Csr is characterized as essentially philanthropic, and as disconnected from a companys core businessesin the authors words separated. One of ten key trends in 2012 creating shared value, by michael e. Reorienting strategies and seeking international cooperation hwychang moon, jimmyn parc, so hyun yim, and nari park this paper improves the theory of creating shared value csv, a new way to achieve economic success, which was introduced by porter and kramer. Creating shared value rethinking capitalism, authormark r. Redefining capitalism and the role of the corporation in society. Porter and kramer are the cofounders of both fsg social impact advisors and. Creating shared value originates from an article penned by harvard professor michael porter and harvard kennedy school of government senior fellow mark kramer. Todays businesses take the blame for many of societys economic, social and environmental woes, despite the launch of countless corporate social responsibility initiatives in recent decades.
Corporate policies and practices that enhance the competitive advantage and profitability of the company while simultaneously. Redefining capitalism and the role of the corporation in society professor michael e. Castro capella university mba6008 global economic environment professor hidsell january 27, 20 creating shared value csv is a powerful concept that many companies. The origins of the term shared value can be found in porter and kramer 2006, strategy and society. Porter and kramer s creating shared value framework was recently called into question in a stinging attack in this journal. Creating unexpected connections shared value initiative. How to reinvent capitalism and unleash a wave of innovation and growth. Creating shared value free college essays, term paper.
Creating shared value concepts, experience, criticism. Over the last years, creating shared value has become a much discussed concept in business practice as well as in management theory and especially in the context of corporate social responsibility. Shared value is not social responsibility, philanthropy, or sustainability, but a new way for companies to achieve economic success. In creating shared value csv, porter and kramer merge corporate. Creating shared value csv and creating competitive business. Michael porter, pope of corporate strategy, comments on his recent article about creating shared value. But our understanding of the potential of shared value is just beginning. Kennedy school of government in cambridge, massachusetts. Maria teresa boschbadia, joan montllorserrats, maria antonia tarrazonrodon. Kramer, cofounder and general director of foundation strategy group.
Corporate policies and practices that enhance the competitiveness of a company while simultaneously advancing social and economic conditions in the communities in which it operates create economic valueby creating societal value. Kramer is a senior lecturer at harvard business school and a. What are some good examples of corporates creating shared. Business organizations have increasingly been viewed as the cause of social, environmental, and economic problems, prompting political leaders to set policies that undermine competitiveness and economic growth. Second, purely functionalistic and valuefree concepts like csv are neither. Porter and kramer are the cofounders of both fsg social impact advisors and the center for effective philanthropy, a nonpro. Porter is a university professor at harvard, based at harvard business school in boston. In 2006, porter and kramer developed the notion that corporations could and should pursue a higher goal of capitalism including creating shared value csv as a means to improve performance and bridging the gap that. Highlightsthe differences between csr and porter and kramer s 2011 creating shared value csv were discussed. The big idea creating shared value how to reinvent capitalism.
Creating shared value csv centre for business research. Creating shared value can be broken out into ten key building blocks from adopting a clear vision to measuring, learning from, and communicating performance. This article offers a fundamental critique of michael porters and marc kramer s creating shared value csv concept. Creating shared value as future factor of competition. Major events dedicated to creating shared value in many countries creating shared value as a key trend forbes. The link between competitive advantage and corporate social responsibility. This article critiques porter and kramer s concept of creating shared value. What is good for the community is good for business all profit is. The big idea creating shared value how to reinvent. Creating shared value csv is fundamental to how we do business at nestle. Contesting the value of creating shared value andrew. Companies could bring business and society back together if they redefined their purpose as creating shared valuegenerating economic value in a. Porter harvard business school fsg csv leadership summit june 9, 2011 this presentation draws on ideas from professor porters books and articles, in particular, competitive strategy the free press, 1980. Michael porter of harvard business school, and mark kramer, the managing director of the social impact advisory firm, fsg, say companies could bring business and society back together if they redefined their purpose as creating shared value generating economic value in a way that also produces value for society by addressing its.
