CSR VS CSV

These days, lots of companies begin to concern their society; start from internal, such as caring the employee through employee engagement, look carefully to the work place. Also external aspect of the company like environment, human resources or local people around company, and even can be the global issue: health or human right. This concern represents the symbol of respect and responsible from company through what company has done to the society.

Corporate Social Responsibility (CSR) and Creating Share Value (CSV) attend to fulfill the company contribution to the society. But what is the difference of these programs? Based on FSG.com, which is social impact consultant; they divide social program to 3 kinds of social corporate program.

 As we can see from the table, CSR tend to minimize harm to society and the company. On the other hands, CSV prefer to find business opportunity in social problem. So, CSV look problem as a business opportunity where they can set the strategy gain company reputation and profit. CSR is more ethical and focus on sustainability, whereas CSV integrates social and environmental improve into economic value creation which means company exchange the program value to the economic value. To explain more about CSR and CSV, there are some examples that can be references to understanding this.

Take the Coca-Cola Company as the CSR example, in 2012; they started a program called 5by20 in economic aspect to empower young women entrepreneurs. The program aims to bring five million women to have business skill, which can be use to prosperous the family and community. At the end, the company hopes they can develop world into business by 2020 as local bottlers and distributor of Coca-Cola.

Adidas group will be good example of CSV. Adidas did partnered with Nobel Laureate Muhammad Yunus’s micro-finance organization, Grameen Bank to produce the low cost shoe for Bangladeshian. The purpose of doing this is to provide affordable shoe in order to protect poor people from diseases. [1] They create and share value which profitable to adidas (financially) and good reputation for Grameen Bank.

These kind of responsibilities shows the company is not only focus on gain profit but also the build reputation among society and the interesting is company want to set two way communication through the program that company have. Through two ways communication that company set, the management or company itself aim to encourage employee/ customer/ stakeholders/ local people have contribution to the company, also maintaining the harmony. By running these programs (CSR/CSV), Company and employee/customer/stakeholder can create long run relationship.

According to the Forbes Article[2], the writer mentions If Corporate social responsibility (CSR) is not going to solve the world’s problems. That said, CSR is a way for companies to benefit themselves while also benefiting society. I agree of this statement where company actually tends to benefit themselves. Company do not solve problem but essentially set the strategy to reduce the effect of problem.

---

[1] http://www.forbes.com/sites/csr/2011/06/14/three-great-examples-of-shared-value-in-action/

[2] http://www.forbes.com/sites/csr/2012/02/21/six-reasons-companies-should-embrace-csr/