Creating Shared Value
Creating Shared Value (CSV) is a concept that brings business and society together so that entrepreneurial activity is profitable and increases the well being of citizens in the local community. CSV is a concept that brings business and society together so that entrepreneurial activity is profitable and increases the well being of citizens in the local community. It is about enhancing the competitiveness of a company while simultaneously enhancing the social circumstances of the communities in which it operates. Enabling strong local ecosystems for business is a concrete way to create shared value. Strong ecosystems have a positive impact on productivity and innovation. They foster efficiency and ease of collaboration. Value can be created, for example, by relocating production back to its home markets. This is a special feature of CSV that cannot be found explicitly in related responsibility concepts. The implementation of CSV is based on five principles. First, ethics are integrated into the business strategy. Then shared values are identified by combining societal problems and the purpose of the business activities. After that the business activities are ready to be started. Progress is tracked during the process and insights will be utilized to upgrade business activities.