Abstract:
Capitalism has emerged as the most effective vehicle for creating wealth and addressing deficits with regards to basic human needs and improving efficiency. The ideology has (justifiably) been criticised for disregarding social and environmental degradation as externalities or costs that are not bore by conventional free market profit models. The time for business to embrace sustainability as an integral component of long-run economic sustainability of operations, has never been more relevant and more amplified in the competitive world of business.
Sustainability in the food and beverage industry (and indeed most industries) has now developed into a source of strategic and competitive advantage. The concept has enjoyed significant focus over the past two decades, with creating shared value (CSV) drawing meaningful attention as the sustainable solution to the sustainability question. Through an integrated and scaled CSV approach, the better the trading conditions the more value that is created. Holistic stakeholder value creation and distribution is key to future-proofing business without an ideological change. The CSV approach is neatly compatible with raw material supply chains of the food and beverage industry, however effective implementation and institutionalisation has received mixed results. The challenge of integrating and institutionalising sustainable business practices is that it involves fundamental root change at an organisational level. Senior managers in these large global food and beverage firms have spent as much as two decades trying to convince internal and external stakeholders that there was a direct link between the firm’s long-term prospects and CSV, integration of CSV has been met with resistance and has subsequently staggered progress. This study looks to better understand accepted and established antecedents, enablers and barriers in relation to the integration and scaling of sustainable business practices. The research looks to isolate the various factors, and crystallise the components that are crucial to the effective integration and scaling of CSV in the food and beverage industry. Qualitative, exploratory research methods were harnessed to refine and extend current theory on the topic. Data was gathered from 14 participants across eight organisations, with the study using triangulation and thematic analysis to establish areas of commonality and difference between the three organisational categories.
The key findings from the study culminate into a framework titled “The CSV Integration Framework”, and consolidates the established and emergent antecedents, enablers and barriers (internal and external) to integrating CSV to achieve scale.
