WHAT IS PUBLIC VALUE AND WHAT IS CONTRIBUTION TO THE COMMON GOOD?
“Free enterprise cannot be justified by saying that it is good for business. It legitimizes itself through its social benefit. "
- Peter Drucker, founder of modern management
More and more, companies are thinking about the benefits they have for society and how they can live up to their responsibility, for example for the environment and the climate, or for their employees. Do they help to make the world a little better? Start-ups in particular are often founded on this idea.
We believe that startups in particular have a lot of potential to move our society forward and solve societal challenges. They take on a social responsibility and put it at the core of their entrepreneurial purpose. We call this: making a contribution to the common good or "public value". It's not just about environmental awareness, employee satisfaction or great charity projects. It's about the core of the company. Is the business model designed in such a way that it is viable in the long term and does it create values for society? Do the products and services help to overcome societal challenges?
The public value of your start-up is about the whole package. What idea is your start-up based on?
And what effects does it have for society?
The theory behind this involves five central questions.
FIVE PUBLIC VALUE DIMENSIONS
An organization generates public value when its products, services or behavior leave a formative impression on its social environment on various dimensions. These dimensions are derived from central individual or societal needs and include, for example, the need for clarity, orientation and functionality, for acceptance and belonging, or the striving for positive self-esteem and a higher quality of life. If your start-up positively addresses these central needs in its social environment, public value is created and a contribution is made to the common good.
factual - in terms of content
Does your start-up solve a relevant problem? This includes the quality, degree of innovation, or functionality of your offerings. To what extent does the offering contribute to overcoming social challenges?
PUBLIC VALUE SCORECARD
How much your start-up contributes to the common good is evaluated using the Public Value Scorecard (PVSC):
Does your start-up offer new solutions to relevant problems?
Does your start-up make economic sense from a social point of view?
Does your start-up promote moral and ethical values?
Does your start-up enable positive experiences in a special way?
Does your start-up strengthen cooperation and relationships in and between groups?