Learn about creating shared value as a strategic HR initiative, with a detailed explanation and example from the SHRM Senior Certified Professional (SHRM-SCP) certification exam.
Table of Contents
Question
Which strategic initiative is an example of creating shared value?
Answer
Providing an incentive for opting out of paper statements.
Explanation
Providing an incentive for opting out of paper statements is an example of creating shared value as a strategic initiative. The concept of creating shared value, popularized by Michael Porter and Mark Kramer, involves implementing policies and practices that enhance a company’s competitiveness while simultaneously advancing social and economic conditions in the communities where it operates.
In this specific example, offering an incentive for customers to opt out of paper statements creates shared value in multiple ways:
- Environmental benefit: Reducing paper consumption helps conserve natural resources, decrease deforestation, and lower the company’s carbon footprint. This contributes to a healthier environment for the community.
- Cost savings: By decreasing the number of paper statements printed and mailed, the company saves on materials, printing, and postage costs. These savings can be reinvested into the business or passed on to customers.
- Improved customer experience: Customers who opt for digital statements can access their account information more quickly and conveniently. This enhances the overall customer experience and can lead to increased satisfaction and loyalty.
- Positive brand perception: Implementing environmentally friendly practices and offering incentives for eco-conscious choices can improve a company’s reputation and appeal to customers who value sustainability.
By creating shared value through this strategic initiative, the company benefits from cost savings and an enhanced brand image while contributing to positive environmental and social outcomes in the community it serves. This aligns with the principles of creating shared value and demonstrates how strategic HR initiatives can drive both business success and societal progress.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.