Creating shared value: an opportunity and challenge for entrepreneurship

Jade_Logo

Exclusively written for the Sting by Edoardo Gauzolino, Vice President of Junior Enterprise Bergamo (JEBG)

Nowadays Corporate Social Responsibility (CSR) is accepted by firms as something that has to be done, although most entrepreneurs consider it as a philanthropic action or as an ethical behaviour. Separated from profit maximization, CSR programs focus mainly on reputation and they have only a limited connection with business, making them unfeasible in the long-run.

In 2011 a new concept was defined in order to fill in the existing gap between social and business issues: Creating Shared Value (CSV). Shared Value can be defined as the set of policies and processes that enhance the competitiveness and the productivity of an enterprise together with the improvement of the economic and social conditions in the community in which the company operates; therefore CSV programs focus on the identification and the expansion of the connections between social and economic growth, where value is accounted as benefits related to costs.

There are three ways identified in the business literature in order to create shared value: reconceiving products and markets, redefining productivity in the value chain and enabling local clusters development. An improvement in one of these areas leads to new opportunities in the others, opening new ways to expand markets, serve new needs and gain efficiency.

To understand the concept of shared value, one of the best examples can be the promising service provided by Thomson Reuters to 2 million Indian farmers who earn on average $2,000 a year. For a fee of $5 a quarter, Reuters provides to them weather and crop-pricing information with also agricultural advice; first researches implemented in 2011 indicated that this service helped to increase the farmers’ incomes on average by 60%, while making profits – a case of reconceiving products and markets.

The ability to create shared value is not limited to emerging markets: although many companies traditionally focus on holding down employee’ wages, reducing benefits (e.g. corporate health-care) and offshoring, Johnson & Johnson has saved $250 million on health care costs by implementing wellness programs from 2002 to 2008, obtaining a return of $2.71 for each dollar spent in these programs and benefiting from a more present and productive workforce.

I founded Junior Enterprise Bergamo with the vision of creating Shared Value by enabling a local cluster in Bergamo, connecting firms, students, university, public institutions to enhance economic and social development while fill in the existing gap for young people between universities and companies; the concept of Shared Value is therefore a possible opportunity and challenge for youth and social entrepreneurs for satisfying new needs from a different perspective.

About the author

Edoardo Gauzolino is currently the Vice President of Junior Enterprise Bergamo (JEBG), where is involved as support of the President with stakeholders and as project manager for some JEBG projects. He founded Junior Enterprise Bergamo in March 2015 and he was the first President until October 2015. He is attending the second and last year of the Master of Science in Economics and Global Markets at the University of Bergamo, Italy. As President, he affiliated JEBG in JADE Italia as Junior Initiative in May 2015 and JEBG was recognized by the University as an official student association in July 2016.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Commissioner sings “Volar-e” but the European driver no “Cantar-e”

Parliament votes reform for better European Co2 market but critics want it sooner than later

The Commission unsuccessfully pretends to want curbing of tax evasion

Ecofin: ‘The Friday battle’ for the banking union

Climate change will never be combatted by EU alone while some G20 countries keep procrastinating

The ECB again takes care of the bankers not the people

Summer pause gives time to rethink Eurozone’s problems

Vulnerable young people must not be blamed & stigmatised for violent radicalisation

‘Free state aid’ for imprudent banks

Draghi’s ‘quasi’ announcement of a new era of more and cheaper money

“Hasta la vista” Google says to Spain and now Europe is next?

Apparently the EU Digital Single Market passes necessarily from China’s Digital Silk Road

Commission and ECB prepare new financial mega-tool in support of SMEs

Diana in Vietnam

VW emissions scandal: EU unable to protect its consumers against large multinationals

EU seeks foreign support on 5G from Mobile World Congress 2015 as the “digital gold rush” begins

Camino de Santiago – a global community on our doorstep

Greek citizens to pay the price again but Tsipras risks losing next elections

European banking stress tests 2014: A more adverse approach for a shorter banking sector

It is me

Will Europe be able to deal with the migration crisis alone if Turkey quits the pact?

EU-India summit: Will the EU manage to sign a free trade agreement with India before Britain?

Europe united in not supporting a US attack on Syria

EU prepares a banking union amidst financial ruins

ECB readies itself for extraordinary monetary measures defying Germany

Eurozone banks are unable to support real economy’s dawning growth

EU agricultural production no more a self-sufficiency anchor

It ain’t over until Google says it’s over

The MH17 tragedy to put a tombstone on Ukrainian civil war

Impacting society with digital ingenuity – World Summit Award proclaiming the top 8 worldwide

Greece at the mercy of ECB while sailing through uncharted waters

Chinese economy to raise speed and help the world grow

Public opinion misled by the Commission on air transport safety

Menu for change: why we have to go towards a Common Food Policy

Poverty and social exclusion skyrocket with austerity

London to say hello or goodbye to Brussels this week

My unlimited China

The Eurogroup has set Cyprus on fire

China is now heavily endorsing its big investment flow in the Central Eastern European (CEE) countries

Eurostat: Real unemployment double than the official rate

Germany objects to EU Commission’s plan for a Eurozone bank deposits insurance scheme but Berlin could go along

EU out to conquer African Union summit

European Commission: Does Apple, Starbucks and Fiat really pay their taxes?

EU Commission – US hasten talks to avoid NGO reactions on free trade agreement

Lithuania needs to get rid of the victim mentality

EU imposes provisional anti-dumping tariffs on Chinese solar panels

The Sting’s Values

WEF Davos 2016 LIVE: “European unity and cooperation is being called on question”, Vice President Joe Biden criticizes from Davos

The European Commission cuts roaming charges. But “it’s not enough”…

What lessons to draw from the destruction of Syria

Bugged Europe accepts US demands and blocks Morales plane

MWC 2016 Live: Industrial world prepares to reap digital benefits

Bayer-Monsanto merger: the story of the rise of the “endless company”

Athens searches frantically for a new compromise between politics and economic reality

European Court of Justice to Google: It is #righttobeforgotten but not #righttoberemembered

MWC 2016: IoT experts fret over fragmentation

IMF to teach Germany a Greek lesson

A Sting Exclusive: “Junior Enterprises themselves carry out projects focusing on the environment”, JADE President Daniela Runchi highlights from Brussels

European Youth Forum welcomes adoption of Sustainable Development Goals and calls on European countries to not ignore them!

How to test if Kiev’s ‘Maidan’ was an authentic revolt or a well-planned operation

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s