We are aware that a corporate integrates a triple-bottom-line approach, in management concept what we call as CSR to sustain its business operations and interactions with its stakeholders. However, today in this modern and vigilant world, consumers don't make brand-based purchase blindly through the influence of media. They wanted to know how a company is creating a positive change in society as a core part of its services and products. Creating shared value is now an innovative management approach which not only brings profit to the business but also meets Sustainable development goals.
Creating shared value is relatively a new approach and is not same as CSR. They are two different entities to be understood. CSV in today's business model is a step ahead CSR that focuses on brand building and creating a feel-good factor about a corporate among its employees and customers. Shared value is about creating economic value by implementing new policies and operating procedures that maximize a corporate’s revenue, as well as that, benefits society.It helps a business to build a sustainable competitive advantage.
One best example of a company that usually mentioned at the forefront of creating shared value is Nestlé. In fact, Nestlé was an early adopter of the concept of CSV. Nestlé needs high-quality raw materials to produce first-class dairy products. When they entered the market in India in the Moga district in 1962, local farmers were not able to consistently deliver this quality. Only 180 farmers passed the test. Nestlé worked with local farmers to improve their production techniques and long-term contracts to buy products at a fair price. Today there are 75,000 farmers that reach Nestlé’s quality standards. In the Moga region, they have five times more doctors than other regions of India, better primary schools and basic needs like electricity are fulfilled.
Sustainability is the most important than the latest hype. Today's millennial generation of CSR are the creators. They embraces the concept of creating shared value and view sustainability as a positive game.