The Three Levels of CSV
Companies can create economic value by creating societal value. There are three distinct ways to do this: by reconceiving products and markets, redefining productivity in the value chain, and improving the local and regional business environment. Each of these is part of the virtuous circle of shared value. Improving value in one area gives rise to opportunities in the others.
How to Create Shared Value Opportunities
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By reconceiving needs, products, & customers– Meeting societal needs through products– Serving unserved or underserved customers
- By redefining productivity in the value chain– Utilizing resources, energy, suppliers, logistics, and employees differently
- By improving the local and regional business environment– Improving skills, the supplier base, the regulatory environment, and the supporting institutions that affect the business– Strengthening the cluster on which the company depends