Pepsico has adopted a great model of creating a supportive environment for the farmer community in India and has gained sufficient support from the farming community. The potato project as it is called - http://www.cropscience.bayer.com has taken their key suppliers (the poor farmers) of India and built a highly sustainable project that benefits both the company and the community. The farmer community gets the best support to grow their produce and a consistent buyer of their produce whilst pepsico has created a chain of highly dependable and happy suppliers. They have used this model in several other countries such as Chile & China.
This is a good example of how a company can go beyond the basic CSR act of using fair trade products or a voluntarist strategy for their employees to a deeper act of creating economic and social value. M. E. Porter would probably call this - "The right way" of creating economic value.
There is so much potential for such a model to thrive in the world today. There is so much that companies can achieve just by engaging with their most important stake holder - the community. Wonder what is stopping them?
Ref: http://hbr.org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation/
This is a good example of how a company can go beyond the basic CSR act of using fair trade products or a voluntarist strategy for their employees to a deeper act of creating economic and social value. M. E. Porter would probably call this - "The right way" of creating economic value.
There is so much potential for such a model to thrive in the world today. There is so much that companies can achieve just by engaging with their most important stake holder - the community. Wonder what is stopping them?
Ref: http://hbr.org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation/
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