Economic value is a measure of the benefit that a service or product provides to a group of people. It is measured in relation to the units of money in the economy. My understanding and opinion are that economic value occurs when a company, for instance, has all of its goals and objectives centered entirely on benefits for the business. For instance, a project or business may have been able to create jobs for people by ensuring that high-quality products are manufactured, which, when sold, can increase profits. For-profit organizations’ operations are focused on the growth of economic gain that is inherent to them and crucial to their operation, capacity, resource usage, people in the company, and shareholders. Organizational social value is essential for the firm to remain viable. To stay sustainable, organizations must make concerted efforts to alter the external context in which they operate.
Social value, on the other hand, is when a corporation is built on the benefits it provides to society, such as enriching that local community, implementing its ethics in organizational management, and encouraging corporate social responsibility. When a firm employs all of its economic values, social values, and aim and objective values to govern itself, it is said to have shared value (Belfield et al., 2017). Because social values are dispersed fairly throughout society, organizations cannot claim ownership of the social values they create. Companies cannot receive as many benefits from generated social value as they do from created economic value.
Organizations typically concentrate on the creation of one type of value but not the other because it can be difficult to strike a balance at work that accommodates the interests and requirements of both values. They focus mostly on the creation of a single kind of value instead of both since the social value provided by a corporation is as important as the economic value, and hence the development of any of the values is sufficient for the firm. This is because they can sometimes conflict with one another, leaving the manager of an organization in a quandary about what to do, or one value can be focused on too much, resulting in less gain for the other value. However, it is not impossible because a common value may be utilized.
Reference
Belfield, C., Bowden, A. B., Klapp, A., Levin, H., Shand, R., & Zander, S. (2017). The economic value of social and emotional learning. Journal of Benefit-Cost Analysis, 6(3), 508-544.