Creating Shared Value (CSV) concept is hardly known and has already been implemented by companies in Indonesia. When Corporate Social Responsibility (CSR) is an action to respond to external pressures, then CSV is here to make the practice of social responsibility a tool to create shared economic and social values. Therefore, the CSV concept can offer a more integrated strategy to contribute to society but at the same time create profit for the company. Their contribution to society is not just philanthropy which adds to the company’s operational expenses but can create a synergy between the needs of the community and the company’s business goals.
Every company needs to maintain its trustworthy reputation in order to gain support from its stakeholders. CSV can be a company strategy for solving social problems and maintaining their relationship with the stakeholders.
Stakeholder Perception on CSV & CSR concept :
|Value||Social Responsibility is perceived as an additional cost to the company.||Social Responsibility Practices can provide multiple benefits.|
|Concept||Social Responsibility is a tool to convey sympathy from the company to the community, or as a charity.||Social Responsibility Practices can bring more opportunities for companies.|
|Social Responsibility Practice to respond external pressures.||A company carries out Socially Responsible Practices because it is necessary for them.|
|Output||Social Responsibility can affect the decline in the value of the company’s profitability.||Social Responsibility practices can help increase company profitability.|
|The Social Responsibility Agenda has a short-term impact.||The Social Responsibility Agenda has a long-term impact.|
|Impact||The limited use of funds for Socially Responsible Practices only creates small results.||The limited use of funds for Socially Responsible Practices does not limit the company from creating greater returns.|