Preface

About this report

As a central effort in the Global Challenge Initiative on Economic Growth and Social Inclusion, this is a “how to guide” for companies to create social and business value. Drawn from a series of workshops and interviews with more than 35 executives from leading companies, and guided by the Forum’s Global Agenda Council on Social Innovation, this guide offers an action framework for companies to embed social innovation within their businesses.

Why social innovation matters to business

“A business leader has to think about how to solve the societal challenges of today, because if we don’t solve them, we will not have a business” said Peter Brabeck-Letmathe, Chairman of Nestle speaking on why social innovation is relevant to business. Social innovation strategies and business models offer companies opportunities to redefine their role in society, restore trust in their business, attract and retain millennial talent and ensure business growth and long term competitiveness.

What are the business opportunities in pursuing social innovation?

The 10 case studies illustrate a range of social innovation opportunities and business benefits grouped into four clusters: 1) Build future markets 2) Strengthen supply chains 3) Invest in talent 4) Leverage finance. Each cluster offers a starting point for companies to look for social innovation opportunities most relevant to them. Specific opportunities will be driven by multiple factors including a company’s operating environment, geographic footprint, product portfolio, supplier base and raw material dependencies, and talent models.

Opportunities

BD (Becton, Dickinson and Company)

Design new products and services

Opportunities

Allianz

Serve new geographies or customers

Opportunities

Novo Nordisk

Expand sales and distribution

Opportunities

Jollibee Foods Corporation

Ensure stable supply and price of raw materials

Opportunities

Nestlé

Increase product quality and price premiums

Opportunities

C&A

Enhance customer engagement

Opportunities

SAP

Explore new sources of talent

Opportunities

Intercorp

Build tomorrow’s workforce

Opportunities

Telefónica

Gain market insights and brand recognition

Opportunities

Morgan Stanley

Generate financial returns

How to get started: A framework for implementation

Making social innovation work inside a company is not easy. Where do you start? How do you identify a specific opportunity and design a business model around it? How do you build capacity from the ground up, test approaches, measure outcomes and refine models? How can you get initiatives to scale?

The 12 case studies offer insights on how companies can pursue social innovation opportunities through steps that are analogous to any business development process – identify, design, learn, scale and partner.