Creating Shared Value

Creating shared value (CSV)
Insights: Ideas for Change - Michael Porter - Creating Shared Value
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Published at 2012, September 06
http://www.weforum.org/

Michael Porter sees huge opportunities for corporations to use capitalism a
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Shared-value

Creating Shared Value: Connecting Business, Societal Value and Opportunity
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56    3
Published at 2011, December 21
Michael Porter, Mark Kramer and Jane Nelson discuss creating shared value and give examples from HP,
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(CSV) is a corporate philosophical shift recognizing that businesses win when society and the environment win

The Problem
As Michael Porter explains, the legitimacy of business has been diminished to the extent that political leaders have been moved to set policies that undermine competitiveness and sap economic growth. Business is caught in a vicious circle, since the more it tries to adopt corporate responsibility, the more it has been blamed for society’s failures.

The Message
Companies act with leadership when they set the business environment and society to work together. Although most companies still relate to social responsibility as a bolt on function, not a core function, sophisticated business leaders, and thought leaders are now putting together the components of an emergent new model.

The Solution
The solution lies in the principle of shared value. ‘Creating Shared Value’ involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Creating Shared value is not social responsibility, philanthropy, or even sustainability. It is a new way to achieve economic success, that great ‘thought leaders’ such as Michael Porter, believe ‘can give rise to the next major transformation of business thinking’.

Community Involvement

Community involvement is defined as business involvement in social initiatives to meet the needs of the communities in which they operate. Community Involvement is our interpretation of the initiatives that companies help to deliver for communities.

Communities benefit from CI initiatives in a number of ways:

  • improvements in community environments, infrastructure and facilities
  • enhanced social cohesion and spirit of co-operation, and
  • stronger civil society institutions, through capacity building in the non-profit sector

The challenge for companies specifically is to not only understand what the benefits of CI are, but to be able to communicate them effectively to gain buy-in at senior management level. 

Navigate to our ISO 26000 Community Involvement offering here:  

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