Managing Social Innovation Through CSR 2.0 and the Quadruple Helix: A Socially Inclusive Business Strategy for the Industry 4.0

Managing Social Innovation Through CSR 2.0 and the Quadruple Helix: A Socially Inclusive Business Strategy for the Industry 4.0

José Manuel Saiz-Alvarez (EGADE Business School, Tecnologico de Monterrey, Mexico)
DOI: 10.4018/978-1-5225-7074-5.ch012

Abstract

The quadruple helix models are widely used when you want to have an integrating vision of the strategies used to combat poverty in emerging countries, including Mexico. The objective of this chapter is to propose a novel model of quadruple helix based on ethics and CSR 2.0 that can lay the foundations to develop the Industry 4.0 in emerging countries. To achieve this objective, the author distinguishes between CSR 1.0 and 2.0. Second, these concepts are united with the economy of the common good and the economy of solidarity. These conceptual bases will allow us to develop the relationship between business ethics and the Industry 4.0 to reach some conclusions.
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Introduction

When applied to desired social changes, social innovation is composed of changes in the cultural and regulatory business structure that optimizes collective resources focused on improving socioeconomic development (Heiskala, 2007). These changes are reinforced with the use of Corporate Social Responsibility (CSR) 2.0 policies integrated into a quadruple helix model that is proposed in the chapter. The combination of this socially comprehensive business strategy reinforces the firm and increases its efficiency and the generation of EBITDA (Earnings Before Interests, Taxes, Depreciation, and Amortization). The objective of this work is to propose a Model of Quadruple Helix rooted in CSR 2.0 and the Economy of the Common Good with the goal of promoting the Industry 4.0 grounded in ethics.

Although Bowen (1953) is considered the modern father of the CSR, also Bernard (1938) and Kreps (1940) have seminally thought about this issue (Milian, 2015). These seminal works have been enlarged by Davis (1960, 1967), cited by Schwartz and Carroll (2003), in which he asks what the entrepreneur owes to society (social mortgage)(Ramírez, 2016; Saiz-Álvarez, 2017a) and what responsibility companies have in front of the community. The role of the entrepreneur in almost all the entrepreneurial ecosystems of the planet is fundamental, especially when technology is applied (Bernal-Conesa et al., 2017). These ecosystems create triple helix models (Carlsson and Stankiewicz, 1991; Carlsson et al., 2002; Edquist, 2005; Bergek et al., 2005) defined by their diffuseness, heterogeneity, intense focus on institutions, low visibility of the role of individuals in the innovation process, and system boundaries (Ranga and Etzkowitz, 2013). Triple helix models that are drifting toward quadruple helix models (Figure 1). As a result, quadruple helix models are permeating both civil societies and organizations, the need for greater awareness and social support towards the most disadvantaged and that population at risk of social exclusion. Models formed by the positive effects created by the interaction between:

  • Universities, defined by the 7-K (Know-how, know-why, know-who, know-where, know-whom, know-when, and know-what) (Saiz-Álvarez and García-Ochoa, 2008);

  • Non-governmental organizations (NGOs) established by the social assistance and the fight against poverty and inequality;

  • Business organizations, with the creation of positive externalities regarding job creation and wealth for a good part of society; and

  • The public sector, whose processes of public intervention, mainly through fiscal policy, generate crowding-in effects to benefit the population.

Key Terms in this Chapter

Integral Management: It consists of a management style tool that develops the talent of those who hold management positions focusing their potential on results that result in the welfare of the stakeholders, mainly of customers, workers, and shareholders.

The Economy of the Common Good: Economic project promoted by the Austrian economist Christian Felber that aims to implement and develop a sustainable alternative economy to financial markets.

Ordoliberalism: Current of thought also called the social market economy and born in the University of Freiburg that unites the positive results of state intervention (crowding-in effects) with the business freedom to achieve internal equilibria (low unemployment and low inflation) and external balances (equilibrium in the balance of payments) in a nation.

Corporate Social Responsibility: Set of business policies designed and implemented to improve their corporate image and their relationship with customers, while also changing the socio-economic environment where they are deployed.

Logistics Activity Zone (LAZ): A maritime and/or terrestrial area defined by a tax reduction to optimize and reduce supply chain costs.

Industry 4.0.: Term coined by the German government to define the intelligent company, that is, a vision of digital manufacturing with all processes interconnected by the internet of things (IoT). When firms act on a “global” scale, the IoT evolves to the industrial internet of things (I2oT) when the corporation acts on a “glocal” scale.

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