Shared Value: Bringing Business and Society Back Together

It began as a bold idea to "redefine capitalism and the role of the corporation in society." Now, according to one of its originators, shared value is turning into a movement

(3BL Media/Justmeans) - "The capitalist system is under siege," wrote Michael Porter, a competitive strategy expert and Harvard Business School professor, and Mark Kramer, co-founder and managing director of non-profit strategy consulting firm FSG, in a January 2011 article published in Harvard Business Review.

"In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community."{1}

The article introduced their concept of shared value, a new discipline of management that they broadly define as "policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates."

FROM CSR TO CSV: AN EVOLUTION IN STRATEGY

If the definition of shared value sounds familiar, it’s because the idea of the private sector “advancing the economic and social conditions” is also a basic feature of such contemporary management and business ethics concepts as ESG (environmental, social and governance) and CSR (corporate social responsibility).

But according to its architects, shared value—officialy known as “creating shared value” (CSV)—is similar, but different.

READ FULL TEXT AT JUSTMEANS.COM.

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Tags: Corporate, ESG, Ethics, Kramer, Mark, Michael, Porter, Responsibility, Shared, Social, More…Value, sustainability

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