In a recent survey it is revealed that 50% of consumers is willing to pay for products made by social responsible firms. It has been an increasing trend since last year. This matter is especially of importance in countries like Thailand, Indonesia, Philippines and India (par.6).

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Such behavior by consumers have drove firms to use such “corporate social responsibility” image as a selling point. However, it is forgotten that both society and firms are dependent. This is tied by created shared value (CSV). Firms can reconceive their products by improving such products to better serve their current market or perhaps when undergoing market development. It will also have to redefine productivity in the value chain by for example, reduce excess packaging. This does not only reduce the firms cost, but also create less damage to the environment -showing a win-win situation. Firms will also need to enable local cluster development, such as taking advantage of local suppliers. This is especially an issue in developed countries where labor are more expensive. It is forgotten that value is perceived as benefit relative to cost. While it is cheaper to produce in China, it is time-consuming and more expensive for the long-term to have those items shipped to other countries.

This shows how CSV shows that all stakeholders may benefit as they are dependent. CSV goes beyond marketing “sustainability” as a unique selling point.

Article source: http://www.businessnewsdaily.com/4884-social-responsibility-money.html

Reference to: Class 15 Class Prep Instruction Reading Material “Creating Shared Value” in Harvard Business Review.