Business model with the approach of social responsibility of the organization (Case study of Erom Narin Company (Shadley))

Number of pages: 207 File Format: word File Code: 29668
Year: 2012 University Degree: Master's degree Category: Management
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  • Summary of Business model with the approach of social responsibility of the organization (Case study of Erom Narin Company (Shadley))

    Dissertation

    Master's degree

    Department: MBA Management

    Abstract

    In recent years, the organization's participation in economic, social and environmental issues is considered one of the basic issues for organizations and society. In this regard, various researchers and researchers are trying to provide practical and creative models by obtaining new methods, through which, on the one hand, they can improve the attitude of organizations and their managers towards CSR, and on the other hand, integrate it with the main strategies and goals of the organization. In this research, relying on concepts related to business model, stakeholders and CSR, the researcher integrates CSR and business model to create a new business model which is named responsible business model. The responsible business model offers new ways to create value for all people and groups involved in a business, including customers, shareholders, society and other stakeholders. After presenting the responsible business model and also the method of evaluating the competitive advantage resulting from this model, these topics were examined in Erom Narin (Shadley) using qualitative and quantitative methods and measured in the real business world.

    Key words: responsible business model, corporate social responsibility (CSR), business model, stakeholders, value

    -1) statement of the problem

    The responsibilities of the organization towards the stakeholders (society, environment, shareholders, customers, etc.) are one of the important and basic topics in the field of business in the current period. In developed and industrialized countries, many consumers pay attention to goods and services that are produced by companies and economic units responsible for social and environmental issues. The interest and attention of investors and stock buyers is also increasing. Unfortunately, this issue is different in developing and underdeveloped countries because the problems faced by organizations are so complex and difficult that many of these organizations only think about remaining in the market and cannot even think about long-term profits, and therefore it is not easy for them to pay attention to social and environmental issues, as well as the needs and rights of stakeholders. Through them, using strategies related to the organization's social responsibility [1] and their implementation should not be considered as a mere cost and considered as an investment and create benefits and value.

    Considering that CSR is a developing concept and a moving target, organizations try to prioritize parts of CSR in their work that will have positive financial effects for them [1]. This means that most companies have the desire to implement CSR while their shareholders' profits are also provided. Some researchers have tried to realize this goal by presenting the concept of strategic CSR. Porter and Kramer [2] [2], for example, by presenting a strategic CSR framework, have tried to turn CSR into a source of opportunity and competitive advantage by integrating CSR and the organization's strategies.

    Integrating CSR not only with the organization's strategies but also in a wider field with the organization's business model [3] in order to create value for all stakeholders, including shareholders, is the main goal of this research. Afa [4] [3, p. 2] In the definition of the business model, he states that "a business model is a framework for making money".

    The term business model entered the field of management literature at the end of the 1990s with the advent of the Internet and electronic commerce [4,5].  

    A business model is a useful concept for understanding and categorizing the organization's operations [6]. Business models cannot be called scientific or analogical models or instructions, but a business model may play each of these roles alone or all of them at the same time, which depends on the type of organization and its goals [7]. Zut and Amit [5] [8] consider the business model as a system of interactive activities that causes the development of the organization and the expansion of its borders.Paying attention to the personal interests and selfishness of individuals and even companies hinders innovation and progress, and on the contrary, cooperation and partnership with each other and working with others and for others can be a strong motivation to increase innovation and progress [9, p. 283].

    What should be noted about a business is that a company or an organization that starts a business is made up of different people and groups called stakeholders who can achieve their goals, whether material or non-material, only together and in balance and harmony. All of these stakeholders have responsibilities towards each other that fulfilling and resolving these responsibilities will increase efficiency and intensify the energy needed to achieve goals and create value. towards our customers to create satisfaction in them and follow the principles and values ??of fair competition and towards the society to preserve the environment, human rights, sustainable development. is responsible [10, p. 4].

