The shared value is a management strategy focused on the creation of companies of measurable business value through the identification Y the solution from social problems that intersect with their businesses.
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Creation of shared value
The shared values framework creates new opportunities for businesses, civil society organizations and governments to harness the power of market-based competition to tackle problems social.
The concept is perfectly defined in the article of the Harvard Business Review by the teacher Michael E. Porter and Mark R. Kramer (see original article here).
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The authors identified three ways that shared value can be created:
Reconceiving products and markets - Defining markets in terms of unmet needs or social ills and the development of profitable products or services that remedy these conditions.
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Redefining productivity in the value chain - Increasing the productivity of the company or its suppliers, addressing social and environmental limitations in its value chain.
Example: By reducing packaging and improving delivery logistics, Walmart saved $ 200M in distribution costs, while increasing the number of weekly shipments.
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Development of "Local Clusters" - Strengthening the competitive context in key regions where the company operates in a way that contributes to the growth and productivity of the company.
The shared value it is not about the redistribution of values created through philanthropy or about the inclusion of stakeholder values in decisions Rather, it focuses on the creation of value, both economic and social, with benefits that exceed the costs of the company and the society.
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It defines a new role for business in society that goes beyond traditional models of corporate social responsibility. Rather than focus on mitigating damage to existing company operations, Shared value strategies are coupled with the scale and innovation of companies to promote the social progress.
At the same time, shared value offers new ways for other stakeholders to collaborate with businesses in delivering social impact:
The investors they can get a growth outlook and of future earnings potential of companies through understanding how the strategies of shared value address social issues that directly affect performance
The professionals Individuals, scholars, and students from around the world can deepen their understanding and shared values application within their companies, social enterprises and academic institutions.
In short, the shared value It is a new idea, which arises as an alternative to the working methods of companies that have stagnated in the past, and with it, all that it implies. This is to increase the long-term security of companies and guarantee quality investments.
