Creating Shared Value
Creating Shared Value
In the article creating shared value the authors, M. Kramer and M. Porter discuss the current state of business value creation; and the efforts that need to be taken to create shared values. Currently businesses primarily concern themselves with profits and view value creation in such a way that they do not fully take advantage of their full potential. Additionally, the government has implemented policies that have only exasperated the drive from shared value creation. “Shared values form the basis for all relationships wherever we go in business and in life, we bring are own values along as well. When others share our values, this becomes a powerful and attractive force to bind us closer together. Shared values form the very basis for every relationship.” ("Shared," 2012) This is the very point that is made in this article; the business should not focus only on itself. When making decisions the business should look at its community and what it can do for that. “The concept of shared value resets the boundaries of capitalism. By better connecting companies ' success with societal improvement, it opens up many ways to serve new needs, gain efficiency, create differentiation, and expand markets. The ability to create shared value applies equally to advanced economies and developing countries, though the specific opportunities will differ. The opportunities will also differ markedly across industries and companies--but every company has them. And their range and scope is far broader than has been recognized.” (Porter & Kramer, 2011) A company needs a community that trusts them, supports them and feels like part of the organization. Some of the key way to create shared value include: energy use and logistic, resource use, procurement, distribution, employee productivity and location. By addressing these items a business will be given a new perspective, open the door to innovation, and get the access to economic resources that they failed to
In the article creating shared value the authors, M. Kramer and M. Porter discuss the current state of business value creation; and the efforts that need to be taken to create shared values. Currently businesses primarily concern themselves with profits and view value creation in such a way that they do not fully take advantage of their full potential. Additionally, the government has implemented policies that have only exasperated the drive from shared value creation. “Shared values form the basis for all relationships wherever we go in business and in life, we bring are own values along as well. When others share our values, this becomes a powerful and attractive force to bind us closer together. Shared values form the very basis for every relationship.” ("Shared," 2012) This is the very point that is made in this article; the business should not focus only on itself. When making decisions the business should look at its community and what it can do for that. “The concept of shared value resets the boundaries of capitalism. By better connecting companies ' success with societal improvement, it opens up many ways to serve new needs, gain efficiency, create differentiation, and expand markets. The ability to create shared value applies equally to advanced economies and developing countries, though the specific opportunities will differ. The opportunities will also differ markedly across industries and companies--but every company has them. And their range and scope is far broader than has been recognized.” (Porter & Kramer, 2011) A company needs a community that trusts them, supports them and feels like part of the organization. Some of the key way to create shared value include: energy use and logistic, resource use, procurement, distribution, employee productivity and location. By addressing these items a business will be given a new perspective, open the door to innovation, and get the access to economic resources that they failed to
References: Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value []. Harvardn Business Review, 89(1/2), 62-77. Retrieved from The Power Of Brands Lies In Shared Values. (2012). Retrieved October 25, 2012, from http://www.brandingstrategyinsider.com/2012/04/the-power-of-brands-lies-in-shared-values.html