Operationalising shared value

Abstract

The state of global corporate affairs, failures of powerful corporations and the negative social and environmental impacts as a results of business have raised a heated debate regarding the role of business in society. Attempts to address these issue have to a large extent been unsuccessful in terms of sustainability. Creating Shared Value (CSV) argues that by addressing these issues, presents an opportunity to create mutually beneficial value while aligning societal and business objectives. CSV gained significant attention from both business and academia, but was however heavily criticised with various limitation with regards to the lack of an operationalised framework, measurement criteria and the socio economic link. The study therefore outlines the different concepts regarding the role of business in society and how shared value differentiates itself. The study involved qualitatively analysing numerous national and multinational organisations involved in shared value, with particular emphasis on the operationalising of shared value and associated success. The study also addresses claims made against the integrity and validity of shared value through organisational results. The findings indicated that shared value increased the success of the organisation while contributing towards solving societal issues with various positive correlations identified between economic and social value. The amalgamation of results contributed towards an enhanced complete shared value framework (SVF) and measurement criteria. Given the lack of practically operationalising shared value, the study therefore provides a contribution to the both business and academia.