“Today’s corporations must consider the stakeholders that surround them from all sides, writes the University of Toronto’s Sarah Kaplan—and to serve them, companies will need to follow one of four modes of operation. In Mode 1, corporations realize that every business model involves tradeoffs; for instance, just-in-time delivery creates efficiencies but might increase pollution and fuel use. In Mode 2, companies implement win-win tradeoffs, such as installing LED lighting that is both less costly to the company and more beneficial to the planet. In Mode 3, when companies see no easy win-win solutions, they innovate to find some, perhaps by designing new packaging. In Mode 4, companies learn to exist with intractable tradeoffs where no solution is currently possible, though they continue interacting with stakeholders as they search for answers. Kaplan looks closely at Walmart and Nike, two companies “that—though far from perfect—have transformed substantial parts of their business through their engagement with the trade-offs created by the interests of different stakeholders.” It’s a new way to view corporate responsibility. (Stanford Business Books, US$28)”
See this on the BizEd site.
