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How do you create shared value and social impact?

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Creating shared value and social impact is not only a moral duty for businesses, but also a strategic advantage. By aligning your core competencies, goals, and stakeholders with the needs and expectations of society, you can generate positive outcomes for both your company and the world. In this article, you will learn how to apply the concept of shared value and social impact to your corporate social responsibility (CSR) strategy and actions.

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1 What is shared value and social impact?

Shared value and social impact are two related but distinct concepts that describe how businesses can create value for themselves and society. Shared value is the idea that businesses can enhance their competitiveness and profitability by addressing social and environmental challenges that are relevant to their operations, markets, and customers. Social impact is the effect that businesses have on the well-being of people and the planet, both directly and indirectly, through their products, services, processes, and practices.

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Júlia Chade

SDG Certifier UN ????| +15 years expert in ESG
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Shared value is a management strategy focused on companies creating measurable business value by identifying and addressing social problems that intersect with their business. The shared value framework creates new opportunities for companies, non-profits and governments to leverage the power of market-based competition to address social problems. It defines the policies and practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates.

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2 Why are they important for CSR?

CSR is the voluntary commitment of businesses to act responsibly and ethically towards their stakeholders and society at large. CSR covers a wide range of topics, such as human rights, labor standards, environmental protection, diversity, inclusion, governance, and philanthropy. However, CSR is not only about minimizing the negative impacts of business activities, but also about maximizing the positive ones. By creating shared value and social impact, businesses can demonstrate their contribution to sustainable development, enhance their reputation and trust, and increase their customer loyalty and employee engagement.

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Júlia Chade

SDG Certifier UN ????| +15 years expert in ESG
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The movement toward CSR has had an impact in several domains. For example, many companies have taken steps to improve the environmental sustainability of their operations, through measures such as installing renewable energy sources or purchasing carbon offsets. In managing supply chains, efforts have also been taken to eliminate reliance on unethical labor practices, such as child labor and slavery. Although CSR programs have generally been most common among large corporations, small businesses also participate in CSR through smaller-scale programs, such as donating to local charities and sponsoring local events.

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3 How do you assess your shared value and social impact potential?

To create shared value and social impact, you need to identify the opportunities and challenges that exist at the intersection of your business and society. You can use various tools and frameworks to analyze your internal and external environment, such as SWOT analysis, PESTEL analysis, stakeholder mapping, materiality assessment, and impact measurement. These tools can help you understand your strengths and weaknesses, the trends and issues that affect your industry and society, the expectations and interests of your stakeholders, and the outcomes and impacts of your actions.

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4 How do you design your shared value and social impact strategy?

Based on your assessment, you can design your shared value and social impact strategy by defining your vision, mission, goals, and objectives. Your vision should express your aspiration and purpose as a business that creates value for both yourself and society. Your mission should describe how you will achieve your vision by leveraging your core competencies and resources. Your goals should be specific, measurable, achievable, relevant, and time-bound (SMART) and aligned with the United Nations Sustainable Development Goals (SDGs). Your objectives should outline the actions and initiatives that you will implement to reach your goals.

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5 How do you execute your shared value and social impact strategy?

To execute your shared value and social impact strategy, you need to mobilize your resources, capabilities, and partnerships. You need to allocate your financial, human, and physical resources to support your strategy and ensure its sustainability. You need to develop your capabilities and skills to deliver your products, services, and processes in a responsible and innovative way. You need to collaborate with your stakeholders, such as customers, suppliers, employees, communities, NGOs, and governments, to co-create solutions and share best practices.

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6 How do you communicate your shared value and social impact results?

To communicate your shared value and social impact results, you need to monitor, evaluate, and report your performance and progress. You need to collect and analyze data and indicators that measure your inputs, outputs, outcomes, and impacts. You need to use credible and transparent standards and frameworks, such as the Global Reporting Initiative (GRI), the International Integrated Reporting Council (IIRC), and the Social Return on Investment (SROI), to report your results. You need to engage with your stakeholders and share your stories, achievements, and challenges in a clear and compelling way.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you create shared value and social impact?

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1 What is shared value and social impact?

2 Why are they important for CSR?

3 How do you assess your shared value and social impact potential?

4 How do you design your shared value and social impact strategy?

5 How do you execute your shared value and social impact strategy?

6 How do you communicate your shared value and social impact results?

7 Here’s what else to consider

Corporate Social Responsibility

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How do you create shared value and social impact?

1

2

3

4

5

6

7

1 What is shared value and social impact?

2 Why are they important for CSR?

3 How do you assess your shared value and social impact potential?

4 How do you design your shared value and social impact strategy?

5 How do you execute your shared value and social impact strategy?

6 How do you communicate your shared value and social impact results?

7 Here’s what else to consider

Corporate Social Responsibility

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感谢您的反馈

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