Inclusive business and shared values
case study of Stora Enso in Lao PDR
AgroforestryCorporate Social ResponsibilityNew Business ModelsStakeholder ManagementCross Sector CollaborationsShared ValueLao PDR
Businesses role in society is changing. Corporations are expected to take responsibility, not only for their traditional business conduct, but also for social and political issues. A rise in globalization and international trade has led to an increased interest in the concept of CSR. Accordingly, stakeholders are expecting multinational companies to be accountable for existing issues in developing countries. New business models are needed to meet increased expectations of responsibility and shared value creation.
Based on an understanding of the need for new business models a multinational corporation is studied in a local context, where a radically new way of doing business is developed. The aim is to identify critical factors for the implementation of an inclusive business model. The descriptive case study is based on field studies, personal interviews with a number of stakeholders and secondary materials.
The forestry company Stora Enso?s operations in one of the poorest countries in South East Asia, Lao PDR, offers a context for a critical review of political and social conditions for the new business model. Creating shared values in a dysfunctional political system, by creating job opportunities and engaging local communities in the operations, requires local knowledge and persistence. It also creates corporate opportunities to actively engage in long-term improvements for the local community and ultimately enhance the corporate image.
From the theoretical perspectives of CSR, new business models and inclusive stakeholder networks, this case study contributes to the understanding of new business models as a way of positively influencing the industry, country and local community. The study describes an operationalization of shared value and emphasizes that commitment, the identification of shared values, an inclusive approach to stakeholders and suitable evaluation methods are critical factors for a successful implementation.