The business being a part of the society undertakes almost all of its operations with the help of society. Almost all the resources which are used in the production process in business are supplied by the society. Businesses have some kind of responsibility towards the society that responsibility in commercial words known as corporate social responsibility. The government is strictly undertaking many regulations in regard to corporate social responsibility. It already specifies the part of the revenues of companies, which will be used in social responsibility activities. Corporate social responsibility solutions aim at undertaking those initiates or activities which aim at improving the society in some or other ways. It aims at serving or contributing something to society. The contribution by the business is not mandatory to be in the form of cash; business can contribute towards education, health or infrastructure, etc. Shared values companies are those companies which have recognized the values which are beneficial for both businesses as well as society.
There is a new trend in society about creating shared values, also known as CSV. Creating shared values means designing the plans and strategies which not only maximize the profits but also provide benefits to society. This means the business must do something which not only increases its revenue but also contributes something to the environment. By way of this, a company can increase its brand value, attracting more customers, complying with all social regulations, etc. it will help the business to attract more potential customers who will value your companies sincere efforts towards society’s welfare. Creating shared value is an emerging concept which differs somewhat with corporate social responsibility.
The main objective of creating shared values is to maximize the profits of the business, along with contributing to society and the environment. The main aim of corporate social responsibility is to maximize the welfare of society and the environment. Now the point is how to create these shared values in a business. By following these simple steps, you can create shared values in a business. These steps are as follows:
- Redesigning your products and targeted markets: you can redesign your products and the markets in such a way that you can meet both your objectives with it. The business should aim at reducing its negative impact on the environment.
- Increasing productivity and capacity of the business: the business must identify the issues and problems relating to society and the environment. After identifying those issues and problems, the business must aim at solving them along with increasing its own productivity. It will also help in boosting the revenues of your business, which are associated with productivity.
- Creating management strategies: the advice of shared value consultants can be used to develop those management or business strategies. Those strategies mean which will not only beneficial for the business but equally beneficial for society. It also helps in using the company’s competitive advantage for the welfare of the environment or society.