The starting point of Shared Value is that only economic profit in combination with social profit can lead to sustainable growth and development of a company. When a company nestles itself as a parasite in its environment and focuses purely on economic profit, it will survive for a shorter time than when it thinks not only about its own profit, but also about that of the environment. Porter describes it as follows:
“The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the center.”
Many companies, in addition to the things they normally do, also do Corporate Social Responsibility oman phone number list Some budget goes to a project in a third world country or all employees do something for a local charity once a year. Sustainable entrepreneurship – whether or not under pressure from moralistic social forces – has acquired a somewhat sour aftertaste. In the vision of Shared Value, however, sustainability is at the core of entrepreneurship. By producing better products better (the social profit), a more sustainable economic profit is created.
Shared Value is not sharing the company's profit, but more shared profit within the entire chain, which makes the company's profit higher in the long term. So it is not communism in a new guise, but a smarter form of capitalism.