A new era of development: the changing role and responsibility of business in developing countries

Abstract

Purpose

A new era for development is needed and business needs to play a significant role in this era. This paper aims to provide insights into the necessary conditions for such a new era of development and specifically the potential contribution of business and academia.

Design/methodology/approach

This explorative study is based on expert interviews and the summary of the discussion of the EABIS Colloquium 2011 (“Corporate Responsibility and Developing Countries”).

Findings

Innovative companies are moving from building “shareholder value” to “shared value” for all stakeholders; from “quarterly capitalism” to “long‐term capitalism”. They are also providing resources, open access systems and capital to entrepreneurs and communities to support technology and knowledge transfers. Companies that integrate future development concerns into their business model will be ideally placed to secure long‐term licences to operate, develop loyal new consumer bases, and innovate in new market segments.

Research limitations/implications

The methodology only allows preliminary findings for now. More research (also on the ground) will be needed to identify the necessary strategies business has to adopt to play a potent role in a new era for development.

Originality/value

The paper is based on a rich set of data and combines these findings with the thinking of the EABIS Colloquium 2011. It can be the basis for future research.

Citation

Lenssen, J. and Van Wassenhove, L.N. (2012), "A new era of development: the changing role and responsibility of business in developing countries", Corporate Governance, Vol. 12 No. 4, pp. 403-413. https://doi.org/10.1108/14720701211267766