Creating shared value

Thèmes abordés

Creating shared value, companies, social issues, value chain, societal needs, sustainable advantage for companies

Résumé du document

In a narrow conception of capitalism, business and society have been pitted against each other. Business has been viewed as principally responsible for social, environmental and economic problems. The problem comes in part from companies themselves: they optimize short-term financial performance and ignore customers' needs and well-being. Companies disregard social issues because economists have legitimized the idea that provides societal benefits decrease economy success. It is seen has a constraint. This has prevented company from using its full capacities to overcome society's largest challenges. Addressing problems has been relayed to NGOS or government.

Extraits

[...] In practice, shared values create a positive cycle of company and community prosperity. Shared value will become on of the most powerful forces driving economy growth. Inevitably, the most fertile opportunity to create shared value will be closely related to a company's business, but it opens many other opportunity: new needs, new customers, new ways. Shared value is a real competitive and sustainable advantage for companies. Shared value holds the keys to unlocking the next waves of innovation and evolution of capitalism. [...]

[...] This is an open avenue to create shared value. Developing countries as well as nontraditional communities are now recognized as viable markets because they have huge needs. Poor areas are no longer overlooked; the profit of providing appropriate products to disadvantaged consumers can be substantial, while the societal benefits can be profound. Opportunities change constantly and companies should identify needs and base their strategic position on these new markets previously overlooked. Opportunities to create shared value arise because societal problems can create economic costs in firms' value chain as excess packaging. [...]

[...] Addressing problems has been relayed to NGOS or government. The opportunities have been overlooked: companies are the best placed and the most powerful for addressing societal issues. Societal needs define market, it is why it is necessary to create shared value. Shared value concept goes beyond and admits that social weaknesses create costs for firms as inadequate education. Shared values lead to profits that benefit both company and society because the competitiveness of the company and the health of the community are interdependent. [...]