Analysis and Frameworks for Social Value Creation

Introduction

Making some transformative services that are accessible to the customers who have low-income often experiences various ethical challenges that are of vital significance to the managers. Problems, challenges, and ethical issues are considered an important part of each business endeavor due to the core of all of the activities of the business. I have found that poverty impacts most nations and people across the world. It undermines the capacity of individuals to meet the basic requirements in a serious manner (Kandachar & Halme, 2017). The engagement of the MNCs in the market which has low income provides a hope of empowering various segments of the market that were kept previously at the periphery of establishment. The paper mainly aims to emphasize the ethical and social concerns that managers experience within their businesses at the bottom of the pyramid (BOP) stage. The entire paper highlights the social and ethical challenges at BOP and the key outcomes obtained from the analysis have been presented in the conclusion section.

Main Body

Ethical challenges of managers in the BOP sector and utilizing the ethical model

Analyzing the context of base of pyramid in the market, there are various ethical issues that the mangers often experience. Those are related to social justice, social cohesion and self-reliance. These factors can impact the ethical performance and grounding of the process of social value creation as well as the outcomes. I came across the fact that poor handling of multitudes of ethical dilemmas in the base of a pyramid business can lead to a minimum of four types of ethical outcomes that are not favorable (Santos & Laczniak, 2012). The businesses that are associated with the base of the pyramid which discovers clear requirements of the market would still be confronted by the disputable thought of what the fair price will be to charge the poor people. The base of pyramid businesses that offer essential or life-sustaining services and goods like healthcare services, food, and water experience several ethical dilemmas. I also became aware that this is due to the fact of profiting pecuniary advantage out of the suffering of poor people. The approaches that are associated with business for poverty alleviation are considered susceptible to legitimacy loss, specifically inadvertently. Those cultural changes mainly include tobacco addiction alcoholism or consumerism. Hence, I can specify that enhancing the issue of poverty or undermining local welfare is considered an ethical dilemma that managers can experience at the bottom of the pyramid. Although the BOP market aspires to advance the concept of inclusion, people engaging in this market are frequently pressurized to establish specific exclusion terms in order to make sure about the financial sustainability. For example, a business that seeks for strengthening subsistence farmers is likely to comprise much more efficient organizations within their system of supply chain. Those who have the objective to generate opportunities for employment recruit relatively competent instead of very poor. Further, this generates a crucial need for higher transparency regarding the inclusion aspects in the initiatives of social value generation in order to enable the non-commercial bodies have the ability to cater to the requirements of several poor people that are missed out (Simanis & Duke, 2014).

I have identified several interventions which can have unintended results that are not ethical for the BOP communities like disruptions in the structures of power, changes in the cultural attitudes, and social stability. For instance, the measures that seek for empowering women can consistently work to destabilize families as well as maximizing the rate of divorce. Likewise, the initiatives that have unequal effects around the communities can generate complexities among the religious, cultural, and ethnic groups. In addition, the level of low literacy considering poor people can expose those people to irrational choices, making it essential for firms to utilize greater ethical sensitivity levels. There is an unfair term of exclusion and inclusion that managers often experience within businesses. Along with this, there is also some unintended social disruption. I have been able to know about the Integrative Justice Model that is referred to as a normative framework for marketing applied to client ethically at BOP. This model is being framed using the normative process of theory building particularly from discipline of the philosophy and generally constitutes various ethical components which are available when justly and clearly marketing to various poor people (Van der Merwe et al., 2020). The effectiveness of this model to a huge extent lies in the ability of the model to be implemented in practical situations. I believe an authentic involvement is one that must cause the intrinsic quality to become trustworthy and be the process that seeks to gain constituents’ trust that is involved. Companies can use this model to support the formalization of the rights of consumers that generally guarantee redress, appropriate information, safety as well as other basic needs in order to exchange fairness.

