August 24, 2021 at 12:30 pm #1298Anonymous User32Participant
“If you give a man a fish, he eats for a day; If you teach a man to fish, he eats for a lifetime”.
‘Creating Shared Value’ is a concept coined by economist Michael Porter in which companies create sustainable solutions for problems in society not by offering charity but, by giving them the means to create more profit for themselves. There are three main components of creating shared value:Reconceiving products and markets to met customer needs while also contributing to society.
This means returning to the basic question of business: Is our product good for our customers? In advanced economies, demand for products and services that meet societal needs is rapidly growing. Companies that focused first on taste to drive consumption and sales are now expanding to include nutritional needs. Heinz has launched a “micronutrient campaign” to help infants and children in developing countries with vitamin and mineral deficiencies. More than 15 million children have received sachets of vitamin and mineral powders. A by-product of creating shared value in products is improving lives of company improve society
Redefine productivity in your value chain by social/ environmental innovation
A company’s value chain and society should be a symbiotic relationship wherein improvements in a company’s value chain, for example, use of natural resources, health and safety and working conditions, should positively affect society as well. Walmart is a great example of a company who made changes that were profitable for themselves and, also were beneficial for society as a whole, when they reduced their packaging and rerouted their trucks to cut 100 million miles from their delivery routes in 2009. This saved the company $200 million while also cutting back drastically on their use of natural resources.<
3. Cluster development Clusters are geographic concentrations of firms, businesses, suppliers, service providres and logistical infrastructures in a particular field. Think of Nespresso Coffee, Nestlé built clusters surrounding the agricultural, technical, financial and logistical firms in each coffee region. They increased the access to agricultural inputs, such as plant stock and ferttilizers, helped farmeres finance milling facilities and partnered with an NGO to teach farmers more-sustainable practices. These adjusments not only improved the work for the coffee producers and farmers but also increased Nestlés productivity and therefore, their profit.
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