ACTIVITY 1

Ignacio Aja, Xabier Caballero, Iván Carballo, Gonzalo Moll and Gonzalo Pérez
“The capitalism is under siege”

As a group of 4th year ADE+FAB students we certainly agree with this phrase. The statement "Capitalism is under siege" implies that
capitalism as an economic system is facing significant challenges. As it has been demonstrated across the actual and developed
globalized world, communism and the economic system that capitalism has imposed does not work anymore.
On the one hand, in the private sector, issues include income inequality, exploitative practices, short-term thinking, and market failures.
On the other hand, in the public sector, problems include regulatory capture, corruption, inadequate social safety nets, and
environmental concerns. These issues contribute to the perception that capitalism is struggling to address its flaws and balance its
benefits.
As we can see in the following news, capitalism only works for a few people that keep getting more and more rich, while human rights
are being constantly vulneralized.
“The capitalism is under siege”
Shared value and CSR

Shared value is an innovative business strategy that seeks to create economic value for a company while also addressing social and
environmental challenges, making a big differentiation from the vision that a business should only focus on economic impact.

It makes a great differentiation from Corporate Social Responsibility (CSR) by integrating societal approaches into core business
operations, focusing on long-term sustainable approaches, and measuring impact through business metrics.

Nevertheless, share value is a good alternative because it aligns profit with social good, driving innovation and competitiveness while
benefiting society.
3 ways of creating shared value

1. Reconceiving Products and Markets: This involves the development of products or services aimed at resolving critical
social or environmental challenges. By comprehending and fulfilling these needs, companies can contribute positively to
society while also achieving profitability. For instance, a company might work on creating accessible healthcare
technologies for communities with limited access to medical resources.

2. Redefining Productivity in the Value Chain: It is about finding better and efficient ways to make and deliver products or
services. By reducing waste and doing a better use for resources, companies can save money and also help the
environment and society. For example, a company might choose eco-friendly materials to make their products although it
may be more expensive than non eco-friendly materials.

3. Enabling Local Cluster Developments: It refers to work with local communities to help them become better. This can be
achieved by supporting things like education, teaching new job skills or improving local facilities.