8/10/2019 CSR and Value Creation_Reflection

1/1

Reflection No. 6: Princess Joy G. Florentin

CSR and Value Creation

Prof. Blandina S. Panelo

GMB711 | FSSY 2014-2015

August 7, 2014

As I have already learned the integration of Corporate Social Responsibility (CSR) in the core business, the

learning about the adoption of CSR as a business strategy in creating value just came timely. As discussed, value

creation is the performance of actions that increases the worth of goods, services or even a business. This is

brought about by value drivers or the activities that increase the value of a product or service by improving the

perception of the item and essentially providing a competitive advantage. Cutting edge technology, ideas, and

people can all be value drivers. Generally, I agree to the concepts presented but most of the examples used to

illustrate value creation were applicable to production and trading businesses while least was talked about service

business. Moreover, I think that value drivers should be categorized into tangible and intangible drivers. Those that

can be measured using financial data like return on investment, return on income, asset turnover are the few

examples of tangible drivers while innovation, employee empowerment, technology, and customer satisfaction

can be considered intangible drivers. Together, they create values which can be effective strategies in the

fulfillment of company goals and long-lasting growth. Nevertheless, I appreciate learning about the subject

because it enlightened me on how values are created and its importance not only on a business but on a personal

outlook.

On a personal perspective, value creation may be one of the most challenging tasks for any business to

take especially during start up and development stages when a firm initially markets itself to be noticed not only by

customers but also lenders, investors, the society and all types of stakeholders. It is what every company should

aim because it is a determinant of image, tenure and growth. However, the values that a firm wants to create or is

creating must be organizationally aligned with its long-term goals or what management accountants call goal

congruence. To put it simply, the whole organization must be singing the same tune hence, eventually creating

harmony. An organization that wants to create the value of global competitiveness cannot fulfill the same if the

production department efficiently and effectively makes use of its resources, time, and machinery to produce

quality goods but the sales department does not sell them. In creating values however, the first step must be the

identification and understanding the sources of value or what is referred to as value drivers. I think that valuedrivers are the most essential factors not only for a company but for every individual towards creating positive

values which are geared towards the eventual achievement of goals.

What drives you? What makes you get up in the morning? The answers to these questions are the

value drivers of an individual. Value drivers may be different from one person to another because not every

individual has the same values and goals in life. One person may value money while one may value career in which

case value drivers may be necessity or passion or sometimes, pressure. On other instance, one may value honor or

integrity in which case value drivers can be principles or virtues. Pausing a little while and asking about our

motivating force in life will direct us to what values we are creating and these values will serve as guide in

achieving our goals. However, it is imperative that we understand and evaluate whether these drivers create

positive or negative values so as we know when to change track when these are not getting us to the rightdestination. Therefore, just like an organization must have goal congruence, we, also have to make sure that the

values we are creating match our goals. I think of this just like when my body moves in the direction I look. Thus, if

I look toward the fulfillment of my goals in life, my whole body moves in the direction of that goal.