Remmelt Boermeester IHF CSR For Shared Value Definitieve Versie 8 Mei 2016

How can IHF apply CSR concepts and theories to Create Shared Value?
Bachelor of Business Administration Dissertation

By: Remmelt Boermeester
International Business and Management Studies
Inholland, university of applied sciences

Supervisor: N. A. Jansen
May 2016
Executive summary
More and more companies are making a profit while doing good for the society and
environment. This is called Shared Value. The aim of this study is as follows: “find possibilities for IHF
to strategically apply CSR concepts that create Shared Value for business.” The central research
question is: “How can IHF apply CSR concepts and theories to Create Shared Value?”
The International Help Fund (IHF) is a small non-profit organization operating from the
Netherlands to support Waldorf Education projects in developing countries around the world.
Waldorf Education is a form of education with a vision of creating a natural, holistic, student-
centered learning environment that empowers and inspires children to be creative, innovative and
responsible leaders.
Methodology chosen for this study, is: literature review and exploratory interviews with IHF
and external business organizations. Analysis of CSR literature resulted in a number of concepts and
theories, where IHF could possibly add value for business. Interviews with members of IHF resulted
in a better understanding of the organization’s value proposition. Interviews with external
companies on this value proposition, lead to a number of recommendations for IHF to consider in
their Marketing mix.
Key factors that IHF’s value proposition should account for, are:
- Alignment with CSR strategy and policy of prospect company.

- Key stakeholders of prospect company must be located in the project region.
- Primary social value is Primary Education and Child-care; Waldorf education specifically can
be a competitive advantage for specific niche companies.
Limitations of this study are mainly concerned with the representativeness. Market
dynamics vary widely and only a small selection of the corporate world is consulted. However, the
CSR managers that were interviewed lead to interesting insights and valuable recommendations for
IHF. Further research by IHF is required to determine which theoretical opportunities of Shared
Value creation, actually result in long-term profits.
A number of recommendations for IHF have evolved from this study. Firstly, formulate a
clear vision statement from a Shared Value perspective including CSR benefit. Furthermore, utilize
present network of partner organizations, project leaders and local school management to research
Shared Value opportunities with companies operating in the project regions. Finally, it is
recommended to apply the Golden Circle principle from a Shared Value perspective in Marketing
communication.
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Preface
This bachelor dissertation is written for the International Business and Management Studies (IBMS)
program of Inholland, University of Applied Sciences. It is a literature review and qualitative
exploratory research on the topics of Corporate Social Responsibility and Shared Value. This
dissertation is written for a client, a charity organization named ‘Internationaal Hulpfonds’ (IHF).
The supervisor of this dissertation is N.A. Jansen, from the Department of CRB International
Business and Management, Inholland University of Applied Sciences. The client organization
coordinator is L. Kranen, from the Faculty of Humanities and Sciences, Maastricht University. Kranen
is head of Public Relations at IHF and manages fund distribution for projects in Brazil.
Subtopics of this dissertation are Strategic Management and NGO-business joint-ventures.

Research data is selected from 2010 or more recent, to fit the timely developing topic of
sustainability, social- and environmental awareness of business.
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Table of contents
Executive summary ii
Preface iii
Acknowledgements vi
Chapter 1 – Introduction 7
1.1 Organizational background 8
1.2. Problem statement 10
1.3. Research objective 10
1.4. Research questions 11
1.5 Hypothesis 11
Chapter 2 - Theoretical Framework 12
2.1 Literature review 12
2.1.1 Historical background of Corporate Social Responsibility (CSR) 12
2.1.2 CSR Pyramid by Carrol 15
2.1.3 Triple Bottom Line 17
2.1.4 CSR 1.0 19
2.1.5 CSR 2.0 20
2.1.6 Creating Shared Value (CSV) 22
2.2 Conceptual framework 24
2.2.1 Stakeholder theory 24
2.2.2 CSR Pyramid 25
2.2.3 CSR Performance ladder 27
Chapter 3 – Methodology 29
3.1 Research objectives 29
3.2 Research methods 30
3.2.1 Research process 30
3.2.2 Desk research 31
3.2.3 Exploratory research 32
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Table of contents
3.3 Research sample 32
3.4 Limitations of the study 34
Chapter 4 - Results and analysis 35
4.1 Compiled relevant results 35
4.1.1 Summary of desk research results 35
4.1.2 Summary of exploratory research results 39
4.2 Research Analysis 44
4.2.1 IHF organizational analysis 44
4.2.2 IHF value proposition analysis 46
Chapter 5 – Findings, conclusions and recommendations 52
5.1 Analysis findings 52
5.2 Internal research findings 53
5.3 External research findings 54
5.4 Conclusions 55
5.4.1 Preconditions for Shared Value 56
5.4.2 IHF Services Marketing strategy 57
5.5 Recommendations 58
Appendices
Appendix 1: Statement on Plagiarism 61
Appendix 2: results of Millennium Development Goal 2 62
Appendix 3: Stakeholder involvement criteria and
GRI Application Levels Criteria 63
Appendix 4: transcript of phase 2 interviews 65
Appendix 5: transcript of phase 3 interviews 66
Appendix 6: example of the r0ndbrief 67
Appendix 7: ISO 26000 guidelines 67
Bibliography 68
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Acknowledgements
I would like to express my great appreciation to main supervisor Mr. Jansen. Furthermore, assistance
provided by my study coach mr. Stikker and mr. Wilson is greatly appreciated. I would like to offer
my special thanks to each member of the IHF organization.
I am particularly grateful for the help of mr. Fortuyn. Also, I would like to thank the following
companies for their assistance with the collection of my data: Siemens, Triodos bank, Kuijpers,
Douwe Egberts, Heijmans, BAM groep, Oracle, A-ware food group and the UNESCO Institute for
Statistics.
Finally, I wish to thank my parents for their support and encouragement throughout the
complete period of this study.
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Chapter 1 - Introduction
In developed regions, it is normal for children to go to primary school. Since 1990, 96% of children in
developed countries from 6 to 11 years, are enrolled in primary school (United Nations Human
Development Report 2015).
To progress primary education in low-income regions, to the same level as developed

countries, United Nations set “Millennium Development Goals”. Namely to “Achieve universal primary
education” by 2015. This goal has not been achieved. Globally, one in ten children from developing-
or low-income regions are still not in primary school. In low-income regions, only 80% of children
attended primary school in 1990. In 2015, 91% of children in developing countries are enrolled in
primary school (UN Millennium Development Goals Report, 2015).
The problem is most urgent in Sub-Saharan Africa. A recent study by the UNESCO Institute for
Statistics (2015) revealed that 30.1 million children in Sub-Saharan Africa were not in primary school
in 2013. Relative to the total amount worldwide, 59.3 million, over fifty percent lives in Sub-Saharan
Africa (see figure 1.1).
FIGURE 1.1: NUMBER OF OUT-OF-SCHOOL CHILDREN OF PRIMARY SCHOOL AGE, 2000–2013
Source: UNESCO Institute for Statistics database
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Chapter 1 – Introduction (cont’d)
The most important barrier to primary education in developing regions is parents having
insufficient money (UNESCO and UIS 2015). Tuition fees, text books and transportation to school
cannot be paid for. Therefore, income from a child’s labour is often required for basic needs like food
and housing. Furthermore, armed conflict has a severe impact on education, half of all
out-of-school children live in conflict-affected regions (UNESCO and UIS 2015).
World development organizations such as UNICEF and UNESCO are providing aid on a global
scale. Significant progress in the past decade was made possible by ‘abolition’ of tuition fees, meaning
UNICEF pays for education instead of low-income families. These efforts have resulted in a projected
enrolment rate for 2015 of 91% in developing regions (UN Human Development Report 2015).
Major sponsors like the World Bank and the EU finance such large-scale measures.
Organizational background
This dissertation describes a study for ‘Internationaal Hulpfonds’, hereafter referred to as ‘IHF’. The
small organization in the Netherlands, consists of 15 volunteers. Legally, IHF is a ‘Non-Governmental
Organization’ or ‘NGO’. IHF supports education of children in developing regions. For example, the
organization raises funds to pay tuition fees for children from low-income families.
To support costly projects like teacher training and construction of school buildings, IHF co-operates
with international partner-organizations in Europe (see figure 1.2). Major partner-organizations are
“Friends of Waldorf” in Germany and “IONA stichting” in the Netherlands.
FIGURE 1.2: IHF ORGANOGRAM AND INTERNATIONAL PARTNER ORGANIZATIONS
Source: websites of IHF and Friends of Waldorf
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IHF Project Region managers monitor and mediate between different executive supervisors
of projects in their region. These managers each focus their fundraising activities to projects in their
region. The type of education IHF supports, is labelled ‘alternative’ opposed to traditional public
education. Internationally, it is known as Waldorf education and “Vrije School” in the Netherlands.
According to the Waldorf World List (March 2014), 1039 Waldorf schools are currently operating
worldwide in sixty countries. IHF supports more than 140 projects in 50 different countries. The
locations are shown in figure 1.3 below.
FIGURE 1.3: WORLD MAP OF IHF PROJECT LOCATIONS
Source: website of International Hulpfonds (IHF)
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Problem statement
The problem IHF currently faces, is a decline of incoming funds in the past years (see Figure 1.4). In
2012, incoming funds totalled €302K. This dropped to €220K in 2014, a decline of twenty-eight
percent. The declining graph (Figure 1.4) is problematic because children may not be able to continue
their education. Without financial support, teachers are not paid and school services will degrade.
FIGURE 1.4: IHF TOTAL INCOMING FUNDS 2009-2014
€ 350,000.00
€ 300,000.00
€ 250,000.00
€ 200,000.00
€ 150,000.00
2009 2010 2011 2012 2013 2014
Source: adapted from IHF yearly financial statements 2009-2014
Research objective
IHF is looking to explore new ways of generating income, specifically in collaboration with business.
The objective of this dissertation is to find possibilities for IHF to attract business funds.
The organization sees Corporate Social Responsibility (CSR) as a good angle to approach the objective.
CSR is a company’s sense of responsibility towards the community and environment (both ecological
and social) in which it operates.
Shared Value aims for companies to create “profitable business strategies that deliver
tangible social benefits” (Porter and Kramer 2011). This theory argues that economic- and social value
are interdependent. Strategically contributing to progress social needs and issues, is a competitive
advantage for business according to Porter.
Therefore, the research objective is defined as follows: “find possibilities for IHF to
strategically apply CSR concepts that create Shared Value for business”. A tangible target to set would
be €100K of funds from business. This added to the current yearly income, would amount to total
income of 2012.
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Research questions
Having defined the problem statement and research objective, the main research question is
formulated as follows: “How can IHF apply CSR concepts and theories to create Shared Value?”
Sub-questions are:
1) What does the concept of CSR entail?

