Created Shared Value and Sustainable, Inclusive Development of Developing Countries

Abstract

The created shared value represents a paradigm shift in business corporate social responsibility (CSR) and sustainability strategy. Apart from addressing the limitations inherent in the traditional CSR which is mainly philanthropic, short-lived and separated from the core business strategy and activities, it enhances the company's competitiveness while simultaneously advancing the economic and social conditions in the community of operation. Companies can create shared values through re-conceiving products and markets, redefining productivity in the value chain and building supportive industry clusters at the company's locations and solving society problems. Despite the criticisms and challenges of the shared value concept, there are convincing evidences that the created shared value is a veritable instrument for addressing the bottom of the pyramid resulting in inclusive, sustainable development of developing countries and it has the potentials to unleash the next wave of global economic growth, prosperity and sustainable development when governments, companies and non-government organizations in developing countries demonstrate commitment to their roles in shared value creation and companies start to think and take long-term views of social investments and economic prosperity, and look at corporate decisions and opportunities through the lens of shared value by incorporating social and societal values into their economic agenda.