Teng, Matthew Phillip Nov.

7,2018

11705469 Maam Tibon

A Reflection on Shared Value

The article’s main point, based on my understanding, is that companies today

tend to focus on financial goals rather than ensure the satisfaction of their
customers. The article also states that there is an ongoing conflict between
economic efficiency and relationship with customers. The authors offer a solution for
this ongoing problem, by pointing out the need to rekindle companies need for
creating economic value, and increasing the value of society. For this to happen,
managers and leaders need to develop a deeper appreciation for the community’s
needs and also have a proper understanding of a company’s production strength, so
as to strike a balance between profit and non-profit activities.

Today, many businesses would ignore community responsibilities which

results in additional and unnecessary costs such as taxes and penalties combined
with the failure to regulate environmental policies which pollutes the environment. I
agree that a company should practice shared value wherein they incorporate new
technological methods, better management practices and offer better operational
method which allows increase in the employee’s productivity.

Company productivity and corporate social responsibility work hand in hand.

The social issues that arise from productivity are natural resources, health,
employee, and community safety, working conditions and fair treatment in the
workplace. The products and the production process raise issues regarding air and
waste pollution. Through efforts to increase share value, organizations come up with
new technologies and methods that are both cost effective and environmentally
friendly. They do not only meet social standards of environmental preservation, but
also provide employees with safer working conditions.

In conclusion, I believe that a company should find a way to become profitable

and be practical at the same time. A company should treat its employee as an asset
to the firm and not use them for profit only. A customer should be values by the
company thus, it is important that a business practice ethical ways in production in
order to maximize and satisfy the customers.