2) What does the concept of Shared Value entail?
3) What preconditions must be established with i) IHF and ii) business to create Shared Value?
4) What Services Marketing strategy can be recommended to IHF?
Hypothesis
This dissertation hypothesizes the following: “The closer IHF’s social value complements a business
CSR strategy, the greater the potential for creating Shared Value.”
CSR has evolved from a trend into a global movement in business (Kell, 2014). More and more
companies understand that doing good, for society and environment, is good business.
A company creates goodwill in their market and with customers through CSR strategy.
Shared Value involves creating economic value in a way that also creates value for society by
addressing its needs and challenges (Porter and Kramer, 2011).
The social value IHF provides, is education for underprivileged children. When a company’s
market and customers value this, long-term benefits for all stakeholders will be a likely result.
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Chapter 2 – Theoretical Framework
In the previous chapter, the objectives of the research study are described. The client sees Corporate
Social Responsibility (CSR) as a good opportunity to attract funds from ‘the corporate world’.
This chapter starts with a literature review to get a better understanding of the theoretical
concepts of CSR. The chapter continues to get more insight in how companies Create Shared Value
(Porter and Kramer, 2011). Lastly, a conceptual framework is formed and presented in a diagram. This
diagram provides insight in possible ways for IHF to apply CSR concepts to attract funds from business.
Literature review
This section presents a select analysis of existing research relevant to the research question; “How can
IHF apply CSR concepts to Create Shared Value?”
First, the historical background of the concept “Corporate Social Responsibility” is reviewed.
Then, four prominent models of CSR are described. Namely: Carrol’s pyramid of CSR (1991),
Elkington’s Triple-bottom-line (1994) model and CSR 2.0 by Visser (2008). Each provide insight in
possibilities of applying CSR as an organization.
Following, the concept of Creating Shared Value (Porter and Kramer, 2011) is described. The
concept, focused on connections between social and economic progress, can lead to sustainable
business models according to Porter.
2.1.1. Historical background of CSR
The origin of Corporate Social Responsibility is not definitively determined. Although, Bowen’s (1953)
book “Social Responsibilities of the Businessman” is considered to be the first landmark contribution
to CSR. This book started a global debate on the responsibilities of corporations towards society and
environment. This debate is on business ethics and how much a company should do for society.
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Chapter 2 – Theoretical Framework (cont’d)
The Literature on Business Ethics describes this debate as: Maximizing profits for
shareholders, or “Shareholder Theory” (Friedman, 1970), versus “Stakeholder Theory” (Freeman,
1984). The difference between the two models is displayed in figure 2.1 and 2.2.
FIGURE 2.1: TRADITIONAL MANAGERIAL MODEL OF THE FIRM
Source: Adapted from Crane and Matten (2004)
A shift from shareholder theory towards stakeholder perspective is observed over the years.
Freeman states in 2009 that if Friedman were alive today, that he would also be a stakeholder theorist.
“He would understand that the only way to create value for shareholders, is to pay attention to all
stakeholders of a business” (CorporateEthics 2009).
FIGURE 2.2: STAKEHOLDER MODEL
Source: Adapted from Crane and Matten (2004)
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A long-term study by Harvard Business School proves that financial returns by companies with
high commitment to sustainability, are higher (Serafeim 2014). Figure 2.3 shows the stock market
performance of 180 US publicly traded companies from 1993 to 2010.
FIGURE 2.3: INVESTMENT PERFORMANCE OF LOW- VS. HIGH SUSTAINABILITY COMMITMENT
Source: Turning a Profit While Doing Good. Serafeim ( 2014)
In the graph above, the blue line represents companies with a low commitment to
sustainability. The red line displays similar companies with a high commitment to sustainability.
Furthermore, in the early 1990’s, fewer than 30 companies were producing reports with social and
environmental data (Serafeim 2010). Currently, more than 50% of the world’s market capitalization
produce a sustainability report (Serafeim 2010).
The significance of CSR has become apparent for business over the years. In the next section,
the most-cited models of CSR are explained. To get a better understanding of the different
perspectives on CSR and how specific models can be applied by IHF.
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2.1.2. Carrol’s pyramid of CSR
Carroll is the most-cited author in CSR literature. He defined CSR as follows: “The social responsibility
of business encompasses the economic, legal, ethical, and discretionary expectations that society has
of organizations at a given point in time” (Carroll 1979). In 1991, Carrol revisited his four-part
definition of CSR and created a four-part model, also known as the pyramid of CSR (see figure 2.4).
FIGURE 2.4.: CARROL’S FOUR-PART MODEL OF CSR (1991)
Source: The Pyramid of Corporate Social Responsibility. Carroll (1991)
Carroll’s model describes four types of responsibility of a company: economic, legal, ethical
and philanthropic. Where traditionally companies would not go beyond its economic and legal
responsibilities, interest in good corporate citizenship increases (Carrol 1994). Each of Carrol’s four
types of responsibility are described in the following paragraphs.
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Economic Responsibility means that companies have a primary responsibility to shareholders,

employees and customers. Shareholders demand reasonable return on investments. Employees need
safe and fairly paid jobs. Customers demand good quality products at a fair price etc.
Legal Responsibility demands that businesses abide by the law; the codification of society’s
moral views (Carroll 1991).
Ethical Responsibility oblige corporations to do what is right, just and fair even when they are
not compelled to do so by the legal framework. Carroll (1991) argues that ethical responsibilities
therefore consist of what is generally expected by society, over and above economic and legal
expectations.
Philanthropic Responsibility. The Greek word ‘philanthropy’ means literally ‘the love of the
fellow human’. This includes all issues, within the corporation’s possibilities, to improve employees’
quality of life, local communities and ultimately society in general.
The four layers of the pyramid give insight to managers in the different types of obligations
that society expects of business. Limitations of Carroll’s model mainly concern what a company should
do when two or more responsibilities are in conflict with its economic responsibilities. For example,
plant closures for environmental reasons generally conflict with economic responsibilities of
remaining profitable and providing secure jobs. A great challenge of companies and managers today
is to be profitable and meet all expectations of stakeholders. When achieved, a company can continue
doing business in the long term and is sustainable.
Sustainability consists of three components: Economic, Social and Environmental (Crane and
Matten 2004). The term sustainability as a goal for business is captured in a model named ‘triple
bottom line’. This model of CSR clearly presents three critical fields in which a company is expected to
perform responsibly. These fields are people, planet and profit. The next section will expand on this
model.
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2.1.3. Triple Bottom Line
The triple bottom line model (Elkington, 1994) describes three parts; people, planet and
profit. ‘People’ stands for social stakeholders of a company. ‘Planet’ entails the ecological
environment. ‘Profit’ refers to economic value. This model asserts that; the better these three
bottom lines are accounted for, the more sustainable a business is.
FIGURE 2.5.: TRIPLE BOTTOM LINE MODEL
Source: adapted from Crane and Matten 2004
In the Netherlands, the Triple Bottom Line model is applied by MVO Nederland.
“MVO” is CSR in Dutch: “Maatschappelijk Verantwoord Ondernemen”. MVO Nederland is an
independent organization to promote CSR in Dutch companies. Their mission is: “to pursue a world-
leading position for the Dutch corporate sector in the field of CSR and sustainability” (MVO Nederland
2016).
Based on the TBL model, MVO Nederland developed a ‘performance ladder’ (2013) to score
the financial, social and environmental performance of Dutch companies. This model is comparable
to the approach of a balanced scorecard. Both are tools to score multiple factors of business
performance. The performance ladder indicates five levels of sustainability (see figure 2.6).
MVO Nederland promotes and stimulates Dutch companies to use the performance ladder.
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FIGURE 2.6: PERFORMANCE LADDER, MVO NEDERLAND
Source: CSR Performance ladder - Part A: Management system. MVO Nederland (2013)
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Dutch companies apply for performance ladder certification to account for their level of CSR.
The performance ladder documentation refers to stakeholder involvement criteria in section 4.2. The
specific criteria, a. to f. and the “GRI level B+” can be seen in appendix 3.
Founder of CSR International, Visser, also developed five levels of CSR to score companies.
The next section expands on Visser’s theory including contemporary examples of CSR in
multinationals.
2.1.4. The stages of CSR 1.0
Visser (2008) argues that all companies gradually go through four stages, or ages of ‘maturity’ in CSR.
These ages are: the age of Greed, the age of Philanthropy, the age of Marketing and the age of
Management.
FIGURE 2.7: THE AGES, OR STAGES OF CSR
Source: CSR 2.0: from the age of greed to the age of responsibility. Visser (2010)
The age of Greed is where CSR activities are undertaken only to protect shareholder value.
Employee volunteer programs that show evidence of improved staff motivation, commitment and
productivity, is Defensive CSR for example (Visser, 2010).
The age of Philanthropy is where a company supports various social and environmental causes
through donations and sponsorships (Visser, 2010). Typically executed through a Foundation, Trust or
Chairman’s Fund and aimed at empowering community groups or civil society organisations. The start
of the Bill & Melinda Gates foundation in 2000, supported by Warren Buffet, adding up to $61 billion
of net worth in 2012, is a contemporary example of the age of Philanthropy.
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The Age of Marketing is exemplified by companies who use CSR mainly as a public relations
opportunity. Applied as a means to enhance the brand, image and reputation of the company.
According to a CEO survey by Accenture and UN Global Compact (2010), 72% of CEOs cite ‘brand, trust
and reputation’ as the main factor that has driven them to take action on sustainability issues.
Promotional CSR may draw on the practices of Charitable and Strategic CSR and turn them into PR
spin, which is often characterised as ‘greenwash’. Examples of this age are often in the Tobacco- and
Fossil-fuel industry; BP making major investments in marketing CSR after the 2010 oil spill in the
Mexican Gulf.
The Age of Management means relating CSR activities to the company’s core business, often
through CSR codes and implementation of social and environmental management systems. This
typically involves cycles of CSR policy development, goal and target setting, programme
implementation, auditing and reporting. Coca-Cola provides an illustrative case of the shift to strategic
CSR (Visser 2013). In 2007, the company announced it would spend $20 million over 5 years to help
the WWF preserve seven of the world’s major rivers. It also set up the $10 million Coca-Cola India
Foundation, which began installing over 4,000 rainwater harvesting programmes and providing clean
drinking water to 1,000 schools across the country. Even though figures in 2010 showed that still 77%
of water used in production comes from other sources, Coca-cola hereby drives sustainable and
responsible improvement with this strategy.
According to Visser, a company that progresses through all four ages achieves CSR 2.0: The
Age of Responsibility. He also advocates for a different dilation of ‘CSR’, namely ‘Corporate
Sustainability and Responsibility’. The next section will describe the ideal application of CSR according
to the CEO of CSR International.
2.1.5. CSR 2.0
The field of what is variously known as CSR, sustainability, corporate citizenship and business ethics
alters the relationship between business and society (Visser 2008). To illustrate the difference
between CSR 1.0 and CSR 2.0, the development of the internet is presented as an analogy in figure 2.8
on the next page.
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FIGURE 2.8: COMPARISON OF WEB 1.0-2.0 DEVELOPMENT AND CSR 1.0-2.0 DEVELOPMENT
Source: adapted from the age of responsibility: CSR 2.0 and the new DNA of business. Visser (2011)
The major development of Web 1.0 to Web 2.0, is the level of interactivity and transparency
(Social Media, blogs etc.) between consumer and business. The big challenge for many executives is,
to integrate the same shift of perspective, take responsibility for all stakeholders involved and move
to a holistic CSR business model. CSR 2.0 is, according to research of CSR International (2014), proven
to be sustainable and realistic for business.
Visser highlights five key principles (see figure 2.9) which ideally all five should be accounted
for in business to demonstrate CSR 2.0. Also termed ‘transformative CSR’, focuses on understanding
the interconnections of the macro level system and changing business strategy. Strategies aiming to
optimize the outcomes for the larger human and ecological system.
FIGURE 2.9.: PRINCIPLES OF CSR 2.0
Source: adapted from The age of responsibility: CSR 2.0 and the new DNA of business. Visser (2011)
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CSR 2.0 is a new business mind-set that thinks in terms of the collective intelligence of its
stakeholders (Visser 2011). A key aspect of this theory is co-creation of solutions to global challenges,
and the use of technology to achieve speed and scale. CSR 2.0 aims to spread innovation to meet the
world’s biggest and most urgent unmet needs (Khavul and Bruton 2013; George 2012).
Different models of CSR are described now. As introduced earlier, Porter and Harvard
colleague professor Kramer, developed CSR into business strategy. Porter (2014) says that CSR is about
redistribution of wealth. Fairtrade is a good example, where a company like Starbucks creates budget
to pay farmers a fair price. Porter argues that companies can re-think capitalism to provide social
benefit and make a profit simultaneously. The concept of Creating Shared Value (Porter and Kramer
2011) will be explained in the following section.
2.1.6. Creating Shared Value
In this section, the concept of Creating Shared Value (CSV) will be explained, and how it relates to CSR.
Creating Shared Value (CSV) is a business concept first introduced in 2006 and further developed by
Porter and Kramer (2011, 2015).
CSV is a business strategy to create value for business and society. It is the practice of creating
economic value in a way that also creates value for society by addressing its needs and challenges
(Porter 2006). Shared Value aims for companies to create “profitable business strategies that deliver
tangible social benefits” (Porter 2011). That is, choices must benefit both sides. If a business pursues
policies that benefit its interests at the expense of society or its environment, it will find itself in an
unsustainable position. The short-term economic profits will undermine the long-term prosperity of
business and society (Porter and Kramer 2006).
The concept was then further developed. Porter and Kramer expanded on the concept in a
Harvard Business Review article in 2011. This article is titled: "Creating Shared Value: Redefining
Capitalism and the Role of the Corporation in Society". The article develops insights in profitable
business strategies that meet all stakeholder’s demands.
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Shared Value can be created in three different ways (Porter and Kramer 2011):
- Reconceiving products and markets – Defining markets in terms of unmet needs or social ills
and developing profitable products or services that remedy these conditions.
- Redefining productivity in the value chain – Increasing the productivity of the company or its
suppliers by addressing the social and environmental constraints in its value chain.
- Local cluster development – Strengthening the competitive context in key regions where the
company operates in ways that contribute to the company’s growth and productivity.
To illustrate the concept, the following example presents a clear case. Waste Concern converts
trash, collected daily from neighborhood slums, into organic fertilizer. Hereby increasing crop yields
and reducing CO2 emissions. The company improves health conditions while earning a substantial
gross margin through fertilizer sales.
In 2012, Kramer and Porter, founded the Shared Value Initiative with the help of the global
not-for-profit advisory firm FSG. This organization is created to enhance knowledge and successful
practice sharing in Creating Shared Value.
Similar to Visser, Porter and Kramer note that traditional CSR is not making a large enough
impact on global issues, focussing mostly on reputation of the business. The central idea of CSV is
that a company can establish sustainable long-term success when it develops its direct environment
significantly.
A company gaining an imbalanced profit from one country’s resources, without investing in
its society, will not be accepted over time and thus decrease the continuity of business.
Successfully Creating Shared Value is beneficial for both the company and society’s needs. According
to Porter, Shared Value can be a profitable business model. Like with any profitable business model,
a company can scale up and, particularly with Shared Value, make its business sustainable.
Porter says at the 2012 Shared Value Summit that “all successful business strategies in the
coming 20 years will, and should include a societal dimension to achieve sustainable long-term
success”. About NGO’s, he says they will have a profoundly important role in the transformation to
this model. First, to teach business about Shared Value, but ultimately to partner and engage deeply
with business to create shared value. NGO’s can evolve their strategic priorities in order to effectively
partner with companies on shared value strategies (Porter 2012). The summit presentation was ended
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by Porter noting that he sees the concept of Shared Value as “the most exciting opportunity for
business I have seen in my entire career”.
A clear development that can be distinguished throughout the history of CSR, is that
collaboration between society and business is sustainable. This presents a very interesting opportunity
for IHF to facilitate collaboration between business and its projects.
Now that the concepts of CSR and Shared Value are explained, the next section will form a
conceptual framework to gain further insight in theoretical applications of these concepts.
2.2 Conceptual Framework
In the following section, the models explained before will be combined into a conceptual framework.
Different models are applied to show links between them. The purpose of this framework is to form a
basis for field research and decision making. To decide on a model that can be proposed to companies.
Below, the models of CSR as described in the literature review, are illustrated with theoretical
possibilities for IHF to Create Shared Value. Models of the following CSR models are presented:
Stakeholder Model, Carroll’s CSR Pyramid and the Performance Ladder by MVO Nederland (2013).
2.2.1. Support in applying the stakeholder theory
The stakeholder theory entails that a firm should take responsibility for all stakeholders affected by
the business. IHF and local schools are among stakeholders of a particular company in the region.
According to the stakeholder model, they are part of civil society.
Theoretically, IHF can support a company in satisfying stakeholders’ expectations. For

