Strategy and Competitiveness in Latin American Markets

Strategy and Competitiveness in Latin American Markets

The Sustainability Frontier

Edited by Urs P. Jäger and Vijay Sathe

Using a combination of thorough research and practical examples, Strategy and Competitiveness in Latin American Markets explains how the concept of the sustainability frontier that the book develops resolves the long-running debate on whether sustainability requires tradeoffs or not. Through its exploration of a variety of sustainability challenges and opportunities, along with various sustainability models, the authors show how the sustainability frontier can be expanded through disruptive innovation, the building of new skills and by other means to secure no-trade off solutions.

Introduction to Part III

Edited by Urs P. Jäger and Vijay Sathe

Subjects: business and management, management and sustainability, strategic management


It is important to point out that, although the sustainability models described in Part III use somewhat different terminology, they all share a key assumption whose intellectual lineage can be traced back to Peter Drucker’s notion from decades ago that every environmental and social problem is a business opportunity in disguise. In Chapter 10, Chris Laszlo proposes a ‘no trade-off ’ model for embedding sustainability into the company’s strategy for competitive advantage, contextualized for the unique challenges and opportunities in Latin America. Such a model is different from the corporate social responsibility (CSR) approach taken by many Latin American companies in which profits are earned only in compliance with social and environmental laws, with CSR efforts limited to charity or philanthropy. The recent article, ‘Creating shared value’ by Porter and Kramer (2011), shows how companies can increase their competitiveness and profitability by helping to solve environmental and social problems. In Chapter 11, Smith and Kramer explain why ‘shared value’ holds great promise for helping to bridge the increasing ideological divide in Latin America, and for providing persuasive answers to the questions being raised about the legitimacy of capitalism in Latin America. Chapter 12 shows how shared value clusters can be developed and nourished in Latin America to improve all three bottom lines.

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