ABSTRACT
In constructing a working definition of Sustainable Value Creation (SVC), five components are essential: First, that a firm incorporates a Corporate Social Responsibility perspective within its culture and strategic planning process; second, that any actions it takes are directly related to core operations; third, that it seeks to understand and respond to the needs of all of its stakeholders; fourth, that it aims to optimize value created; and fifth, that it shifts from a short-term perspective to managing its resources and relations with key stakeholders over the medium to long term. SVC delivers an operational and strategic advantage to the firm. As such, it is central to the goal of value creation, which is the primary purpose of the firm. The essential difference between those firms that do SVC well and those that do it badly, therefore, is a greater sensitivity to the needs and concerns of the firm’s broad range of stakeholders.
