social | Laura Schoenherr's Blog

As environmental threats are building up, such as global warming, we become more conscious about our surrounding, the impact of our actions, and what we really value.

Also, companies are starting to address this issue and are moving from profit oriented enterprises to social responsibility corporations, that base their value proposition around social, economic, and environmental values. Not only are we seeing the change within firms, but also in nations, as India’s Finance Minister announced that 2% of corporate’s profits should be invested into CSR activities, and will be applicable from fiscal 2014-2015 onwards. His argument states that it would have a multiplier effect on “projects such as environment, skill development, water, sanitation, etc.”

What does it mean to be sustainable?

A cooperation needs to hit the tripple bottom line: social, environmental, and economic, which leads to sustainability. Based on Lululemon, this concept can be easily related to real life.

Social: Work with factory partners to create programs that are beneficial to the community and provide support and funding
Environmental: Work on reducing shipping emissions by auditing routs
Economic: Contribute to the economy in a ethical manner through their Code of Ethics

These are Canada’s Top 50 Socially Responsible Corporations.

By implementing these core values, the company automatically creates shared value, which means a product that is beneficial to the community and the company.

Resources:

WE have evolved be entertained 24 hours a day. Smart phones, TVs and watches have been designed to satisfy our needs through the emergence of the Internet.

The Internet has changed consumer behavior and therefore the operations of a company such as costumer service, business models, and advertising. According to a Harvard Business Review Blog post our society has moved even further, not only do we need to be entertained by information that is given to us but also be able to share information with our social network through the usage of products. No longer do companies gain competitive advantage through their value proposition by providing newer and better features, but the revolution of social products will.

The new Nike+Fuel Band is an example classified by HBR as a ‘social product’. No longer will products just be “simply connected, but social” write Bonchek and Choudary. The concept of sharing will create another community. Nike’s idea is to create a community where users can motivate each other to be more active. This value proposition will attract more consumers, because with the vast amount of social networks in today’s world we create new connections everyday, by using social products it will make it even easier to keep in touch the connections in our busy lives.

Nike+Fuel Band’s value proposition and the idea of a social product (Video)

Resources:

– “Navigation.” BoF The Business of Fashion. N.p., n.d. Web. 23 Oct. 2013. <http://www.businessoffashion.com/2013/10/nike-stafan-olander-fuelband-and-the-age-of-social-products.html>.

– “HBR Blog Network.” Harvard Business Review. N.p., n.d. Web. 23 Oct. 2013. <http://blogs.hbr.org/2013/10/the-age-of-social-products/>.

– “Nike+ FuelBand SE unveiled with new colors, Bluetooth 4.0, priced at $149 (update: eyes-on).” Engadget. N.p., n.d. Web. 23 Oct. 2013. <http://www.engadget.com/2013/10/15/nike-fuelband-se-unveiled/>.

–“The three most innovative social products right nowAdd to ….” The Globe and Mail. N.p., n.d. Web. 23 Oct. 2013. <http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/the-three-most-innovative-social-products-right-now/article12498033/>.

– Video: https://www.youtube.com/watch?feature=player_embedded&v=moV5osprPlg