Emile cambry social devcamp

Thick Versus Thin Value
Emile Cambry, Jr.
ecambry@gmail.com
8/28/2011

Disclaimer!
None of these arguments are political. It’s about economics, institutions, new practices and patterns, management, and ethics

The Last Decade Has Not Created
Net jobs
Growing median income
Shareholder value
Net Wealth

What It Has Created
Towns, countries, and Households going broke
Banks boosting margins
Debt fueled hyper-consumption
Productivity spiking
Dwindling empathy, trust, and a sense of meaning in work, life, and play

This versus Thick Value Creation
Borrowed from UmairHaque, Michael E. Porter, and Mark R. Kramer from Harvard Business School

Adam Smith
“All for ourselves and nothing for other people”
Wealth of Nations

Capitalism can do better

Capitalists have to aspire to matter

Industrial age capitalism was about extracting

Energy
Education
Healthcare
Finance
Transportation
Food

Myths of the 21st Century
Firms exist only to create value for owners
Financial profits is the best representation of enduring profit
Competitiveness arises from extracting value from competitors by beating, bashing, and crushing rivals instead of creating a thicker, more broadly shared value

Ignoring the broader influences that determine long-term success
Depletion of natural resources
Viability of key suppliers
Economic distress of the communities served
Shifting activities to locations with even lower wages

Make a better product

Make a better service

Process Innovation

Shared/thick value has the power to unleash the next wave of global growth and innovation
Three ways to create shared value opportunities:
By preconceiving products and markets
By redefining productivity in the value chain
By enabling local cluster development

21st Century Thick Value Arithmetic

Neo-Classical Model: max(me), ~(you)
Social Responsibility
The Enterprise
Social Responsibility

21st Century Paradigm Shift
The Enterprise
Social
Responsibility
The Enterprise

Companies Currently Pivoting
GE: Investing in Education, the Environment, and Disaster Relief
Wal-Mart: Environmentally Friendly Stores
Intel
Johnson & Johnson
Nestle
Unilever
Google
Apple
Nike
Starbucks

The archetype evil company?

Real Value vs. Perceived Value

Principles Shapes Behavior: Beyond Strategy

Social Leadership
Don’t exploit resources
Don’t race to the bottom
Willingness to disrupt yourself
Focusing on everyone’s outcomes/externalities

Blurring the Profit/Nonprofit Boundary

21st Century Youth Project

Chicago International Social Change Film Festival

21st Century Entrepreneurial Institute

Emile cambry social devcamp

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