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Shared Value Creation

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Abstract
Capitalist system is caught in the dilemma. In recent years, business are causing social, environmental and economic issues culprit. Prosperous company obtained are to extensive damage at the expense of the interests of society. Worse, the more positive corporate social responsibility, the more people are to blame corporate social problems. Corporate legitimacy in the eyes of the public has fallen to the bottom in recent years. Trust for companies has increasingly weakened, prompting political leaders to develop competitive harm and weaken economic growth policies. Business trapped in a vicious cycle. Commercial and social enterprises must be re-integrated together. Most companies are still stuck in the "corporate social responsibility" mode of thinking, where social issues are marginalized. We lack is an integrity guide framework.
Pathway to solve the problem is that the principle of shared value: companies create value for society to deal with social challenges, meet the social needs of the process, thus creating significant economic value. Business must reconnect business success with social progress. Opportunity already exists, but companies ignored. Business have become commercial, not because of its charitable donations, but because the business is to deal with the most pressing issues of social powerful force. It is the time to meet the new concept of capitalism, which means companies must be redefined as creating shared value, not profit itself. This will drive the next wave of innovation and global economic growth (Porter & Kramer, 2011). Learning how to create shared value is the best business opportunity to regain legitimacy.

Literature review
Companies that create value for society need to deal with social challenges, to meet the social needs, creating significant economic value (Porter & Kramer, 2011). The commercial must reconnect business success with social development. Shared value is not social responsibility, not a charity concept, not even sustainable development, but a new way to achieve economic success. Shared value is not the company's secondary activities, but the core activities that will lead the next round of business concept revolution.
Companies usually deemed external norms and regulations as constraints and conflicts with their own interests. In addition, solving social problems is something the government and NGO should do(Gillespie, Haddad, Mannar, Menon, & Nisbett, 2013). Carroll and Shabana (2010) suggest that CSR is often only in response to external pressure, to improve public image, any excess expense are regarded as abuse of investment to shareholders. From the government point of view, Scherer and Palazzo (2011) argue that rules and regulations often make it more difficult to reach a shared value. In short, both sides regarded each other as obstacles to achieve their goals, and therefore they judge and act (Cai, Jo, & Pan, 2012; Matten & Crane, 2005).
In contrast, shared values are social needs, rather than the traditional definition - a market economy needs (Du, Bhattacharya, & Sen, 2011). Moreover, the social pain - like a waste of energy and resources, increasing poverty and lack of education leads to the need for additional education costs and other burdens - which frequently increase their internal costs. Moreover, to solve these problems, companies will not necessarily increase the cost of doing business(Lindgreen, Hingley, Grant, & Morgan, 2012); because through the creation of new technologies, new management tools that can ultimately improve productivity, to "Blue Ocean."
Achieved through the creation of social value economic, the companies have three practical ways: Rethinking products and markets; redefining productivity in the value chain; promote the sound development of the company's operations to local social ecology (Kervyn, Fiske, & Malone, 2012). Each way is to share a value in economic cycle, enhancing the value of each link and bringing opportunities for other sectors.

Shared value is within a greater Significance for developing countries, because these countries often have problems that are more social and cannot rely solely on government to solve. Calabrese, Costa, Menichini, Rosati, and Sanfelice (2013) state that enterprises should try to fulfill needs of some groups. In some areas, it is extremely important where basic needs are not satisfied, whether it is health, nutrition, or reduction of pollution in the region. These requirements have created opportunities for companies to develop strategies to gain competitive advantage and make a profit(Du & Vieira Jr, 2012).
A company can build a value chain (including product, distribution, logistics, etc.), followed by many more opportunities to create common values, such as reducing the cost of transporting goods, saving energy by recycling materials to reduce environmental pollution, better re-use of water resources, and so on (Boons, Montalvo, Quist, & Wagner, 2013). In this process, companies could achieve a virtuous cycle of corporate social value and economic value. Corporations can also take advantage of these opportunities to train employees to make their production to become more efficient. Employees can earn more salary, the future of these employees are also rising to become the backbone of the enterprise can rely on.
Three ways to create shared value will be mutually reinforcing. Enhancement of local industrial clusters will increase local sourcing and reduce dispersed supply chain. Meeting the social needs of new products and services will require the establishment of a new value chain, such as production, marketing and distribution (Rynes, Bartunek, Dutton, & Margolis, 2012). Construction of the new value chain will create demand for equipment and technology, gather resources, and provide support for their employees.
Perspective of shared values can be applied to each company's decision-making field are product design could bring greater social benefit? If a company can improve their social conditions, it will usually improve their economic conditions, and thus promote a positive feedback loop (Scherer, Palazzo, & Seidl, 2013).

