Employee share ownership plans have been underused as a strategy to galvanise economic growth in South Africa. They can be a mechanism to drive inclusive economic growth while broadening the reach and impact of black-based economic empowerment programmes.

Employee share ownership plans (Esops) have traditionally been seen as compliance and empowerment requirements in South Africa. But recent developments both locally and abroad, especially in low-growth markets, suggest this could be a creative approach to lasting shared value.

Esops driving strategic inclusivity can be designed to remine areas of growth in economically dormant markets like South Africa. An important starting point is to frame this as an imperative for growth and business model innovation.

Shared value is a strategic concept coined by Harvard Business School scholars Mark Kramer and Michael Porter, more than a decade ago. In essence, it looks at doing business differently.

Beyond the so-called "business of business", shared value considers the pain points in society and addresses its most pressing developmental needs while building sustainable and profitable businesses.

It is a fundamental part of a competitive strategy and can be distinguished from corporate social investment, corporate social responsibility and other philanthropic initiatives through its direct relevance to the core business and sustainable strategy of an organisation.

This is driven by a motive or purpose to provide lasting value and social dividends, and not to merely meet shareholder profits or, in this case, compliance requirements.

Going beyond...