More Than Profit: Why Public Value Secures Business Success

What is Public Value?

Public Value describes the added value that organizations create for society beyond their immediate business activities. This value can manifest in cultural, economic, environmental, or social contributions. Companies that strategically integrate Public Value not only enhance their image but also increase their long-term relevance and acceptance in society.

The Benefits of Public Value-Oriented Companies

Focusing on societal value offers numerous advantages:

• Stronger customer loyalty: People prefer companies that take responsibility and contribute to the community.
• Increased legitimacy: Companies that demonstrate their societal impact benefit from a better standing with stakeholders and in politics.
• Competitive advantage: Sustainable and socially oriented initiatives can create unique selling points.
• Long-term stability: Organizations with a strong Public Value strategy are less vulnerable to short-term market fluctuations and societal crises.

Success Factors for an Effective Public Value Strategy

Creating societal value in a targeted manner requires a well-thought-out strategy. Key aspects include:

• Clear objectives: What is the initiative aiming to achieve? Which stakeholders will benefit?
• Measurability: How can the created Public Value be assessed and communicated?
• Stakeholder integration: Companies should collaborate with relevant groups, from customers and local authorities to partner organizations.
• Long-term perspective: Public Value is not a short-term project but a sustainable development approach.

Measuring Public Value: Precise Analysis for Maximum Impact

A key aspect of the Public Value strategy is measuring the value created. This allows companies to understand their current position, identify areas where they create value, and pinpoint potential for improvement. At the same time, measurement plays a crucial role in external communication—whether to the public or in key discussions with stakeholders such as policymakers.Various categories of value creation are identified, capturing direct, indirect, and induced benefits:

• Direct value creation: Immediate economic effects such as revenue, investments, or jobs generated by the company.
• Indirect value creation: Value created through suppliers, partners, and other stakeholders.
• Induced value creation: Additional economic effects resulting from employee or visitor consumption patterns.

These categories are assessed both monetarily and qualitatively. While direct economic effects can be measured using traditional financial metrics, capturing societal and cultural value requires a broader methodological approach—from stakeholder surveys to impact analyses. Through this differentiated approach, Public Value becomes not only visible but also manageable.

Steps to Success

Successfully integrating Public Value into corporate strategy requires a structured approach:

1. Status quo analysis: Where does the company currently stand in terms of its societal impact?
2. Definition of key areas: Which topics and values should be the focus?
3. Stakeholder involvement: Which actors should be engaged to maximize impact?
4. Implementation of targeted measures: From sustainable business models to socially relevant events, there are many approaches.
5. Regular evaluation and adjustments: Ongoing analyses ensure that the desired effect is achieved.

How We Support Companies

Building an effective Public Value strategy requires both analytical thinking and practical implementation. We support companies at every step—from initial analysis and strategy development to implementing tailored measures:

• Target group definition and stakeholder management
  We help identify relevant stakeholders and understand their expectations.
• Development of communication and engagement strategies
  How can societal value be communicated credibly and sustainably? We develop effective approaches.
• Public Value measurement and reporting
  Clear KPI definitions and monitoring mechanisms ensure transparency in societal contributions.
• Support for innovative initiatives
  Whether community programs, socially relevant events, or sustainable business concepts—we provide expert guidance.

Public Value is more than just a trend—it is a crucial factor for the long-term success of companies. Together, we ensure that corporate social responsibility is not just an empty phrase but creates real value.