Global Business Management docx.

GLOBAL BUSINESS MANAGEMENT
0
Global Business Management

Global Business Management
1
What does “creating shared value” mean? How does this approach differ from the prior
approach to corporate social responsibility? How should a company create shared value
in an international business context?
The creation of shared values is a concept that is followed by companies for the
development of future markets while strengthening economies, communities and the
marketplace. CSV concept was published by Porter and Kramer in 2011; it is a conceptual
response to deficiencies in corporate social responsibility. CSV is different from CSR as
creating shred values underline that “social engagement must be economically beneficial for
a company and by relating it to strategic analysis” (Porter & Kramer,2019).
The concept of CSV highlights value creation by focusing on two dimensions that are
social and economic. By using the CSV approach the company creates economic value
through creating social value (Porter & Kramer,2019). However, the corporate social
responsibility concept is considered as the business model that helps firms to be socially
accountable to their stakeholders, to itself and to the public. Leandro & Neffa (2012),
suggested that CSV is the concept under the umbrella of CSR.
Creating Shared Value (CSR) Corporate Social Responsibility (CSR)
This is considered a positive approach to
solve social issues
Normative stance
The concern is to solve social issues and
create value for the business in the market
Under CSR social issues and economic
issues are treated separately
Actions of organizations are driven internally The action of organizations are driven
externally
Profits ( Economic Value) Assume generating profits
Focus on those social issues that are In CSR activities firms sacrifice the part of