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Creating Shared Value (Reconceiving products and markets (Markets…
Creating Shared Value
Reconceiving products
and markets
Food industry focusing on nutritional value rather than cost/taste
Tech companies driving reduction in power usage
Financial market teaching consumers how to manage finances
Markets
Expansion in poor markets
with appropriate products
Increase productivity
Lower costs
Create revenue streams
Farming in India
Weather app on
subscription basis
Increases farmers output by 60%
Provides annuity revenue to the business
Low-priced cell phones in Kenya
Vodafone mobile banking service taken
up by 10m customers in 3 years
Vodafone now handles 11% of Kenya's GDP
Opportunities constantly develop
New technology
Economies develop generating consumer needs
Societal priority shifts
Beyond CSR
CSR stopped negative impacts of business
Pollution
Unfair wages
Poor Safety
Creating Shared Value
Shared value core to business deliverables
Business models include
Economic return
Social needs met
Capitalism serving the community
CSR can be peripheral to core business activity
How shared value is created
Create economic value
Create societal value
3 specific ways
Reconceive products and markets
Redefine productivity in the value chain
Build supportive industry clusters in company locations
Enabling local cluster development
Shared goals of success
Suppliers
Consumers
Communities
Improvements for all stakeholders
Increases strength of value / supply chain
Secures infrastructure required
Includes non-profit and academic institutions
Lack of local cluster
Increases internal costs
Limits resourcing/talent availability
Consumer poverty limits demand
Poor infrastructure causes
Staff reliability issues
Higher transportation costs
Unhealthy workers
Redefining productivity
in the Value chain
Value chains affect communities
Water usage
Natural resource usage
Health and safety
Working conditions
Job creation
Changing approach can
offer shared value
Reducing packaging
Being more efficient in processes
Increasing quality of goods
and environment