fair trade software building knowledge economies creating shared value konza technology city, kenya...
TRANSCRIPT
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Fair Trade Software
Building knowledge economiesCreating Shared Value
Konza Technology City, Kenya
From this To this
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© 2012 Deloitte The Netherlands
Short Introduction of Ernst van Weperen
2
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“Our Common Future” (1987)
“Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs”
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An adjective..
Capable of being maintained in existence without interruption or
diminution
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Sustainability =The ‘ability’ to
‘sustain’:..yourself...
....a (global) system......or a company...
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A growing group of people...
..becoming more affluent...
...on a finite source
Ecological degradation Social instability
Ability to sustain our planet
Economic Scarcity
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The ability to sustain a company in the long run very
much depends on:
A thorough understanding of how these trends will affect you and (the relationship with) your stakeholders
The ability to identify structural trends on the markets you operate
Source; ethical leaders in action
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Creating Shared Value (CSV)
Takes away the unnatural segregation of business and society
...but business value “and” societal value
“Societal needs, not just conventional economic
needs, define markets, and social harms can create internal costs for firms”
Not business value “or” societal value
..or even business value “because of” societal value
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CSR• Value: doing good
• A limited CSR budget
• Separate from profit maximization
CSV• Value: economic and
societal benefits relative to cost
• Realigning the entire company budget
• Integral to profit maximization
CSV vs CSR
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CSV vs Fair trade
Both aimed at Creating Shared Value But Fair trade’s primary driver is to protect producers (and as a potential result increased value through higher quality produce)Whereas CSV’s primary driver is to create shared value, which will often translate to protection and higher prices for producers
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CSV vs Impact Sourcing
Source: the rockefeller foundation
Impact Sourcing, or Socially Responsible Outsourcing, is also aimed at creating shared valueBut suffers from the same (image) problems as CSR (bolted on vs integrated)
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Creating Shared Value
A thorough understanding of how these trends will affect you and (the relationship with) your stakeholders
The ability to identify structural trends on the markets you operate
Source; ethical leaders in action
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Andy HaxbyBritish EntrepreneurDirector, Competa IT Open Source Advocate
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Multiple perspectives
One solution
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Photo: Banana Republic / Harriet Lamb and Andy Kenworthy
Developing countries import high-value goods and services, and export low-value.
How can we reverse this trading imbalance?
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We discussed the digital divide, we sent old computers, we paid for universities and we built internet
infrastructure. Now what? There’s not enough work –
highly educated and highly disappointed.
Global Information Technology Report 2013
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you want to do something, but it’s difficult? or not?
How can individual people, consumers, help make the world better?
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easier for some companies than others?
Supermarket
Bankvs.
How can corporations show their CSR commitment?
How can they avoid Greenwash criticism?
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how can they take part in the global market?
How can small and medium size IT companies stay competitive?
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One solution
Create Shared Value
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Fair Trade Software is
Open source tools
Internet connectivity in developing
countries
Level of IT skills in developing countries
Fair Trade Principles1. Improving market access2. Equitable trading
partnerships3. Capacity building &
empowerment4. Consumer awareness
raising & advocacy5. Fair Trade as “Social
Contract”6. ….
Some tech stuff
Agile development
methods
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Collaborative partnership between IT companies in developed and developing countries
Moderated by FTS Foundation
IT Partners
IT Providers
Customers
Small IT companies in developing countries
Small and medium IT companies in OECD
countries
Large corporate enterprises, governments and large organizations
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It’s not outsourcing – It’s a co-development partnership
This approach increases job opportunities in a mutually inclusive and collaborative way: it retains jobs in developed countries while growing capabilities in developing nations.
It’s not about Fair Trade – It’s using F T to create value
This is not about Fair Trade per se. Fair trade is used as the key to shared value creation because it is a recognisable
brand. This extends Fair Trade, in a way that adds value not cost.
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Development Knowledge Economies
Market access & trainingIT companies in developing
countriesUSP
IT companies in developed countries
CSR solution and quality endorsement Companies buying software solutions
Purchasing preferenceCustomers’ contribution
Virtuous Circle of SVC
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Q. why didwe do this?
A. Self interest
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Sustainable Partnerships
Images by:
Join the circle
get involved