Algramo case: between social innovation and shared value

Abstract

Traditional business models rarely solve growing economic, environmental and social challenges in society. At the same time company's success in the market and its future is not anymore determined only by its production or economic capital (investment, return on investment). Business model for creating shared value explains that social problems might be used by businesses as opportunities and social innovation is becoming one of the competitive assets to improve the socio-economic performance of businesses. The paper focuses on one of the world's top 10 most innovative companies of 2015 in Latin America Algramo that follows the principle of shared value. The aim of the paper is to investigate the relationship between social innovation and shared value as a new responsible business model based upon a case of Algramo. The authors of the article had an opportunity to visit Algramo – Fast Company's nominated the Most Innovative Company 2015 –– in Chile in the August of 2015 in order to explore its innovative business model. One research related to social responsibility and creativity has been conducted by the authors of the article based upon the case of Algramo. This research focuses on social innovation and shared value as the successful sustainable business model in the low income market.