Social Value in Business - Essay Example

The changes in civilization and the cultural enhancement of the recent past have ruled out the possibilities of a simple life based on the essentially need-oriented life consisting of the ‘food-shelter-clothe’ menu. Now the people are aware of their requirements with zero tolerance to compromising qualities and the worth of the money they spend for acquiring them. With emergence in public demand for new brands of products from all consumer needs, a heavy rush of companies took place in the recent past.

Most of them chose to work out their easy-profit mechanisms by largely involving in the manufacturing and marketing of consumer goods. The inferior methods and materials used for such huge promotion of goods turned the earth to a miserable planet, whereby leading the corporate sector to a disastrous future of unsettlement of business and accumulating loss of venture capital. In such a scenario, the concept of Social Value has to take the rein of the ethical chariot of global business.Companies now promote their classic style of involvement in socially oriented activities for their sustainability.

Business giants across the globe now have identified that the core purpose of their work is not yet limited to making profit but also marginally focusing on the development of the human community. The new logical approach to business has paved the way for the introduction of many new schools of business thought; most basically, the two principles like corporate social responsibility (CSR) and creating social value (CSV) have been framed for the better approach of corporate entrepreneurs towards the society.

While the CSR is a mandatory part of large organization under the guidelines of the government; Social Value creation is their intellectual investment in the long term profitability and sustainable growth of business. Under this new ethical mechanism, corporate structures have identified that creative approach to the promotion of a healthy social environment rewards them in the long-run with more popularity of the products and extended faith of stakeholders in every organization. Large companies like Coca-Cola and Dove Chemicals have already cut down their annual water consumption.

Motor vehicle giants are on the run for fuel efficiency and lower levels of carbon emission. Johnson and Johnson has promoted improved healthcare policies and healthy time shift allocation to its employees for the assurance of a better and delivering workforce by minimizing the cost of hospital bills and post treatment claims of its employees. Large fertilizer companies and heavy infrastructural builders of the world are in the process of creating social values by adoption and urbanization of smaller villages.

Nestle may be seen as the innovator of this trend; the diary giants have accessed the farmers straightly and taken care of their cultural and societal needs while keeping them attached to the company’s demands for regular supply of quality milk and coffee. Most companies have now come to a state where they consider the value promotion of their business brand superior to the amount of profit they obtain. And they are also clear that the new definition of profit is revenue from consumers minus cost incurred in taking the products to them.

From all the details and references, it becomes evident that transparency in deals and concern for quality of products and services with utmost care for social safety and prosperity are the basic elements of the talisman of new business strategies.