Shared value in South African management consulting.

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Date

2016

Authors

Taylor, Christopher Scott

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Abstract

While attainment of profit will forever remain a core driver of corporate strategy, companies are being urged to approach their bottom line in a way that simultaneously promotes social value as well. South Africa faces numerous social struggles and South African business, with all its expertise and resources should be addressing the need head on. Enter shared value. Shared value states that businesses can achieve both social and economic value simultaneously. Management consultancy firms are known for helping companies to operate efficiently through the use of highly sophisticated, strategic frameworks. These frameworks could be ideal channels through which best practice in shared value could be delivered to their clients. A qualitative study was conducted through semi-structured interviews with twelve national and multinational management consulting firms. The study sought to identify the level of awareness that firms have of the shared value concept as well as the perceptions that they hold towards it. Also under inquiry were the perceived enablers and constraints of the implementation of shared value. It was found that awareness of the shared value concept amongst firms was moderate while accompanying understand was poor. When a formal definition of the concept was shared, the responses were positive, demonstrating an openness to the use of shared value in business. Enablers identified were stakeholder management, managerial leadership and moral incentives. Constraints identified were cost benefit analysis problems, cash-flow constrictions and the de-prioritisation of social initiatives by client companies. Management consultancies appear to appreciate social outcomes in their work but it is not integrated into their formal frameworks. It is the recommendation of this research that consultancies increase the conversation surrounding shared value as a potential strategic approach to client engagements and work towards mitigating the constraints that prohibit this.

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MBA

Keywords

Social entrepreneurship -- South Africa. Social responsibility of business -- South Africa.Business consultants -- South Africa.

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