Creating Shared Value Essay

Decent Essays
In the new business era, business should know how to redefine creation of shared value rather than pursuit profit.The market not only needs the economic trends, but also the social needs. If an enterprise wants to achieve a sustainable development and grow, corporations must connect with the society and identify the demand and needed for its consumers. The article “Creating Shared
Value,” was written by Michael E. Porter and Mark R. Kramer. This article intends to define the difference between corporate social responsibility and creating shared value, and redefine capitalism based on authors’ perspective. They believe that creating shared value is not a matter of personal values, nor a "sharing" of the value that enterprises had already created.
…show more content…
The authors explain the idea of sharing value closely related to the businesses and society as a whole.They keep addressing the problems that business should not only look at the profit side of the economics, but also the create value when they business is generating profit. The success of a business cannot be achieved without the prosperity of a community. Businesses, however, do not necessarily increase costs because they can innovate by adopting new technologies, business can increase productivity and expand the market. It is noteworthy that the shared value is not "sharing" the value the enterprise has created, but the bigger the whole economic and social value.
Conclusion
Overall, in general, the best opportunities for companies is to create shared value, and it must be closely related to their own business within the most important areas of the company 's business.
This opportunity helps the enterprise to contribute the greatest economic benefits in a long-term investment. With this opportunity, companies can demonstrate their commitment to a specific social problem through their business size and market power. At the same, creating share value

Related Documents

  • Superior Essays

    Kerr Mcgee Case Study

    • 1428 Words
    • 6 Pages

    Business world is more competitive today and every organisation is doing their best to be in the league. In these days for a company choosing a corporate objective is really essential as failure or success of organisation is linked to it. Companies looking for more innovative technique and methods by which they can reduce their cost and increase profitability. Keeping Marginal Revenue (MR) = Marginal Cost (MC) is the basic tactics followed by the organisation.…

    • 1428 Words
    • 6 Pages
    Superior Essays
  • Decent Essays

    Costco’s strategy as a retailer demonstrates that it values its employees as much as its customers. In chapter eight it states that an organization which supports employee development creates a system where employees can meet their goals, as well as, giving them the opportunities to select activities which develop their job skills and relationships within the company. (Chapter 8, page 2). The executives of the corporation have confidence in the structure of their company and their top down methodology.…

    • 329 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Milton Friedman is known for his various theories on the American economy and business world. In The Social Responsibility of Business is to Increase its Profits, he states that a business main social responsibility is to “use resources and engage in activities,” contributing to an increase in profit without committing fraud. The next article is by Efreeburg, detailing two companies who are the epitome of good social responsibility. Things such as environmental sustainability, employee and customer satisfaction and single-stream recycling are what make Greyston Bakery and New Belgium Brewing “Best for the World” These perspectives are incompatible.…

    • 345 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Total Free Market

    • 676 Words
    • 3 Pages

    Adam smith's theory was that if the government does not interfere with the market place then the result would be that the customers would pick the best and most affordable option. In doing this the costumers create competition between the sellers to make a better and more affordable product. If the seller failed to do this the costumers will not buy from them and the seller will ultimately go out if business. The consumer’s tastes and preference are served by competition because sellers are competing for their customers.…

    • 676 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    In this paper I discuss how servant leadership, ethics, and entrepreneurism relate to health care career opportunities. Next, I describe my vision for my career once I have completed my Master of Business Administration with an Emphasis in Health Systems Management degree. Then, I address the impact that completing this degree will have on meeting the greater social good in my industry and within the community. Lastly, I explain how the pillars relate to the Christian mission of Grand Canyon University. Healthcare management that utilizes servant leadership, ethics and entrepreneurism presents a unique opportunity to provide the medical community with tangible and intangible benefits.…

    • 871 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Introduction In the business world, it can be observed that there are many different companies that operate in the market and have their own offerings for the people and for this purpose it is necessary for the companies to reach out to the people to make them aware of the offerings of the company and persuade them to purchase it. This is where the role of marketing comes into play since it helps companies to reach out to the potential buyers and have an increase in the demands that they supply for during their tenure in the business world (Wolski, 2015). Marketing environment When talking about the companies that operate I the different industries of the business world, it can be seen that they all have their own of offering…

