Corporate social responsibility (CSR) is a business approach that contributes to sustainable

development by delivering economic, social and environmental benefits for all stakeholders.

CSR is a concept with many definitions and practices. The way it is understood and implemented
differs greatly for each company and country. Moreover, CSR is a very broad concept that
addresses many and various topics such as human rights, corporate governance, health and safety,
environmental effects, working conditions and contribution to economic development. Whatever the
definition is, the purpose of CSR is to drive change towards sustainability.

Creating shared value (CSV) is a business concept first introduced in Harvard Business

Review article Strategy & Society: The Link between Competitive Advantage and Corporate
Social Responsibility.

One obvious example of a company that creates shared value is Toms. Every customer that
buys a pair of Toms shoes knows that one pair of shoes is given away to a person in need in
poor countries. Additionally, for every pair of Toms sunglasses sold, Toms supports an eye
restoration for a person in need in developing countries. More specifically, Toms’ business
model is built up around the creation of societal wealth, and proves that customers are
willing to pay the extra premium for the very simple Toms shoes for a good cause (Toms,
2015).

Another example of a company that is usually mentioned as in the forefront of creating

shared value is Nestlé. In fact, Nestlé was an early adopter of the concept of CSV and does
since a couple of years back release a CSV report. The report is supposed to prove the
company’s progress in 27 commitment areas that were established in 2013. Nestlé’s
commitment areas are related to both social and environmental aspects, from water use to
responsible sourcing, to nutrition. Some examples are reducing sugar in food products, or
chemicals from baby supplies, and eliminating their waste to landfill. Apparently, Nestlé
have made great efforts to improve in important areas related to sustainability, proven in
their CSV report. One example of an improvement area is that the company has reduced
their waste to landfill to zero (Nestlé USA, 2015).