The value palette: a tool for full spectrum strategy (corporate strategy and corporate social responsibility)

Citation

Elkington, J. (2006), "The value palette: a tool for full spectrum strategy (corporate strategy and corporate social responsibility)", Strategic Direction, Vol. 22 No. 8. https://doi.org/10.1108/sd.2006.05622had.008

The value palette: a tool for full spectrum strategy (corporate strategy and corporate social responsibility)

The value palette: a tool for full spectrum strategy (corporate strategy and corporate social responsibility)

Elkington J., Emerson J., Beloe S.California Management Review, Winter 2006, Vol 48 No 2, Start page: 6, No of pages: 23

Purpose – To explore value creation and the future direction of corporate responsibility and sustainable business agendas over the next decade. Design/methodology/approach – Engages in a “thought experiment” drawing a parallel between the spectrum of value creation opportunities available to companies and the artist’s palette of colors. Observes that whilst attention to corporate social responsibility (CSR) in business has increased, the management of non-financial or “extra-financial” performance tends to be “bolted on” to the existing business model. Creates a Value Wheel in which six colors represent different forms of value. Introduces the idea of blended value, combining economic, social and environmental value components in a way that appeals to consumers, customers and investors. States that fully blended value is represented in this model by white, whilst black symbolizes activities that are outside the economy or antithetical to blended value. Uses black, white and the value wheel as a conceptual tool to help business people to think about and operate across the value spectrum. Color codes business initiatives and activities, describing the properties of purple political capital, orange community and wider stakeholder involvement and yellow as symbolic of business relationships or intellectual capital. Explains how the blended value proposition (BVP) and value palette can be used in a range of investment scenarios. Considers the relevance of SustainAbility’s “4B’s” conceptual tool dealing with balance sheets, boards, brands and business models, giving illustrative examples describing initiatives at well-known companies. Originality/value – Uses color theory to characterize the market opportunities of the twenty-first century.ISSN: 0008-1256Reference: 35AH146

Keywords: Business development, Corporate strategy, Social responsibility, Value analysis