When you start a business, you may only think of how to make it bigger and get more profits from it. However, that’s the past business concept. Nowadays, these kinds of concept where a company only focus on how to make a profit are slowly withering away. Many private sectors company are focusing on a business concept that is called the shared value concept. So, what is this?
Shared Value Concept
The shared value concept practice has a strong relation to the society surrounding the area where the company building is located. Or, many companies focus on certain range market to give a big effect and better change to people in that group. The main goal of this business concept is dealing and solving many social complex issues.
One of the best examples is Florida Ice and Farm Company S.A. This company use strategy which is called “triple-bottom-line performance”. Their goal is providing easier access for those who live in a poor rural area, where the malnutrition case commonly occurs. This method helps people to get better food which can become one of the important elements to deal with their malnutrition problem.
This concept doesn’t seem profitable. However, those companies aim for better value in the public perspective. And, this is what matters today. Today’s society has more awareness of the social problem. So, if there is a company that works like the ideal image that the public wants, they will get the trust. In the long term goal, this kind of company can survive better than those who don’t use this unique concept.
Moreover, trust in a government institution is decreasing these days. People like to see the real result or act from an institution. Backed up by how media treat the company with this concept like they are the best thing ever happened in the world, pushing many companies to include the social welfare in their business strategy. After all, those who get more trust will survive longer. We can even say that public trust is the most valuable currency today.
This is a good thing. It brings benefits to everyone. As a company, they will get the best platform to run their business and make a profit, with the trust of the public. And, the public also gets a way to get better life from the shared value concept that those companies use. We expect that this concept will be even more flourished in the future.