Many small businesses are undergoing modernization. This modernization is necessary for companies to remain open and continue providing services. Many things must be done for a business to modernize, including updating the hardware and software and making sure that the company’s marketing materials are up-to-date.
However, business modernization also affects one fundamental aspect of modern businesses: CSR planning.
CSR is the process of planning, implementing, and monitoring the policies and practices a company has in place to give back to society. It covers a wide range of human rights, environmental sustainability, and charitable giving. Before, there was a significant concentration on sustainability. But today, businesses are more interested in what is known as a shared value.
What is Shared Value?
There is a paradigm shift happening in CSR planning for businesses worldwide. It concentrates on the idea of shared value. This is a way of looking at CSR where the company focuses on finding new opportunities by addressing social and environmental issues for both the company and the community.
Shared value is different from traditional philanthropy or CSR because it is not about writing a check to solve a problem. Instead, it is about finding new opportunities to do business while solving social and environmental issues. It is a win-win for everyone involved.
For example, let’s say that a company is interested in finding new ways to reduce its carbon footprint. The company could look into investing in renewable energy, which would help the environment and also save the company money in the long run. This is an example of shared value.
An excellent execution of this would come from a big company like Coca-Cola. Coca-Cola’s water stewardship program is a prime example of CSR with shared value. It helps to improve water efficiency in their factories and work with local communities to help protect watersheds.
So what does shared value mean for modern CSR planning? It means putting your company’s social responsibility in every aspect of your business. Let’s put that into perspective in marketing.
Shared Value in Marketing
Marketing plays a vital role in any business, but it becomes even more critical when a company is trying to implement shared value. The reason for this is that marketing can help raise awareness about the company’s CSR initiatives and get people involved.
For example, you have plans to improve the communication systems of a local community. You can do it by providing them with an online community platform where they can connect with you and your company. In return, you get information regarding their activities, which can help you create a consumer profile for that particular community. This can then help you to target your marketing campaigns in the future better.
People might think this is exploitative. But at its core, it’s not, simply because you’re not playing on the community’s weakness. Instead, you are improving their quality of life, and in turn, it helps your company. This is a perfect example of how shared value can be used in marketing.
Community Partnerships
Another way you can implement shared value in your company is through community partnerships. For example, you could partner with a local organization that helps improve the community’s quality of life. This could be anything from providing financial support to working with the organization to help promote their services.
In return, the company can benefit from this partnership in several ways. For one, it can help improve the company’s image and reputation. It can also help to generate new customers and business opportunities. And lastly, it can provide valuable insights into the community’s needs, which can be used to target marketing campaigns in the future better.
A great example of a community partnership is the one between IBM and the Boys & Girls Clubs of America. IBM has been working with the BGCA for over a decade to help provide technology resources and training to kids across the United States. As a result, IBM gets access to a new generation of potential customers and employees.
This is just one example of how companies can use community partnerships to create shared value. And as you can see, it’s a win-win for both the company and the community.
Shared value is a new way of thinking about corporate social responsibility (CSR). It’s no longer about giving money and letting the problem solve itself but about finding new opportunities to do business while solving social and environmental issues. This is something that all companies should be thinking about, regardless of size. So develop this kind of thinking when it comes to your CSR planning.