Social complexities of managers within the BOP market and application of the social model

Market institutions' poor development within lower income economies denote businesses of BOP comprise restricted market information thereby getting inclined to potential uncertainties.I can understand and relate that the interdependence and complex social issues nature mainly compounds high uncertainty which makes it complex further for anticipating future challenges as well as formulating various informed strategies. The huge contingencies number places obstacles on managers to make an environment where structured decisions can be framed easily (Goyal et al., 2015). They also get pressurized for using heuristics and thumb rules with regard to the decision-making process. Management of BOP businesses therefore becomes a major discovery procedure including iterative reformulation and adaptation and learning-by-doing concerning the business frameworks' different components. I even find these concerns raise a strong focus on the requirement for lengthy and carefully designed pilots and beginning experimental ventures that are of minor scale. Organizational capabilities can be considered vital for the creation of social value and the major category can be found as organizational ambidexterity (Mohr et al., 2012). This aspect depends on managerial skills which are highly flexible for devising suitable organization designs in the form of procedures and structures for fostering synergies as well as minimizing frictions among financial and social objectives. I got evidence from research that managers who have ambidextrous characteristics shall also be able to maintain relationships successfully with diverse strategic partners and stakeholders. Because of the social value creation procedures complexity, businesses of BOP experience a wide range of stakeholders carrying significantly complex demands to fulfill (Lashitew et al., 2021). For instance, funding or parent company's expectations cannot be connected with the market environment’s strategic demands necessarily. Besides this, ambidextrous managers will be able to maintain a boundary of open organization for facilitating the flow of resources successfully and thereafter avoiding excessive reliance on certain external factors. Therefore, they will be required by managers to attract relevant partners like themselves who have the ability to share values, manage expectations, and seek to connect expectations at every time.

The framework of social value creation characterizes the procedure to generate social value on the grounds of motivational outcomes, capabilities, and antecedents. Different kinds of contingencies and constraints play a part in shaping these value-creation aspects. I understood that social capital is effective in delivering a more efficient mechanism of governance within aspects obtaining powerful social cohesion. Elsewhere, the latest technology like ICT has become essential in places where there are poor developments of physical infrastructure. It has been evident that the creation of social value is basically an iterative procedure including numerous learning loops (Santos & Laczniak, 2012). This vital concept is captured within the framework through different arrows that operate from ultimate results to capabilities and antecedents reflecting that alterations made in an organization towards the generation of social value are a key stepwise and gradual procedure. I can relate from weekly readings that just like other business organizations businesses dealing with BOP develop awareness from their past understanding and experience as well as giving responses by fixing up their capabilities and strategies. Initiatives that are of small scale shall result in creating more sustained and intensive involvement with social problems when organizational alterations are enabled by them. This is carried out by giving allowance to the blending of norms, practices, and values. Furthermore, I learned that experimental initiatives shall result in creating potential financial recognition and gains for social impact accurately thereby initiating a major transformative alteration toward an identity that is mission-driven. When it is introduced, the mission rift risk can be counteracted bythese identities that transform into financial objectives from social ones (Sebhatu, 2017). Also, I developed knowledge when primordial purposes get highlighted into identities that are mission-driven, beginning commitment to several social problems and getting replaced into consistent attempts to further sustain social involvement.

Conclusion

From the overall BOP market analysis, I have completely understood social value creation’s complex procedure among various BOP business organizations. I believe the kind of ethical and social frameworks developed in the analysis has been able to give importance and highlight the interplay occurring between external conditions and internal elements.This thereafter influences social value generation and resolve ethical challenges specifically for the BOP. In the future, several opportunities within BOP markets will rely on consideration in relation to the infrastructural availability level, availability of consumer resources level, and measures taken by managers to ensure self-sustainability within their businesses. The empowerment of BOP businesses can enable several advantages in the market like establishing relationships with various local distributors and producers and developing the latest product innovations and business models that can be transferred to presently served markets. Creative market-oriented initiatives like giving emphasis on long-term viability and capacity building can result in bringing corporate social responsibility and resolving BOP problems.

Are you struggling to keep up with the demands of your academic journey? Don't worry, we've got your back! Exam Question Bank is your trusted partner in achieving academic excellence for all kind of technical and non-technical subjects.

Our comprehensive range of academic services is designed to cater to students at every level. Whether you're a high school student, a college undergraduate, or pursuing advanced studies, we have the expertise and resources to support you.

To connect with expert and ask your query click here Exam Question Bank