1. Creating Shared Value Mohammad Fahad ABBASI MBA GGSB, France

2. Different approaches to Social Responsibility Philanthropy or Voluntary act: e.g. Donations to poor countries, distributing medicine/food to needy people CSR(Corporate Social Responsibility): Complying to regulation, Adhering to Standards like ISO 140001, SA8000, UN Global Impact etc. Sustainability: Reducing community impact of business. e.g. Reducing Green house gas emission, reducing water footprint etc. 3. Does it really work.. Report from UN Millennium Assessment report 2012 highlights the degrading condition of our ecosystem: 15 out of 24(Nearly 60%) resources have degraded Exploitation in developing countries in order to find cheap resources E.g Building collapse in Bangladesh killed more than 3000 people Fair-trade money not reaching to poor farmers When a company has to make a choice between money and social responsibility its always money that wins 4. Why then invest.. Brand recognition License to operate Marketing Strategy PR Stunt 5. Why doesnt it work.. Business and Social responsibility look in 2 different directions. While one is about making money other is about spending money. CSR always at the periphery of Business No Enforcement body It incurs cost 6. What is missing.. Business is the only institution on the face of earth that can make money. Social Responsibility approaches look at societal issues and business as 2 separate entities. What is missing in it is MONEY. Not spending money but earning money. 7. What is the solution.. A business Strategy that looks to create economic value while simultaneously making social/environmental impact. The approach is called Creating Shared Value(CSV). It is NOT about sharing the value that is created. 8. Shared Value Opportunities.. 3 levels of Creating Shared Value Reconceiving products and Markets Assessing impact of Value Chain Enabling local cluster development 9. Production of Aluminium results in extensive green house gas emission. Recycling For every ton on Aluminium recycled 9.5 ton GHG emission is reduced. Recycled Aluminium uses 5% of energy that is needed for production of same amount of Aluminium from Bauxite Aluminium is infinitely recyclable and it does not looses its basic properties. Campaign to drive to collect scrap Aluminium Business Problem and Innovation As of 2012 Alcoa GHG emission reduced by 23% as compared to 2005 Social Impact Business Impact Reduced operation cost because recycled Aluminium uses only 5% of energy. Improved access to raw material Assessing impact of Value Chain2 10. Adjustments needed in Organization.. Commitment and Involvement from Leadership Co-Creation(Partnership) Measuring social impact Embedding social context into the organization 11. 1760s Industrial Revolution Focus ONLY on productivity Early 1800s Care for emplyees End of 19th Century Early 20th Century Philanthropy/CSR 1990s Sustainability 21st century Creating Shared Value 12. THANK YOU For any queries please contact me: csv.im.course@gmail.com