A blog by Tyler Hesketh

Creating Shared Value: Start the change.

Creating Shared Value. To bring you up to pace, the definition that I use for CSV (Creating Shared Value) is addressing a social issue with a business model. Essentially, creating a societal benefit for the community while at the same time, economic benefits for the company. This creates a shared value between company and the community. For example, Tentree, Tesla, companies that use business as a force for good.

The type of work that most people are familiar with today is corporate social responsibility (CSR). This is an outside part of the company that tries to address a social issue, but it doesn’t necessarily relate to the business. For example, the #bellletstalk campaign or others like this. If you are still confused, I have attached a photo explaining the differences between the two.

I want address just one part of the CSV model. How to progress and change industry standards. I am not saying that every business needs to adapt a CSV model, but the big players should take notice. Why? I think that it is the most effective way to bring about change.

Theory: Most people behave based off what others are doing. This is true in life as well as in business. For industries to change, someone must pave the way first. Show others why its important. The most effective way to lead the corporate world down this road would be to see industry leaders refocus their business models in a proactive method. Larger corporations usually have a “mindset focused purely on financial returns shareholder” (Bakule, Justin), yet a simple change of focus from shareholder returns to the well-being of stakeholders would be a great way to start paving. I can say personally that if I saw a huge corporation take leaps and bounds to use a shared value model that I would go and buy more of their products. I can also say that on behalf of the millennial age, we want this change. Something about business for the next 50 years might catch the eye of these big corporations.

Just to tie things off here, I believe that change can be viewed as a threat, yet it can also be an opportunity and once corporations realize the impact of shared value models, change can be looked at in a new way.

Also take a look at a great CANADIAN company: https://www.tentree.com/ca/company

 

References

Bakule, Justin. from http://www.fsg.org/blog/why-arent-all-companies-creating-shared-value

Photo: Michael E. Porter and Mark Kramers Model