Shared value may be defined as a framework for creating economic value while simultaneously addressing societal needs and challenges. It is a combination of social and economical value.
Creating shared value goes beyond philanthropy and corporate social responsibility (CSR). Donations are highly valued and make a big impact to society, nonetheless as the common saying goes, “Give a man a fish and you feed him for a day, teach a man to fish and you give him an opportunity for a lifetime”.
According to the Harvard Business Review, organisations need to re-evaluate their purposes because creating shared value is a driving factor of innovation and productivity growth in the global economy.
Corporate Social Responsibility (CSR)
Organisations play a huge role in alleviating poverty, improving public health and nutrition, creating affordable housing and financial security, as well as other key measures of societal well-being. Unfortunately, organisations do not have sufficient resources to tackle all kinds of societal problems. Their resources and expertise are determining factors to the extent to which they can give back to local communities. Therefore, it is more common for large corporates with bigger profit margins to have the leeway to make a viable impact to local communities.
Shared value enables even start-ups to be involved in resolving the world’s problems. The business gains a competitive advantage, while shared value seeks to tackle the root cause of major socio-economic problems in more sustainable ways.
Creating Shared Value through Impact Sourcing
Impact sourcing provides new opportunities for companies interested in using market-based forces to create a new ecosystem that delivers shared value and is self-sustaining. Rather than focus only on charitable donations, it enables organisations to integrate social responsibility into their business processes by delegating digital jobs to qualified, yet unemployed individuals.
Socially responsible outsourcing is a global initiative that is aims to alleviate poverty by bringing digital jobs to disadvantaged communities. Formal employment significantly improves the lives of impact workers. The Rockefeller Foundation suggests that impact workers benefit a 40%-200% income increase from impact sourcing. Economic freedom leads to better education and healthcare for families. This in turn uplifts the community as a whole.
Impact sourcing paves the way for unemployed individuals to launch formal careers through training and skills development attained on the job. With a stable job, individuals from marginalised communities have an opportunity to transform their lives for the better.
Tasks that you can delegate to Skilled Staff
- Data Processing
- Online Customer Service
- Online Marketing
- Social Media Management
- Administrative Support