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Testing the Shared Value Business Model as a Driver of Change in Financial Institutions

Insights from Banks Listed on the Brazilian Sustainability Index/ISE
  • Ana Paula CandeloroEmail author
Chapter
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)

Abstract

The purpose of this research is to investigate whether financial institutions listed on the Brazilian Sustainability Index (ISE) embed the shared value concept in their respective strategies as a new business model.

All signs show that the capitalist system is currently dysfunctional. In recent years, business has been viewed by many observers as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community and there is a growing notion that something has to be done to turn things around (Porter 2011).

In times when there is an aggravation of such problems, there are signs that the current structure is experiencing exhaustion, which led financial institutions to consider different approaches when making investment decisions or offering products out of their portfolios.

Some existing frameworks are analysed, such as Environmental, Social and Corporate Governance (ESG), Corporate Social Responsibility (CSR), Corporate Social Innovation (CSI), the framework adopted by the Global Alliance for Banking on Values (GABV), and the Creating Shared Value (CSV).

The central question along this research project is to inquire whether the financial institutions listed on the ISE produce CSV out of their value chain or financial portfolio as a way to contribute to a functional capitalism.

The findings show that banks are still very sceptical. There is no evidence of long term vision to make CSV products available to customers nor to create an innovative business model that embed CSV concepts. They also indicate that the financial institutions analysed have not yet deeply understood the notion of rethinking capitalism and are still attached to the notion of simply balancing interests as opposed to creating shared interests.

Concisely, this research contributes to highlight the importance of rethinking the current banking model to promote a change towards sustainable capitalism.

Keywords

Brazil Brazilian sustainability index Corporate social innovation Creating shared value Financial institutions GABV Global alliance for banking on values ISE Responsible banking Shared value Sustainability index Sustainable capitalism 

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2019

Authors and Affiliations

  1. 1.InsperSão PauloBrazil

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