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.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Here’s how tech can help governments fight corruption

Khashoggi trial in Saudi Arabia falls short of independent, international probe needed: UN rights chief

Mobile technology saving lives: Changing healthcare systems with simple technology solutions

Tuesday’s Daily Brief: Venezuela-Colombia baby breakthrough, Italy piles on rescue boat pressure, States must combat hate, Kashmir rights latest and a musical plea to combat CAR hunger

Climate change will force us to redefine economic growth

This AI can predict your personality just by looking at your eyes

Northern Ireland: Parliament wants to secure post-Brexit regional funding

UN launches Facebook Messenger-powered bot to take on climate change

Keeping cool in the face of climate change

‘Favour dialogue’ over violence, UN chief urges all parties following clashes in Mali’s capital

Building climate resilience and peace, go hand in hand for Africa’s Sahel – UN forum

Being blinded by labels stops social change. Art helps us see a better future

Here’s why upskilling is crucial to drive the post-COVID recovery

UN, African Union make significant joint commitment to global health

Protecting refugees in Europe: UNHCR calls for a ‘year of change’

Yemen: UN envoy asks Security Council for more support ‘to move back’ to the negotiating table

Is the EU denying its social character favouring a banking conglomerate?

UN rights chief Bachelet appeals for dialogue in Sudan amid reports ‘70 killed’ in demonstrations

How the US should react to the pandemic, according to Bill Gates

One million facing food shortages, nutrition crisis after Mozambique cyclones: UNICEF

4 ways Africa can prepare its youth for the digital economy

UN agencies launch emergency plan for millions of Venezuelan refugees and migrants

Do doctors need to know their patients’ sexual orientation and gender identity?

The next 48 hours may change the European Union

The UK referendum has already damaged Europe: even a ‘remain’ result is not without cost to Britain and the EU

Mali facing ‘alarming’ rise in rights violations, warns UN expert

A European Discovers China: 3 First Impressions

5 things to know about African migration

MWC 2016 LIVE: GTI shifts to phase two – 5G – after hitting milestones

If we want to solve climate change, water governance is our blueprint

Minsk “ceasefire” leaves more doubts than safety, with EU already planning steps further

Trade: First year of the EU-Japan Economic Partnership Agreement shows growth in EU exports

Electronic Cigarettes: Are they really as safe as we think?

UN and African Union in ‘common battle’ for development and climate change financing

Parallel downfalls of Merkel and Deutsche Bank threaten Germany and Europe

For video game addiction, now read official ‘gaming disorder’: World Health Organization

A new proposal breaks the stalemate over the Banking Union

To Brexit, or not to Brexit…rather not: 10 Downing Street, London

AI can be a game-changer for the world’s forests. Here’s how

What young people can teach world leaders about mental health in 2020

How can you or your organization support the Hour of Pride initiative?

Why do humanitarian crises disproportionately affect women?

Russia and the West to partition Ukraine?

Uzbekistan wins its long fight against malaria, as global rates continue to rise

Clean air is good for business

These are the world’s 20 most dynamic cities

Making the most of the Sustainable Development Goal 3: its overlooked role in medical education

Capital transaction tax on Ecofin table

International Women’s Day 2019: more equality, but change is too slow

An all-out fight for the EU budget

World Digital Media Awards winners announced at WNMC.19 in Glasgow, in association with The European Sting

Millennials (and Gen X) – Here are the steps you should take to secure your financial future

Forget GDP – for the 21st century we need a modern growth measure

David Attenborough’s worried about this ocean threat – and it’s not plastic

Is this the way to finally beat corruption?

80 adolescents a day will still die of AIDS by 2030, despite slowdown in epidemic

UN ceasefire monitoring chief tours Yemeni port of Hudaydah

DR Congo elections: ‘historic opportunity’ for ‘peaceful transfer of power’ says Security Council

Consumers’ rights against defective digital content agreed by EU lawmakers

Parliament mobilised to channel EU funds to those affected by Coronavirus pandemic

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 )

Google photo

You are commenting using your Google 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 )

Connecting to %s