    When a company creates a suitable and favorable environment for its employees, they work more efficiently. This view can give managers the insight that CSR creates value for both the organization and the employees. Managers should know that CSR is more than cost, compulsion and emergency and benevolent action; CSR can be a source of opportunity, innovation and competitive advantage [2]. By achieving a clear and clear understanding of CSR and developing new approaches to the business model, these concepts will be combined to create the conceptual model of this research. Addressing the issue of the business model with the approach of social responsibility of the organization has been aimed at providing a solution for creating responsible organizations and consequently creating value for stakeholders including shareholders and investors. Achieving this goal requires addressing much broader topics in the field of managerial and organizational topics, including organizational culture, transformation management, human resource management. is beyond the scope of this research. Porter and Kramer [2] state that "successful companies need a healthy society, and at the same time, a healthy society needs successful companies". This issue can be extended to all stakeholders involved in a business. 1-2) Research Objectives The overall objective of this research is to integrate the business model and CSR in order to create a responsible organization, which can be divided into the following micro-objectives: 1. Examining the role of stakeholders in the process of integrating the business model and CSR

    2. Investigating the impact of the business model with CSR approach on the organization's competitive advantage 1-3) The importance of the research topic and the motivation to choose it The increasing and rapid growth of various industries and intense competition to achieve a better position has made many organizations indifferent to sustainable development and social and environmental issues. Unfortunately, this issue is more visible in developing countries because most companies (especially private companies) are only looking to achieve their desired profit and do not have a comprehensive and long-term view due to the unstable economic conditions. According to the third principle of sustainable development in the United Nations Charter, the right to development should be applied in a way that equally meets the needs of the current generation and future generations in the field of development and environment. On the other hand, in many companies, even big ones, the way of doing business is traditional and new management and organizational methods and approaches are not seen. Attention to new approaches in the field of management knowledge on the one hand and social and environmental issues as well as the rights of the beneficiaries on the other hand prompted the author to do research on a topic that will be useful for the society, future generations, companies and consumers and other stakeholders. The topic of business model is one of the relatively new and significant topics in the field of management and business, and authors, researchers, and large and small companies and organizations around the world show special interest and attention to this topic. This issue prompted the researcher of this thesis to research and study this issue with a new and beneficial approach.

  • Contents & References of Business model with the approach of social responsibility of the organization (Case study of Erom Narin Company (Shadley))

    List:

    1. Table of Contents

    Chapter One: Introduction and Generalities of the Research

    1-1) Statement of the Problem.

    2

    1-2) Research Objectives.

    4

    1-3) The Importance of the Research Subject and the Motivation for Choosing It.

    4

    1-4) Research Questions.

    5

    1-5) Model Research.

    6

    1-6) operational definitions of variables and keywords.

    6

    1-6-1) business model.

    6

    1-6-2) business concept.

    7

    1-6-3) capabilities.

    8

    1-6-4) Value.

    8

    1-6-5) Value Proposition.

    8

    1-6-6) Customer Value Proposition.

    9

    1-6-7) Profit Formula.

    9

    1-6-8) Product Differentiation.

    10

    1-6-9) stakeholders.

    10

    1-6-10) interests of stakeholders.

    10

    1-6-11) participation of stakeholders.

    11

    1-6-12) expectations of stakeholders.

    12

    1-6-13) responsibility Organization's social. 12. 14-6-1) Competitive advantage. 13. 15-6. Porter's five competitive forces model. 14. 16-16) Resource-based theory.

    Chapter Two: Literature and research background

    2-1) Introduction.

    18

    2-2) Competitive advantage.

    19

    2-2-1) Industrial organization theory.

    20

    2-2-2) Porter's five competitive forces model.

    21

    2-2-3) Discussion and criticism about Porter's five competitive forces model.

    23

    2-2-4) Resource-based theory.

    23

    2-2-4-1) Classification of resources.

    26

    2-2-4-2) Characteristics of resources in resource-based theory.

    27

    2-2-4-3) The difference between resources and capabilities.

    28

    2-2-5) Some topics and theories related to resource-based theory.

    29

    2-3) Corporate social responsibility (CSR).

    30

    2-3-1) Definitions and models.

    30

    2-3-2) Organizational social responsibility and financial performance.

    34

    2-3-3) Organizational social responsibility and resource-based theory.

    36

    2-3-4) Organizational social responsibility and stakeholders.

    36

    2-4) Stakeholder theory.

    37

    2-4-1) Features Stakeholders.

