In this video, several senior managers discuss creating shared value (CSV). Their views often resort back to sustainability and long-term profitability. To these managers, CSV is not about doing good and philanthropy, but about recognizing and taking advantage of business opportunities that also cater to societal values and needs. Corporate social responsibility (CSR) is somewhat incorporated into CSV by showing care and compassion for local communities, however the main difference includes the fact that CSV creates value in the form of increased profits for the corporation, while also helping society.
However, these increased benefits do not come without costs; companies have to invest both time and money to investigate where they can change their processes and alter certain aspects of their products.
In order for this concept to be accepted within the workplace, managers and CEOs have to buy in and take the lead in grounding the institution. This means that by examining workplace culture, these managers can alter certain aspects in order to shift the focus on to creating shared value.
None of this is possible without complete cooperation between the organizations involved as well as local governments and NGOs. By working together and combining resources, corporations can make huge, positive impacts throughout the world, and hopefully set positive trends for the future.
- Alex Healy
Great video and post!
ReplyDeleteCSV is really a new concept but it is surfacing as a different way of thinking in business. CSV is not just a great opportunity for businesses but is increasingly becoming a competitive necessity. I think that CSV is more sustainable and beneficial to organizations compared to CSR because it is at the core of a businesses strategy rather than at the periphery as is the case in many businesses CSR structures. I also think that CSV would be less cyclical than CSR which will have a long term social and economic benefits. With CSV at the core of business models the current stigma against some big businesses will diminish but more accountability and transparency is required to meet society's demands.
I agree with Allen, after I did this week's reading I was convinced that CSV is a better option for companies than CSR. Instead of bolting on an idea that helps to market a company, they also are looking to help. We discussed the example of Tom's who donate a pair of shoes for every pair that is sold. One could question whether the communities who are receiving these shoes actually need them or if they would benefit more from something else. People feel good about themselves when they buy Toms knowing that they will help someone out and therefore buy the shoes but nobody really knows what good they are doing. Watching the video backs up the point that CSV is there not only to help themselves but also the communities and they ensure it is built in. Large companies mentioned by Mark Kramer such as IBM and GE are taking an initiative and therefore many other companies will follow.
ReplyDeleteI like that Keeli linked this idea to the example of Toms that was brought up in seminar. If it could be determined that there was an actual need for the 2 million pairs of shoes that have been donated (as of October 2011) to over 44 different countries, then this would be a prime example of CSV - creating economic benefit and social benefit in unison.
ReplyDeleteToms makes efforts to identify the need for shoes. They have experience 'Giving partners' that are familiar with the locations and are able to identify the need for shoes. Evidence against this idea surfaces through such videos as "A Day Without Dignity" (http://www.youtube.com/watch?v=isxxQm2_ud0). There is skepticism surrounding the actual needs, as well as the actual outcomes and benefits that are being provided.
I think Allen's idea of CSV diminishing the current stigma surrounding large corporations. As Kramer said, "... business ... has been viewed as a major cause of social, environmental and economic problems". This has no doubt created huge stigma around the corporations actions. If consumers are aware that corporations are making a move to create social value for pressing needs, they are more likely to gain respect for companies' actions, rather rely on blame and diminished trust.