IMPACT DRIVEN VALUE CREATION MODEL
“Given the range of issues we face, there is no choice but to seek a broader, more integrated perspective. The integration will drive business performance in the 21st century.”
Impact Driven Value Creation Model
Globalization and interconnectivity mean the world’s finances, resources, people, and knowledge are inextricably linked. Also, the problems we face today are multifaceted, unpredictable, and magnified Given the range of issues we face, there is no choice but to seek a broader, more integrated perspective.
Impact Driven Value Creation Model (IVC) is the solution to create and sustain value for all stakeholders and it converts short-term capitalism to long-term sustainable growth and mazimises ROI and SROI. The model allows systematic thinking for value maximization starting from strategy formation, capital allocation, portfolio optimization to exit and is based on the following 6Ps:
PURPOSE
is a critical feature of the sustainability revolution that is engaging modern capitalism. It requires companies to not only adopt a clear, meaningful and authentic purpose, but to transform their understanding of the relationship between profit and purpose, so that profitability – and financial sustainability – provides the means to achieve the purpose rather than the end in and of itself.
PEOPLE
is the determination to end poverty and hunger, in all their forms and dimensions, and to ensure that all human beings can fulfil their potential in dignity and equality and in a healthy environment.
PLANET
is the determination to protect the planet from degradation, including through sustainable consumption and production, sustainably managing its natural resources and taking urgent action on climate change, so that it can support the needs of the present and future generations.
PROGRESS
is an adaptive innovation in all aspects of people, profit, and planet.
PROFIT
is the determination to ensure that overall positive or negative impacts of businesses are considered in addition to financial return, so it is a combination of ROI and SROI.
PROSPERITY
is the determination to ensure that all human beings can enjoy prosperous and fulfilling lives and that economic, social and technological progress occurs in harmony with nature.