Alliances, Supply Chains and Challenges of Values Alignment

Supply Chain
Business, Society and the Environment
Critical Thinking and Reflection
Name:
Institution:
Date:

Topic 6: Shared value creation and innovation
Background
Most people view business as a matter of managing profits and losses. Informed by money as a
means to an end, many people support more gains and reduction of losses. Despite the fact that
financial strategies are the most critical for business success a capitalist system is also about
competing for resources. That is why scholars engage in discussions about bad business practices
and how to distinguish between the good and the bad (Huston, 2017). The introductory
paragraph of Houston’s article discredits the “best practice” approach to business management.
This raises a question about the role of Corporate Social Responsibility (CSR) as a way of giving
back to the society. Do businesses practice CSR willingly and genuinely? This further raises
questions about the best approaches to innovation and engaging in successful business within a
highly market based economy. Seminar 6 readings such as Michael Porter’s articles on shared
value provide further enlightenment on this.
Commentary
Porters abstract stresses the significance of Corporate Shared Value (CSV) as an ingredient for
successful business processes (Porter & Kramer, 2011). In this opinion, competitive advantage is
part of value creation because the business cycle is vicious. From this perspective, it is easy to
understand shared value as a concept in modern business plans. The second last paragraph of
Pfitzer, Bockstette, & Stamp, (2013) sub titled “Co-creating with External Stakeholders” offers
clarity in this discussion by clariffying the difference between CSR and CSV (par, 37). A closer
look at CSV unveiled the role of stakeholders from different sectors. Although CSR often

emerges as a business responsibility companies also analyze its cost implications. A case study
of Walmart as a leading retailer in the US exposed the impact of unfair working conditions over
time. Evidently, unfair working conditions, exploitation of workers and poor compensation cost
Walmart’s reputation (Walmart, 2013).
Overall reflections
As a result of these readings, social value emerges as a critical part of optimizing business value.
So how does this concept make a difference in unlocking business prosperity? Anyone interested
in business and society will be curious to discover how CSR initiatives improve pricing and
retail channels. The perception that all companies strive to prosper for economic purposes augurs
well with business people. So how does the new concepts such as CSV boost a business though
social benefits? Although I different case studies showcase unique strategies, there is common
ground. This brings out questions about the best approaches to CSR activities. One way is to
understand the functions of an organization that would support impact creation. It is important to
learn about credible case scenarios from successful multinationals in a capitalist system. The
success stories and failures shed some light on the fact that profitability alone is not enough in
business. A report by Turker & Altuntas, 2014 starts off by identifying supply chain strategies in
a fashion industry as a good framework for effective business management (p.838, par 3). This
business model gives a better explanation of CSR in an associate engagement plan where
stakeholders share costs.
Impact on decision making (Government’s involvement)
After seminar 6 new discoveries emerge concerning a concrete explanation of business from a
shared value perspective. Porter & Kramer (2011) see capitalism as beneficial to society because

of its focus on meeting human needs ( p. 64 par, 6 ). Having looked at the business systems from
a capitalist environment, this information reveals how governments and businesses get involved
in informed decision processes. Stakeholders in a business system include the business,
government and civil society organizations. This discovery provides a new way of looking at
capitalism in terms of innovation, productivity and economic growth under stakeholder
networks. Although resource distribution and utilization stresses on the internal business
mechanisms, external elements also present opportunities. A closer scrutiny of the Business
Week magazine made me understand why value creation is necessary for sustainability (Street &
Street, 2010). It supports each stakeholder’s objectives for a better society.
Government controls verses business value
When US corporations face accusation of failing to monitor and control quality issues such as
exploitation of workers and unfair working conditions emerge as conflict of interests (Street &
Street, 2010, par, 1). The consumer is an integral part of the UN Sustainable Development Goals.
With reference to goal number 12, all countries are to implement responsible consumption and
production (United Nations, 2017). This is part of sustainable management and it safeguards
human health, the environment and the business cycle. Governments as regulating bodies insist
on consideration for societal needs in order to reduce social harm. However, it is critical to
consider the implication of this on business costs and markets.
Differing opinion provides a comparison of value investments. Although CSV supports
economic value, it caters for wider benefits. Conclusively shared value expands the business
through competitiveness while stimulating economic growth. This guides investments and
economic efficiency in a firm. Today shared value stands out as a channel for productivity in a
business (Porter, Hills, Pfitzer, Patscheke, & Hawkins, 2012, p.2, par 3). This is a multifaceted