The Concept of Shared Value

908 Words2 Pages
bulb-icon

Recommended: Different views on corporate social responsibility

Introduction to Shared Value Creation:

The Concept of Shared Value is becoming major point of concern now-a-days. Most businesses are relying on creating shared value. Many renowned companies are focusing on value creation e.g Intel a big Name in Technology has the policy that their every employee attend the seminar based on value creation.( Vadim Kotelnikov) According to World Socialist Movement Capitalism is the process in which the economics of the country is in private ownership.(2006) Capitalism has only lead to economic and societal distress. Many businesses are now viewed as to create many economic, societal and social problems which are becoming difficult to solve. Many businesses are focusing on old ways of creating shared value. Shared value actually is a term used for making such policies and strategies that help the businesses to achieve societal and economic progress of the community in which it operates. (James Epstein-Reeves 2012). There are many opportunities in the society which leads to value creation. Main opportunities involves the basic needs of the society which can be fulfilled by devising innovative ways to produce something that caters to that particular need by cutting the cost that the firm bears. (Porter,Kramer,2011,pp 64-77)

The government and the firms are also contrary to each other thus suppressing the overall economic growth.. Three ways are discussed on the article for value creation: one is reconceived the products and services, second is to redefine productivity in value chain and third is to build supportive clusters at company’s location. (Porter,Kramer,2011,pp 64-77)

Five Key Points

CSV vs CSR:

According to Center 4 shared value Corporate Social Responsibility is somehow...

... middle of paper ...

...t open up new products to sell, new customers to serve, new markets to enter etc. every company will be implementing shared value in its strategy which will then enable it to gain competitive advantage over others. Share value can be practiced in every major decision of the businesses. The three most important approaches for creating shared value is by enhancing clusters, new value chain choices and new value chain configurations.

Shared value links the company’s success with the overall success of the society and also gives the right direction to the firm. It concentrates on earning right kinds of profits that is profits that gives societal benefits and helps in economic and social growth.

According to business case studies Nestle is working on creating shared value to countries with whom they work these are considered as vital for value chain this includes

Show More
Related

  • Imperial Oil ltd. Limited

    1742 Words  | 4 Pages

    Value Proposition is defined as "A business or marketing statement that summarizes why a consumer should buy a product or use a service”. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings." To structure a proper value proposition for a company, you must view the business model and three identifying features of the business. These three features are the Goals, Core Activities, and the Product Market Focus. The goal of a company is what it aims to accomplish. In regards to Imperial Oil ltd., their main end goal would be to create profits for their shareholders and to increase the overall value of the company. With creating more value to the company, the business can use funds to access and develop more research and advance their technology in growing the corporation. The core activities of the business are what value creating tasks will help the business run properly and how t...

    Read More

  • Why and How Do Policy-Makers and Practitioners Intervene to Encourage New Firm Formation and Development?

    773 Words  | 2 Pages

    In conclusion, policy makers and practitioners often try to assist in the formation of new firms but do not always succeed. Many firms fail despite all the assistance however the important factor is that the government continues to promote their creation so that new jobs and industries can be created. (Storey 1994) Both policy makers and practitioners need to ensure a level playing field so that the economy can grow, develop and compete with other economies around the world.

    Read More

  • The Fifth Discipline

    620 Words  | 2 Pages

    Having and transmitting a successful "shared vision" requires true "buy-in" on the part of the employees and the organization as a whole, and must foster genuine commitment and active enrollment in order to bring that organizational vision to a personal level. For shared vision to become a product of personal vision, each individual must "feel it", and be able to see how this vision can be articulated to promote the long-term interests of the company's success, and position in the larger scheme of things. This road to the end result is usually not mapped out or even guaranteed, and the creative tension this inspires, through personal commitment and dedication, is the fire it produces form it's visionary fuel.

    Read More

  • Case Study: Lendlease

    1470 Words  | 3 Pages

    They are: Respect, Integrity, Innovation, Collaboration, Excellence and Trust. All the values work towards the company vision to “Create the Best Places”. Along with the company values, Lendlease also has 5 Pillars of Value. They are: Financial, Health and Safety, Our Customers, Our People and Sustainability. With the financial pillar, Lendlease is able to continue to expand their pipeline and deliver quality earnings to its employees. Health and Safety is a main focus of the company, so they work to make sure that all employees have access to the right tools to keep up their mental health and wellbeing. Customers are an important part of the company and their profit so Lendlease works hard to make sure that each interaction with the company is a good and memorable one, to keep them coming back. The people that work for Lendlease are the best advocates for the company and are the main interaction that consumers have with the company. Finally, the last pillar, sustainability, with the changing world, Lendlease is driven to create places for people that keep the idea of the environment in mind (Lendlease,

    Read More

  • The Competing Values Framework

    1153 Words  | 3 Pages

    The Competing Values Framework is originated by Quinn and Rohrbaugh. It emphasizes the organizational problems and choices faced by managers. The framework is divided into various managerial roles corresponding situations, as well as specific organizational environments. For instance, the facilitator and mentor roles rely on cohesion and morale to bring about human resource development within the organization. While the innovator and broker roles rely on flexibility and readiness in order to receive the growth and resource needed to perform an effective organization. The director and producer roles are more applicable for planning and goal setting skills and will result in productivity and efficiency. The monitor and coordinator roles are intended to managing information and communicating. The framework can also be divided into two main roles. The first four mentioned above are the transformational roles, and the last four are the transactional roles (Belasen, 1996). The transformational roles are more aimed toward making changes and developments, while the transactional roles have strong emphasizes on managerial authorities. The key to becoming a master manager is to be a successful manager who is able to perform each role in order to cope with all difficulties being faced as a manager (Quinn, 1988). A successful manager is also someone who is perceived by others as performing all of the eight roles more frequent than a normal manager and recognizes each of its importance thoroughly (Denison, 1995). A study by Bono (2004) also shows that giving importance to any specific working environment, such as rational goal model, may lower the effectiveness of other areas. Denison and Spreitzer (1991) stated that when a manager does not gi...

