Revisiting the concept of shared value in developing countries: Towards an organisational framework

Abstract

Purpose<br/> The purpose of this paper is to offer a greater understanding of creating shared value (CSV) in socioeconomically deprived regions. It aims to develop a normative organisational framework of shared value creation using corporate social responsibility (CSR) ideologies, to help managers design firm level CSR initiatives for use in socioeconomically deprived regions, where it is needed more.<br/> Design/methodology/approach<br/> We conducted an in-depth case study of Company X - an industry leader in the controversial paper and pulp manufacturing sector in Indonesia - drawing on multiple evidence sources, including interviews with 92 stakeholders and a review of secondary data.<br/> Findings<br/> Our study presents a context-embedded organisational CSR framework for companies operating in socioeconomically deprived regions that signifies the need for normative principles of strategic and philanthropic CSR to work 'in parallel', to create shared value in a real sense to benefit both the businesses and the society. The framework further highlights the need to address certain contextual challenges that impact on the creation of shared value in socioeconomically deprived regions, including managing stakeholder expectations, regularly communicating with stakeholders, and staff capacity building for reporting on CSR and measuring performance.<br/> Originality/value<br/> Incorporating perspectives from the Global South that reflect the experiences of a company operating in a developing country, our findings provide a useful addition to the debate on shared value creation in socioeconomically deprived regions. In doing so, our study broadens and shifts the focus on shared value creation from a managerial perspective or single project perspective to an organisational perspective.