Shared Value Essay: Analyzing BMW, Adidas, and Heinz Strategies

This essay delves into the concept of shared value as a modern approach for business organizations to achieve economic success by addressing social problems. It differentiates shared value from traditional CSR, highlighting its focus on maximizing competitive advantages while solving societal issues. The essay analyzes shared value strategies through case studies of three companies: BMW, Adidas Group, and Heinz. The analysis includes BMW's Guggenheim Lab initiative, Heinz's micronutrient campaign, and Adidas' partnership with Grameen Bank. It emphasizes how these companies create value for both their businesses and society, contributing to market opportunities, talent retention, and customer acquisition. The essay concludes that shared value enables businesses to identify and address social issues, leading to innovation, growth, and enhanced reputation.

Running head: SHARED VALUE
SHARED VALUE
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Introduction
Shared value is considered to be the new approach or new ways for the business
organizations to attain economic success. It is considered to be a management strategy which is
undertaken by the business organizations to undertake business opportunities to different social
problems. The CSR strategy of the business organization mainly focuses on minimizing or
limiting the environmental harms to the business or reducing impact of the business organization
on the society, on the other hand, shared value of the business organization mainly focuses on
maximizing the competitive values of the business organizations to solve a particular social
problems such as market cost saving, talent retention and attaining new customers. The purpose
of this essay is to analyze the concept of shared value with examples of shared value of three
companies, BMW, Adidas Group and Heinz.
Discussion and analysis
` As per the Harvard business review, shared value is described as the economic value of
the business organizations which creates value of the business and the society and get
recognition. The CSR initiatives taken by the business organizations are today considered as a
ubiquity of “responsibility” (Crane et al., 2014). This makes it challenging for the business
organizations to take actions which are something remarkable. The example of the business
organizations undertaking shared value approach are described in the next section of the essay.

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According to Klein, (2020). BMW can also be considered as a great example of shared
value. The BMW Guggenheim Lab is a mobile laboratory which will travel nine cities
throughout the globe in six years. The mobile laboratory of BMW is led by international
interdisciplinary teams have the skills and talent in fields like architecture, design, science,
technology, education, urbanism and art. The mobile laboratory of BMW, address the issues and
the challenges faced by the contemporary urban life through various public discourse and
programs. The ultimate goal of the business organization’s mobile laboratory is to explore new
ideas, conduct experiments, and undertake initiatives to create forward thinking solutions in the
urban lifestyle (What is the Lab. 2020). The program undertaken by the business organization
establishes a social purpose for the business organization and this program can help them to
address the elitism or exclusiveness of “Ultimate Driving Machine” (What is the Lab. 2020). The
BMW Guggenheim Lab began as a co-initiative of Solomon R. Guggenheim Foundation and
BMW group. The Lab travelled to many countries like New York, Mumbai, and Berlin. The
Goal of the laboratory is to be a part of community center and explore new experimentation, new
ideas and other forward thinking visions and projects for the city life. As stated by Porter and
Kramer, (2019). BMW is committed to social and sustainable investments. Sustainable
commitment is considered to be an integral part of the business organization. The company
focuses on intercultural education and understanding concerning young adults and children. The
company considers it essential for a competitive economy and a healthy society. BMW is highly
committed in the locations in which it operates its business activities. This enables the business
organization to leverage their core expertise and improve these factors. They serve as a co-
initiator which helps them to achieve greatest long term impact. Moreover, BMW work in close
collaboration and cooperation with their strong partners in order to develop effective solutions

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and create open forums for formal and non formal educations to guide and support different
projects (Pavlovich & Corner, 2014). The projects initiated by the business organization supports
and promote cultural diversity along with intercultural dialogue. These shared values of the
business organization enhance their focuses on sustainable development goals which reflect the
company’s responsibility. Furthermore, the company believes in contributing to social mobility
and inclusion. They believe in providing young people education and therefore, they promote
‘MINT subjects all around the globe focusing on the developing countries which have limited
access to education and schooling (Klein, 2020)..
Similarly, H.J. Heinz has launched a campaign called as “micronutrient campaign” in
order to overcome the threat of iron deficiency anemia, mineral and vitamin malnutrition among
young adults, children, and infants in the developing country. Five million children in 15
developing countries have benefitted from the campaign (Klein, 2020). They have received
sachets of mineral powers and vitamin powders which have been approved by World Health
Organization and UNICEF. This is a cost effective treatment for the poor people with iron
deficiency. The low income people can purchase two cents per sachets; with these the children’s
can get the micronutrient needs for the entire year. Hence, the Heinz program is a shared value
with special social return on investment (Corner & Pavlovich, 2016). The Adidas Group has also
taken similar approach to partner with Nobel Laureate Muhammad Yunus’s Micro-finance
business organization, Grameen Bank for the purpose of manufacturing low cost shoes for the
lower income class group people. The partnering with the companies which ensure that the shoes
manufactured to cost effective and the lower income class people will be able to afford the shoes
(Corner & Pavlovich, 2016). Most importantly, the shoes might protect the poor people for

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diseases and promote healthy lifestyle (Visser, 2013). Hence, with this partnership program
initiated by Adidas Group and Grameen Bank, they have been able to create shared value.
Therefore, it can be said that the business managers and the leaders therefore can effectively
contribute to the solution of various complicated social problems (Crane et al., 2014). The
concept of shared value has no higher responsibility and no higher duty of professional
management.
Conclusion
Therefore, from the above analysis, it can be said that Shared value enables the business
organization to identify the social issues faced by the community and continue to develop
innovations and strategies to overcome the challenges and issues faced by the communities. This
in turn helps the business organization to open up new markets and generate growth. It has been
identified that BMW with its Guggenheim Lab travel across the cities and countries to address
the challenges and issues faced by the people. This program can help them to address the elitism
or exclusiveness of “Ultimate Driving Machine”. These initiatives undertaken by the business
organizations enable them to increase efficiency and increase the reputation of the business
organization.

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References
Corner, P. D., & Pavlovich, K. (2016). Shared value through inner knowledge creation. Journal
of business ethics, 135(3), 543-555.
Crane, A., Palazzo, G., Spence, L. J., & Matten, D. (2014). Contesting the value of “creating
shared value”. California management review, 56(2), 130-153.
Klein, P. (2020). Three Great Examples of Shared Value in Action. Retrieved 25 February 2020,
from https://www.forbes.com/sites/csr/2011/06/14/three-great-examples-of-shared-value-in-
action/#29feab6d595d
Pavlovich, K., & Corner, P. D. (2014). Conscious enterprise emergence: Shared value creation
through expanded conscious awareness. Journal of business ethics, 121(3), 341-351.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Visser, W. (2013). Creating shared value: Revolution or clever con. Wayne Visser Blog
Series, 17, 1-2.
What is the Lab?. (2020). Retrieved 25 February 2020, from
http://www.bmwguggenheimlab.org/what-is-the-lab