Creating shared value sean brady capella university october 28, 2012 creating shared value in the article creating shared value the authors, m. Companies could bring business and society back together if they redefined their purpose as creating shared valuegenerating economic value in a way that also produces value for society by. An extension of porter and kramers creating shared value. View a list of published and inprogress case studies about how companies around the world create shared value. Creating shared value, an hbr interview with michael. If the hypothesis holds true that csv constitutes a. Lattice gas model for iterated prisoners dilemma games. The strengths of the idea are highlighted in terms of its popularity among practitioner and academic audiences, its connecting of strategy and social goals, and its systematizing of some previously underdeveloped, disconnected areas of research and practice. Jun 04, 2012 creating shared value originates from an article penned by harvard professor michael porter and harvard kennedy school of government senior fellow mark kramer.
Recognizing that csv shines as a managerial framework around winwin business and society issues a cases we argue that csv leaves managers illequipped to legitimately manage bcase issues, where managers face the prospect of win. First, the authors summarise the positive and negative criticism. Michael porter and mark kramer, writing in hbr december, 2006 and januaryfebruary, 2011, advance the idea of creating shared value by developing strategies and policies that enhance the. Creating shared value hbr 2011 jan feb, at the end of the decennium, the reputation of capitalism as an economic system comes under siege.
Businesses must reconnect company success with social progress. Csv was preferred over intrinsic csr in the united states, germany, and china. Philanthropy and beyond creating shared value to promote well. Apr 03, 2011 michael porter, pope of corporate strategy, comments on his recent article about creating shared value. The concept was further expanded in the january 2011 followup piece entitled creating shared value. We believe that our company will be successful in the long term by creating value for both our shareholders and for society. Pdf creating shared value csv has been presented as the saviour of. Americans construed effective csv competencies of ceos differently than the germans and.
The concept of creating shared value csv was presented as the big. Its not just about corporate social responsibility or philanthropy. This article was the winner of the 2011 mckinsey award. Every customer that buys a pair of toms shoes knows that one pair of shoes is given away to a person in need in poor countries. The concept of shared value is driven by renowned leaders in the area of business development and growth and has been approached by authors such as michael porter, a harvard university professor and author of several books on this subject and mark r.
The ultimate guide on creating shared value michael porter. Creating shared value, an hbr interview with michael porter. Taken together, these building blocks form a blueprint for translating a shared value agenda into action. This new approach leverages the concept of shared value to help companies find new ways to grow revenue and increase productivity by raising levels of student and workforce achievement. The prevailing approaches to csr are so disconnected from. Pdf understanding creating shared value researchgate.
This presentation draws on ideas from professor porters books and articles, in particular, competitive strategy the free press, 1980. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. This article offers a fundamental critique of michael porter s and marc kramer s creating shared value csv concept. Recognizing that csv shines as a managerial framework around winwin business and society issues a cases we argue that csv leaves managers illequipped to legitimately manage bcase issues, where managers. Businesses, in particular financial institutions, are increasingly being viewed as having strived for excessive profits at the expense. Corporate social responsibility from the viewpoint of social risk.
There is a lesson to be learned hearing a hardcore capitalist saying that companies need. The next transformation of business thinking lies in the principle of shared value. Castro capella university mba6008 global economic environment professor hidsell january 27, 20 creating shared value csv is a powerful concept that many companies used, ultimately, being. They continue to view value creation narrowly, optimizing short. About solving societal challenges together shared value. Mar 24, 2014 this new approach leverages the concept of shared value to help companies find new ways to grow revenue and increase productivity by raising levels of student and workforce achievement.
Current cases include discovery limited, dow, and more. Shared value concept could reshape capitalism and its relationship to society. Shared value how to reinvent capitalismand unleash a wave of innovation and growth by michael e. Additionally, for every pair of toms sunglasses sol. Creating shared value in action a conversation with. The role of leadership in shared value creation from the publics perspective. Ebook or pdf edited book email encyclopedia article govt. Shared value is a management strategy in which companies find business opportunities in social problems. According to porter and kramer 2, the concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a com. An extension of porter and kramer s creating shared value csv. One obvious example of a company that creates shared value is toms. For a previous discussion of shared value, see my summary of porter and kramer s 2006 article, strategy and society. His article creating shared value has gone to be the single most influential model on how shared value could be integrated into public policy and business strategy. The role of leadership in shared value creation from the.