example, employees can do voluntary work for a school in the area. Research shows (Pink 2010) that
this gives purpose to a person’s work, which is key to an employee’s motivation. Furthermore, when
a company supports civil society through IHF, it improves its reputation as a good corporate citizen.
IHF can produce positive PR for a company to communicate and please its other stakeholders.
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FIGURE 2.10: CONCEPTUAL STAKEHOLDER MODEL APPLICATION FOR IHF
Source: adapted from Crane and Matten 2004.
It must be noted that the conceptual models do not apply for all firms. It is context-specific
whether collaboration with IHF is sustainable and whether Shared Value is created or not. Shared
Value aims for companies to create “profitable business strategies that deliver tangible social
benefits” (Porter 2011). Further research is required to determine which type of companies can be
profitable with the social benefit delivered through IHF projects.
In general, all businesses who supply products or services to schools, can theoretically benefit
from supporting IHF projects. However, the Stakeholder- and Shared Value theory both suggest that
the business should have a clear connection with the region where the social benefit is delivered. So,
location of the business is an important factor to consider. The social value delivered in a particular
region, primarily influences the micro-economic environment of the business.
2.2.2. Facilitating Carrol’s CSR pyramid responsibilities
The CSR pyramid of Carrol (1991) distinguishes four levels of responsibility for business. IHF can
facilitate a company in fulfilling these responsibilities. The conceptual model below illustrates three
different categories of projects IHF has to offer. These categories of social projects are linked to the
relevant levels of the CSR pyramid. Figure 2.11 on the next page illustrates how IHF projects
theoretically relate to the responsibilities of a business, according to Carrol’s CSR pyramid.
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FIGURE 2.11: CONCEPTUAL CSR PYRAMID APPLICATION FOR IHF
Source: adapted from Carrol 1991.
A key economic responsibility of a business is providing work and salaries (Carroll 1991).
Within the network of IHF, a great deal of projects requires a lot of labour. Construction work in
building schools and classrooms for example. Also supplying school products like interior and
notebooks involve full-time jobs. The network of IHF can be valuable to a business by acting as
facilitator of work that fulfils an economic responsibility and delivers social value.
IHF can also facilitate teacher training and salaries. A company can hereby fulfil an economic
responsibility as well as an ethical responsibility. By sponsoring teachers, a company provides for
education. This will noticeably be considered as ethical; a right thing to do.
Lastly, IHF can facilitate a business with fulfilling philanthropic responsibilities through child
sponsor programs. For a business to make it possible for children to go to school, will obviously
improve their reputation as being a good corporate citizen.
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The model (2.11) suggests that supporting IHF with social development will result in Shared
Value. It must be noted that this model is not applicable for all types of business. Whether shared
value is created or not, is very business-specific (Porter 2012). Not all types of business will be able
to make (long-term) profitable returns by supporting IHF projects. However, the model does provide
insight in possible ways for companies to fulfil Carrol’s CSR responsibilities through IHF.
2.2.3. Accelerating Performance Ladder scores
The performance ladder is applied by Dutch companies to account for a certain level in CSR. IHF can
theoretically accelerate a company’s efforts in moving up the ladder. A key element in the
performance ladder is ‘engagement of stakeholders’. The model below illustrates how the network of
IHF can be valuable in engaging stakeholders of a company, particularly society related.
FIGURE 2.14: CONCEPTUAL PERFORMANCE LADDER APPLICATION FOR IHF
Source: adapted from MVO Nederland 2013
The stakeholders in the conceptual model above are adapted from the stakeholder model
(Freeman 2004). Shareholders, customers and employees are placed in the first two levels, because
27
these stakeholders directly relate to a company’s primary economic responsibilities. IHF projects can
produce PR material to create goodwill and engage with shareholders and customers. To engage
employees, IHF projects can also provide rewarding results by communicating each worker’s
contribution to children’s education.
Achieving CSR level 3 requires a greater investment in CSR. For level 3, a company must
produce demonstrable feedback reports on policy, expectations and results. A company can engage
suppliers by being a preferred business partner. When IHF facilitates a company with added social
value, this may have a positive effect on the reputation of its suppliers as well. Competitors can be
engaged when a company manages to gain market share through IHF projects. Competitors and
suppliers may reconsider their social and environmental responsibility to stay competitive in the
market.
To achieve CSR level 4 and 5, IHF can make the most relevant contribution. This is because
the top two levels of the performance ladder mainly concern society-related stakeholders. Level 4
requires involvement of stakeholders in formulating policies, requirements and acceptance criteria for
relevant dilemma’s, changes and improvements (MVO Nederland 2013). As noted in the introduction,
primary education is certainly a relevant dilemma, especially in sub-Saharan regions.
Figure 2.14 suggests that level 5 results in Shared Value. Level 5 is achieved when a company
is actively involved in the communities representing the environment and social needs. A company is
leading in CSR when it manages to make a profit from its social contributions. However, it must be
noted that this is a fairly idealistic scenario. Many context- and business-specific factors can
complicate the creation of Shared Value. Further research is required regarding the correlation of each
factor. Some of these factors are discussed in the chapter with research results.
The following chapter will expand on the methodology of the primary research. The
theoretical framework shows clear opportunities for IHF to apply CSR models to attract funds from
business. Conceptual models have been presented to show how IHF can theoretically apply CSR
concepts and thesis. Further primary research is done to further clarify these opportunities. To find
out what type of business have potential to create shared value with IHF.
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Chapter 3 – Methodology
This chapter presents the methods and study approach applied to answer the research questions.
Business research is the application of the scientific method in searching for the truth about business
phenomena (Zikmund 2010). To decide on the right research strategy, the objectives are defined in
the first section. Then, the research methods are explained. The research methods chosen are based
on the research objective and literature review in the previous chapter.
3.1 Research objectives
The client’s objective is simply said to get funds from business. In 2012, the yearly incoming funds of
IHF totalled €302K. This dropped to €220K in 2014, a decline of twenty-eight percent. The goal is to
get back to €300K/year within two years.
FIGURE 3.1: IHF TOTAL INCOMING FUNDS 2009-2014
= target yearly incoming funds for 2017
Source: adapted from IHF yearly financial statements 2009-2014
The research objective is defined as follows: “find possibilities for IHF to strategically apply
CSR concepts that create Shared Value for business”. A tangible target to set would be €100K of funds
from business. This added to the current incoming funds per year, is more than €300K.
The main research question is defined as follows: “How can IHF apply CSR concepts and
theories to achieve the intended results?” The key remaining sub-questions are:
- What preconditions must be established with i) IHF and ii) business to create Shared Value?
- What Services Marketing strategy can be recommended to IHF?
The research methods for finding out answers to these questions are explained in the
following section.
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Chapter 3 – Methodology (cont’d)
Research methods
This section describes the way this research is conducted. Desk research is presented in the literature
review. The current literature on CSR and Creating Shared Value have been analyzed. Additionally,
annual (sustainability) reports and business publications have been reviewed.
The hypothesis of the research is: “The closer IHF’s social value complements a business CSR
strategy, the greater the potential for creating Shared Value.” This is hypothesis can be typified
empirical. To discover motivations and new insights, a qualitative research method was chosen.
Exploratory research is applied to provide further insights in the hypothesis, and to test the theoretical
answer to the research question. The next section will describe each sequential research step taken.
3.2.1. Research process
The diagram (fig. 3.2) below visualizes the five steps of research, in chronological order from top to
bottom. The literature review is the result of the largest part of desk research. Following, the
research sample is selected through desk research as well. Section 3.3 will expand on this process
and selection criteria.
FIGURE 3.2: RESEARCH PROCESS
30
When the sample is selected, primary research is applied to gain concrete and more detailed
information relevant to answer the research questions. First, the IHF organization is analysed by
review of policy documents and annual reports. Furthermore, volunteers of IHF completed the
Institutional Culture Assessment (Quinn, Cameron 1999) to determine the organizational culture.
The organizational structure is defined through interviews with volunteers. Furthermore, these
unstructured, face to face interviews are conducted to select a target group of companies.
Following, contact persons of Triodos Bank and Siemens are consulted in an unstructured,
exploratory manner. These interviews are conducted to gain a better understanding on possible
value propositions of the client. Primary research is concluded with semi-structured interviews
presenting companies with hypothetical value propositions.
3.2.2. Desk research
This section provides an overview of the desk research methods applied.
Internal research is done by reviewing organizational documents, annual reports, IHF

