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How to approach CSR as an “investment” rather than as a “cost”

Since 2010, the concept of CSR has evolved into a new concept called CSV “Creating Shared Value”, where the company and society can mutually benefit together.

The concept of CSR has evolved over several decades, in the 1980 to 1990 period CSR was considered as a charity activity of giving money for social causes to NGOs, and then the 1990 to 2000 CSR was considered as being in compliance to the Environmental, Health & Safety and Social compliance requirement. In the decade of 2000 to 2010, companies started to have some CSR team and doing some social projects and was also part of corporate communication strategy. Since 2010, the concept of CSR has evolved into a new concept called CSV “Creating Shared Value”, where the company and society can mutually benefit together. This concept was pioneered by Harvard professors Michael E. Porter and Mark Kramer.  

“Shared value is not social responsibility, philanthropy, or sustainability, but a new way for companies to achieve economic success.” Michael E. Porter and Mark Kramer, “Creating Shared Value,” Harvard Business Review.

Many companies, especially European companies have already adopted this concept by developing inclusive business models. Some of the companies likes Schneider Electric, Bayer, Essilor, BEL, Friesland Campania and many more have included this as part of their global business strategy.

The company Essilor set a good example of inclusive business model. They came up with an initiative called 2.5 NVG which means 2.5 billion new vision generation. A research has shown that 2.5 billion people of the 7 billion plus people on earth need affordable vision care and a huge proportion lives in the developing countries mostly in Asia, Africa and South America. Essilor came up with a new product which is an affordable spectacle which is in the range of 5 to 10 USD.
There are several programs as part of the 2.5 NVG, and one such program is called Eye Mitra Optician (EMO), here the word Mitra means “friend”, an Indian word. Through this EMO project, Essilor would help many rural entrepreneurs who are also opticians, thereby helping to reach to the rural population.  The EMO project brings benefit to the rural poor population, who can now afford a spectacle and have better living condition. The rural entrepreneur is able to have his own small business, and Essilor is also able to find a new market at the bottom of pyramid (BoP), people who earn less than 2 USD a day.

You can read more information on 2.5 NVG here