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From the famous proclamation of Peter Drucker, “The business of business is to makemoney”, to the essence of corporate strategy as maximising shareholder value, capitalism has been like an aeroplane that refuses to land—but it will run out of fuel sooner or later.

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Unlike CSR, which focuses on philanthropy detached from the profit-driven core of business, shared value allows companies to address pressing social issues while driving economic gains.Many CEOs brush this idea aside whenever a discussion emerges using the Drucker statement and terming utopian.

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Launched to combat the pervasive issue of financial exclusion, Mastercard sought for and provided financial tools and services to 500 million people globally by 2020.

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It requires rethinking business models, reimagining products, and a company-wide cultural shift.The first step to shared value creation is to pinpoint societal challenges that align with the company’s strengths.

Companies should ask what unique resources or expertise they can use to address societal needs.

For Nestlé, this alignment led to the Nestlé Waters Project, which addresses the global water crisis.

Recognising that access to clean water is vital both for society and their operations, Nestlé focussed on sustainable water management, benefiting communities and safeguarding their long-term supply chain.Companies must also rethink their core mission.

Purpose should not reflect  profitability but a commitment to addressing social challenges.

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