website and partner organizations.
Further desk research is the review of literature and government-published statistics of

education in developing countries. This is applied to develop a frame of reference on the subject and
contextual aspects of the research. This was also important information in the interviews to explain
questions.
The determined population is: partners of MVO Nederland. Desk research lead to this
selection because the network of MVO Nederland consists of companies who are active in CSR. From
the population, the next criteria for the selection of a research sample is based on business location.
Since the Shared Value theory argues that value will derive from the region where social value is
created, this is an essential factor. So Internationally operating companies were selected first.
Following, a quick scan of business operation locations is performed to check if companies operate
in the regions of IHF projects. Thirdly, the business activities of the companies were reviewed. The
companies in the research sample need to have some relation to schools and education of children.
These three criteria were determined based on the literature review. The theory argues that a
company is most likely to create value when the business relates to the social value IHF projects
31
deliver. This is reflected in the hypothesis: The closer IHF’s social value complements a business CSR
strategy, the greater the potential for creating Shared Value.
The website of MVO Nederland conveniently lists partner companies and contact persons,
CSR managers or CSR project managers. Further online research was done to get the right contact
information. The following primary research methods will be further explained in the next
paragraphs.
3.2.3. Exploratory research
This section will provide an overview of the primary research methods applied.
First, IHF volunteers are interviewed to gain insight in the organizational strengths
and potential strategies.
For an objective external view on IHF, contact persons from Siemens and Triodos
Bank are interviewed as well. These were unstructured, exploratory interviews. Transcripts
of the interviews are placed in appendix 4 and 5.
Following, IHF value propositions were developed and tested with the sample of
MVO Nederland partners. Also, three large companies with strong affection for CSR and the
philosophy of Waldorf education are consulted. This selection will be further explained in
the following section.
Research sample
The sampling method used in this research is convenience sampling. This method is applied because
the time and resources for this research are limited. Selected respondents who are willing to
participate and accessible (Baarda, 2014) are approached for personal interviews.
The main advantage of convenience sampling is the accessibility of research subjects. The
most common disadvantage of this method is sampling bias and representativeness (Baarda, 2014).
The sample does not represent the entire “corporate world”. In the next paragraph, the
characteristics of the sample are shortly described.
32
The research sample in this study, consists of three groups:
- Volunteers working for IHF for internal research on the organization

- Three high level business managers from Siemens, Kuijpers and Triodos bank to
refine the value proposition of IHF to business.
- Five MVO Nederland partner CSR managers to test the value proposition.
Since this is a qualitative study with an exploratory character, the level of population
representativeness (Steinberg 2008), is relatively low. The respondents can provide the study with
valuable insights on CSR management in companies. These insights are valuable for IHF to further
define their value proposition in their Marketing strategy.
The table below lists the research subjects in each phase of the research.
TABLE 3.1: RESEARCH SAMPLE
Volunteers working for IHF

PHASE 1
- Warrink (portfolio Africa)
Organization - Bosch (portfolio South America)
analysis - Kraanen (PR and portfolio Brazil)

- Van Lierop (Treasurer)
- Francken (Finance and Accounting)
Business managers
PHASE 2
- Gröninger, Kuijpers (CEO maintainance)
Refine value - Fortuyn, Siemens Nederland (CEO Energy division)
proposition - Holterhues, Triodos Bank (Head of Socially Responsible Investments)
CSR managers from MVO Nederland partner companies

PHASE 3
- Kroft, A-ware food group (Manager CSR and Corporate Communication)
Test Value - Van Dijk, Douwe Egberts Nederland (Senior Communications Specialist)
proposition - Van Herel, Oracle (Director Business Operations & Marketing BeNeLux)
- Bent, BAM groep (CSR project manager)
- Koolen, Heijmans (Director strategy and innovation)
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Limitations of the study
Limitations are mainly concerned with the representativeness of the study. Representativeness is
the degree to which a group of people accurately represents a larger population (Bryman & Bell
2015). The research sample is limited and may not represent the complete ‘corporate world’. It
must be noted that market dynamics are very diverse and many opinions vary in the corporate world
anyway.
A second limitation is validity of the study. Validity, the integrity of the conclusions
generated from research (Bryman & Bell 2015), is an important factor to put in perspective. Each
company has its own mission and vision which influence their answers to the research questions.
Furthermore, the literature review has shown that many different opinions on CSR exist. This also
influences a company’s approach to investments in NGO’s like IHF.
Reliability, accuracy and population representativeness are not relevant in this study since it
has an exploratory character. The research intends to provide valuable insights for
recommendations on a services marketing strategy for IHF. Whether the results of this study are
repeatable (Bryman & Bell 2015), is also irrelevant. The market conditions regarding CSR and
sustainability have changed significantly in the past and are likely to continue doing so. Business
managers adapt to market conditions, which may lead to different answers if the study is conducted
again.
Lastly, a limitation of this study is the time and resources available. Because IHF projects are
located all over the world, it is difficult to determine if Shared Value can be created. The notion of
Shared Value argues that local markets will reward a company for delivering social value in the
community. The research is conducted in the Netherlands with Dutch companies, which makes it
difficult to assess if Shared Value is created from an investment in IHF.
The next chapter will describe the relevant research results.
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Chapter 4 – Results and Analysis
In this chapter, the research results of the interviews are elaborated. The first part of this chapter
presents the results of the internal interviews and survey, and the second part elaborates the results
of the external research. Following the compiled relevant results, the analysis is explained.
Compiled relevant results
This part of the chapter will list and summarize the compiled relevant. First, the survey results on
organizational culture and structure (Quinn & Cameron 1999) will be presented. Furthermore, the
interviews with IHF volunteers are presented to complement the results of the internal research. An
initial value proposition is also defined in these interviews.
In the second part of this section, the results of the external research are presented. The
value proposition formed from desk research and internal interviews is tested with the sample of
companies. Responses of the research subjects are summarized to present the results of the
external research.
4.1.1. Summary internal research results
This first part will describe the organizational structure and culture of IHF. The results are based on
the review of organizational documents, survey results and interviews with organization members.
Organizational structure and operations
IHF is a flat, horizontally structured organization divided in functional units. Little formalization of
behaviour and hierarchy is applied in the IHF organization. In consultation with treasurer Van Lierop,
the diagram below of IHF organizational structure was formed.
FIGURE 4.1: IHF ORGANIZATIONAL STRUCTURE
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Chapter 4 – Results and Analysis (cont’d)
IHF currently employs fifteen active volunteers and one paid accountant for official finance
administration. This accountant also provides regulatory and financial consulting services to
executive management. The Executive board represents IHF at meetings with the European
partners.
IHF project region managers communicate with local school boards and project executives
to; assess project plans, monitor progress and compliance with project agreements. Approved
project plans by project region managers are presented to the Executive board who make the final
decision on funding proceedings.
Product sales consist of online sales in the web shop of IHF. Furthermore, volunteers
organize stands at different Waldorf school events where they offer physical products for sale. These
products are made by parents and children from Waldorf school all over the world.
Public Relations mainly involves informing donators on progress and impact of their
contributions. This function includes editorial work in updating the website and a magazine named
“rOndbrief”, published twice per year. This a5-format magazine is distributed to each donator by
mail and available digitally in the website. An example of this magazine can be found in appendix 8.
Region managers contribute to the magazine by providing stories and photographs from project
visits. Otherwise, local project executives send over pictures and reports on progress to inform
donators.
IHF has not set specific guidelines for fundraising. Each volunteer is free to raise funds in
their own diversified way. Examples include selling home-made organic jam at local markets, or
offering dance-classes in return for a donation.
Organizational culture
To determine the organizational culture, volunteers from IHF and its executive management
completed the Institutional Culture Assessment (Quinn and Cameron 1999).
The results are presented in figure 4.2 (see next page). The most common responses are highlighted
in a green box.
36
FIGURE 4.2: IHF ORGANIZATIONAL CULTURE ASSESMENT RESULTS
The assessment classified IHF as: 40% Clan-culture (A) and 35.8% Adhocracy-culture (B).
A Clan organization has little focus on structure and control and a greater concern for flexibility.
Rather than strict rules and procedures, people are driven through vision, shared goals, outputs and
outcomes (Quinn & Cameron 1999). The analysis section (4.2) will expand on the implications of the
IHF structure and culture for potential marketing strategies.
Now that the organizational structure and culture are explained, the next section will
describe the value proposition of IHF according to the respondents. The implications for good
business will be discussed in the conclusions and recommendations.
Intrinsic IHF value proposition
The value proposition of IHF, the value or benefit created for business, will be described in the
following paragraphs. Interviews with IHF volunteers led to three main components of possible value
to business stakeholders.
37
IHF strengths, possibly of value to business, are:
1. Wide range of international project locations and local connections.

