ONPS2552 ONPS2645 BUSM4724 Session 3 Research – Value, Customer, Ethics & Sustainability

Session 3

Research – Value, Customer, Ethics & Sustainability

• Five Research Focuses
• #1 Understanding Value
• #2 Exploring Ethics
• #3 Applying Sustainability
• #1, #2 & #3 Thinking Globally: Acting Locally
• #4 Identifying Potential Customers
• Who is your customer?
• What problem does your ‘idea’ solve for your customer?
• Where is the Value?
• How are you considering your Ethically based decisions?
• Sustainability of your process and
• Start small with an ‘idea’ (low volume).
• Consider the mass market conversion as your ‘idea’ and ‘market’ scales (gets larger and demand grows).
• How are you proposing to balance Ethics, Sustainability

and Profits?

 

1. Understanding Value
2. Exploring Ethics
3. Applying Sustainability
4. Identifying Potential Customers
5. Industry Possible Solution Themes (*Your Responsibility – not covered in slides)

 

• Capture Value - secures the benefits delivered by the business by retaining some percentage of the value provided in every Transaction

(https://personalmba.com/value-capture/)

• The emphasis of ‘doing business’ is in the way the business organises itself to deliver value its customers, entices the customer to pay for the value, and converts those payments to
• Every entrepreneur and/or organisation has a responsibility to deliver value to its customers – but it is what, why, how, when and where they choose to do it?

• Society is now calling for companies to respond to ‘planetary’ and ‘society’ needs in the way they create and capture
• Business now need to factor in the economic (profit), social (ethics) and environmental (sustainability) dimensions in at the same
• We now have concerns over waste, conservation/depletion of natural resources, pollution, purchasing behaviours, water supply/quality, population growth, manufacturing processes, impact of technology, climate change and
• Society has a growing environmental and social conscious which is influencing a shift in ‘value’ perceptions

• However, the problem still exists for business to grow, achieve competitive advantage and embed technology innovation to secure a profit.

1. Value Proposition includes:
   • Public value
   • Customer value
   • Partner value
2. Value Creation and Delivery system includes:
   • Society
   • Partners
   • Customers
   • Capital
   • Key Operational Activities
   • Products (i.e., goods & services)
3. Value Capture system includes:
   • Revenue model
   • Cost structure

• Defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates.
• Focuses on identifying and expanding the connections between

societal and economic progress.

• Shared Value is created by businesses creating economic value by creating societal
• Not all profit is Profits involving a social purpose represent a higher form of capitalism, one that creates a positive cycle of company and community prosperity.

Workplace Ethics

“Doing what is good and right relative to oneself, the organisation and its stakeholders and abiding by the organisation’s values and by applicable laws and rules” (Schoeman, 2014, p. 3).

• We all make decisions where we need to decide what is ‘right’.
• In the workplace, we need to consider not only what is right for us, but also right for the organisation, for customers and for the wider community and as you will learn, it is not always easy to reconcile the needs of all relevant

Six Frameworks for Ethical Decision Making

• Utilitarian approach (Chapter 2, Tännsjö 2013)
• Rights approach (Chapter 5, Tännsjö 2013)
• Justice approach (Velasquez, Andre, Shanks & Meyer 1990 -https://scu.edu/ethics/ethics-resources/ethical-decision-making/justice-and- f airness/ )
• Common Good Approach (Velasquez, Andre, Shanks & Meyer 1990 - https://scu.edu/ethics/ethics-resources/ethical- decision-making/the-common-good/ )

 

• Virtue Approach (Chapter 6, Tännsjö 2013)
• Egoism (Chapter 2, Tännsjö 2013)

For information on an example of Fair-Trade coffee see Food Republic (2014). What does fair trade coffee really mean? Retrieved

from http://www.foodrepublic.com/2014/02/19/what-does-fair-trade- coffee-really-mean/

For more information on the chocolate industry see MsKandyrose. (2012, January 21). Documentary. The Dark Side of Chocolate [Video file].

Retrieved from https://www.youtube.com/watch?v=7Vfbv6hNeng

For an example of a Bank adopting TBL, see Bank Australia’s website. (https://bankaust.com.au/responsible-banking/)

 

Example of Corporate Collapses – No Value, Ethics and Sustainability

MOVIE about the collapse - The last days of Lehman Brothers Moral Hazard 2008

MOVIE about the collapse - Enron the smartest guys in the room

Business Sustainability

Sustainability is defined as “an approach to business that considers economic, environmental and social issues in balanced, holistic, and long-term ways that benefit current and future generations of concerned stakeholders” (de Lange, Busch & Delgado-Ceballos, 2012, p. 151).

Like ethics, business sustainability is based in a set of personal beliefs (a mindset) that has developed over time.                                

Begin to research?

We will be using the Design Thinking methodology approach to capture your primary and secondary research?

• Begin your Research – Explore and Discover
• Begin Assessment 1 (INDIVIDUAL) Research Report

 

Biloslavo, Roberto, Bagnoli, Carlo, & Edgar, David. (2018). An eco-critical perspective on business models: The value triangle as an approach to closing the sustainability gap. Journal of Cleaner Production, 174, 746–762. https://doi.org/10.1016/j.jclepro.2017.10.281

de Lange, D., Busch, T. & Delgado-Ceballos , J. (2012). Sustaining Sustainability in Organizations. Journal of Business Ethics, 110, 2, 151-156

Markulla Centre for Applied Ethics (2015) A framework for ethical decision making. Retrieved from https://www.scu.edu/ethics/ethics-resources/ethical-decision-making/a-framework-for-ethical- decision-making/

Osterwalder, Alexander, Pigneur, Yves, Bernarda, Gregory, Smith, Alan, & Papadakos, Trish. (2015). Value proposition design (1st ed.). WILEY. https://primo-direct- apac.hosted.exlibrisgroup.com/permalink/f/aqirjb/TN_cdi_skillsoft_books24x7_bkb00080658

Porter, M and Kramer, M "The Big Idea: Creating Shared Value." 89.1, 2 (2011): Harvard Business Review, 2011-01-01, Vol.89 (1, 2). https://primo-direct- apac.hosted.exlibrisgroup.com/permalink/f/aqirjb/TN_cdi_proquest_miscellaneous_822411456

Pride, William, et al. Marketing Principles, Cengage Learning AUS, 2017. ProQuest Ebook Central Schoeman, C. (2014). Ethics Can: Managing Ethics in the Workplace.

Tännsjö, T. (2013). Understanding Ethics. Edinburgh, UK: Edinburgh University Press Velasquez, M., Andre, C. , Shanks, T. & Meyer, M. (1990). Justice and Fairness. Ethics, 3(2).