Creating Shared Value: It's the Future

Summary

The script challenges the traditional view of environmental and societal issues as threats to business profits, proposing instead that they are opportunities for creating shared value. It advocates for a paradigm shift from short-term profit maximization to a long-term focus on societal and environmental innovation. Examples include General Electric's health products for developing countries, InterContinental Hotels' energy-saving tool, and Nestle's support for resource-strapped farmers. Embracing these opportunities is portrayed as essential for business success and the future.

Takeaways

• 🌱 Traditionally, environmental and societal issues have been seen as threats to corporate profits.
• 🔄 What if these problems were reframed as opportunities for businesses to both improve the world and increase profits?
• 💡 Ignoring these opportunities could put a company's future at risk, while embracing them can lead to outperforming competitors.
• 🌟 The concept of creating shared value is introduced as a way to achieve both societal improvement and business success.
• 🏢 Creating shared value involves three levels: reconceiving products and markets, redefining productivity, and supporting industry clusters.
• 🚀 General Electric, InterContinental Hotels Group, and Nestle are examples of corporations that have successfully implemented shared value strategies.
• 👶 General Electric has developed health products to provide affordable care to mothers in developing countries.
• 🏨 InterContinental Hotels Group uses 'Green Engage' to help hotels control energy consumption and save costs.
• 🌾 Nestle supports resource-strapped farmers in developing economies to build a better supplier network.
• 📈 Creating shared value is presented as not just an option, but a necessity for the future of business success.

Q & A

What is the traditional view of environmental and societal problems in relation to business?

Traditionally, environmental and societal problems have been viewed by businesses as threats to profit.

How can businesses reframe environmental and societal problems?

Businesses can reframe these problems as opportunities to not only improve the world but also to increase profits.

What is the potential risk for businesses that ignore environmental and societal opportunities?

Ignoring these opportunities could put the future of a business at risk.

What is the potential benefit for businesses that embrace environmental and societal opportunities?

Embracing these opportunities can lead to outperforming peers and ensuring the future of the business.

What is the term used in the script to describe a business approach that focuses on long-term societal and environmental benefits?

The term used is 'creating shared value.'

On what three levels does creating shared value operate?

Creating shared value operates on three levels: reconceiving products and markets, redefining productivity in the value chain, and supporting industry well-being.

How does reconceiving products and markets contribute to creating shared value?

It involves meeting customer needs while also contributing positively to society.

What is the role of redefining productivity in the value chain?

It involves using social or environmental innovation and cluster development to improve productivity.

How does supporting the well-being of related industries contribute to shared value creation?

It involves improving societal conditions in ways that benefit not just the business but also related industries.

Can you provide an example of a company that has successfully demonstrated creating shared value?

General Electric developed new health imagination products to deliver high-quality, low-cost care to mothers in developing countries.

What is the future outlook for businesses that do not adapt to creating shared value?

Creating shared value is presented as not just an option but the future of business, implying that those who do not adapt may struggle to remain competitive.