    39

    2-4-2) Relationship between stakeholders and the organization.

    40

    2-4-3) Interests of stakeholders.

    43

    2-4-4) Participation of stakeholders.

    45

    2-4-5) Expectations of stakeholders.

    46

    2-4-6) Stakeholder values.

    47

    5-2) Business model.

    48

    2-5-1) Business model definition.

    48

    2-5-2) Itami and Nishino's basic business model framework.

    50

    2-5-3) Business model design with activity system approach.

    51

    2-5-4) Johnson, Christensen and Kagerman business model framework.

    53

    2-5-4-1) customer value statement.

    54

    2-5-4-2) profit formula.

    54

    2-5-4-3) Key resources.

    54

    2-5-4-4) Key processes.

    54

    2-5-5) Applegate business model framework.

    55

    2-5-5-1) Business concept.

    55

    2-5-5-2) Strategy analysis.

    56

    2-5-5-3) Customer analysis.

    56

    2-5-5-4) Business network assessment.

    57

    2-5-5-5) Capability analysis.

    57

    2-5-5-6) Creation value analysis

    57

    2-5-6) business model components.

    58

    2-5-7) The concept of business model components in model literature.

    59

        Business and social responsibility of the organization

    2-6) value proposition.

    65

    2-7) Product differentiation.

    66

    2-8) Business and customer model.

    66

    2-9) Research background.

    67

    2-9-1) Strategic CSR Porter and Kramer.

    67

    2-9-2) Creation Eccles, Perkins and Seraphim sustainable companies.

    68

    2-9-3) Investigating the effects of CSR on the organization's performance by Aino and Seraphim.

    69

    2-9-4) Integration of community interests and Kanter's organization strategies.

    71

    Chapter three: research method

    1-3) Introduction.

    73

    3-2) Research paradigms.

    74

    3-3) Alignment and compatibility of research approach.

    76

    3-4) First step: qualitative approach.

    77

    3-4-1) Selection of case study.

    77

    3-4-2) qualitative research method.

    78

    3-4-3) interview questions.

    79

    3-4-4) data analysis.

    79

    3-5) second step: quantitative approach.

    80

    3-5-1) questionnaire design.

    81

    3-5-2) statistical population, sample size and sampling method.

    82

    3-5-3) measurement scale.

    82

    3-5-4) data analysis.

    83

    3-5-5) validity and reliability.

    83

    Chapter Four: Calculations and Research Findings

    4-1) Research Conceptual Model: Responsible Business Model.

    86

    4-1-1) Introduction.

    86

    4-1-2) Corporate Social Responsibility (CSR).

    88

    4-1-3) Stakeholders 91 4-1-4) business model 94 4-1-5 responsible business model

    99

    4-1-5-3) Expectations of stakeholders.

    100

    4-1-6) Responsible business model and competitive advantage.

    103

    4-1-7) Conclusion.

    108

    4-2) Calculations and findings related to the case study (Arum company) Narin). 110 4-2-1 Introduction Shadli.

    111

    4-2-3) business model components.

    112

    4-2-3-1) business concept.

    112

    4-2-3-2) business capabilities.

    127

    4-2-3-3) analysis of values ??created for Stakeholders.

    129

    4-2-4) Responsible business model of Erom Narin Company.

    133

    4-2-4-1) interests of stakeholders.

    135

    4-2-4-2) Participation of stakeholders.

    137

    4-2-4-3) Expectations of stakeholders.

    138

    4-2-5) Competitive position of responsible business model of Erom Narin Company.

    139

    4-2-5-1) Five competitive forces model of Porter and Erom Narin Company.

    139

    4-2-5-2) Resource-based theory and company Erom Narin.

    141

    Chapter five: conclusions and suggestions

    5-1) Introduction.

    147

    5-2) Integration of business model and CSR and creation of responsible organization.

    147

    5-3) Competitive advantage and responsible business model of Erom Narin company.

    152

    5-4) Suggestions.

    154

    Resources..

    155

    Appendix 1: Erom Narin Company (Shadli).

    164

    Appendix 2: Iran Standard and Industrial Research Organization.

    172

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Business model with the approach of social responsibility of the organization (Case study of Erom Narin Company (Shadley))