While shared value usually focuses on corporates, questions about shared value are increasingly coming from an unconventional source: NGOs. Nonprofits are transforming their operating model from grantee to business partner to serve an important role in the shared value space.
NGOs and social enterprises alike offer tremendous shared value partnership opportunities to companies. The people these organizations serve represent untapped market segments and under-utilized suppliers. Shared value also offers benefits to NGOs in the form of innovative business models, which can oftentimes be more sustainable than more traditional approaches.
Companies should partner with NGOs to gain insight into the diverse, complex communities where they work in order to:
• Discover new markets or customers
• Reduce costs in the value chain
• Enhance vitality in the communities where workers live
• Provide a continuous supply of high quality inputs and talent
Via W. Robert de Jongh