2. Primary education is an essential element to a society.
3. Waldorf education
1. Providing direct support in primary education of children in many different international

developing regions. IHF has a vast International network of projects and supporting NGO’s to
manage direct and efficient funds distribution. Furthermore, IHF projects are located world-wide, in
developing regions with business opportunities.
2. Supporting children in need will likely lead to a positive effect on business reputation.
Primary education is an essential element, a basis for a sustainable society. This can be an
opportunity for a business to build strong connections and penetrate developing markets.
3. Waldorf education specifically, is strong in environmental awareness, creative-,
independent- and critical thinking. The most prominent value proposition presented by the
respondents, were the advantages of Waldorf education over traditional public education. Many of
the criticisms on traditional public education, have been answered in Waldorf schools for a long
time. The analysis (4.2) will go deeper into why Waldorf education specifically may be a competitive
advantage.
IHF currently has one deal with a company, former employer of Bosch. Her function in IHF is
portfolio/ region manager South America. This company she closed the deal with, reserves economic
profit for employees to allocate donations to good causes of their choice. One of this company’s
current employees, supports IHF yearly with a varying amount of money.
One other collaboration with a company was initiated by Warrink, IHF portfolio manager
Africa. Mercurius, a company who produces certain crayons used in Waldorf school was approached
by Warrink. A school in Capetown was in need of their products and Mercurius was asked for
support. The company agreed to send as many of their products as needed, all costs were covered.
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4.1.2. External research results
The results of the organizational research and intrinsic value proposition are described in the
previous section. The following paragraphs will describe the results gathered from external sources.
First, the value proposition is refined based on comments of three business managers. Furthermore,
the refined value proposition of IHF is reviewed by five CSR managers from MVO Nederland partner
companies.
Refined Value proposition
The following paragraphs will describe the results of the first part of external primary research.
Interviews with three business managers lead to a more developed value proposition of IHF to
companies. In what way can IHF projects add value to a business?
Gröninger, CEO of Kuijpers maintenance, says that many Dutch companies who are invested
in CSR, apply the MVO performance ladder. Their CSR policy is based on guidelines developed by the
International Organization for Standardization, abbreviated ISO. The ISO 9001 certification is
advanced by including CSR standards, into ISO 26000. This is not an official certification yet, but the
guidelines (see appendix 9) form the basis for the MVO performance ladder. Dutch companies
would be interested in working with IHF when it provides tangible benefits in advancing on the MVO
performance ladder.
Fortuyn spoke for his company Siemens, he noted to find it difficult to see the Shared Value
when his company would support IHF. The international network of IHF in Education, could be of
value to Siemens in PR-publicity. Siemens is definitively capable of supplying schools with
engineering- and energy services like solar panels. However, Siemens serves primarily businesses
(B2B) in developed economies. According to Fortuyn, a collaboration with IHF would not likely result
in sustainable returns on investment, certainly not in the short-term. Only if Siemens has concrete
plans to penetrate developing markets, a project of IHF may be of value in such a scenario. It was
clear that IHF needs a tangible value proposition for companies such as Siemens in the short- to
medium term. Idealistically, Fortuyn does believe that the theory of Porter can work. Shared Value
can be a competitive advantage in penetrating developing markets.
39
A challenging aspect is the fact that IHF projects are based on Anthroposophy, a specific
niche philosophy that is fairly unknown and often belittled. Only a few companies apply
Anthroposophy in their business, let alone in Marketing. Triodos bank for example, is founded by
Blom and Anthroposophy used to play a major role in the bank. Today, Blom says (BOS profile, NPO
2011) that the philosophy is on the background. In 2009, Triodos bank was proclaimed ‘the most
sustainable bank in the world’ by the Financial Times. Holterhues, Head of Socially Responsible
Investments at Triodos bank gave his view on the value proposition of IHF.
Holterhues confirmed that Anthroposophy does not influence the investment decisions
Triodos makes daily. The philosophy is however the basis of the bank’s ideals. Triodos bank supports
a number of Waldorf schools in the Netherlands, because this aligns with their vision of supporting
sustainable development. Triodos is connected to many small microfinance offices around the
world. These subsidiaries explicitly share the vision of Triodos on sustainability and social
development. A key question here was; could a collaboration with a particular local microfinance
business result in Shared Value. Holterhues noted that it is hard to assess whether that would be the
case, since he is not familiar with the local market dynamics in developing countries. The interview
lead to the conclusion that such investments in IHF would only succeed when a sustainable business
case is present. Triodos does not merely sponsor social projects, the bank is looking to collaborate
with clients for profit in a sustainable business model. Triodos controls this by critically assessing
each project on alignment with their CSR policy and whether it engages stakeholders of the bank.
Phase two of primary research with business managers resulted in the following factors for
IHF to include in their value proposition:
- CSR performance ladder benefits

- Stakeholder engagement
- CSR policy alignment
Based on the first results of primary research, completed with the insights gained from the
literature, a value proposition is formed and presented to the research sample of phase three. The
exact proposal that was tested can be found in appendix 7. The next section summarizes the results
of the value proposition testing with MVO Nederland partner companies.
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Value proposition test results
The following paragraphs will summarize the answers of MVO Nederland partner companies to the
questions:
1) Do you think an investment in IHF would have a positive effect on your company’s
stakeholders?
2) Would your company hypothetically be willing to invest in:
i) Child education support, (school fee)
ii) teacher support, (teacher training, salary) and/or
iii) school products/construction support?
The questions were presented with 1) the map of IHF project locations, and 2) the conceptual
model below:
The relevant results from each respondent’s interview are summarized in the coming
paragraphs. Analysis on what findings and conclusions can be drawn from results will be discussed in
section 4.2.
41
Kroft, CSR manager and Corporate Communication at A-ware food group was the first to
respond: ‘No’ to both questions. This cheese producer/exporter specifically set their policy to focus
on social projects in the Netherlands. The company set up their own foundation subsidiary, which
supports children who are sick or handicapped. Stakeholders related to this foundation are informed
on the focus on Dutch children. Kroft said it would be confusing to stakeholders when it would
support projects abroad in developing countries.
Van Dijk, Senior Communications Specialist at Douwe Egberts Nederland did see possibilities
for shared value, since many of their suppliers are located in developing countries. The CSR policy of
Douwe Egberts (DE) however, is currently more focussed around Fairtrade. Porter views Fairtrade as
a CSR initiative that differs from Shared Value. Fairtrade is a re-distribution of the wealth, asking a
higher price from end consumers to pay farmers more. Shared Value is meant to strategically
increase the wealth of all parties involved. Meaning that a company like DE would support farmers
not only by paying more money. Shared Value says that if a coffee company would help farmers
increase their yield and efficiency, all stakeholders will be more profitable. In that sense, Van Dijk
does view supporting IHF more as a sponsorship deal rather than actually Creating Shared Value. So
her answer was ‘Yes’ to the first question, but ‘No’ to the second question.
Van Herel, director Business Operations & Marketing BeNeLux at Oracle, noted that her
company is working on Creating Shared Value through education projects. However, Oracle is more
involved in higher education rather than primary education. Van Herel explained that Oracle gains
value from students getting acquainted with the company and interns add real value. For primary
education, Van Herel finds it difficult to assess if her company would profit in the long term. She did
note that it makes an interesting case to develop further. Especially now that technology becomes
increasingly more accessible, also in developing markets. For Oracle to penetrate those markets, IHF
projects may add value. However, she was not able to give a more informed comment, since she
focusses on the BeNeLux markets. Oracle mainly delivers IT services to companies in developed
countries, therefore she answered ‘No’ to both questions.
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Bent, CSR project manager at construction company BAM groep, revealed an interesting
recent collaboration in developing countries supported by her company. Together with SOS
Kinderdorpen, the company provided construction services to build orphanage homes in Jordan. The
obstacle she noted with the proposed value proposition of IHF, is that she was not convinced of a
local NGO managing the projects. With SOS Kinderdorpen, a much larger NGO raising around €22M
annually, BAM groep worked with local partner NGO’s. This guaranteed effective fund distribution,
managed the labour done and returned PR material to Bam groep. For this reason, Bent was not
sure about question 1 and said ‘No’ to question 2. This interview did result in the insight that a
construction company surely sees Shared Value in supporting projects like IHF presents. Further
elaboration on this will be described in the next chapter: Findings and Conclusions.
Koolen, Director strategy and innovation at construction company Heijmans, showed a clear
interest in the Shared Value aspect of the proposal. However, he noted that the word ‘sponsorship’
in the initial proposal is confusing when discussing Shared Value. He perceives sponsorship as a one-
way gift, rather than a collaboration for Shared Value. After elaborating on the value proposition,
Koolen did acknowledge that there can be value in supporting IHF projects. One problem for
Heijmans specifically is however the location of the projects. Most stakeholders of Heijmans are
located in the BeNeLux. He described a Shared Value project that Heijmans undertakes with Dutch
primary schools and Center Parcs. Events are organized yearly for children to learn about climate
change and share ideas on developing the environment. Koolen explained that this works well for all
parties, Center Parcs is a big client of Heijmans and these events bring good PR to both companies.
Furthermore, Heijmans supports higher education projects, where the value for the company is in
knowledge and internships of students. Similar to BAM groep, it is apparent that a construction
company can create Shared Value by supporting social projects with their expertise and capacity.
Although the projects must be in the region where stakeholders will reward the efforts by the
company. In the case of supporting IHF projects, Koolen answered ‘No’ to both since their business is
focused on the BeNeLux.
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Research Analysis
In the previous section, the relevant research results were presented and summarized. In the
following section, the results will be analysed using Management literature. First the organization of
IHF is analysed, specifically the organizational structure and culture. Following, the external research
results on the value proposition of IHF are analysed critically. This is largely an interpretive analysis,
discussing also what may be implied with certain responses.
4.2.1. IHF organizational analysis

Organizational structure
In terms of organization structure literature by Mintzberg, the IHF organization framework is

