Creating Shared Value
“It is essential for companies to convert programs from CSR, which are only seen as center costs, into cost investments, and to align the business case with business issues, which is called the Creating Shared Value (CSV) Program.”
Based on Ministry Regulation 05/MBU/04/2021 requires that every implementation of the CSR program (Social and Environmental Responsibility) must have an impact on the Company (Creating Shared Value). Shared values are not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It’s not at the margins of what the company does but at the center. We believe it can lead to the next major transformation of business thinking (Michael E. Porter & Mark R. Kramer).
Creating Shared Value (CSV) is a program to identify social issues from a company’s business case. CSV is the development of the concept of Corporate Social Responsibility from the traditional to the contemporary.
A. CSV type 1. Creating/Innovating New Products and Markets
Creating products and services that benefit the natural environment, economy & society.
It creates products and services that increase revenue growth, market share & profitability.
B. CSV type 2. Redefining Productivity in the Value Chain
We are focusing on improvement in internal operations (Efficiency of energy, capital, human resources, and all resources).
Environmental improvement, better use of resources, investment in employees, supplier capabilities & more.
C. CSV type 3 Enable Local Cluster Development (CID)
Improve the external environment for the company.
Community investment & strengthening of local suppliers, local institutions, and local infrastructure.
Increase business productivity.
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