Creating Shared Value

596 Words3 Pages
CREATING SHARED VALUE Is CSV an attempt to legitimize bad business practices? According to the article “Contesting the Value of creating shared value”, in Michael Porter point of view, “CSV compliances with the law and ethical standards, as well as mitigating any harm caused by the business”. In fact, there is a viscous circle between business and society and companies have being seen as creating profits at the expense of the community, and not creating profits that automatically benefits the community. Because of that, the government has increasingly perceived business as a problem, as a source of bad practices in society and starts to regulate, to control the tax, so political leaders are unable to pursue business in friendly public policies because the political environment almost forced them to be tuff the business despite the fact that business and society need each other. There are many things that company can do that don’t involve the trade-off, and that’s what company should focus on. Every company will have to be compliant; it’s going to have to obey the law, to meet all legal community standards in terms of how it behaves. (Michael Porter, Creating Share Value video, Harvard Business Review) Does CSV involve social compensations? If so, how does CSV differentiate from CSR? Yes, CSV involves social compensations, like Mr. Porter says, creating social benefits is a powerful way to create economic value for the firm. By creating products that are good for the consumer, nutritionally good, environmentally good, we help them save; raise their family in a better way. People have a lot of needs, if we mobilize capitalism to meet those needs, we can make a lot of money, but this kind of profit create Shared Value, it is not just profit at the expense of society or the consumer, it is benefiting the society and the consumer. Shared Value
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