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A report by Social Impact Consultants, FSG, on Creating Shared Value, states that companies need to make CSV at the core of their vision and what they do, create a strategy tailored to a company’s products and value chain, that creates economic and social value through identifying clear goals and specific societal issues and problems that are connected to their business.

Furthermore, companies must engage employees and partners across the company, as well as external partners and stakeholders for effective delivery of CSV initiatives.

It promotes that by addressing societal needs and problems, companies have the potential to derive a great deal of economic value as well as value for its shareholders and the society at the same time.

This has the potential of resulting in massive innovations and productivity growth across markets, both nationally and globally where companies operate.

Therefore, the fundamental question that arises in our minds is how do companies create shared value?

The link between business and society Companies are now beginning to understand that in order to create bigger returns on investment and profits, they need to give more emphasis to the social value of business as well, and move beyond the goal of just profit maximization.

In order to create shared value and drive sustainability and innovation, “companies need leadership commitment, an ability to engage with multiple stakeholders along the value chain, widespread employee engagement and disciplined mechanisms for execution”, state Eccles, Perkins and Serafeim in their article, ‘How to become a sustainable company.’ AFCSR 2012: “Innovative Approaches to Create Value for Business and Society” The good news is that companies in Asia are increasingly moving towards the CSV approach.

The past few years have seen increasing awareness of CSV and transformation in the mindset of companies about business and social responsibility.

Above all, it accelerates and expands the potential for social impact as major corporations launch initiatives that reach millions of people at a pace and scale that have rarely been achieved by the nonprofit sector.” This means that corporations have a much higher potential to solve societal needs and problems than NGO’s and government sector alone.

Creating shared value: A structured framework Shared value initiatives and innovative products/services require a structured framework to drive innovation and generate stakeholder collaboration.

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However, in implementing this framework to create shared value, companies can face a number of hurdles.

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