BEYOND CORPORATE SOCIAL RESPONSIBILITY: CREATED SHARED VALUE AND SUSTAINABLE DEVELOPMENT

ABSTRACT: This study examines the paradigm shift in business sustainability strategy from corporate social responsibility (CSR) to created shared value. The created shared value as a revolutionary strategic management thinking is defined as the policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. It is expected to change the corporate mindset where they spend some money in philanthropic activities (a mere lip-service by corporations to placate societal disgruntlement) without sincerely trying to make a change in the society. It is also to revise the mental models that have constrained management thinking for years to improving competitive context and economic progress of business by companies’ making sincere commitment to bettering society. The concept of created shared tasks businesses to go beyond the ordinary CSR to addressing social and society’s issues in addition to their pursuit of profits as this would give rise to long-term company‘s profitability, competitiveness and sustainability. Interestingly, evidences abound of companies which have already keyed into the created shared value enjoying immense benefits of customers’ and society attraction, acceptance and loyalty, profit growth and competitive advantages. The study concludes that created shared value has the potentials to unleash the next wave of global growth, economic prosperity and sustainable development when companies start to think a new and look at decisions and opportunities through the lens of shared value by incorporate social and societal values into their economic agenda. Corporate social responsibility, created share value, sustainable development.