Not all profit is the same; this concept has been under narrow, short-term focus on capital market context, and especially in management field. Ballou, Casey, Grenier, and Heitger (2012) stated that profits with a social purpose represent a higher form of capitalism. In this capitalist society, it would make more rapid development as well allows the company to develop faster. The result is a positive cycle of enterprise and social prosperity, which will eventually create lasting profits.
Prerequisite for creating shared value is consistent with legal and ethical standards, to reduce the negative impact of business brings, but not just that. Opportunity to create economic value by creating social value will be the most powerful drivers of global economic development (Vallentin & Murillo, 2012). This will be a new way of thinking to understand the impact to the customer, productivity and external to the business success; it emphasizes a lot of unmet human needs, the new large untapped market, social and community defects to the enterprise internal costs and address these problems will result the competitive advantage for companies. Until recently, the company also did not follow this model to develop their business.
Creating shared value will be more effective than the current in the social sphere, which made substantial contributions of corporate behavior. Company will make real progress in the real environment, for example, they will take environmental issues as a driving force of productivity, rather than a timely response to external pressures. Or consider the needs of the house, creating shared value approach will make the financial services sector to create a new service offerings, improving people's home ownership for all(Driver, 2012). Inevitable, the most fertile opportunity to create shared value is for that particular business and company-specific business closely related. By this, the company can enjoy most effectively the economic benefits, therefore, extend, and maintain their commitments. Here is the company's most capable opportunity of gathering resources. It makes the scale of production and the market, which can have a meaningful impact on the social issues in the field.
Ironically, many of the pioneer of shared value creation are those with limited resources, social entrepreneurs or enterprises in developing countries(Porter & Kramer, 2011). These external forces can more clearly see where the opportunities are. In this process, the profit and non-profit boundaries are blurred.

Shared values are defined a new business practices all businesses must face. It will also become an integral part of corporate strategy. Core strategy is to choose a unique position and express its value through value chain(Porter & Kramer, 2011). Shared value opens many of the new demands, new products need to supply, a new customer service needs, new methods to integrate the value chain. Results by the creation of shared value and competitive advantage of continuity would far exceed the traditional cost reduction and quality improvement model. Imitation and zero-sum competition cycle model will be broken. Opportunity to create shared value is broad, gradually increasing. Not every company has the opportunity in each of these areas, our experience shows that the company will, over time, more and more executives understand this concept, and you will find more and more opportunities. Take General Electric for example, after ten years of development, their Eco-magination program has now grown to become the core of the whole company's products and services.
The next round of key-shared values is on business innovation and development trend. It also combines success of company and the success of the community, which in the narrow management, short-term thinking and the era of separate social institutions is impossible.
Shared values of the company is to focus on creating the right profit, this profit can bring social benefits, rather than cuts in social benefits. As an example, fair trade purchases is the way that merchants procure agricultural products with high prices from poor farmers to increase their revenue. This is a means of redistribution rather than efforts to expand the total value of the underlying transactions. If starting from a shared value perspective, the focus should be on actions to improve planting techniques, strengthen local suppliers and a cluster of other organizations to support farmers, farmers' efficiency, output, product quality to achieve sustainable development. As a result, the size of revenues and profits are on the expansion, both farmers and procurement companies have benefited. A preliminary study against Ivory Coast cocoa farmers showed fair trade can increase farmers 'income by 10% to 20% , but the sharing value of the investment can enhance farmers' income as up as 300%.

