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CSR / CSV ⇒ Value / Values
Olaf de Hemmer, Member
The very interesting discussion launched by Ismael Bena around Porter's CSV versus CSR underlined the use of the terms 'value' and 'values' as quite opposed?
- Value = money = wealth on one side
- Values = ethics = caring about people and planet on the other.
This leads to consider the company as a mean for stakeholders to exchange what they have so that it creates ‘value’ for themselves AND the other ones:
- Clients exchange money, but also time, comfort, information... In the acquisition process... Against a product/service, which will itself create value for themselves or their own customers: satisfy physical, intellectual, social status... Needs,
- Vendors exchange the same product/service, but also marketing and supply chain costs and time... Against money, but also reputation, long term relationship...
- Each of them perceives more 'value' in what he gets than what he gives, even if the same is given and received on both sides! If not, the exchange will not happen (or at least not last long). So the exchanged 'valueS' are subjective and relative to each stakeholder.
The same applies to exchanges with employees (money, status, relations, work conditions, career... Against time, skills, motivation...), suppliers (products/services, innovations, stable QCD supply, market information... Against money, strategic partnerships...), shareholders (dividends, share selling price, image... Against investment, management involvement...), and also environment (expecting respect against decent life conditions, air, water...) and the society (expecting employment, local wealth improvement, tax money... Against infrastructures, education, security...), etc.
When it comes to exchanges with people (it always is!), the company may not respect them, but taking the ‘‘values’ of customers, suppliers, employees, society … into account certainly is part of the exchange of ‘value’ with them!
Each company is built on the choice –explicit or implicit- to consider certain stakeholders value(s) as a priority: the neo-liberal public-owned company usually focuses on shareholders short term profit by share value / social entrepreneurs choose employment of specific publics as a priority … Then every company HAS to deal with the satisfaction of EACH of its stakeholder to secure its sustainable future!
> Do you agree?
Many methods (we listed dozens of them) are using this 'value(s)' concept to optimize corporate performance at various levels:
- CSR is the method built around the idea that a company should care also for people and the planet (values), which is obvious even if you only target creating wealth (value) in the long term, with a triple bottom line targeting People / Planet / Profit objectives
- Blue Ocean proposes to build a company strategy around 'non client unmet needs' instead of fighting for competitors clients, looking for the 'attributes' these potential clients will use to value te company offer;
- Value Analysis is used to design products that will include the minimum resources to answer clients needs;
- Lean optimizes manufecturing (and other) processes by focusin on what steps and time delivers something useful for the client;
- Business Model New Generation proposes a framework to design an optimal value proposition to the different client segments, while finding the way to maximize revenues even indirectly through exotic pricing models, but securizing and minimizing key internal and external resources;
- Business Analysis is developing in the service companies around the need to align organizations, IT and digital solutions with strategic goals, business needs and user requirements;
- ...
These methods also share a ‘system’ approach, where stakeholders at each company level are interdependent, and system modeling can be used to improve performance.
The book "Valeur(s) & Management" book has been published in 2013 on this topic (sorry, in French).
> Do you share my belief that a common management approach can be built from synergies around these ‘value(s)’ and ‘system’ concepts?
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Shared Understanding of Value and ValuesRon Strauss, Member Creating a 'shared understanding' of what terms mean depends on carefully defining each term and then confirming that meaning by asking for feedback. Many people define 'value' as benefits received less the costs of acquiring those benefits; which yields perceptions of worth. 'Values' are defined as beliefs, principles, standards, and ideals that shape how we engage and act.
Values often shape our perceptions of value received; and value received can, in turn, impact our values. |
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Value and ValuesLeodegardo M. Pruna, Member I agree with your belief that a common management approach can be derived from the merging of various values concepts and systems but such may constitute only a minute portion of the totality of the convergence of various systems considering factors such as culture, economic status, etc. As to the use of the terms value and values, value may be considered extrinsic and physically measurable while values intrinsic and observable. |
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Value CitationsOlaf de Hemmer, Member @ Jaap de Jonge: Very nice! I also have some that I did not see in your list, are you interested? (Jaap: definitely, I'll drop you a private email...)
@Leodegardo; let us try to build this minimal convergence? |
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Value and ValuesLeodegardo M. Pruna, Member @ Olaf de Hemmer: Let us do it. The minimal convergence you mentioned lies in the commonality/intersection of the various systems put together. This could be expanded to effect improved efficiency in the various systems under consideration. This may take sometime as a systems review has to be undertaken to identify the characters which are to be the object of expansion/ improvement/development. |
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My View on Value and ValuesOlaf de Hemmer, Member Thank you Leonardo, as Jaap proposed, I am currently translating my points from French into a 'view' to be soon published on 12manage. |
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Value and ValuesLeodegardo M. Pruna, Member @ Olaf de Hemmer: Will just wait for further development. Kindly note that my name is LEODEGARDO not Leonardo. Thanks. |
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Special Interest Group Leader
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Ismael Bena - MBA