Creating shared value (CSV) by using time-based

currency system.
“Shared value is not social responsibility, philanthropy, or sustainability, but a new way for
companies to achieve economic success.” Michael E. Porter and Mark Kramer

 Shared value

Shared value is a management strategy in which companies find business opportunities in

social problems. Companies now build their business models on social welfare, which
distinguishes them from competition and enhances their success. With the assistance of NGOs,
governments and other stakeholders, the business sector has the potential to bring about real
change in massive social problems.

 Why Shared value?

In recent years, business has been criticised as a major cause of social, environmental and
economic problems. It is widely believed that companies thrive at the expense of their societies.
Business confidence has fallen to new levels, leading government officials to develop policies
that undermine competitiveness and lead to economic growth. The business is caught in a vicious
circle.

A big part of the problem lies in the companies themselves, which are still besieged in a
narrow and narrow value approach to creating value. It focuses on improving short-term
financial performance, ignoring the largest unsatisfied needs in the market, as well as broader
impacts on its long-term success. Why do companies ignore the well-being of their customers,
the depletion of vital natural resources for their businesses, the survival of suppliers, and the
economic distress of the communities they produce and sell?

 CSV is the propelling motive behind the Time Banking

The propelling motive behind the time banking is to use this idea to create shared value to
reduce recidivism rates with the help of diversionary programs for first-time juvenile offenders;
help re-entry of for ex-convicts; provide health care, professional training for job and social
services in local housing complexes; rehabilitation of substance abuse recovery; prevent
institutionalization of disabled children through parental support networks; provide elder care
and foster women's rights initiatives in Senegal. These banks are also working under the
management of institutions like art galleries. Time banking is also progressing online, with
websites trying to follow an old-fashioned idea of neighbourly favours for a digital generation.
“There’s a lot of unemployed population and a lot of need, and if there was ever a time that this
makes sense, it would be now,” says Edgar Cahn, a 78-year-old former staffer in the Kennedy
and Johnson administrations and the founder of time banking.
 Goal of creating "shared value"

It does not have to be that way, says Porter, of Harvard Business School, and Kramer,
managing director of social consulting firm Social Impact. Companies can bring business and
society together if they redefine their goal of creating "shared value" - creating economic value
in a way. It also produces value for society by addressing its challenges. A common value
approach reconnects the company's success with social progress.

 Ways to achieve Goal of creating "shared value"

Companies can do this in three different ways: by rethinking products and markets,
redefining productivity in the value chain, and building support industry groups at the company's
sites. Many well-known businesses, including General Electric, Wal-Mart, Nestle, Johnson &
Johnson and Unilever, have already embarked on significant initiatives in these areas. Nestlé, for
example, redesigned coffee purchases, working intensively with small farmers in poor areas
caught up in a cycle of low productivity, poor quality and environmental degradation. Nestlé
provided advice on agricultural practices; helped farmers secure stocks of plants, fertilisers and
pesticides; and began to pay them directly for a premium for better beans. High yield and quality
have increased farmers' incomes, reduced the environmental impact of farms, and Nestlé's
reliable supply of good coffee has grown significantly. A shared value was created.

 Outcomes of creating "shared value"

Shared value can reshape capitalism and its relationship with society. The next wave of
innovation and productivity growth in the global economy could also drive managers' eyes on
the enormous human needs to be met, the large new markets to be offered, and the internal costs
of social deficits - as well as the competitive advantages of addressing them. But our
understanding of common value is still in its infancy. This will require managers to develop new
skills and knowledge and governments to learn how to organise them in ways that enable value
sharing rather than action against it.

What you see depends on where you look. This is the key to creating common value. The
shared value draws the attention of corporate leaders, NGOs and government, enabling them to
see new opportunities for private institutions to solve general problems. Engaging business as a
business, not as a benefactor, or through public relations, is one of the strongest forces we have
for social progress.

 Novartis as an Example of creating "shared value"

Take Novartis as an example. They saw a valuable joint opportunity in the sale of
pharmaceuticals in rural India, where 70% of the population lives. The obstacle was not the
prices they imposed but the social conditions in the region: the lack of chronic behaviour in the
area of health care in the community, the health care providers who barely receive any health
care training, and the tens of thousands of local clinics that do not have a reliable supply chain.
In view of the common value lens, Novartis saw these social problems as commercial
opportunities: she hired hundreds of community health educators, organised training camps for
suppliers, and set up a distribution system for 50,000 rural clinics.

For Novartis, the result was a completely new business model that is essential for their
future. In the coming decade, emerging markets with similar challenges are expected to account
for 75% of growth in global pharmaceutical sales. For 42 million people in India, the results are
reaching a level of significant improvement in health care that neither the government nor non-
governmental organisations offer.