described by the interviewees as both an Adhocracy- and Simple structure. IHF is a very flat
organization as shown in figure 4.1.
The key parts of the organization (Mintzberg 1980) of IHF is shown in figure 4.3 below:
FIGURE 4.3: MINTZBERG’S KEY PARTS OF THE IHF ORGANIZATION
Source: Organizational Structure: Mintzberg’s Framework, Lunenburg 2012
The strategic apex of IHF is the Executive board (see figure 4.1). Including the CEO, Secretary
and Treasurer. The operative core in IHF best applies to the local project management, teachers and
students. Even though these people are not officially employed by IHF, they are financed through
IHF and execute the actual work. The middle line of IHF are the Project region managers. The
technostructure in IHF consists of an accountant, public relations and online sales management.
44
The support staff in IHF is limited to an occasional consultant to advise the organization on legal and
financial matters.
The prime co-ordinating mechanism of IHF works as follows: project regions managers make
decisions based on ‘mutual adjustment’ (Adhocracy) under ‘direct supervision’ (Simple) of Executive
Management Board. The type of decentralization in IHF is selective and vertical centralization.
Project region managers advocate for project support, the strategic apex makes final decisions on
fund distribution.
Organizational Culture
The organizational culture of IHF is determined with the assessment of Quinn and Cameron. Results,
shown in figure 4.2, classify IHF primarily as ‘Clan’ and ‘Adhocracy’ culture. Figure 4.4 below shows
the current results on IHF’s organizational culture, and what is preferred according to IHF volunteers.
FIGURE 4.4: IHF ORGANIZATIONAL CULTURE (CURRENT AND PREFERRED)
Source: Cameron & Quinn OCAI online assessment IHF results
A clan culture is typified as family-like, with a focus on mentoring, nurturing, and “doing
things together.” An adhocracy culture is dynamic and entrepreneurial, with a focus on risk-taking,
45
innovation, and “doing things first.” The findings of the interviews with IHF on its culture gave a
predominant impression of a clan culture. IHF is not very risk-taking, but is entrepreneurial in the
fact that members raise funds through varying initiatives.
The results on what is preferred show that IHF is looking to become more balanced and gain
in stability and control, external focus and differentiation as well as internal focus and integration.
Interviews, with the business managers, about the IHF organization confirm that a more market-
focused way of operating may lead to more effective fundraising. The IHF organization can be
typified quite introvert and little aware of differing opinions on Waldorf education. The following
section will analyse the results on IHF’s value proposition for business.
4.2.2. IHF value proposition analysis
This section will analyse the presented value proposition in order to develop a possible marketing
strategy for IHF.
Results of the value proposition test showed that the respondents were hesitant to commit
to a form of investment. The CSR managers certainly needed further explanation on the actual value
for their company. This is likely due to a wide variety of CSR strategies applied in different
companies. Each respondent’s understanding of CSR was unique. The CSR managers were however
familiar with Carrol’s pyramid.
Also, the first impression of the IHF website was perceived somewhat unclear and
‘alternative’. Especially when the respondent is unfamiliar with Waldorf education. The respondents
needed to see tangible Shared Value for their business before moving on to talk about investing
funds. However, Waldorf education has many strengths regarding CSR and sustainability. Only two
of the seven respondents know about these strengths. The following section will analyse the value of
Waldorf education that can be applied in a marketing strategy.
Strengths of Waldorf education
Waldorf education is based on the principles of Anthroposophy by Steiner. The first Steiner
school was founded in 1919, Stuttgart Germany. The school was founded to educate the children of
the factory workers from the Waldorf Astoria Zigaretten Fabrik. Hence the name ‘Waldorf
education’. All children, independent of social status or talent, received the same lessons. This made
46
the school a pioneer of social justice in education. A business with an interest in human rights could
value this aspect in Waldorf education.
Waldorf education seeks to develop holistic, responsible individuals with social competence
and creative capabilities. Creative and scientific subjects receive equal attention. Waldorf education
is often criticized for starting later with reading, writing and mathematics. Another point of critique
is the fact that technology in kept from children until their teen years. However, executives from
high-tech companies like Google, Apple, Yahoo and Hewlett-Packard choosing Waldorf schools for
their children (New York Times 2011). Jobs also limited the amount of technology for his children
(New York Times 2014). This shows that there are clear strengths for demand of alternative
education like Waldorf schools.
Waldorf has become a recognised educational theory is now state funded in Europe, the
United States, Canada, Australia and New Zealand. In less-developed countries, Waldorf schools rely
on funds from parents, private investors and NGO’s. Nevertheless, Waldorf is one of the fastest
growing movements of alternative education, along with Montessori. Today there are over a 1000
Waldorf schools in sixty countries (Waldorf world list 2014). Waldorf uses a unique project based
approach to almost all main academic subjects. Also gardening is a main subject in Waldorf schools,
which relates to CSR for the environment and nature.
Biodynamic agriculture has also evolved from Anthroposophy. Steiner is considered one of
the founders of the modern organic farming movement. Furthermore, many homeopathic medicine,
health- and body-care products are based on Steiner’s philosophy. The EU market for homeopathic
and anthroposophic medicines grows by 6.5% per year (ECHAMP 2015). It is now valued at €1.24
billion per year; this represents 7% of the total EU market for non-prescription products. Well-known
anthroposophic pharmaceutical companies are Weleda and Wala. Other large companies in the
market of Anthroposophy are Stockmar, Mercurius International and Ecover. Companies who are
aware of the strengths in Waldorf education, can be defined as the ideal target market for IHF.
Analysis of current IHF business cases
The case where a company distributes profits towards supporting IHF projects, can be defined as
philanthropic CSR. In Visser’s theory this would qualify as CSR 1.0, not really Creating Shared Value;
The value for the company in this case is purely employee motivation. The IHF website does not
show any logo of this company or receive PR material apart from ‘de r0ndbrief’.
47
Recent research state that graduates are attracted to employer brands which they value as
consumers (PWC 2011). In 2008, 88% were specifically seeking for employers with CSR values that
matched their own. 86% would consider leaving an employer whose values no longer met their
expectations (Deloitte 2015). This is worth noting for IHF to promote companies to support a project
which to enhance employee motivation.
The case where Mercurius sponsored the delivery of school products, is actually a perfect
example of Shared Value. However, this is not an ongoing strategy of Mercurius which is possibly
untapped potential for the company. This case does show exactly how both a business and social
project can profit from each other. Imagine a transportation company for example, delivering a bus
service bringing children to school every weekday. The children and parents will see the company’s
goodwill several times each week. Future profits for the transportation companies may arise when
government of private investors get to know the brand. Also companies delivering basic utilities like
water could create Shared Value in collaboration with local schools. This goes for any business
delivering services valuable to schools, also construction work to build classrooms.
Interviews with the two construction companies confirmed that there is value in such
collaborations with schools for the company. In the short-term, this is often an increase in employee
motivation for their contribution to society. In the long-term, it is more difficult to measure the
value but brand recognition is definitely a big factor. When a business operates in the region of a IHF
project, and its product/service relate to education and schools, Shared Value can be created.
Analysis of IHF value proposition test
The paragraphs below describe a short analysis of the key takeaways from each interview.
 Kroft – The CSR policy of A-ware food group is focused on their target market in the Benelux,
the project locations of IHF are a barrier to add value to their CSR activities.
Analysing the interview with Kroft from A-ware food group shows that a CSR manager executes the
set CSR policy of the company. It is advised to review a prospect business their CSR policy
beforehand. Someone in the position of CSR manager, will have to comply with the set policy. A CSR
manager will only respond positively to a proposition when it clearly shows added value to their CSR
activities. It is also important to show how exactly supporting a project will positively affect a
company’s target market.
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 Van Dijk – Douwe Egberts could create shared value with IHF projects, but further planning with
local CSR managers is required.
Companies producing coffee, often source from developing regions. This can be an opportunity for
IHF to get support from the coffee business for their projects. Fairtrade is a real trend which allows
room for local farmers and sourcing plants to undertake activities for social progress in their local
region. The interview with Van Dijk raised the concern of local management, it is very difficult to
assess and manage Shared Value creation from overseas. Really, local connections are required to
develop a successful undertaking with an IHF project. Coffee companies however, definitely have an
interest in good local reputation that allows for such local business to grow and attract labour force.
 Van Herel – Does see shared value in education projects. Primary education holds insufficient
common ground with Oracle’s business, which is aimed to serve higher education.
Technology in Waldorf schools is not used until secondary school, so it is understandable that Oracle
is not very inclined to support IHF projects. When Waldorf schools in developing regions are
developed to secondary education, Oracle may be able to create Shared Value then. However,
Oracle’s main business is in developed markets where large schools apply their technology daily.
Currently for IHF, these type of companies will not likely result in much business funding or other
support in kind.
 Bent – BAM does undertake projects with schools or day-care for children, but require a local
NGO to manage return of value for the company.
Interestingly, BAM groep recently undertook a project in Jordania for orphan children. BAM supplied
the project with materials and employees built the orphanage. This project was managed by a local
office of SOS kinderdorpen, a large NGO raising around €22M per year. BAM groep works globally
and big clients are located in Jordania. The CSR policy of the company is focused on human rights
and setting a good example as an employer. A project with IHF would fit very well in their CSR
portfolio, but the company will stick to their specialty. They will ask of an NGO to do most of the
project management, particularly for Marketing and employee motivation. BAM groep benefits
because the government is comfortable to hire the company for building a harbour for example. The
website of IHF did not convince that they can deliver local project management. Furthermore,
Waldorf education specifically, is not very relevant to the CSR policy of BAM. Education of children
alone would already have a positive effect on their reputation on human rights.
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 Koolen – does see shared value in IHF projects with local construction companies, but locations
do not match with Heijmans.
The interview with Koolen lead to an interesting finding. He noted that when a NGO uses the word
‘sponsor’ in a proposition, it will raise eye-brows or even put off CSR managers who are looking to
Create Shared Value. As described earlier, Shared Value is a business strategy aiming to make a
profit while doing good. The word ‘sponsor’ is much more related to charitable CSR, Visser’s theory
would qualify this as CSR 1.2. Koolen noted that it can be very complex to develop a Shared Value
strategy, especially in a large organization. According to Koolen, to develop a real Shared Value
strategy in collaboration is a two-way dialogue between multiple people within both organizations.
As for the projects of IHF, location is the greatest barrier to Create Shared Value. The market of the
company is primarily located in the Netherlands; their international stakeholders are investors.
Interesting for future research, how would international investors and clients be affected when
Heijmans would support local schools in their country of residence.
To recap on the interviews, it became apparent that CSR is well developed in companies in
the maturity phase of their product life cycle. The level of development in CSR did differ among the
respondents’ companies. Some are already actively working on Shared Value, others were in an
earlier stage of CSR, but all appeared to agree that Shared Value would be an ideal result. Regarding
the value proposition of IHF, it was clear that the CSR managers were mainly interested in education
as is, not particularly Waldorf education. However, when a company and its stakeholders
understand the added value of Waldorf education, it can be a competitive advantage.
Experts in education confirm a trend towards alternative education. The most viewed TED-
talk to date, is titled ‘how schools kill creativity’ by Robinson (2011). Robinson is a widely
acknowledged expert on education and finds public education’s basis in Industrialism is hurting the
creative capacity of children. The fact that over approximately 300 million people have viewed his
presentation, shows there is a global demand for alternative education. A second observation Sir
Robinson presents; is a protracted process of university entrance which stigmatizes creative
students to pursue higher education that value their unique talents. Pappano, journalist and author
for Harvard Education Press, states in 2011 that “Waldorf is the education equivalent of how the
handmade, home-farmed food movement is transforming consumers view on processed food”.
Waldorf education views each child as unique and seeks to provide a learning environment for each
student to develop their specific talents. However, the popularity of Waldorf education is not by far
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on the level ‘bio’ or organic farming. The table below summarizes the key points taken from the
results and analysis.
TABLE 4.1: RESULTS AND ANALYSIS SUMMARY:
RESULTS ANALYSIS
PHASE 1 - Strengths: International network, International network should be utilized
local connections, Education is to the fullest.
Organization essential for a sustainable society.
Business communication and knowledge
analysis - Weaknesses: International business of Shared Value is important to develop
communication, Human resources, a value proposition and a profitable
small team. strategy.
PHASE 2 Value proposition must deliver value Strengths of Waldorf education only
for: relevant for companies that value
IHF value Anthroposophy.
- Business CSR policy: CSR
proposition Performance ladder IHF Website could be improved, more
focus on the CSR values of supporting
- Local stakeholders of the company Primary education in the region.
- Education support is valuable in

CSR of many companies
PHASE 3 - No direct commitment to an Business terminology should focus on

amount of money, further Shared Value.
Test Value negotiation required to determine
Shared Value. Product/service must relate to primary
proposition education.
- Waldorf education fairly unknown.
Stakeholders must be located in the
- Supporting education attractive to region of IHF project.
many types of business.
Local project- and Marketing
- Local Project- and Marketing management is an important factor.
management is preferred.
Most companies will be foremost attracted to Creating Shared Value through supporting
basic primary education in the regions where key stakeholders reside. For now, it appears that
strengths of Waldorf education are of secondary relevance. The next chapter will outline the findings
and conclusions drawn from the research results and analysis.
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Chapter 5 – Findings, Conclusions and Recommendations
This chapter will present the findings of the research results and analysis, which is summarized in the
first section. The findings of the internal- and external research will be described in the following
sections. Then, the next section presents conclusions drawn from the findings, specifically regarding
the Marketing mix of IHF. Ending the chapter, a review of the hypothesis, and a possible answer to
the main research question are presented.
Analysis findings
The results and analysis presented interesting findings of IHF’s organization, their value proposition
and current collaboration with business. One of these cases was actually an example of Shared
Value, it just did not evolve in an ongoing business strategy. This does show the strengths of IHF and
Waldorf education with regards to business CSR and Sustainability.
External research partially confirmed that the value proposition of IHF can embrace a
company’s corporate citizenship. A number of factors, that IHF should consider in their Marketing,
were discovered. Key factors that IHF’s value proposition should account for, are:
- Alignment with CSR strategy and policy of prospect company

