In today’s evolving business landscape, companies are under increasing pressure to move beyond traditional corporate social responsibility (CSR) and embrace strategies that drive both profitability and social impact. One such strategy is Creating Shared Value (CSV), an ethical and sustainable practice for all organisations. Unlike CSR, which is often seen as a separate philanthropic function, CSV integrates social good directly into a company’s core operations. The key message? All companies—regardless of size, industry, or business model—can incorporate CSV to create sustainable competitive advantages.
Understanding the Three Types of CSV Companies
While some companies are built around CSV from the start, others integrate it over time. Businesses typically fall into three broad categories:
1. Born CSV Companies
These are businesses that have embedded shared value in their DNA from inception. Their products and services are designed to solve societal challenges while remaining profitable.
Example: A fintech startup offering mobile banking solutions for unbanked populations. By providing financial services to underserved communities, they not only drive financial inclusion but also generate revenue from new market segments.
2. Transformational CSV Companies
These are established corporations that recognize the potential of CSV and pivot their strategy to integrate it into their core business operations. They actively reshape their value chains to drive both social impact and financial growth.
Example: A global food company that sources raw materials from small-scale farmers and invests in agricultural training. This improves crop quality and yield, benefiting the company’s supply chain while enhancing farmers’ livelihoods.
3. Adoptive CSV Companies
Some businesses may not be structured around CSV but gradually incorporate its principles. These companies identify opportunities where social impact aligns with profitability and adjust their operations accordingly.
Example: A consumer goods company transitioning to sustainable packaging. By adopting eco-friendly materials, they reduce environmental harm while appealing to conscious consumers and improving brand reputation.
Why All Companies Should Consider CSV
The misconception that CSV is only relevant for certain industries or business models limits its adoption. In reality, any company can leverage CSV to drive business success while addressing societal challenges. Here’s why:
1. Competitive Advantage
Companies that integrate social impact into their business model gain a distinct edge in the market. Customers, investors, and stakeholders increasingly favor businesses that demonstrate ethical and sustainable practices.
2. Market Expansion
CSV opens doors to underserved markets, creating new revenue streams. Businesses that address social problems can tap into new customer segments while building long-term brand loyalty.
3. Operational Efficiency
By embedding CSV principles into their value chains, companies often identify cost-saving opportunities, improve resource utilization, and enhance productivity.
4. Stronger Stakeholder Relationships
Businesses that prioritize shared value foster stronger relationships with employees, suppliers, customers, and communities, enhancing trust and long-term sustainability.
How to Implement CSV in Any Business
Embracing CSV doesn’t require a complete business overhaul. Companies can begin by:
- Identifying Societal Needs Related to Their Industry: Assessing how their products or services can address existing challenges.
- Aligning Business Operations with Social Impact Goals: Integrating sustainability, inclusivity, or ethical sourcing into their core strategy.
- Collaborating with Key Stakeholders: Partnering with governments, NGOs, and local communities to maximize impact.
- Measuring Impact and Adjusting Strategies: Using data-driven insights to track progress and refine initiatives.
Conclusion: CSV as the Future of Business
The days of businesses existing solely for profit are fading. Today, companies that integrate shared value into their operations stand to gain not only financial success but also long-term sustainability and social credibility. Whether born CSV, transformational, or adoptive, every company can embrace this strategy—and the benefits are clear. The question is not whether CSV is relevant to your business, but how soon you will start integrating it.
For assistance with CSV awareness for boards and management teams, or to assess your organization’s CSV readiness, feel free to contact me.