Key Differences between CSR and CSV-Free-Samples for Students

Question: What is CSR CSV? What are the key differences between CSR and CSV ? Answer: CSR and CVV Corporate Social Responsibility (CSR) is the business approach, which contributes to sustainable development through delivering economic, social and environmental benefits to all the stakeholders. According to Saeidi et al. (2015), the policies and functions of CSR act as self-regulatory mechanism, which facilitate an organization to ensure its active compliance with spirit of law, ethical standards and national and international norms. However, Korschun et al. (2014) opined that CSR activities go just beyond the compliance and regulatory requirements and it furthers the some social good that is beyond the interest of the firms. Moreover, such activities mostly go beyond the interest level of the organization and solely for the development of the society. Doing something for society, stakeholders and consumers not just take business to higher level, but also ensure long term profitable organizational success through competitive gain. Economic development of CSR ensures that organizat ions are profitable enough to provide fair return on investment to all the stakeholders and shareholders. Economic development also ensures that organizations are capable enough to invest in social development. Gupta et al. (2017) pointed out that social development ensures connection of the organizations with the overall development of the society. Moreover, it ensures human rights to employees, social equality, community relation, anticorruption measures, educational development, charity to poor people and many more. Furthermore, Ioannou and Serafeim (2015) opined that environmental development is always concerned with protection of environment from harmful carbon footprint and water footprint for building healthy society. CSR activities ultimately build corporate reputation in the society through increased furthering social good. It also leads to brand differentiation and customer loyalty through contributing its efforts in making world a better place. While considering the example of Vinamilk Corporation, the organization is always engaged with societal development through charity an d educational development. Such CSR activities can established the corporate image of the organization in the market by bring competitive gain over the rivals (Wang et al., 2016). Creating shared value (CSV) is the business concept, where the organizations find the business opportunities for growth and innovation through treating social problems as business objectives. According to Crane et al. (2014), the health of an organization is intrinsically linked with the resilience and health of the society in which it operates. Hence, the purpose of the CSV is to enhance the quality of social life through contribution to a healthier future. Moreover, it is the practice of creating economic growth of an organization in a way that also fosters societal value through addressing the social issues and challenges. On the other hand, Smith (2016) opined that CSV is highly concerned with recognizing and expanding the connection between the societal and economic progress. Shared value is created mostly through three ways like reconceiving products and markets, redefining productivity in the value chain and enabling local cluster development. Reconceiving products and markets is concerned with meeting the unmet needs of the society through products and often addressing the undeserved customers. For example, IBM and Intel are devising the ways for helping utilities harnessing business intelligence for economizing on power usage (Corner Pavlovich, 2016). On the other hand, redefining productivity in the value chain is concerned with changing the practices in value chain for driving productivity through better utilizing of employees, resources and business partners. For example, Walmart has reduced the delivery packaging and improved the deliver logistics, which facilitated it in saving $200M in distribution cost and growing the quantities being shipped (Pavlovich Corner, 2014). Furthermore, enabling local cluster development is all about improving the available supplier base, skills and supporting institutions in the community for boosting productivity, growth and innovation. Key Differences between CSR and CSV Corporate Social Responsibility is only concerned with enhancing the corporate reputation and has limited connection with business. Moreover, organizations mostly invest in CSR strategies for being a good corporate citizen in the society. On the other hand, Creating Shared Value is concerned with driving organizations profitability and competitive advantage through minimizing the social problems. Moreover, it actually leverages the unique expertise and resources of an organizations economic value through creating social value. According to Saeidi et al. (2015), the agenda of CSR is driven by personal preferences and expert reporting of an organization. It is actually linked with demonstrating the good corporate governance, ethical standards and society and environment concern of an organization. On the other hand, Corner and Pavlovich (2016) opined that the agenda of CSV is always business centric and internally generated. It is always intended towards joint value creation for busine ss as well as society. It is a join planning and strategy for fostering organizations economic growth through addressing the social challenges. According to Gupta et al. (2017), CSR is only concerned with compliance of business operations with the community, national and international standards for maintaining business standards. It is concerned with reputation management of an organization. On the other hand, Smith (2016) opined that CSV creates local cluster for strengthening and capturing economic and social benefits at community level. It improves the available skills, supplier base and supporting institution within the community for fostering productivity, innovation and growth. CSR is actually perceived as cost centre and not as profit centre. In contrast, CSV is all about finding business opportunities for creating new market, improving profitability and strengthening competitive positioning. CSR effectiveness is mostly measured through spending of organizations for societal good (Corner Pavlovich, 2016). However, the effectiveness of CSV is measured through creating of social and economic value. CSV mostly finds new and innovative business opportunities, whereas CSV deploy corporate assets for achieving scale and spur investment. For example, Coca Cola Company contributes in educational development of community for gaining good corporate image. It is actually related to corporate social responsibility. However, Coletivoprogram of Coca Cola is intended to equip the young people of Brazil with life and technical skills required for accessing employment (Ioannou Serafeim, 2015). Such employment is actually enhanced the average income of the people within the community, which is directly linked with increases sales potential and profitability of the company. Hence, this activity is actually related to Creating Shared Values through fostering both economic and social value. CSR is concerned with sharing organizations products, talents, expertise and time for furthering social good. On the other hand, CSV secures and reconfigures the value chain through tapping new and better par tners and resources towards improved organizational productivity (Smith, 2016). The intension of shared value is better utilizing the resources and skills of community for fostering both economic and social value. References Corner, P. D., Pavlovich, K. (2016). Shared value through inner knowledge creation.Journal of business ethics,135(3), 543-555. Crane, A., Palazzo, G., Spence, L. J., Matten, D. (2014). Contesting the value of creating shared value.California management review,56(2), 130-153. Gupta, A., Briscoe, F., Hambrick, D. C. (2017). Red, blue, and purple firms: Organizational political ideology and corporate social responsibility.Strategic Management Journal,38(5), 1018-1040. Ioannou, I., Serafeim, G. (2015). The impact of corporate social responsibility on investment recommendations: Analysts' perceptions and shifting institutional logics.Strategic Management Journal,36(7), 1053-1081. Korschun, D., Bhattacharya, C. B., Swain, S. D. (2014). Corporate social responsibility, customer orientation, and the job performance of frontline employees.Journal of Marketing,78(3), 20-37. Pavlovich, K., Corner, P. D. (2014). Conscious enterprise emergence: Shared value creation through expanded conscious awareness.Journal of business ethics,121(3), 341-351. Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction.Journal of Business Research,68(2), 341-350. Smith, N. C. (2016). From Corporate Philanthropy to Creating Shared Value: Big Pharmas New Business Models in Developing Markets.GfK Marketing Intelligence Review,8(1), 30-35. Wang, H., Tong, L., Takeuchi, R., George, G. (2016). Corporate social responsibility: An overview and new research directions thematic issue on corporate social responsibility.Academy of Management Journal,59(2), 534-544.