The Win-Win Game: Transforming Business through Shared Value

In my journey as a champion for shared value creation, engaging with esteemed organisations such as the Gordon Institute of Business Science, I've witnessed a transformative shift in the way we perceive business success. Gone are the days when the sole pursuit of profit defined an organisation's triumph.

In today's dynamic landscape, I recognise that success hinges on more than financial gains. Customers and skilled employees no longer pledge their allegiance to entities viewing them solely through the lens of revenue generation. The contemporary consumer and workforce seek meaning, purpose, and a company's tangible impact on society.

Through my collaborations and discussions, I've come to firmly believe that for businesses to truly thrive, embracing the concept of shared value creation is paramount. It's more than a business strategy; it's a philosophy that resonates with the values of today's discerning stakeholders.

My dedication to shared value creation goes beyond theoretical advocacy; it's a core principle that I've seen drive positive transformations in businesses. As we navigate this evolving business landscape, I invite you to explore the power and potential of shared value creation—a journey that not only ensures business success but also contributes meaningfully to the betterment of society.

Shared value creation is the process of making money but, at the same time, dealing with real societal problems. At its base, the idea of shared value creation debunks the thinking that the interests of business and society are conflicting.

Shared value creation is important because it aligns the success of a business with social progress, developing mutually beneficial relationships between businesses and communities. A business that fully incorporates shared value creation into its strategy will be rewarded with a competitive advantage, long-term resilience, employee engagement, and enhanced corporate reputation.

Adopting a shared value mindset can change traditional roles and perspectives in several ways. For instance, organisations adopting the shared value creation perspective realise that their profits are tied to the well-being of the communities in which they operate. This results in a shift from focusing only on financial gain to a more holistic view of success. 

How shared value creation changes roles can be noted in the shift in thinking. For example, where companies or philanthropies traditionally donate funds to charitable organisations and tick a box, shared value creation demands more than that. It calls for an entity to see the charitable organisations as partners for creating shared value. Therefore, whatever initiative the donating organisation adopts should be based on consultation with those to whom the donations are being made. 

In shared value creation, non-governmental organisations are not there to receive grants and provide social services. Rather, they work with businesses to implement new shared value business models. In the same vein, governments are no longer confined to tax collection but extend themselves to partner with businesses and NGOs to support shared value strategies.

The changing roles show that shared value initiatives differ from traditional business ways. The new roles emphasise purpose more than product. For instance, from a shared value perspective, Nestle, the Swiss multinational food and drink processing conglomerate, is not seen as a food and beverage company but rather a nutrition company. Similarly, the footwear company Nike has become a health and fitness company.  

Shared value creation differs from CSR and philanthropy in that it focuses on creating mutual benefit by integrating environmental and social considerations into the core business strategy. By integration into the core business strategy, shared value creation seeks to ensure that business goals are aligned with the needs of society to create opportunities for mutual benefits.

By integration into the core business strategy, shared value creation seeks to ensure that business goals are aligned with the needs of society to create opportunities for mutual benefits. 

CSR does not always attempt to align itself to activities aligned to the organisation's core business. Its main focus is on community engagement, sustainability, and ethical practice. Philanthropy does not always attempt to integrate environmental or social considerations. While CSR and philanthropy can be a one-way giving approach, shared value creation always seeks mutual benefit. 

Here are some of the characteristics of shared value creators:

Caring about both the business and society. 

Problem solvers who want every business strategy to be part of the solution to societal problems.

Understanding that it takes time and effort to solve societal problems and grow value for a business.

Collaborators who understand the value of different stakeholders.

Appreciate the value of a motivated and skilled workforce to drive both social and economic impact.

Through ethical leadership, shared value creators are clear about what needs to be done and emphasise effective communication.

By being adaptable and responsive to the changing needs of business and society, shared value creators always have their finger on the pulse. They can change their strategy as needs change.

The boarding call is now out to any companies that want to ensure long-term sustainability while enhancing their reputation by aligning their goals with societal needs. This call is for those entities that want to nurture collaboration with stakeholders, innovate to solve real-life challenges, and gain the trust of the communities in which they operate. 

An organisation that embraces shared value creation illustrates that it understands consumers' changing needs while being socially responsible. All this is done without disadvantaging shareholders. Shared value creation is a true reflection of a win-win arrangement.