In one of our very first posts we showed a video of Micheal Porter discussing the concept of Shared Value. This concept still resonates with us here at Collective Value Creation as it is the mechanism through which social change can be achieved in South Africa.
In a recent presentation by Andrew Macleod he explains how procurement can be used as a vehicle for shared value. The example he uses is from one of the Rio Tinto sites in Mongolia where local suppliers given small business loans in order to purchase safety equipment. By doing so Rio Tinto was able to get discounts on the services that the local suppliers offered.
There are many of these examples being discussed these days, however South Africa still is in a unique space regarding BBBEE. In order to find shared value initiatives companies should be able to scrutinize their procurement base and delve into some of the needs of both the individual supplier, the collective community and the business needs.
This process is not a simple one day workshop and requires time to search for Shared Value opportunities. Companies need to realise that they should have a much closer alignment between ESD and their everyday supply chain operations. In order to really access the opportunities regarding Supplier Development and Shared Value, companies will need to become innovative and think outside of the traditional sphere of conducting business.