The emperors clothes - corporate social responsibility creating shared value and sustainability

Abstract

Abstract:Corporations in the 21st century play a decisive role in the future of society. Their power and influence in world affairs often seems devoid of ethics and seems to exceed the reach and the means of many nations. As a result, the strategic positions they take towards value, creation and ethics affects every individual on the planet. This paper explores strategic routes that organisations could apply to facilitate economic growth while ensuring their ecological integrity and ensuring social enhancements generates benefits to a wider scope of organisational stakeholders. By conducting a critical analysis and clarifying common misconceptions between corporate social responsibility (CSR), creating shared value (CSV) and sustainability, it is possible to determine how these interrelated strategic approaches have evolved. This article argues the importance of transforming the purpose of organisations to encapsulate stakeholder value creation as the main reason for their existence.

The Role of Creating Shared Value in the Company

“…Another study related to CSV reveals that there are questions which can be used as further discussion, "Does the CSR create shared value and its sustainability?" [1]. This related study concludes that company strategic position in the 21 st century leads to value, creation and ethics that affect everyone in the world.…”

“…Strategic position decided by a company in 21 st century concerns value, creation, and ethic that affects to everyone in the world [1]. Currently, company orientation belongs to three aspects or often called triple bottom line which encompass, economical, social, and environmental aspects.…”

“Creating shared value”: Time for a normative extension?

“…Based on the required normative element of generating net societal “value” that is present in each of the five dominant business and society frameworks, the CSV approach initially appears to pass with flying colors. The word “value” is explicitly included in the acronym CS“V,” referring to both the economic value that should be generated to the firm from its business activities, along with delivering social value or “social enhancements” to a wide scope of the firm's stakeholders, including the communities within which the firm operates (McIntosh et al, 2017, p. 307). Porter and Kramer (2011, p. 76) define “value” as “economic and societal benefits relative to cost.” In terms of the duration of the value to be generated, it should be long‐term in nature.…”