CSR and CSV

Large companies that already exist must be very familiar with the term of Corporate Social Responsibility (CSR) and Creating Shared Value (CSV). These two things are similarly have a positive impact on the image of the company that has been done it. Even though both of these things have a great impact, but they actually have significant differences. A company is required to conduct CSR as a form of their social responsibility towards the community. On the other hand, company is free to choose whether they want to do CSV or not.

According to Ghillyer (2010:78) CSR is:

            “CSR is the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.”

Based on that definition, Corporate Social Responsibility is an act which is done by an organization and it has been aimed to achieve the social benefit between the community and the company and maximize the profit of the shareholders, also as a part to fulfill their legal obligation. For example, in Indonesia there are lots of big companies that have a well-known CSR program. Such as Pertamina with their 4 kinds of CSR program that each of them has their own concentration in the education field, social community, health, and environment. The other large Indonesian company is Djarum, with their Sumbangsih Sosial program, Djarum Beasiswa Bulutangkis, Djarum Trees For Life, Djarum Beasiswa Plus, and Djarum Apresiasi Budaya.

Creating Shared Value (CSV) by Porter and Kramer is:

“…policies and operating practices that enhances competitiveness a company while simultaneously advancing the economic and social conditions in the communities in which it operates.”

According to that statement, it is very clear that every company has their own competitor. Therefore, there will be a strong competition to get a successful label for the company. In process of reaching that successfulness, a company is required to compete in a healthy manner and one of the strategies is by using the CSV program. Some companies that already use CSV program in running their business are Nestle, Google, IBM, Intel, Wal-Mart, Johson & Johnsons, and Unilever.  For example, Nestle use CSV for their business because they think that to have a long term existence, the community which they serve is also has to be prosper. Therefore, they are not only taking the natural resources and hire people to work, but they also educate, manage and take care the shared value that contains three separate aspects: nutrition, water and rural development.

In conclusion, both of those programs are very positive things that are done by each company to maintain their image. CSR is an obligation that must be carried out as a form of responsibility towards the environment and society. While CSV is one of great strategies to be a company that has longevity but still have their awareness to educate and taken care valuable aspects to be a better company. 

Dika P.  Fauzia Putri
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