• Discuss the difference between economic value and social value or the shared value creation framework. Why do you think organizations tend to focus on the creation of one type of value but not both?
• Provide an example

Hello class,

This weeks topic is the difference between economic and social value. Through this we are discussing why we think organizations need to focus on the one type of value vs the other. Economic value is a measure of benefit from a good or service to the economic agent and this is measured in the units of currency. Social value is the relative importance that people place on the changes that they experience in their life. I think that organizations tend to focus on the social aspects of the organizations vs more than the economic values because social is very important to the organization. Social aspects help reach out and communicate to the customer. With these skills you are able to build up your customer base more and in turn will help boost the economic value of the buisness. Every buisness wants to reach out and communicate and get feed back with it customers in order to perform better build up the organization in the right ways to help growth. The social aspect is a huge focus of organizations the economic value will come in time where as the social aspect takes time and needs to be learned.

Response to the above post:

Good Morning John:

The rising awareness and concerns prompted by social movements have caused many companies to take steps in communicating its support to these causes, and the people affected. The economic reality for all organizations is that money is the resource needed for its success. However, many understand the value and importance of perception. Consumers are powerful and valuable allies, and while their currency is a needed commodity, their concerns and beliefs must be considered and not taken for granted or ignored. Circumstances surrounding climate change have caused companies such as Amazon, Uber, and others to institute projected changes to reduce its carbon footprint. A recent Amazon commercial reflects why an employee believes in the importance of achieving net-zero carbon by 2040. It is because he wants his son to know that he cares about his generation. For many organizations implementing goals that will create social value will continue to rise. Even though profitability will always be the bottom line for organizations, how society perceives its actions will equal in importance.