Kramer (2011), shared insights about how boundaries need to be set
for capitalism. To prioritize societal and environmental issues and
challenges within the organization while achieving economic
success. In order for companies to reach a competitive edge, they
need to balance their short-term costs against their long-term
goals of profitability. While doing so, the global
businessrecognizes the importance of building bridges between
business, governance and communities to create ways to comply with
societal needs, increase efficiency and branch out into newer
markets and create differentiation. New growth opportunities and
improvement of productivity gives rise to sustainability which
inturn motivate and attract employees, business
show more content
The traditional approach of CSR differs from shared value as traditional roles fail to recognize the links between the improvements of community and clusters which enhance productivity thus bridging links between new products, customers, revenue and profits.
Some distinctive differences between CSR and CSV, Porter and Kramer (2011).
CSR is traditionally, in business terms, about being a respectful corporate citizen investing in social causes for positive social and environmental impact.
Shared Value is changing how the core of the business operates. In order to deliver healthy returns it focuses on strategy, structure, people, processes and rewards.
The difference of CSR is that it does not integrate business activities while CSV is about incorporating social and environmental impact into the business, causing a combination to initiate economic value.
Businesses have the foresight to want to be part of the solution. With charitable donations, companies and employees expand their levels of engagement so that their core business models improve the well-being of people, eradicate negative extremes, and is beneficial to their bottom show more content
Multinational corporations are seen as contributors to problems as well as solutions to economic value creation. As the surge of globalization reduces the gap between continents and international trade increasing, the issues from one country can have an effect in another. As Corporate citizens they are well equipped to influence and create awareness to these international problems.
I believe a company can create shared value through interventions and innovations, improving the competitiveness in a companys value chain. By developing an inclusive business strategy, commercial businesses can lower supply costs, improve productivity, quality of products and expand the market with the involvement of poor people thus creating long term economic value.
The value chain is linked and includes all parties from the conception of a product idea, through different phases until the distribution to the end consumer. The value chain can be redefined as the core of inclusive business strategy to encourage trade relations, ensure trust in the brand and its reputation. Some of the ways international business can create share value through Inclusive business strategies within the value chain can
Other samples, services and questions:
When you use PaperHelp, you save one valuable — TIME
You can spend it for more important things than paper writing.