Creating Shared Value by International Soft Drink Companies in Russia

Abstract

Until recently, in most cases social performance was considered as a business cost, a trade off against profitability. But increasingly, companies see potential in creating shared value. The concept of shared value is in a very nascent state in Russia, but it has high possibility to create a transformative impact. Therefore, this research aims to find out how international soft drink companies can create shared value in Russia, how they can benefit society and simultaneously boost own competitiveness. Thus, to fulfil above stated goal the following objectives have been set: clear understanding of advantages and disadvantages of creating shared value concept, and its distinctions from traditional corporate social responsibility; identification of CSV measurement approaches and tools; Russian soft drinks market analysis and description of its key players; evaluation of social initiatives of the company and their correspondence with CSR and CSV concepts; identification of local social issues that are relevant for the industry; introduction and estimation of potential outcomes of SV initiatives. Based on literature review, multiple-case studies’ evidence, interviews and empirical data it might be concluded that driving economic success and creating social impact at the same time is not just a responsibility but also an opportunity to rethink the way companies are doing their business. The results suggest that creating shared value as a new concept in managerial practices has a huge potential, particularly in Russia.