- Key stakeholders of prospect company must be located in the project region
- Primary social service, or value is Primary Education and Child-care
- Waldorf education specifically can be a competitive advantage
Furthermore, most companies will require a local NGO office to manage and market the
project as a service from the NGO. This is because companies want certainty of value returns for
their company. The IHF projects, education and child-care, must fit and embrace the CSR policy of a
company. Also, the business terminology used is an important factor to consider. CSR managers
found the words ‘sponsorship’ or ‘donation’ not relatable to ‘Shared Value’. To achieve real Shared
Value, the NGO and company must involve all stakeholders in a dialogue to develop an effective and
sustainable strategy.
The following section will describe the findings of the internal research on the IHF
organization and Marketing.
52
Chapter 5 – Findings, Conclusions and Recommendations (cont’d)
Internal research findings
Interviews with the people working for IHF lead to a number of findings that could be improved,
especially regarding Marketing for business support. Reviewing the website and interviews, it is clear
that there is a primary focus of IHF on Waldorf education. Also, the listed possibilities on the website
to support IHF, are based on donations or sponsorship. IHF is positioned as an organization that
delivers service in direct, and personal fund distribution to Waldorf schools in developing regions.
- Competitive advantage in Waldorf education vs. traditional education
IHF employees understandably found Waldorf education to be the best alternative to

traditional education. This is a subjective opinion, but further research showed that a significant
group of people demand alternative education over traditional public education. Even executives of
large companies are choosing Waldorf education for their children. Waldorf schools pay more
attention to the development of a child, rather than training for good test results. The type of
education has many similarities to the World-renowned education system of Finland.
- Low capacity of international human resources.
IHF is relatively small organization and the communication with the projects abroad is
limited. International companies, with local subsidiaries near projects, may require IHF to deliver
more local support in project management in a possible collaboration. IHF does however, have a
strong international network in Europe. Especially the large German NGO ‘Friends of Waldorf’ may
be valuable in this aspect. This NGO sends out many young people to do voluntary work instead of
serving in the army. This may be an opportunity for IHF to utilize when an international company is
interested to develop a Shared Value strategy together.
- Little knowledge of business processes.
The people working for IHF are relatively inexperienced in the corporate world and fairly
unfamiliar with business terminology. This may form a barrier for IHF to engage companies in the
dialogue for Shared Value Creation. IHF may need to acquire more knowledge on CSR literature and
Shared Value strategies. The network of IHF could be an asset to do research in this area. The
research in this study could be greatly expanded with research from volunteers working on
IHF/Friends of Waldorf projects abroad.
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- Limited budget for Marketing
IHF does not have large cash-reserves for Marketing campaigns, unlike NGO’s like SOS
kinderdorpen for example. This limits the possibilities for promotion significantly, but is not a barrier
for direct personal marketing towards CSR managers. When IHF has engaged an international
company for a Shared Value strategy, the available budget may be scaled up when results are
profitable for the company.
Overall, the internal research findings, the accompanying analysis and literature in CSR and
Shared Value show clear opportunities for IHF to engage business to support their projects. The next
section will describe the finding in external research in the corporate world.
External research findings
The positive notions on Waldorf education from IHF were not always recognized by the respondents
in the external research. However, the business managers did acknowledge that Shared Value is
possible through supporting Primary education in the regions of key stakeholders. The paragraphs
below, outline the findings that influence the Marketing of IHF for business support.
- Waldorf education fairly unknown, primary education and child-care suffices for most CSR.
Interviews with business managers lead to the finding that primary education and child-care
is the foremost value proposition of IHF. Strengths of Waldorf education over traditional education
are only a competitive advantage when the company and its stakeholders value these strengths. For
many companies, solely primary education and child-care in developing regions suffices to embrace
their CSR policy.
- Developing Shared value strategy takes time.
A second finding of the external research, was that Shared Value can be very complex and
context-sensitive. To develop a successful strategy, local stakeholders and projects managers must
be in place and involved in determining effective collaboration. The respondents were presented
with a value proposition including an amount of funds needed. None of the respondents were
inclined to commit an amount of money straight away. As described earlier, multiple stakeholders
and people from both organizations must work together to develop a strategy for Shared Value.
54
- CSR managers are interested to discuss Shared Value.
A positive finding of the research was that CSR managers are generally open to discuss
possibilities for Shared Value. Bear in mind, the CSR department of a company generally exists of the
people in the organization who care about social- and environmental contribution. So, in order to
meet with the right people in a company, is simply a matter of a few calls. It is up to IHF project
region managers to focus their work on account- and relationship management with CSR
departments of companies.
- Business terminology
The marketing of IHF should avoid the use of the words ‘sponsorship’ or ‘donations’ when
targeting business. It should focus on Shared Value for companies with stakeholders located near
IHF projects. It is important to use the appropriate business terminology.
The next section will describe the conclusions that can be drawn from the findings to answer
the research questions. The hypothesis is reviewed in the next section as well.
Conclusions
The central research question is: “How can IHF apply CSR theories and concepts to Create
Shared Value?” To develop a conclusion on this question, the sub-research questions are answered
first. Sub-research questions about the concepts of CSR and Shared Value, have been outlined in the
literature review. The definition of CSR applied in this study is: “The social responsibility of business
encompasses the economic, legal, ethical, and discretionary expectations that society has of
organizations at a given point in time” (Carroll 1979). Shared Value as follows: “profitable business
strategies that deliver tangible social benefits” (Porter 2011). The research objective was to “find
possibilities for IHF to strategically apply CSR concepts to Create Shared Value”. The research
findings clearly showed possibilities, when the right conditions are in place for IHF and the business.
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5.4.1. Preconditions for Shared Value
Three key preconditions that need to be present in the IHF organization, are:
- Commitment: project region managers must be committed to contact and engage

companies.
- Responsibility: IHF must take responsibility to deliver social- and economic value for a
company.
- Control: a tangible measurement protocol to account for results and inform stakeholders.
Even with the conditions above in place, a number of market conditions must also be
present for the company to Create Shared Value. These are:
- Stakeholder location: the project should deliver (social) value in the region where key
stakeholders are located.
- Type of business: the product or service must relate to primary education.
- CSR strategy and policy: value proposition of IHF must correspond and add value.
When all three factors are in alignment with an IHF project, there is a possibility to Create
Shared Value. IHF can select a target group as shown in the table below. Firstly, each project region
managers of IHF should research all companies located close to projects in their region. Secondly,
find out whether the product/service relates to the project’s social value. Then, research their CSR
strategy- and policy and adjust the value proposition accordingly.
TABLE 5.1: PROSPECT COMPANY SELECTION TABLE
The companies where all three boxes are ticked, are the first for IHF to contact. The Shared
Value proposition should be adjusted for the specific product/service and location of their market.
When two boxes are ticked, IHF can still be of value to those companies with a proposition adjusted
for their CSR strategy and policy. This may include philanthropic CSR by sponsorships or donations.
Shared Value may evolve from such initial support, when the company profits from the social value
in the region of their business. When only one box is ticked, those companies are the last to contact.
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5.4.2. IHF Services Marketing strategy
So, the target market can be identified using table 5.1. International companies with stakeholders in
the region of IHF projects. Companies delivering a product or service relating to primary education
and child-care. Also, the prospect company’s CSR strategy and policy must correspond with the IHF
project.
The positioning of IHF would best focus on Shared Value that can be achieved with primary
education, rather than Waldorf education specifically. Their Marketing message should include the
benefits business receive when supporting local schools. The figure below shows each of the seven
P’s in the Marketing mix of IHF:
FIGURE 5.1: IHF SERVICE MARKETING MIX
The aspects of the Marketing mix shown in the figure above are based on the research
findings. Taking in consideration the limited budget, a direct marketing approach is advised. Also
called Relationship Marketing (Palmatier 2006), IHF needs boundary spanners to connect and
engage companies capable Create Shared Value with their projects. Project region managers and the
Executive board of IHF need to take responsibility of an account manager role for the projects.
57
Coming back to the central research question: “How can IHF apply CSR theories and concepts
to Create Shared Value?” The simple answer is: include business terminology of CSR and Shared
Value in the Marketing mix. The study shows that different types of business are open to talk about
CSR and Shared Value, but each business case will be unique. So there is not one answer to the main
research question that guarantees creation of Shared Value. The companies that are benefited by
the social value of IHF projects, also need to apply their expertise in business to develop a profitable
Shared Value strategy.
To reflect on the hypothesis: “The closer IHF’s social value complements a business CSR
strategy, the greater the potential for creating Shared Value.” The research confirmed this
statement, clear possibilities for Shared Value have been presented. It is primarily up to IHF to get
familiar with business CSR strategies that are open to commit to Creating Shared Value with the help
of an NGO like IHF. The research also showed that there are plenty of companies who are in an early
stage, philanthropic or promotional CSR. Those companies are not so relevant to IHF since Waldorf
education is based on a niche philosophy and Shared Value requires close collaboration. The
following section will present a number of recommendations for IHF to engage companies to Create
Shared Value.
Recommendations
Based on the findings and conclusion, recommendations on a Marketing strategy for IHF have
become apparent. This study has highlighted a number of factors that are important to consider and
include in the Marketing mix. External research showed that it is advisable for IHF to highlight
primary education as a basis for a sustainable society. The strengths of Waldorf education
specifically are of secondary relevance. Engage with companies on the basis of Shared Value, avoid
the use of ‘sponsorship’ or ‘donation’. Apply the business terminology that relate to a developed
level of CSR and Creating Shared Value.
The previous section presented a form to select the target group of companies. This study
already highlighted a few types of businesses with the capacity to Create Shared Value with IHF.
Construction companies for example, they can motivate their employees and promote good
corporate citizenship by supporting a local school in the region where they operate.
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Also consider transport companies, imagine the local bus service bringing children to school
every weekday. This will generate a lot of goodwill with parents and local government bodies, which
may bring good business to the company in the future. Schools also require essential utility services,
water and energy. Local utility companies can support a school with their expertise and create
goodwill in developing regions.
The ideal target companies for IHF are the ones that understand the added value of Waldorf
education and produce products for schools. Also companies in biodynamic agriculture and
homeopathic medicine are highly fit to Create Shared Value through IHF projects. It is recommended
to acquire knowledge on prospect companies’ CSR policy and determine the most attractive value
proposition. When the company’s stakeholders are located in the local region of an IHF project,
there is a real opportunity for the company to make a profit while doing good. Shared Value should
be the essence of the IHF Value Proposition.
For Marketing communication, the Golden Circle method (Sinek 2008) can be
recommended. The figure below illustrates how IHF can apply this method. Important is to
communicate first why a company should collaborate with IHF.
FIGURE 5.2: THE GOLDEN CIRCLE OF IHF
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To conclude this study, it is advised for IHF to train project region managers in CSR and
Shared Value Creation, so they can confidently take on the role of account managers. They can apply
the findings in this study to select companies that are capable of creating Shared Value with IHF
projects. Further research is required by the project regions managers to develop their Golden circle
and value proposition.
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Appendices
Appendix 1: Statement on Plagiarism
I declare that I wrote this dissertation independently and on my own. I clearly marked any
language or ideas borrowed from other sources as not my own and documented their sources. I am
aware that any failure to do so constitutes plagiarism. Plagiarism is defined as “stealing and passing
off the ideas or words of another as one’s own, without crediting the source” (IBMS Graduation
Handbook, 2015).
Advised by the handbook, I will cross-reference each source to the bibliography according to
the Harvard Business School notation.
I am aware of the consequences and sanctions plagiarism entails. Consequences may include
invalidation of the dissertation or worse; exclusion from IBMS without a degree. In cases of
suspected plagiarism, supervisor N.A. Jansen will act as stated in the Teaching and Examination
Regulations and present the case to the Exam Board. All cases of plagiarism will be dealt with
directly by the Exam Board (IBMS Graduation Handbook, 2015).
Title of my dissertation: __How can IHF apply CSR concepts and theories to Create Shared Value__
Date: __25/01/2016________________________________________________
Signature: ____________________________________________________________
R. Boermeester
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Appendices
Appendix 2: Millennium Development Goal 2 results
Source: United Nations, The Millennium Development Goals Report 2015 retrieved from:
<http://www.un.org/millenniumgoals/2015_MDG_Report/pdf/MDG%202015%20rev%20%28July%201%29.pdf >
62
Appendices
Appendix 3: Stakeholder involvement criteria and GRI Application Levels

