a business. They emphasise the need to re-conceptualise decision-making in order to give environmental and social priorities equal footing with the economic priorities.<\/span><\/i><i><span style=\"font-weight: 400\">\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400\">Corporate social responsibility (CSR) policies are fast becoming the norm in all types of firms, in advanced countries as well as low-to-middle income countries. In these latter countries, <\/span><a href=\"https:\/\/hbr.org\/2011\/01\/the-big-idea-creating-shared-value\"><span style=\"font-weight: 400\">the influential work of Michael Porter and associates <\/span><\/a><span style=\"font-weight: 400\">has led to the adoption of many so-called \u201c<\/span><a href=\"https:\/\/www.sharedvalue.org\/\"><span style=\"font-weight: 400\">Creating Shared Value<\/span><\/a><span style=\"font-weight: 400\">\u201d (CSV) initiatives. These initiatives are based on a \u2018win\u2013win\u2019 logic - that firms can prioritise environmental and social challenges while also generating profits and meeting stakeholder expectations. For example, Nestl\u00e9 was one of the first to introduce <\/span><a href=\"https:\/\/www.nestle.com\/csv\/what-is-csv\"><span style=\"font-weight: 400\">CSV projects<\/span><\/a><span style=\"font-weight: 400\"> in its operations, and many other organisations followed suit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Despite its popularity and widespread adoption, Porter and Kramer\u2019s original work on CSV has been the subject of <\/span><a href=\"https:\/\/journals.sagepub.com\/doi\/abs\/10.1525\/cmr.2014.56.2.130?casa_token=3OJVcKiz_B8AAAAA:BC52bt98czz7B8qVInWaDzdJnrWrghsMRXnhLW1PB31gCfmbraF9suODQCqR337bZKr95y3ZVqa0\"><span style=\"font-weight: 400\">extensive debate and critique<\/span><\/a><span style=\"font-weight: 400\"> from those questioning the originality of the construct. Scholars have also criticized its \u2018win\u2013win\u2019 logic, expressing doubts about whether firms can really transform their business thinking without radically departing from the current corporate mindset.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Inspired by this criticism, we developed our own unique study, looking at <\/span><i><span style=\"font-weight: 400\">cognitive frames<\/span><\/i><span style=\"font-weight: 400\">. It explores how business actors <\/span><i><span style=\"font-weight: 400\">make sense<\/span><\/i><span style=\"font-weight: 400\"> of CSV projects - this is important because our starting point was that the actions of economic decision-makers are shaped by the ways in which they make sense of something. We also wanted to look specifically at whether these business actors thought this shared value creation related to human rights, or whether it focused primarily on environmental behaviours (that are more likely to generate profit).<\/span><\/p>\n<p><span style=\"font-weight: 400\">To do this we conducted an empirical investigation of small-scale entrepreneurs and other business actors in their local ecosystem, in a low-to-medium income country in Latin America, <\/span><a href=\"https:\/\/www.fsg.org\/blog\/see-how-shared-value-taking-these-5-latin-american-countries\"><span style=\"font-weight: 400\">where CSV projects have gained some traction<\/span><\/a><span style=\"font-weight: 400\"> recently.\u00a0\u00a0<\/span><\/p>\n<p><b>What are the dominant cognitive frames?<\/b><\/p>\n<p><span style=\"font-weight: 400\">By interviewing relevant professionals involved in the implementation of CSV, business representatives (entrepreneurs or managers) from the different <\/span><a href=\"https:\/\/www.nber.org\/papers\/w20375\"><span style=\"font-weight: 400\">industry clusters<\/span><\/a><span style=\"font-weight: 400\"> and representatives of a local non-profit organization, we found three distinct cognitive frames:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><i><span style=\"font-weight: 400\">Growth first<\/span><\/i><span style=\"font-weight: 400\">: This was the most prevalent frame, and prioritises economic over social and environmental goals. It says that social, environmental, and human rights benefits trickle down from economic growth and wealth generation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><i><span style=\"font-weight: 400\">Green-win<\/span><\/i><span style=\"font-weight: 400\">: This frame suggests a clear financial imperative to the win-win logic - meaning that environmental sustainability is pursued only if there are clear and foreseeable economic payoffs.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><i><span style=\"font-weight: 400\">Humanising the business<\/span><\/i><span style=\"font-weight: 400\">: A niche frame that centers certain human rights goals, despite a perceived lack of immediate economic returns. The emphasis was on respect for labour rights, the avoidance of health hazards, and the protection of vulnerable groups.