Shared value involves putting in place corporate policies and practices that enhance the competitiveness of a company while simultaneously advancing social and economic development. It involves finding a win-win combination between social need, corporate expertise and business opportunities.
Building on the concept of shared value, thought leadership goes even further to drive convergence between corporate, governmental, and societal interests by acting as a role model in developing and advocating ground breaking policies.
Shared value can be quantified into corporate economic impact in order to demonstrate the concrete benefits to different stakeholders
In order to generate maximum impact through shared value and thought leadership four essential components are needed: forge partnerships, scale up, measure impact and galvanize support.
- Partnerships: collect the widest range of expertise by forging partnerships with multiple stakeholders in the ecosystem, including competitors, suppliers, NGOs, governments, education departments, foundations and civil society.
- Scale: Extend scope of impact beyond business & social boundaries impact a wide range of indicators such as GPD, employment, innovation, SMEs, sustainability
- Measurement: Leverage Corporate Economic and Social Impact (CESI) assessments to demonstrate impact and garner further support from relevant stakeholders
- Galvanize: Actively communicate results through a range of different media and encourage others to replicate the results
Companies that successfully apply incorporate shared value and thought leadership in their corporate DNA will achieve a sustainable comparative advantage while having a broader transformational impact on society.