Criteria table
63
Appendices
Appendix 4: Transcript of phase 2 interviews (Siemens, Triodos and Kuijpers)
Remmelt Boermeester E-mail: rjboermeester@gmail.com Tel: 06-16036340
Geachte Heer/Mevrouw,
Mijn naam is Remmelt Boermeester, ik ben 25 jaar jong en ik schrijf mijn afstudeerscriptie (bachelor)
voor International Business Management Studies aan hogeschool Inholland.
Ik doe onderzoek voor de Stichting Internationaal Hulpfonds (IHF) die Waldorf/Vrije scholen
en kinderen steunt in ontwikkelingsgebieden wereldwijd. In samenwerking met een Europees
netwerk, waarvan de Duitse partner ‘Friends of Waldorf’ veruit de grootste is. Waar Friends of
Waldorf de grote projecten zoals schoolgebouwen financiert, richt het IHF zich op kleinere projecten
als schoolgeld en meubilair bijvoorbeeld. Friends of Waldorf telt ongeveer 90 medewerkers en
werven jaarlijks €4 miljoen.
Het inkomen van donaties in de afgelopen jaren stagneert, dus onderzoek ik mogelijkheden
van samenwerking met bedrijven. De hoofdvraag is: "how can IHF apply Corporate Social
Responsibility concepts to create Shared Value?”.
In de meeste landen waar IHF een project steunt, zijn ook bedrijven en projecten (zie
overzicht in bijlage) door Triodos gefinancierd. Dit biedt wellicht aanknopingspunten en
mogelijkheden. Om Shared Value te creëren (volgens de theorie van Porter) zouden deze
projecten/ondernemingen moeten samenwerken. Graag zou ik met Triodos de ‘feasibility’ willen
bespreken van een drietal soort samenwerkingen:
- Natuur en Mileu organisaties (duurzame energie)

- Fair-trade winkels, groothandel en importbedrijven
- Microfinanciering organisaties
Mijn onderzoek mist momenteel feedback uit het bedrijfsleven. Het doel van het gesprek is:
Inzicht in de zienswijze van het bedrijfsleven op de vraag "how can IHF apply Corporate Social
Responsibility to create Shared Value?”. Wat is de winst voor het bedrijf van een samenwerking met
een IHF-project (school)?
Bij voorbaat hartelijk dank voor uw hulp.
Vriendelijke groeten,
Remmelt Boermeester
64
Appendices
Appendix 5: Transcript of phase 3 interviews
Geachte Heer/ /Mevrouw ,
Mijn naam is Remmelt Boermeester, student Internationale Bedrijfskunde.
Voor mijn afstudeerscriptie doe ik onderzoek naar mogelijkheden om Shared Value (Porter 2006) te
creëren dmv Maatschappelijk Verantwoord Ondernemen. Specifiek onderzoek ik of de stichting
Internationaal Hulpfonds (IHF.nl) in samenwerking met uw bedrijf voor gezamenlijke winst kan
zorgen. Aangezien U contactpersoon bent als partner van MVO Nederland, wil ik U graag 2 korte
vragen stellen. Als hulp bij het inschatten van de vragen, heb ik in de bijlagen een kaart van de IHF
project-locaties toegevoegd. En ook een conceptueel theoretisch model hoe een samenwerking met
IHF projecten in theorie tot Shared Value kan leiden.
1) Denkt U dat een investering in het Internationaal Hulpfonds een positief effect heeft op de
stakeholders van <bedrijf>?
Ja, want …
Nee, omdat …
2) Zou <bedrijf> bereid zijn te investeren in:
a. schoolgeld voor individuele leerlingen.
Ja, ongeveer €5,000-€10,000 / €10,000-€20,000 / €20,000+
Nee, omdat …
b. opleiding- of salaris van een leerkracht.
Ja, ongeveer €5,000-€10,000 / €10,000-€20,000 / €20,000+
Nee, omdat …
c. schoolbenodigdheden/ schoolgebouwen.
Ja, ongeveer €5,000-€10,000 / €10,000-€20,000 / €20,000+
Nee, omdat …
Graag zou ik in een gesprek uw antwoorden vernemen. Mocht u nog vragen hebben, kunt U mij
gerust bellen of mailen.
Alvast hartelijk bedankt voor uw medewerking.
Met vriendelijke groeten,
Remmelt Boermeester - 06-16036340 - How can IHF apply CSR theory to Create Shared Value?
65
Appendices
Value proposition test e-mail (translated)
Dear sir/madam <last name>,
Last Friday, I unsuccessfully attempted to reach you by phone, therefore I write you now.
My name is Remmelt Boermeester, student International Business Management.
For my graduation thesis, I research possibilities of Creating Shared Value (Porter 2006) through CSR.
Specifically, I’m researching if the NGO Internationaal Hulpfonds, in collaboration with your
company, can create Shared Value. Since you are the contact person as a partner of MVO
Nederland, I would like to ask you two quick questions. To help understanding the questions and
assess possible answers, I attached two images. 1) a map of IHF project locations and 2) a conceptual
framework on how Shared Value is possibly created with IHF by applying CSR theory.
1) Do you think that an investment in IHF would have a positive effect on the stakeholders of your
company?
Yes, because..
No, because..
2) Would your company hypothetically invest in one of the following?
a. School fees for individual children.
Yes, about €5,000-€10,000 / €10,000-€20,000 / €20,000+
No, because …
b. Teacher training for teachers in developing regions.
Yes, about €5,000-€10,000 / €10,000-€20,000 / €20,000+
No, because …
c. School products like construction of classrooms, text-books, desks/pencils/notebooks, catering

service or other school amenities.
Yes, about €5,000-€10,000 / €10,000-€20,000 / €20,000+
No, because …
I’d like to contact you this Monday to hear your answers. In case anything is unclear, feel free to call
or e-mail me.
Many thanks in advance and best regards,
Remmelt Boermeester - 06-16036340 - How can IHF apply CSR theory to Create Shared Value?
66
Appendices
Appendix 6: De r0ndbrief examples
http://www.internationaalhulpfonds.nl/pags/pag_docs/4_rondbrief_voorj_985067.pdf
http://www.internationaalhulpfonds.nl/nieuws/docs/46_ihf_voorjaar_202983.pdf
Appendix 7: ISO 26000 guidelines
http://www.iso.org/iso/sr_schematic-overview.pdf
67
Bibliography
Baarda, B. (2014). Research. This is it!. Houten: Noordhoff uitgevers.
Bryman, A., & Bell, E. (2015). Business Research methods. Oxford: Oxford University Press.
Carroll A., ‘A Three-Dimensional Conceptual Model of Corporate Performance,’ Academy of

Management Review, 1979, Vol. 4, No. 4, p. 500.
CorpoateEthics 2009, Shareholders vs. Stakeholders -- Friedman vs. Freeman Debate with R. Edward
Freeman- 10-1-2009, video online, viewed March 15, 2016,
<https://www.youtube.com/watch?v=_sNKIEzYM7M>
Crane, A. and D. Matten. 2004. Business Ethics – A European Perspective, Managing Corporate
Citizenship and Sustainability in the Age of Globalization. Oxford: Oxford University Press.
Kell, G. 2014. 'Five trends that show corporate responsibility is here to stay’, The Guardian,
13 August 2014. Viewed 14 February 2016, http://www.theguardian.com/sustainable-
business/blog/five-trends-corporate-social-responsbility-global-movement
Pink, D. H. 2009. Drive: The surprising truth about what motivates us. New York, NY: Riverhead
Books.
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a wave of innovation and growth. Boston, MA: Harvard University, Graduate School of Business
Administration. Accessed on april 20, 2016 https://www.hks.harvard.edu/m-
rcbg/fellows/N_Lovegrove_Study_Group/Session_1/Michael_Porter_Creating_Shared_Value.pdf
Porter, M. 2015 Shared Value is Just Good Corporate Strategy Key note at Bishop William Lawrence
University, June 22nd, 2015 viewed 24 March 2016. <https://sharedvalue.org/groups/shared-value-
just-good-corporate-strategy>
Serafeim, G. 2014. Turning a Profit While Doing Good: Aligning Sustainability with Corporate
Performance. The Brookings Institution, Washington 2014. viewed on March 14, 2016. <
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ate%20performance%20profit%20serafeim/serafeim.pdf>
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Bibliography
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UNESCO Institute for Statistics (UIS) 2015, Fixing the broken promise of education for all: Findings
from the Global Initiative on Out-of-School Children. Available from:
<http://www.uis.unesco.org/Education/Documents/oosci-global-report-en.pdf >
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69

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How can IHF apply CSR concepts and theories to Create Shared Value?

Bachelor of Business Administration Dissertation

International Business and Management Studies

Inholland, university of applied sciences

- Alignment with CSR strategy and policy of prospect company.

Subtopics of this dissertation are Strategic Management and NGO-business joint-ventures.

1.1 Organizational background 8

1.2. Problem statement 10

1.3. Research objective 10

1.4. Research questions 11

Chapter 2 - Theoretical Framework 12

2.1 Literature review 12

2.1.1 Historical background of Corporate Social Responsibility (CSR) 12

2.1.2 CSR Pyramid by Carrol 15

2.1.3 Triple Bottom Line 17

2.1.4 CSR 1.0 19

2.1.5 CSR 2.0 20

2.1.6 Creating Shared Value (CSV) 22

2.2 Conceptual framework 24

2.2.1 Stakeholder theory 24

2.2.2 CSR Pyramid 25

2.2.3 CSR Performance ladder 27

3.1 Research objectives 29

3.2 Research methods 30

3.2.1 Research process 30

3.2.2 Desk research 31

3.2.3 Exploratory research 32

3.4 Limitations of the study 34

Chapter 4 - Results and analysis 35

4.1 Compiled relevant results 35

4.1.1 Summary of desk research results 35

4.1.2 Summary of exploratory research results 39

4.2 Research Analysis 44

4.2.1 IHF organizational analysis 44

4.2.2 IHF value proposition analysis 46

Chapter 5 – Findings, conclusions and recommendations 52

5.1 Analysis findings 52

5.2 Internal research findings 53

5.3 External research findings 54

5.4.1 Preconditions for Shared Value 56

5.4.2 IHF Services Marketing strategy 57

Appendix 1: Statement on Plagiarism 61

Appendix 2: results of Millennium Development Goal 2 62

Appendix 3: Stakeholder involvement criteria and

GRI Application Levels Criteria 63

Appendix 4: transcript of phase 2 interviews 65

Appendix 5: transcript of phase 3 interviews 66

Appendix 6: example of the r0ndbrief 67

Appendix 7: ISO 26000 guidelines 67

To progress primary education in low-income regions, to the same level as developed

FIGURE 1.1: NUMBER OF OUT-OF-SCHOOL CHILDREN OF PRIMARY SCHOOL AGE, 2000–2013

Source: UNESCO Institute for Statistics database

FIGURE 1.2: IHF ORGANOGRAM AND INTERNATIONAL PARTNER ORGANIZATIONS

Source: websites of IHF and Friends of Waldorf

FIGURE 1.3: WORLD MAP OF IHF PROJECT LOCATIONS

Source: website of International Hulpfonds (IHF)

FIGURE 1.4: IHF TOTAL INCOMING FUNDS 2009-2014

Source: adapted from IHF yearly financial statements 2009-2014