    Read More

  • IBM And IBM Value Chain Analysis: IBM

    984 Words  | 2 Pages

    The aim of the value chain structure is to maximize the value creation while minimizing costs. Value Chain Analysis is a useful tool for working out how you can create the greatest possible value for your customers. Value chain analysis relies on the rudimentary economic principle of competitive advantage -companies are best served by operating in divisions where they have a relative prolific benefit compared to their competitors. Concomitantly, companies should ask themselves where they can deliver the paramount value to their customer. To conduct a value chain analysis, the company begins by identifying each part of its production process and recognizing where steps can be purged or enhancements can be made. These improvements can result

    Read More

  • Nestle Case Study

    1382 Words  | 3 Pages

    They attempt to implement responsible sourcing within their supply chains, raise awareness of both water conservation and help to preserve natural capital. To do this they promote global transparency, and voice their engagement in climate policy. Nestlé’s labor practices consistently address human rights impacts in their operations and supply chains. Additionally, Nestle works towards enhancing the gender equality in the developed global offices. One example of Nestlé’s influence on their sourcing practices can be seen in Nigeria where infrastructure was few and far between and traditional delivery methods could not be achieved due to safety reasons to compensate nestle set their purchasing prices high as well as creating a multitude of small ware houses rather than the typical individual large ware house. They also adjusted their marketing scheme rather than posting to various forms of media as they would do in a developed country, they instead hired local singers and dancers to travel to different villages advertising the Nestle products in a way that would appeal to the different

    Read More

  • Nestle Supply Chain Case Study

    1414 Words  | 3 Pages

    Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.

    Read More

  • Starbucks and Leadership Traits

    1655 Words  | 4 Pages

    Value is created by servant leaders by giving back to their communities, by encouraging followers and volunteering. Starbucks was scheduled to host a leadership confere...

    Read More

  • Value Chain Analysis: A Strategic Analysis Of Unilever

    2016 Words  | 5 Pages

    Value chain analyses a firm 's internal activities such as planning, production, and development, packaging and distribution so as to create value for clients. The function of the value chain is to identify the sources for cost reduction along with quality improvement. It means value chain is used to identify the strong and weak points, positive and negative points, the scope of improvement; in a nutshell, the advantages and disadvantages of the activities taking place in the system. The value chain is also called as a strategic analysis tool and it is a well-known concept in business management industry.

    Read More

  • Case Study on Google

    1113 Words  | 3 Pages

    The value chain is a systematic approach to examining the development of competitive advantage. The Google's chain consists of a series of activities that create and build value, the mission is to organize the world's information and make it universally accessible and useful. Innovations in web search and advertising have made the web site a top internet destination and Google brand is one of the most recognized in the world.

    Read More

  • The Globalization of Nestle

    1613 Words  | 4 Pages

    Nestle is a Swiss food and beverage Multi-national corporation headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues with about 500 factories in more than 80 countries. The company consists of a powerful portfolio of brands that is driven by unrivalled research and innovation, an aim to contribute to improving the quality of consumers’ lives and a clear commitment to consistence excellence. The company succeeded in accomplishing its mission of “Good Food, Good Life” by making the use of globalization in the areas that are as follows-

    Read More

  • Essay On Value Chain Analysis

    1447 Words  | 3 Pages

    The value chain analysis allows the firm to understand the parts of its operation that create value and those that do not. This is important for firms to understand because the firm earns above-average returns only when the value it creates is greater than the costs incurred to create that value. The value chain analysis has two parts which include the value chain activities and support functions. The value chain activities are “activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers” (Hitt, Ireland, & Hoskisson). The support functions are the “activities or tasks the firm completes in order to support the work being done to produce, sell, distribute, and service the products the firm is producing” (Hitt, Ireland, & Hoskisson)

    Read More

  • Essay On Vision Mission And Values

    1114 Words  | 3 Pages

    “Values are the beliefs of an individual, group, or organization, in which they are emotionally invested” (Carpenter, Bauer, & Erdogan, 2015). Many organizations consider corporate values strategically import for building their company’s reputation and keeping the customers’ confidence and allegiance. That, however, is only a tiny portion of the strategic benefits that organizational values can offer. “Further benefits include:guidance for decision-making on all levels, selection criterion for new employees, driver for individual and corporate behavior on all levels supporting the vision, mission, and goals of the company, and effective definition and implementation of core values” (Gupta, 2015). Values within a company need to be more than just a few words that sound nice to ensure overall acceptance within an organization. “Effective core values need to be emotionally appealing and workable” (Gupta,

    Read More

  • Ford Motor Company

    1840 Words  | 4 Pages

    Explain how the company’s value-chain activities can be better linked to create value for the company.

    Read More

More about The Concept of Shared Value

Open Document