Creating Shared Value was the title of an award-winning 2011 article in the Harvard Business Review, by Prof. Michael Porter and Michael Kramer.

They wrote of a broader definition of strategic business development, the overlap between planning for economic benefit and a company’s ability to positively impact social and environmental conditions. This approach is distinct from CSR because “it is not philanthropy but self-interested behaviour to create economic value by creating societal value”.

Through reconceiving products and markets, redefining productivity in the value chain, and building supportive industry clusters, companies can simultaneously create economic and societal value.

CSV is unashamedly about making profit but that economic benefit must have an equally measurable impact on a social or environmental issue. Shared Value is a more sophisticated form of capitalism which brings social purpose into the board room, enabling business to lead social progress and reclaim the respect of society.

Creating Shared Value

IDEAS FOR CHANGE

PROF. MICHAEL PORTER

In this interview with the Wall Street Journal, Prof. Michael Porter addresses the perceived trade-off between a corporation’s economic and social goals. He explains how the capitalist model can be re-cast to create economic value by directly addressing societal challenges rather than separately investing in programs to address issues such as hunger, housing and environmental degradation. He introduces Creating Shared Value (CSV) as the natural evolution of CSR.

THREE LEVELS OF SHARED VALUE

SHARED VALUE IS NOT
SHARED VALUE IS NOT
  • Sharing the value already created

  • Ethical values (although it may inform them)

  • Compliance

  • Philanthropy

  • Employee engagement

HOW IS SHARED VALUE DIFFERENT FROM CSR?
HOW IS SHARED VALUE DIFFERENT FROM CSR?

Shared Value focuses on the business opportunity within social and environmental challenges faced by society.

Beyond “giving back”, “good corporate citizenship”, “compliance” or “risk management”, Shared Value is core to the growth strategy of the business and creates differentiation.

ARTICLES

HBR Creating Shared Value

January, 2011

September, 2013

October, 2016

Where ESG Fails Cover Thumbnail

October, 2019

where esg ratings fail

September, 2020

TESTIMONIAL

  • Anthony Davies Testimonial