Shared Value Analysis

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1. Concept of Shared Value
When we look around at the business models companies utilize today there is so much room for a new approach. The single minded profit centric strategies are losing their relevance in today’s world. Business nowadays is facing a real challenge to move from being a shareholder or investor centric to stakeholder centric. Although it is impossible to please everyone in a diverse business model all the time, but it is possible to identify the optimal approach to address a problem that can elevate the model as a whole. There is a huge opportunity to the win-win ethos of a shared value strategy.
The concept has emerged from a series of Harvard Business Review (HBR) articles written by Porter and Kramer in the last decade.
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Creating Shared Value operates on three levels:
1. Reconceiving products and markets in ways that meet customer needs, but also contributing to society. GE has developed HealthyMagination products to deliver high quality, low cost care to mothers in developing countries.
2. Redefining productivity in the value chain through social and environmental innovation. Intercontinental Hotel Group (IHG) has implemented Green Engage, innovative cost saving online tool to help its hotels control energy consumption.
3. Cluster development by supporting the well-being of industries related to your own in ways that improves societal conditions. Nestle has given farmers in developing countries, financial and technical assistance to create a better supplier network.
1. How does CSV differ from
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The government sets the policy and regulations which effects society in many ways and till now the government has been using GDP as a tool to measure the impacts of their policies. But we know that GDP only cannot not signify the correct picture of the progress made. Many broader tools are coming up like GDP+, Social Progress Index, which measures the way all the countries in the world are achieving social progress outside GDP. The Earth Security Index is another tool that identifies what are the big issues that each country is facing. Since each country has different kind of problems, this will prove to be very helpful to all the business in identifying the key issues of a country which will help them in channelizing their strategies based on the specific issues provided in the reports. So the government can proactively look at these things along with corporations to set policies that will improve the society and thereby improve the