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>The profit-focused mindset remains<\/b><\/p>\n<p><span style=\"font-weight: 400\">Our article suggests that most respondents displayed standard, pro-business <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/Mental_model#:~:text=A%20mental%20model%20is%20an,own%20acts%20and%20their%20consequences.\"><span style=\"font-weight: 400\">mental models<\/span><\/a><span style=\"font-weight: 400\">, even when trained in and motivated to promote CSV projects. The most prevalent\u00a0 model was one that saw the firm\u2019s role as a \u2018profit maximiser\u2019 and believed in the existence of \u2018trickle down\u2019 economics, meaning that economic growth will inevitably lead to societal wellbeing.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Decision-makers who view the world through this lens are persuaded by the argument that profit-seeking activities will eventually do good to humankind. This logic legitimises the prioritising of financial outcomes, as the expected consequences of this decision will create the environmental or social value.<\/span><\/p>\n<p><span style=\"font-weight: 400\">This suggests also that previous exposure to CSV training had not fundamentally altered the respondents\u2019 profit-maximizing logic. Most entrepreneurs neglected human rights considerations in their sense-making processes, and regarded environmental goals only when conditional on profits.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Most importantly, our work suggests that CSV-like projects are unlikely to take root if the mental models of managers and entrepreneurs continue to be anchored to a <\/span><i><span style=\"font-weight: 400\">growth first<\/span><\/i><span style=\"font-weight: 400\"> frame.\u00a0\u00a0<\/span><\/p>\n<p><b>What next?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Our findings emphasise the need for a more explicit connection between CSV and the \u2018business and human rights\u2019 agenda. To achieve this aim, decision makers need to adopt a cognitive model that accepts complexity, tensions and ambiguity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">We suggest that genuine gains will not be made by linking CSV projects to human rights unless a new cognitive model (that radically differs from the <\/span><i><span style=\"font-weight: 400\">growth first and<\/span><\/i><span style=\"font-weight: 400\">\u00a0the <\/span><i><span style=\"font-weight: 400\">green-win <\/span><\/i><span style=\"font-weight: 400\">frames<\/span><i><span style=\"font-weight: 400\">) <\/span><\/i><span style=\"font-weight: 400\">is embedded and normalised. Admittedly, this will be difficult and will take time to achieve, but business schools, MBA courses and related education programs could start the process. This would involve explicit training for managers and other decision-makers to ensure greater respect for human rights in their business conduct. Such training would also provide them with the right conceptual tools to make \u2018respect for human rights\u2019 a core component of business decision making.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To mark Human Rights Day on the tenth of December, we will spend this month exploring business and human rights. The Centre for Business, Organisations and Society will also host the webinar \"Business and Human Rights: A scholarly contribution to...<\/p>\n","protected":false},"author":1361,"featured_media":888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[3,38,77],"tags":[4,54,34],"class_list":["post-887","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-and-society","category-human-rights","category-sustainability","tag-business-and-society","tag-human-rights","tag-sustainability"],"acf":[],"jetpack_featured_media_url":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-content\/uploads\/sites\/133\/2021\/11\/markus-spiske-XXWM_8f77KQ-unsplash-1.jpg","jetpack_shortlink":"https:\/\/wp.me\/pd4Pj1-ej","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/posts\/887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/users\/1361"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/comments?post=887"}],"version-history":[{"count":0,"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/posts\/887\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/media\/888"}],"wp:attachment":[{"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/media?parent=887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/categories?post=887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.bath.ac.uk\/business-and-society\/wp-json\/wp\/v2\/tags?post=887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}