Creating shared value (CSV) and mutually beneficial relationships to address societal issues and develop corporate competitive advantage: A case study of Yuhan-Kimberly and an aging population

Abstract

Through creating shared value (CSV) initiatives, companies have attempted to contribute to solving social problems that the public sector cannot address alone, such as migration, health, climate change, and job losses due to automation. Companies are also using CSV as business opportunities to develop their competitiveness. Only a few studies, however, have examined how organizations can develop and implement CSV programs, and the outcomes of those programs. We conducted a case study on how a multinational company, Yuhan-Kimberly, a joint venture of Kimberly-Clark and Yuhan, developed and implemented its CSV program, and created win-win, mutually beneficial impacts, in response to an increasingly aging society in Korea. South Korea is the world’s most rapidly aging society with the highest poverty and suicide rates among older adults. Yuhan-Kimberly’s CSV initiative includes fostering small-sized senior care businesses, creating jobs for older adults, changing the negative perception of older adults, and ultimately creating a market ecosystem for the older adult care industry. We used triangulation through company documents, including annual sustainability reports (N = 10), news reports (N = 623), company-conducted survey results (N = 80), and in-depth interviews (N = 14) with employees and members of other organizations and publics. The results reveal how the company developed and implemented a CSV program to cultivate mutually beneficial relationships and shared value for the company, older adults, other organizations, and society. The results indicate that CSV programs can be powerful relationship cultivation strategies to create mutual benefits both for society, by providing sustainable and feasible solutions, and for organizations, by enhancing their competitive advantages.