By: Ahmad J. Naous | VP Human Resources at AUL | November 9th, 2016

Palladium and Professor Robert Kaplan of Harvard Business School discuss how to deliver Positive Impact in Indonesia

Palladium Indonesia was delighted to welcome Professor Robert Kaplan, Emeritus Professor at the Harvard Business School, to meet with over 500 business leaders and senior government officials to explore how Indonesia could unite the success of business with that of wider society through the adoption of Positive Impact. 

Professor Kaplan provided a fascinating insider’s view into the historical context in which the Creating Shared Value approach was developed at Harvard Business School. He then set out the case that strategies that create Positive Impact will become a powerful force to drive growth in the global economy and help businesses break the cycle of zero-sum completion.

He juxtaposed the limitations of some approaches to Corporate Social Responsibility (CSR) with those of Creating Shared Value (CSV). CSR strategy is seen as separate to core business strategy and a company’s profit maximising objectives. As such the resources needed for strategy execution depend on discretionary budgets, are seen as a cost and therefore often fail to deliver impact at scale. Conversely, CSV is integral to core strategy, the way a business competes and maximises profit. CSV realigns the entire company budget to deliver both profit and economic and societal benefit and by doing so, has the potential to deliver impact at a much wider scale, with impact that can be sustained.

Professor Kaplan highlighted the value of the Balanced Scorecard as a tool for managing Shared Value strategy and in particular the value it provides in helping multiple partners develop a shared understanding, developing an agreed approach to handling difficult issues and building trust between all stakeholders involved in strategy execution. ‘Co-creating the strategy map and scorecard creates consensus, commitment and a common agenda’. Professor Kaplan challenged businesses to go further still and broaden the process for strategy development to include representatives from communities and beneficiary groups….developing strategies that result in value created ‘by the people or of the people.’

Two panel discussions then explored the experience of businesses in Indonesia working to deliver shared value and the opportunities and challenges for multi-stakeholder partnerships to create value that addresses societal needs.

Panellists included Indonesian business leaders recognised as being at the vanguard of how business can create long-term value for the communities in which they serve as well as representatives from the American and Australian aid programs in Indonesia, academia and social enterprise.