Creating Shared Value: It's the Future

FSGImpact
27 Mar 201201:51

Summary

TLDRThe 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.
  • πŸ”„ What if these problems were reframed as opportunities for businesses to both improve the world and increase profits?
  • πŸ’‘ 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.
  • πŸš€ General Electric, InterContinental Hotels Group, and Nestle are examples of corporations that have successfully implemented shared value strategies.
  • πŸ‘Ά 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.
  • πŸ“ˆ 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.

Outlines

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Mindmap

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Keywords

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Highlights

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Transcripts

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Related Tags
Sustainable BusinessProfit & PurposeInnovative SolutionsSocial ImpactEnvironmental InnovationCorporate ResponsibilityEconomic GrowthResource ManagementMarket ExpansionShared Value