How to achieve shared value
February 10, 2015
Value is achieved through operational practices that improve competitiveness in the company, and the economic, social, and environmental conditions in the communities where it operates
Shared value is the evolution of social responsibility. It is achieved through operational practices that improve not only competitiveness and profits in the company, but also the economic, social, and environmental conditions in the communities where it operates.
Under this understanding, companies must recognize the social needs by the impact they have on the business's yield, in the definition of the market, and in the productive process.
According to Michael Porter, creator of the concept, there are three ways to achieve shared value:
- Redefining the products and services
- Conceiving a new manner of productivity in the value chain
- Creating niches
- Constructing support clusters for the vicinities of the companies
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