M-RCBG Associate Working Paper No. 43
Shared Value in Ecuador: Corporaci贸n Favorita
Jonathan Welle
2015
Abstract
Companies that practice shared value earn a profit in ways that benefit society. This report defines the emerging concept and practice of shared value and explores the utility of applying shared value strategies to business in Ecuador. It does so from the perspective of Corporaci贸n Favorita, a grocery retailer and the country鈥檚 largest company. This report analyzes the advantages and limitations shared value offers Favorita in concurrently advancing broad social objectives alongside its own economic and regulatory interests. It recommends Favorita adopt shared value through three initiatives, each of which draws on the core principles of the firm鈥搑esponsibility, client service, and respect. These initiatives connect Favorita鈥檚 business challenges with social and political priorities in Ecuador.