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Writer's pictureMartyn Kingston

Unlocking Shared Value: Transforming Business for a Sustainable Future

Updated: Jan 7

Part 2 – Key Ideas and Strengths


By Martyn Kingston, Founder and Principal,

New Logic Solutions


Key Ideas

Shared Value represents a groundbreaking approach to business strategy, reshaping the dynamic between profit and societal progress. It involves the seamless integration of innovation, profit, and purpose into business strategies and business models:


1. Innovation for Impact: Shared Value prompts businesses to perceive social and environmental challenges as opportunities for innovative business solutions. This innovation may take the form of product or service development, enhancements to the value chain, or the creation of local cluster effects, all generating economic benefits while addressing societal and environmental issues.


2. Profit and Purpose Overlap: In contrast to CSR and ESG, Shared Value underscores the potential intersection of profit and societal/environmental progress. It encourages businesses to pinpoint areas where their core operations can drive positive change in these realms while simultaneously enhancing profitability. This alignment fosters strategic, sustainable competitive advantages.


3. Business Model Integration: Shared Value advocates for the comprehensive integration of social and environmental considerations into the core business model. It transcends isolated CSR initiatives, instead, emphasizing the infusion of sustainability into the company's DNA. This integration spans R&D, finance and accounting, leadership and management, value chains, marketing and sales, and control systems, ensuring a holistic approach to Shared Value principles and to sustainable business.


The following figure illustrates the evolution of business thinking over the past two decades regarding the business-society relationship:


Key Strengths

Shared Value's strengths lie in its capacity to reshape how businesses contribute to society and to the environment:


1. Creative Solutions for Social Problems: Inspiring businesses to discover distinctive and imaginative resolutions to urgent societal challenges. Nurturing a mindset of innovation and entrepreneurship, wherein profit motives propel the creation of impactful solutions.


2. Tailored Approaches: Acknowledging the absence of a 'one-size-fits-all' solution to societal issues, Shared Value empowers organizations to customize approaches and solutions according to diverse industries and communities, aligning with their unique capabilities and core business interests.


3. Increased Civic Engagement: Shared Value cultivates broader discourse and proactive involvement within and among communities and key institutions, creating opportunities to forge practical partnerships.


4. Learning and Communications Technologies: Harnessing and advocating for the effective utilization of continually advancing education and communications technologies fosters increased sharing of information regarding successful solutions, ultimately driving heightened productivity and output.


5. ROI rather than Wealth Redistribution: Shared Value advocates for a strategic realignment in investment strategies, urging businesses to channel their resources into addressing or solving societal issues while actively pursuing profitability. This stands in contrast to conventional wisdom, which often relies on NGOs and government to resolve social problems through donated and taxation-based resources.


6. Scalability and Partnership: Shared Value exhibits significant scalability, fostering heightened overall influence. It thrives on leveraging beneficial partnerships and fostering collaboration among stakeholders to address intricate challenges, ensuring continuous learning and impactful outcomes.


7. Strategic Positioning and Competitiveness: Shared Value serves as a pivotal catalyst for rejuvenating stagnant strategies, instilling uniqueness, enhancing industry positioning, reputation, and bolstering overall competitiveness.


8. Balancing Profit and Purpose: Shared Value adeptly maintains equilibrium between profit and purpose, showcasing that businesses can prosper economically while concurrently making meaningful contributions to society and the environment.


Exploring Perspectives on Shared Value

Shared Value stands at the center of a spirited debate within the business world. Advocates see it as a catalyst for creating substantial social impact while enhancing economic performance. Critics argue that regulatory measures and a ‘watchful eye’ on business remain essential. This ongoing discourse underscores the evolving nature of Shared Value's role in shaping the future of business.


Our Commitment:

NLS is deeply committed to democratizing Shared Value. Our mission is to extend these transformative principles and practices to small and medium enterprises (SMEs). By providing SMEs with the knowledge and tools to embrace Shared Value and sustainability, we aim to make a profound and widespread impact on both business and society.


To sum up, Shared Value marks a paradigm shift in business philosophy, transcending traditional CSR and ESG approaches. Its capacity to foster innovation, align profit motives with societal progress, to promote long-term sustainability, empowers businesses to navigate an era where sustainability is a necessity. As Shared Value continues to evolve, it promises a brighter and more harmonious future, where businesses actively contribute to societal well-being while securing their own success. Embracing Shared Value is not just a strategic choice; it is a commitment to a more inclusive, responsible, and prosperous future for all.



































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