Creating shared value (article summary) - Essay Example

Creating Shared Value Creating Shared Value Capitalism has been identified as the fundamental cause to problems that are social, economical, and environmental in nature. In line with this, organizations are increasingly playing a significant role in enhancing capitalism although they have come into the realization that there is a need to bring the society and business together, which is the principle of creating shared value. In this regard, creating shared value is ensuring that a company’s policy and practices played an instrumental role in advancing the economic and social conditions of the community within which an organization exists.

Importantly, the shared values are the benefits in relation to the cost of operations. There are three distinct ways that an organization can create shared value. The first approach is through the conceptualization of products and markets. Secondly, a company can create shared value by redefining an organization’s productivity in the value chain. Finally, an organization can create shared value by creating groups of similar things in the company that were supportive of the industry in which the organization operates in since a company cannot exist in isolation.

One essential way of enhancing global economic growth is through the opportunity offered by creating societal values through economic values. In this regard, the approach provides business organizations with the opportunity to understand their customers, productivity, and external factors that influence the success of an organization. In effect, creation of shared values becomes more effective and the most sustainable effort of enhancing the organization’s participation in the social arena than the efforts that companies are currently practicing.

In effect, the principle of shared value becomes an effective approach of ensuring innovation and growth in businesses.