| Cocreating business's new social compact. | |
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MedLine Citation:
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PMID: 17345682 Owner: NLM Status: MEDLINE |
Abstract/OtherAbstract:
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Moving beyond decades of mutual distrust and animosity, corporations and nongovernmental organizations (NGOs) are learning to cooperate with each other. Realizing that their interests are converging, the two sides are working together to create innovative business models that are helping to grow new markets and accelerate the eradication of poverty. The path to convergence has proceeded in three stages. In the initial be-responsible stage, companies and NGOs, realizing that they had to coexist, started to look for ways to influence each other through joint social responsibility projects. This experience paved the way for the get-into-business stage, in which NGOs and companies sought to serve the poor by setting up successful businesses. In the process, NGOs learned business discipline from the private sector, while corporations gained an appreciation for the local knowledge, low-cost business models, and community-based marketing techniques that the NGOs have mastered. Increased success on both sides has laid the foundation for the cocreate-business stage, in which companies and NGOs become key parts of each other's capacity to deliver value. When BP sought to market a duel-fuel portable stove in India, it set up one such cocreation system with three Indian NGOs. The system allowed BP to bring the innovative stove to a geographically dispersed market through myriad local distributors without incurring distribution costs so high that the product would become unaffordable. The company sold its stoves profitably, the NGOs gained access to a lucrative revenue stream that could fund other projects, and consumers got more than the ability to sit down to a hot meal-they got the opportunity to earn incomes as the local distributors and thus to gain economic and social influence. |
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Authors:
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Jeb Brugmann; C K Prahalad |
Publication Detail:
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Type: Journal Article |
Journal Detail:
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Title: Harvard business review Volume: 85 ISSN: 0017-8012 ISO Abbreviation: Harv Bus Rev Publication Date: 2007 Feb |
Date Detail:
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Created Date: 2007-03-09 Completed Date: 2007-04-16 Revised Date: - |
Medline Journal Info:
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Nlm Unique ID: 9875796 Medline TA: Harv Bus Rev Country: United States |
Other Details:
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Languages: eng Pagination: 80-90, 156 Citation Subset: H |
Affiliation:
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University of Michigan's Ross School of Business, Ann Arbor, USA. |
Export Citation:
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APA/MLA Format Download EndNote Download BibTex |
| MeSH Terms | |
Descriptor/Qualifier:
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Administrative Personnel* Commerce / organization & administration* Humans Models, Theoretical Poverty Social Responsibility* United States |
From MEDLINE®/PubMed®, a database of the U.S. National Library of Medicine
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