Shared Values Essay

. Explain what is meant by the “social contract” between a business and the society in which it operates.

What is value? For everyone, it is different. In business, what do we value? Do we value our client? Do we value our company? Do we value our products? In respect to business world relationships and “good” relationships, they are built on trust—that is definitely a value (in my opinion), especially in the business world. As a Starbucks barista, customers value their barista. I have seen it, and I can say that I know a lot more about a customer’s personal life than I ever thought I would when I was first employed with the company. Customers will come in at the same time when the same barista is working because they are having service done by someone that they can trust. There is a value between the two, and the customer definitely sees the barista as a giver (a giver a great customer experience/service). In a greater perspective of this book, good business relationships are not built on the product, but more so the service that the company has to offer—they are built with the person that is offering whatever product it may be that the company is offering. Sure, products may be a value to someone else, but the extra added value would be the relationship; the seller needs to be able to add the extra

For whom are we creating value? We are not only creating value for our direct customers, but we are also creating value for the community and society in general. Customers learn to become self-sufficient and productive members of society by learning career skills. This alleviates stress on governmental entities such as the police and justice departments, social programs such as SNAP (Supplemental Nutritional Assistance Program) and HUD (Housing and Urban Development), and community aid organizations that provide a variety of resources by creating positively contributing members of society.

By engaging with social causes in a variety of ways, a corporation can learn about new territories, product applications, cultures, and markets. Many companies seek to empower the poorest sector of the population, both at home and

apply the theory of value. The theory of value bases itself on the premise that

To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate” (Straub,

They are not the followers, emulators, or imitators. This approach is the most competitive among the all the value discipline strategies and with it comes the advantages of knowing that it is one of the leading attributes needed in maintaining and gaining competitive advantages and future growth.

I read Collaborative Value Creation: A Review of Partnering between Nonprofits and Businesses: Part 1. Value Creation Spectrum and Collaboration Stages by James E. Austin and M. May Seitanidi. Their research focuses on nonprofit business collaboration and the related corporate social responsibility and potential issues surrounding value creation. The authors ask the question: “How can collaboration between nonprofits and businesses most effectively co-create significant economic, social, and environmental value for society, organizations, and individuals?” (XXXXXXXX). Austin and Seitanidi have developed two papers evaluating the components of the Collaborative Value Creation (CVC) framework which include: Value Creation, Collaboration Stages,

Consideration of social responsibility is an important concern for the successful operation of a business. A business can be structured with the sole intention of maximizing profit, or it can be structured in a way in which social obligation beyond profit is considered. The two opposing views are introduced by Ferdinand Tonnies in The Argument, and correspond to his concepts of Gemeinschaft and Gesselschaft (Tonnies, Ferdinand "The Argument” from Community and Civil Society) The opposing nature of

Shared Value is a new form of capitalism. The idea of shared value was initially explored by the authors in December 2006 HBR. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. In the article Porter & Kramer criticize neoclassical thinking on the trade-off between societal needs and economic success, and the way the concept of ‘externalities’ have shaped corporate and policy strategy. Article says that corporations

In the other side Chandler and Vargo (2011) used these FP’s to demonstrate factors in a several context. The study of Chandler and Vargo confirmed that the ability to determine context unrivalled and is significant because if the context matching will influence the way of resources extract for service. Study of Vargo and Akaka in (2012)Argued that the resource integration is a key factor of value creation and stating that to have best understanding of creation value in the service dominant systems, an explaining of “firm practices” is must as it's connected to value co-creation in addition to the systems of service exchange. In conjunction to Korekman et al (2010) the value is created by the applying practices and the main defined factor of the practices is the resources integration. Its Direct correlation process, as long the practices are enacted the resources will be integrated. Focusing on the process of resources integration will expand the market domain practices rather than exchange specific practices which impact on other forms of resource integration for example sharing, giving treat or training. Therefore the “resource integration” recognized as main practice of creation value. Participation of factors who enact practices to integrate resources and their interact with other factors led to contribute creating value. Akaka and

Osterwalder and Pigneur (2010) describe value propositions as the “bundle of products and services that create value for a specific customer segment.” (22) This building block of a business model is essential in that it is the reason why consumers value one company over another. Value Propositions can also help organizations create customer loyalty and retention. With intense competition in markets, value propositions are an important part of a business model because it addresses competition and attempts to set the firm apart from the other choices presented to its customer base.

Treacy and Wiersema (2012) argue that there are three value disciplines that a company can implement to ensure success. These are operational excellence, product leadership and customer intimacy. A company would normally choose just one of these and "act upon it consistently and vigourously." Operational excellence is defined as having "superb operations and execution" and usually involves providing reasonable quality at a low price. An example of an organization that uses this approach is Wal-Mart. Product leadership is defined as a company that is "very strong in innovation and brand marketing." Such a company would seek to provide the best products or services, and use aggressive marketing to highlight that superiority in order to build brand loyalty. Apple would be a good example of a company following that approach. The third approach, customer intimacy, is defined as "excelling in customer attention and customer service." This approach often requires firms to tailor their solutions to each individual customer. Occasionally, a company can employ two of these value disciplines. Treacy and Wiersema (1993) illustrate this point with the example of Toyota, having achieving operational excellence and from there moving into product leadership while still retaining the operational excellence.

The customer value is what someone is willing to pay for an item to obtain the benefits of the product or service. Then there is the analyzing of customer’s reviews to determine how well or poorly a company a doing with their product. Lastly, there is the relationship building, which helps bring in new customer while also keeping the current customers excited about the direction the company is headed (Lamb et al., 2014).

Through the induction of literature, Weber (2008) proposed that the influence of the social obligation on economic performance and value system were in the following aspects.