Unit 3: Creating Shared Value 1
Running Head: Unit 3: Creating Shared Value
Global Economic Environment
Unit 3: Creating Shared Value
Unit 3: Creating Shared Value 2
Many companies came about out of a need or a means for products to be sold and or obtained, but often companies could not thrive on their own. Many companies were able to help the community grow by supporting and patronizing one another. So if a restaurant needed fresh produce it would use the local farmer or produce market to obtain the produce in turn the farmer might eat at the restaurant. The farmer and the restaurant might hire locals and neighbors to help the community. That would not only build each others business but build the community.
Porter and Kramer advise, “A shared value perspective, focuses on improving growing techniques and strengthening the ...view middle of the document...
” The problem may be in the creating of the shared value.
“The concept of shared value, recognizes that societal needs, not just conventional economic needs, define markets. It also recognizes that social harms or weaknesses frequently create internal costs for firms - such as wasted energy or raw materials, costly accidents, and the need for remedial training to compensate for inadequacies in education.” (p.5)
Unit 3: Creating Shared Value 3
We live in a society today where everyone wants everything immediately and many times it doesn’t matter the cost whether economically, socially, politically etc. The objective is to get it by any means necessary. We are at a point now where some companies do not have a place of origin or a home, they just recognize themselves as being global. That in of itself negates you from connecting and belonging, because what you indicate is that you belong everywhere which in essence is nowhere.
The idea behind creating shared value is to find ways where everyone can benefit from growing the company rather than everyone trying to figure out how they individually can grow. Porter and Kramer suggest that there are Three distinct ways to create shared value.
One way is by reconceiving products and markets. Essentially it is easier to to find a purpose for a product and market that rather than market a product for which there is no need.
Another way to create shared value is by “redefining productivity in the value chain.” (p. 8) “Considerations in the value chain that increase shared value include the evaluation of energy use and logistics, resource use, procurement, distribution, employee productivity, and location.” http://brownflynn.wordpress.com/2011/03/01/beyond-the-triple-bottom-line-creating-shared-value/ Lastly is, Enabling local cluster development. This allows businesses to work together to solve common issues selflessly and could generate new products, growth customers and chains.
Unit 3: Creating Shared Value 4
Porter, M.E. (2011). Creating Shared Value. Harvard Business Review.