This document discusses different approaches to social responsibility such as philanthropy, corporate social responsibility, and sustainability. It notes that while these approaches aim to address social issues, they often view business and social responsibility as separate entities. The document introduces the concept of "Creating Shared Value" which aims to create economic and social value simultaneously through a business strategy. It provides examples of how assessing a company's value chain impacts and enabling local cluster development can create shared value. The key idea is that social issues should be addressed in a way that also generates profit, rather than viewing social spending and profit as competing goals.

1. Creating Shared Value
Mohammad Fahad ABBASI
MBA GGSB, France

2. Different approaches to Social
Responsibility
• Philanthropy or Voluntary act:
e.g. Donations to poor countries, distributing medicine/food to
needy people
• CSR(Corporate Social Responsibility): Complying to
regulation, Adhering to Standards like ISO
140001, SA8000, UN Global Impact etc.
• Sustainability: Reducing community impact of business.
e.g. Reducing Green house gas emission, reducing water
footprint etc.

3. Does it really work..
• Report from UN Millennium Assessment report 2012
highlights the degrading condition of our ecosystem:
• 15 out of 24(Nearly 60%) resources have degraded
• Exploitation in developing countries in order to find
cheap resources
E.g Building collapse in Bangladesh killed more
than 3000 people
Fair-trade money not reaching to poor farmers
• When a company has to make a choice between
money and social responsibility its always money
that wins

4. Why then invest..
•Brand recognition
•License to operate
•Marketing Strategy
•PR Stunt

5. Why doesn’t it work..
• Business and “Social responsibility look in
2 different directions.
• While one is about making money other is
about “spending” money.
• CSR always at the periphery of Business
• No Enforcement body
• It incurs cost

6. What is missing..
• Business is the only institution on the face of
earth that can make money.
• Social Responsibility approaches look at
societal issues and business as 2 separate
entities.
• What is missing in it is MONEY. Not spending
money but earning money.

7. What is the solution..
• A business Strategy that looks to create economic
value while simultaneously making
social/environmental impact.
• The approach is called “Creating Shared
Value”(CSV).
• It is NOT about sharing the value that is created.

9. Shared Value Opportunities..
3 levels of Creating Shared Value
• Reconceiving products and
Markets
• Assessing impact of Value Chain
• Enabling local cluster
development

11. • Production of Aluminium results in
extensive green house gas emission.
Recycling
• For every ton on Aluminium
recycled 9.5 ton GHG emission is
reduced.
• Recycled Aluminium uses 5% of
energy that is needed for
production of same amount of
Aluminium from Bauxite
• Aluminium is “infinitely” recyclable
and it does not looses its basic
properties.
• Campaign to drive to collect scrap
Aluminium
Business Problem and Innovation
As of 2012 Alcoa GHG emission reduced
by 23% as compared to 2005
Social Impact
Business Impact
• Reduced operation cost because
recycled Aluminium uses only 5% of
energy.
• Improved access to raw material
Assessing impact of Value Chain2

13. Adjustments needed in
Organization..
• Commitment and Involvement from
Leadership
• Co-Creation(Partnership)
• Measuring social impact
• Embedding social context into the
organization

14. 1760s Industrial
Revolution
Focus ONLY on
productivity
Early 1800s
Care for emplyees
End of 19th
Century Early
20th Century
Philanthropy/CSR
1990s Sustainability
21st
century
Creating
Shared
Value

15. THANK YOU…
• For any queries please contact me:
csv.im.course@gmail.com