The primary idea behind Creating Shared Value is to ensure the competitiveness of an organization. This can be executed through the assessment of the mutual dependence of the health of the surrounding members of the community. Recognizing and capitalizing the difference between the social and the economic progress, paves the way for the further globalization as a process of redefining capitalism. And as a result, strengthen its relationship with the society. An understanding of the creation of shared value makes the managers of the organizations aware of the needs of the society and enables them to strive to meet and fulfill those needs (Gjølberg, 2009, p.12).
The organizations through their “creative shared value” can maintain their position in the society through its social responsibility. The main focus of CSV is to identify, cater and fulfill the needs of the customers owing to the quality, efficiency, and timely innovations so that they derive satisfaction from the operations of the organization. It generates economic value as a process of address to the challenges faced by an organization. An approach of the creative shared value constitutes the social progress of an organization.
The concept of Creative Shared Value can best be understood through the collective operations by certain organizations so as to bring about the success of an organization. Established companies such as NRG Energy, Wal-Mart stores, Waste Management in collaboration with the other companies like Coca-Cola, Nike, and Starbucks have collectively contributed to the waste management’s transformation. They have been successful in transforming the traditional waste hauler into a service provider to the corporate consumers through the accomplishment of a well-planned strategy (Schwartz et al. 2003, p.523).
This strategy consisted of certain steps such as engagement with sustainability, tracking and monitoring the accelerating progress, leading in competition with its peers from the industrial sectors and transformation in accordance with these factors, which these companies executed collectively with the collaboration of its associates. The other example can be of Nestle Company, which has redesigned its coffee production process through the impoverishment of the small farmers who were trapped with issues such as low productivity, poor living conditions, and environmental degradation. Nestle’s creation of shared value is revealed in its efforts to supply a good quality coffee owing to the high yield and quality of stock, fertilizers, its security through the transmission of farming practices and techniques to the farmers (Mitchell et al. 1997, p.846)