Mauro Libi Crestani: Share value and social progress

“Shared value offers corporations the opportunity to utilize their skills, resources, and management capability to lead social progress in ways that even the best-intentioned governmental and social sector organizations can rarely match.” the above quote is from Mark Kramer.

A company like Nestlé, which pioneered the shared value movement, insists that it has been creating shared value since its precursor company was founded in 1866. Many companies would argue the same—and with some justification. years ago it was called corporate responsibility. Mark Kramer and Michael Porter advocated the radical idea that companies that tackle social problems. They wanted a corporate revolution with the rallying call for companies to be "We all want to change the world".

Mark Kramer acts as a consultant helping corporations create shared value initiative for their company. He believes as his quote above says that corporations can create better social change than any government. This creates a win-win situation. Society gains by the kindness of the company involved in shred value and the company gains by the good will that it creates for itself.

Every country has its poor community. If corporations can be seen as a friend of the poor community by assisting and helping its communities, then private corporations win and will also profit. If corporations are seen as the enemy of the poor and of the environment, then those corporations will lose. We have seen this in countries where brutal dictators have created the public conception of the evil corporation and have taken over its private sectors of business. We have seen this in Cuba and Venezuela among many other companies. The poor communities have lost hope and its corporate entities have not assisted them, so they looked toward government to help them. Government can never do as well helping society as the private corporate world according to shared value initiative concept.

By Mauro Libi

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