Creating Shared Value

ITC created shared value in their implementation of e-Choupal, or their business in the paperboard industry. Wal-Mart has been working on creating shared value as societal demands change here in the United States. A key element to shared value, is noted, and that is that societal needs do in fact change. As the article posits, companies have been using the same strategy of profit generation for decades and even those that have corporate social responsibility programs, do so as an afterthought, rather than a central tenant of their business model.

One last time, I reference the military. We exist to create shared value. In fact, we don't generate a profit, but we do pay our employees, both military and civilian. However, in each part of the world we may be called to serve in, there is always an in-processing time that newcomers must go through where customs and courtesies of the host nation are taught. The military recognized long ago, that by having our forces in places like Germany even decades past the wars, we have helped build up their infrastructure by investing in housing and roads, bridges, tunnels. We also helped the private sectors whether they be bars or nightclubs, or new Ikea shopping centers.

The three key areas defined allow us to reconceive our own market. We do have to "sell" our continued existence in foreign countries. One of the most valuable ways we do that, is by investing in supply chains for products that are imported. Another way is by allowing local village populations around the installations, to gain employment and access to on based privileges, and to rent their own houses out to service members, while receiving well above the national housing average in home payments. In fact, in Kaiserslautern, Germany, we helped create German-American alliance groups, theaters that offer concerts dedicated to partnerships, and NGOs that foster creative approaches to the area.

Shared value creation is important in the ever changing global business modeling. Whether you are a NGO, a Profit generating capitalistic society, or a military unit, looking at how best to service current and future constituents is becoming the way to growth and sustainability. It is no longer permissible to rummage through society's money and time and not take into account their individual and collective needs.