Strategies define the functions of corporate planning and procedures of creating shared values. The next realm of strategy known as shared value elaborate the contributions to communities and improve social conditions by reconceiving products and markets and redefining productivity across the value chain.
"Healthcare has been a charitable cause in India where the industry has always marked upon creating shared values. Fundamentally speaking on shared values, the healthcare industry contributes to 65 per cent and it is delivered by charitable healthcare. Shared values have been contributed to by charitable healthcare but they face the challenge of awareness," said Annaswami Vaidheesh, VP, South Asia & Managing Director, India, GlaxoSmithKline Pharmaceuticals Limited at the #PorterPrize forum in Mumbai.
While talking about overcoming shared value as a short term effect and derive it to a more long term effect, Sateesh Kumar, Managing Director - Asia & LatAm operations, D'lite Industries said, "It will take a lot of time to make profit and generate shared value. My company took seven years to make a shared value effect on society and earn that kind of profit for the organization and society. To create long term values the organizations need to look at distinctive models where there are many factors to be taken into consideration."
In order to maintain the concept of shared values amongst industries, fundamental principles play an important role in deriving competitiveness. Fundamental principles explain the procedures that redefine markets and productivity.
Dr. Ajay Bakshi, Managing Director & CEO Manipal Hospitals (MHEPL) said, "Fundamental principles should be board driven and should be profitable for the company as well as the target population. Since shared values talk about providing benefit to organizations and the society, the initiatives must be overseen by the representatives of the companies that initiate the procedure. This helps in creating a bigger impact and more long term."
Talking about the principles and the progress made by Manipal Hospitals and whether CSR activities have become a marketing gimmick, Mr Bakshi further added, "We are doing some efforts but it's a large country with a lot of diseases and lack of hospital beds. Awareness lacks in healthcare and the industry needs to contribute in spreading awareness empowering people to gain knowledge on such important issues. At Manipal Hospitals, we launched a YouTube channel which spoke about awareness and important points which many are unaware of and that got us 30 million views which is still a small amount. The work is so large that we have to continuously play that role and even over 10 years it may not be enough unless a larger portion of this industry come up with innovative solutions."
Marketing gimmicks by many companies derive short term effects on societies. Opportunities define the direction and intentions of companies and the steps they take towards shared values.
Talking about the impact of shared value on society by an organization, Dr. Rajeev Kumar Gupta, MD, GNFC said, "Opportunities that are taken by companies define the intentions of companies that plan towards creating shared value. We created employment opportunities in rural areas of Gujarat. We enabled the rural population from various communities which led us to creating a huge amount of Neem oil. This led to educating people in growing techniques of Neem trees, basic commodities to run households in many villages that lacked heavily in those areas and empowering many unemployed women."
Social development and economic developments where corporate sectors can play a bigger impact than government initiatives. The next realm of strategy that was the center of discussion created opportunities and educational insights in shared values.
BW Reporters
The author is a journalist with BW Businessworld
