This theory refers to companies, it is an invitation to consider their social environment, so that the company does not stop carrying out its lucrative activities, but acquires social awareness of benefit to its environment.
Among the elements to create shared value, we can mention; redesign of products or services, identification of new market niches, and generation of the value chain.
For Michael Porter, it is good to get rich, but at the same time, to be committed to social development. It is not about philanthropy, but about developing an economy that will last in the long term, and works in conjunction with society. (Skhev, 2013). It is a new mentality, to contribute to the growth of society, and even strengthens the image of the company, since it creates jobs and activates the economy where its geographical scope allows it. Which will provide the company with satisfaction, of seeking the common good and not only the desired goal of enriching itself, it will also provide the social benefit of community growth. For the company, it is necessary to break the paradigm, in which the entrepreneur seeks his own interest, choosing only the lucrative activities that generate utility, thus remaining in his own selfishness,and only pursuing its ends. (Rocha, 2013).
Normally, the company does not do it alone, it can be with the help of the government or with foundations, locating the market niches in which it can promote an economic development activity. The government, on occasions, helps to reduce poverty with the help of partners, since there are controls between the government and companies (partners), to support the implementation of this strategy. (Social Wath report, 2007).
Walmart is one of the companies that opted for this strategy, since having preferred local suppliers, it contributed to the economic benefit of the society in which it decided to set up one more store.
For the shared value strategy, the business gives the image of being fair, because the profit is not only the organization itself, but it rewards society, that is, it is fair because it does not seek only its economic interest, but also in the the others, in this case society. (Exit)
Shared value should replace corporate social responsibility as a guide for companies' investments in their communities. Well, the shared value strategy takes advantage of the unique resources of a company to create economic value by incorporating social value. The following table shows a comparison that (Mutis) proposes.
| Corporate social responsibility | Shared value |
| Do good | Economic and social benefit in relation to cost |
| Philanthropy. (charities) | Create the company together with society |
| Only the external response | Be an integral part of the community |
| Just look for the scope of your profits | This is how you maximize profits. |
It does so not by practicing charity, but by contributing and strengthening the social environment. This allows a great differentiation between purely for-profit companies, since those that are not in the field of thinking of getting rich regardless of the form, do not have the image or the commitment of the one that adopted shared value as its organization's strategy.
In this way, companies give back to the society of which they are part, as they support needy sectors, directly or indirectly influencing them, by generating jobs, with staff happy to be there, and even for being the employee of the month, as wal-mart does.
We must not confuse shared value with social responsibility of the organization, since it is not only a charity or Christmas benefit, to describe it in some way, it is a commercial task that contributes to the enrichment of society.
Conclusions
- Shared value is a strategy of the organizations, not works of social charity of the organizations.The image of the company towards the community is strengthened by this way of contributing in its geographical and social environment.In the region, Veracruz, one of the companies that has stood out for sharing value, is Wal-matr. All companies have profit motives, but shared value in a way of compensating society.
Bibliography:
- Mutis, G. (nd). Shared value, a high impact business strategy. Trends.Rocha, H. (2013). From corporate responsibility to comprehensive local development. Buenos Aires: LID Empresarial, Skhev, P. (2013). Transform business for the world of tomorrow. corporation 2020.Social Wath report. (2007). The social profile of development. Madrid: Icaria.