There is no doubt that the capital markets will continue to put pressure on the company to create short-term profits, and some companies will certainly earn profit in the detriment of the interests of society. However, this profit is ultimately short-lived and companies will miss the greater development opportunities. The era of creating a broader sense of the value has arrived. Social awareness of citizens and employees has grown, the scarcity of natural resources gradually(Fayer & Vermeulen), will provide an unprecedented opportunity to create shared value. In addition, we need a more complicated and sophisticated capitalism throughout the capitalist social purpose. The purpose is not from charitable reasons, but on competition and economic value creation of a more profound understanding (Caprar & Neville, 2012). Evolution of the next round of the capitalist mode will find newer and better ways to develop products, services, markets, create productive companies.
Not all social problems can be solved by the method of shared values. Nevertheless, shared value perspective provides an opportunity for enterprises to take advantage of their skills, resources and management capacity to guide social progress, such opportunities for governments and social institutions is difficult to match. In this process, the business community can regain their respect.
There are three ways for enterprise to create social value through the creation of economic value. First, re-conceive products and markets; second, redefine productivity in the value chain; third, support the establishment of industrial clusters areas where the company is.
Overall, the best opportunity to create shared value of the enterprise is bound closely associated with their own business, but also in the company's most important business areas. Such opportunities can contribute to maximum economic benefit for businesses, enterprises and therefore long-term investment. In this opportunity, the enterprise through its business scale and market influence so that enterprises have the ability to help solve specific social problems, suggesting a better economic results for society.

Conclusion
Creating shared value has been one of the tendency for modern companies in their strategy. Actually in daily operation, the strategy should have more practices to realize such strategy. Even in theoretical perspective, the concept has not fully developed into the operational level. The lack of abundant cases also bother the concept to be realized in the near future. However, we believe this concept is on the right track. Creating shared value for business and society definitely will dominate the business mode in the future. Additionally the company who adopt such concept will win over its competitors in the long run. So for the stakeholder of the company, it will be a wise choice to establish such practices of creating shared value. Even for the society, the business will gain more non-financial benefit than they ever think. From the externality point of view, the creating shared value will bring our society more benefits rather than the economic benefits. Furthermore, companies should notice that in the long-run, company will benefit from such long-run strategy. All in all, creating shared value should be the option for companies, especially for the industrial leader.

