CREATING SOCIAL VALUE
The Power of the High-Performance Organization Approach
This Quick Insight investigates the transformative impact of the High-Performance Organization (HPO) Framework in aiding multinational enterprises in creating social value. The study discusses how multinationals, who strengthen the five factors of the HPO framework, are better able to address pressing societal issues such as COVID-19 recovery, economic equity and climate change. It is an essential read for business leaders, offering insights into achieving both organizational excellence and meaningful societal contributions.
“The consequence of this research result is that – theoretically – when an organisation becomes an HPO it will be in a much better position to create and sustain social value as it has at its disposal the organisational capabilities needed to do just that.”
KEY TAKEAWAYS: CREATING SOCIAL VALUE – The Power of the High-Performance Organization Approach
- The Increasing Role of Businesses in Social Value Creation: Society is demanding businesses, especially multinational enterprises (MNEs), to contribute meaningfully towards societal issues such as COVID-19 recovery, economic equality, climate change, and general wellbeing. This involvement can generate significant social value, leading to improved community relations, better brand image, and enhanced long-term success.
- High-Performance Organization (HPO) Framework: The HPO Framework, based on extensive review of scholarly and professional publications, outlines five essential factors for businesses to achieve sustainable success: Continuous Improvement and Renewal, Openness and Action-Orientation, Management Quality, Employee Quality, and Long-Term Orientation. These elements are directly linked to organizational performance.
- Linking HPO Framework to Social Value Creation: This study establishes a theoretical link between the HPO Framework and social value creation. By embracing the HPO Framework, organizations are able to improve their capability to generate social value.
- Application of HPO Framework for Social Value Creation: The HPO Framework is a promising approach to identify the organizational capabilities MNEs need for creating and sustaining social value. Overall, the study suggests that organizations focusing on high performance with the HPO framework are better able to create and sustain social value, providing a significant competitive advantage and contributing to the long-term success of the organisation.