    • 2088 Words
    • 9 Pages
    Improved Essays
  • Improved Essays

    Values exist within individuals and reflect their behaviour in the workplace where they hold shared values. O’Grady values TriVac and its independence deeply. His values are not congruent with the organization. TriVac is now owned by Rohrtech and their values are being passed onto them. Devine tries his best to enforce these values of unity, and working on achieving the benefits by integrating with Rohrtech but TriVac employees, especially Weston and O’Grady are stubborn and want to keep independence.…

    • 996 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Non-for-profit organisation: Open Minds Vision Statement: A leader in transforming and delivering empowerment across mental health support and disability services, providing opportunities and an equal quality of life. Mission Statement: To assertively support and assist in expanding high-level mental health and disability solution services, to convey and promote the human value and contemporary methods of empowerment for those at disadvantage. Summary of value statements: Many scholars within public management and in this case, non-for-profit organisations have argued a need to define a strong mission and purpose for public agencies as a step to improving performance and a basic foundation of corporate practice, mission and vision statements…

    • 1038 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Value proposition in Patient Care In the modern world of health care, organizations should be up to date on how to improve their value services within the hospital. Collectively, there are always different individual patients that seek for value proposition and integrity in the health environment of professionals that work in the perspective hospitals with patients while serving the communities locally and globally. I believe value-added service is a higher quality of structure because when you deal with patients, the ultimate goal of serving their needs has to be understood in order to provide the care. According to a New England Journal of Medicine article, Michael Porter makes a compelling case for defining, measuring and rewarding value in health care.…

    • 1231 Words
    • 5 Pages
    Superior Essays
  • Superior Essays

    Training Program Analysis

    • 1496 Words
    • 6 Pages

    Posts Describe how you would establish a learning program focused on best practices and innovation, in contrast to a training program emphasizing limitation, within the organization or within specific departments of that organization. Consider the ideas about whole systems transformation conferences developed in-house for company employees. Whom would you invite and encourage to participate in the program? What topics would you want them to discuss? How would you collect the ideas they share…

    • 1496 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    Csc Catalyst Structure

    • 9713 Words
    • 39 Pages

    Deliver Early Business Benefits Through Frequent Successes Creation of business value is brought about by the delivery of solutions, including the effective use of services. For large, complex service contracts and engagements, value shoul d be demonstrated by early and consistent delivery of results. Deferring the realization of value until the final delivery of the solution imposes risk that customer expectations may not match the outcome and that the result may not be workable. In addition, opportunities are lost to add momentum to the development of the final product through customer feedback and reinforcement. Catalyst divides big, high-risk service contracts and engagements into smaller, more manageable pieces in order to more frequentl y and consistently deliver measurable, added value.…

    • 9713 Words
    • 39 Pages
    Great Essays
  • Improved Essays

    “A business model reflects management’s hypothesis about what customers want, how hey want it and what they will pay, and how an enterprise can organize to best meet customers needs, and get paid well for doing so.” Do you agree with this statement? Why? Be specific. Feel free to use examples.…

    • 1148 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Jack Welch Case Study

    • 1814 Words
    • 8 Pages

    Jack Welch, is United States one of the most successful CEO, running the most valuable firm in the US, General Electric. His main philosophies are: • Keep Business Simple and don’t over complicate it • Be practical and face reality • Don’t fear change • Fight Bureaucracy • Use your worker's brain • Identify people with best ideas and put them into practice And always keep learning from your associates, competitors, and customers. Learning should be consistent and then only you will be able to successfully position your company to take advantage of upcoming opportunities that will arise in future.…

    • 1814 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Strategic Alliance Essay

    • 819 Words
    • 4 Pages

    A strategic alliance is a partnership between two or more firms to allow every enterprise to attain their strategic goals. Businesses in strategic partnership share resources, organization’s competencies, and the skilled workers until the termination of the strategic alliance. The partners in strategic alliance maintain their business status as independent and separate entity from the partnership formed. This discussion will be divided into two main components that include the merits partners receive due to strategic alliance creation and the pitfalls of a strategic alliance.…

    • 819 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The McKinsey 7-S model The McKinsey 7-S model uses seven interdependent factors which can be categorized as Hard or Soft. Hard Soft Strategy Structure Systems Shared Values Skills Style Staff • Strategy: A plan designed to maintain and continually improve advantage over the competition • Structure: how a business is structured and knowing who reports to who • Shared Values: These can be seen in the general work ethic and the corporate culture of the company. • Style: The type of leadership adopted in the company by the senior management. • Systems: The daily duties and procedures used by employees to complete their tasks • Staff:…

    • 1488 Words
    • 6 Pages
    Great Essays