South African small farmers’ and a multi-national corporation’s management’s perceptions of shared value: an exploratory study

Abstract

The private sector has largely been seen as being solely concerned with obtaining the best possible returns for shareholders above all else, usually not for the benefit of, and sometimes to the detriment of, society. With its origins in corporate social responsibility (CSR), where the private sector would partner up and budget for initiatives that would positively impact society and in-turn garner good will or brownie points from that society. Shared value (SV) has gone further in that the very initiative is engraved into the companies operating model and is not merely an item on the budget line. This case study investigated Porter and Kramer’s SV theory and looked at whether the theory works in the ‘real world’ by asking what the motives are for a Multi-National Corporation (MNC) to engage in SV, what the perceptions are from each side (the farmer & MNC) and lastly, by making recommendations based on the results. The study was an exploratory one utilising both Likert scale type questions and open-ended semi-structured interview sessions with farmers who are part of the ‘go-farming’ programme in The North-West and Kwa-Zulu Natal Provinces and MNC senior managers. The successes and failures of the programme formed the basis for the conclusion and recommendations, and the analysis of the data found that overall the programme has been highly beneficial (symbiotic), especially for the small farmer in the supply chain, with some structural issues that need to be addressed. With the addressing of the existing structural issues, the programme could be scaled and replicated in other parts of the business both locally and internationally. There is no doubt that SV has the potential to unlock serious value for businesses and society, however this depends on the mutual benefit of programme for all parties involved. There is much room for further critical evaluation and the studying of the SV concept in its practical application.