Reference List
Ballou, B., Casey, R. J., Grenier, J. H., & Heitger, D. L. 2012. Exploring the strategic integration of sustainability initiatives: Opportunities for accounting research. Accounting Horizons, 26(2), 265-288.
Boons, F., Montalvo, C., Quist, J., & Wagner, M. 2013. Sustainable innovation, business models and economic performance: an overview. Journal of Cleaner Production, 45, 1-8.
Cai, Y., Jo, H., & Pan, C. 2012. Doing well while doing bad? CSR in controversial industry sectors. Journal of business Ethics, 108(4), 467-480.
Calabrese, A., Costa, R., Menichini, T., Rosati, F., & Sanfelice, G. 2013. Turning Corporate Social Responsibility ‐ driven Opportunities in Competitive Advantages: a Two‐dimensional Model. Knowledge and Process Management, 20(1), 50-58.
Caprar, D. V., & Neville, B. A. 2012. “Norming” and “conforming”: integrating cultural and institutional explanations for sustainability adoption in business. Journal of business Ethics, 110(2), 231-245.
Carroll, A. B., & Shabana, K. M. 2010. The business case for corporate social responsibility: a review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.
Driver, M. 2012. An interview with Michael Porter: Social entrepreneurship and the transformation of capitalism. Academy of Management Learning & Education, 11(3), 421-431.
Du, S., Bhattacharya, C., & Sen, S. 2011. Corporate social responsibility and competitive advantage: Overcoming the trust barrier. Management Science, 57(9), 1528-1545.
Du, S., & Vieira Jr, E. T. 2012. Striving for legitimacy through corporate social responsibility: Insights from oil companies. Journal of business Ethics, 110(4), 413-427.
Fayet, L. & Vermeulen, W. J.V. 2012. Supporting Smallholders to Access Sustainable Supply Chains: Lessons from the Indian Cotton Supply Chain. Sustainable Development. doi: 10.1002/sd.1540
Gillespie, S., Haddad, L., Mannar, V., Menon, P., & Nisbett, N. 2013. The politics of reducing malnutrition: building commitment and accelerating progress. The Lancet, 382(9891), 552-569.
Kervyn, N., Fiske, S. T., & Malone, C. 2012. Brands as intentional agents framework: How perceived intentions and ability can map brand perception. Journal of consumer psychology: the official journal of the Society for Consumer Psychology, 22(2).
Lindgreen, A., Hingley, M. K., Grant, D. B., & Morgan, R. E. 2012. Value in business and industrial marketing: Past, present, and future. Industrial Marketing Management, 41(1), 207-214.
Matten, D., & Crane, A. 2005. Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management review, 30(1), 166-179.
Porter, M. E., & Kramer, M. R. 2011. Creating shared value. Harvard business review, 89(1/2), 62-77.
Rynes, S. L., Bartunek, J. M., Dutton, J. E., & Margolis, J. D. 2012. Care and compassion through an organizational lens: Opening up new possibilities. Academy of Management review, 37(4), 503-523.
Scherer, A. G., & Palazzo, G. 2011. The new political role of business in a globalized world: A review of a new perspective on CSR and its implications for the firm, governance, and democracy. Journal of Management Studies, 48(4), 899-931.
Scherer, A. G., Palazzo, G., & Seidl, D. 2013. Managing legitimacy in complex and heterogeneous environments: sustainable development in a globalized world. Journal of Management Studies, 50(2), 259-284.
Vallentin, S., & Murillo, D. 2012. Governmentality and the politics of CSR. Organization, 19(6), 825-843.

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...– A meso-level theoretical model is developed that outlines the relationship between self- and shared leadership, focusing on the intermediary processes of trust, potency, and commitment that may lead to the development of shared leadership and ultimately more innovative knowledge creation. Findings – Nine propositions are developed, addressing the relationships between self- and shared leadership, concluding with some of the theoretical and practical implications of the model and specific recommendations for future empirical work in this area. Research limitations/implications – An important boundary condition of the model is that it assumes team and organizational incentives are in place to encourage team building and the facilitation of team over individual achievements. Practical implications – Conceptualizing leadership in this way leads to numerous unanswered questions regarding how team dynamics influence, and are influenced by, various forms of leadership (including lateral, upward, and downward influence attempts). Greater dialogue between the team dynamics literature and the leadership literature may lead to new insights into how shared leadership is influenced by a variety of team characteristics, including team ability, size, member maturity, familiarity, likeability, cohesion, etc., all of which are potential areas for future research. Originality/value – Important research questions that stem from consideration of these two theories in concert will...

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Organisational Learning

...organisation leaders in facilitating organisational learning. One of the most fundamental theory to help us understand organisational learning is the concept of single-loop learning and double-loop learning developed by Argyris and Schon (1978). Single-loop learning is associated with the detection and correction of error without amendment made to the master program, which is the guide for daily operations in an organisation. It is only suitable for repetitive job tasks where minor problems can be solved immediately. Restricted to only making small changes, single-loop learning is not learning (Buchanan and Huczynski, 2004). Thus, the double-loop learning, in order to solve more complex issues. Double-loop learning happens when the underlying values of the master program are changed. This would involve challenging norms rather than blindly accepting them. While single-loop learning and double-loop learning theory focuses on outcomes, Kolb (1984) proposes another type of learning which focuses on process, which is the experiential learning theory. It is a theory that merges experience, cognition, behaviour and perception. One of the models of experiential learning theory is the Lewinian Experiential Learning Model. The model emphasises a four-stage cycle, it begins with concrete experience, followed up by observations and reflection based on data collected. Analysis of the data is then made, contributing to conclusions that actors can use in behaviour modification (Kolb, 1984). ...

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