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SHARED VALUE BUSINESS - Coggle Diagram
SHARED VALUE BUSINESS
Two predominant normative conceptualisations of shared value: (Wylob 2015)
1. Solving a social problem - “shared value is about solving a social problem or having an impact on a social problem in a way that’s commercially viable”
2. Win-Win situations - to “improve the profitability of the company and social benefit to the community in which that company works”
He concluded that in practice, most practitioners identify the following organisational characteristics as associated with or integral to success:
- Market orientation
- Leadership
- Paartnerships
- Co-creation of values
- Organisation value
- Social value
- Business Mdeol Transformation
(Created detail of each on deakin page).
DEFINTION:
Shared Value - businesses that purposefully reorientate to strategies that create both economic and social value, seeking to create value by identifying and addressing social needs that intersect with their core business.
The concept of Shared Value:
- Shared value is a concept that comes from articles written by Porter and Kramer. They talked about how businesses can do good things for society while also making money. This idea started by looking at how non-profit groups help society, then it moved to companies giving money to charities, and eventually, it became about companies finding ways to do good things that also help their business.
- Shared value means that companies try to find ways to help with important social issues while also making their own business stronger. They believe that when companies do good things for society, it can also make them more competitive and successful. This way of thinking opens up new opportunities for companies, non-profit groups, and governments to work together to solve problems using the power of business.
- People who like this idea also think that it can encourage companies to invest in solving big social problems, with help from governments and organizations that want to make the world a better place.
Key ways in which they say shared value can be created: (Porter and Kramer 2011)
1. Reconceiving products and markets – Defining markets in terms of unmet needs or social ills and developing profitable products or services that remedy these conditions.
2. Redefining productivity in the value chain – Increasing the productivity of the company or its suppliers by addressing the social and environmental constraints in its value chain.
3. Local cluster development – Strengthening the competitive context in key regions where the company operates in ways that contribute to the company’s growth and productivity.
Sunder, P (2015) ' A shared value? The role of the private sector in international development', DevPolicy, 8 September 2015.
- The Australian government and some organizations want businesses to team up with them to help poorer countries develop. They made a plan called "Creating Shared Value through Partnership" to encourage businesses to do projects that benefit both communities and profits.
- They found that not many Australian businesses are doing these helpful projects compared to other countries. Other places like New Zealand and the UK are also trying to get businesses involved in making the world better.
- Some groups studied how businesses and charities work together. They found that many charities are working with businesses, but mostly getting money or resources. Only a few businesses are doing projects that make money and help communities.
- The government's plan wants more businesses to see that they can make money while also helping people. This could lead to more prosperity and less poverty in the world.