Business results are pegged on the models that firms adopt and the Nairobi Securities Exchange (NSE) wants the country’s firms to switch gears.
In a forum held on February 27 in association with the Shared Value Africa Initiative (SVAI), the bourse sought to inform enterprises about business models that can make a positive impact to the society while driving profits and creating long term value.
The management strategy dubbed ‘Shared Value’ pushes companies to find business opportunities in social challenges.
According to a press statement from the NSE, the strategy pays special focus on maximizing the competitive value of solving social problems in new customers and markets segments, cost savings, talent retention among many more.
“The NSE is keen and interested in fostering sustainable business models among listed companies in line with our long term sustainability strategy,” NSE chief executive Geoffrey Odundo said.
The bourse indicated that Tuesday’s Shared Value forum attracted over 60 senior corporate sustainability teams from companies across a wide spectrum of sectors.
NSE said the firms played a fundamental role in creating a roadmap for growing the Shared Value concept among corporates in Kenya.
Among the speakers at the event included Edwin Macharia (Partner & Africa Regional Director, Dalberg Advisors), Sazini Mojapelo (Head of Corporate Citizenship, Absa), Emily Waita-Macharia (Public Affairs, Communications & Sustainability Leader, The Coco-Cola Company: Central, East & West Africa) and Sanda Ojiambo (Head of Corporate Responsibility, Safaricom).
Change
During a panel discussion, Safaricom’s Sanda Ojiambo said, “The way we do business must change.”
The Safaricom Head of Corporate Responsibility said that companies must consider whether they should embrace Shared Value because they are succesful, or whether Shared Value is what drives successes.
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“At the end of the day, no business can be truly successful if the community it operates in is failing, and that’s why an inclusive Shared Value approach to business is integral to ensuring the sustainability of business,” she said.
Shared Value Africa Initiative CEO, Tiekie Barnard said that Shared Value is not just about ‘doing good’ or scoring PR points, but that it is a competitive business strategy that builds sustainable business practices for long-term benefit to the bottom line.
“Buying into Shared Value can be transformational for an organization. It shows how business can lead – not just because it’s in their own long-term self-interest, but because it’s in the best interests of the society,” Barnard said.
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