Creating shared value in action a conversation with. Porter m e kramer m r 2011 creating shared value harvard. Each of these is part of the virtuous circle of shared value. But our understanding of the potential of shared value is just beginning. 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. Major events dedicated to creating shared value in many countries creating shared value as a key trend forbes. Although michael porter s and marc kramer s article creating shared value. How to reinvent capitalismand unleash a wave of innovation and growth, michael porter and mark kramer 2011 suggest what they see as a paradigmatic change in management thinking, one that they believe should contribute to nothing less than the reinvention of capitalism. Creating shared value hbr 2011 jan feb, at the end of the decennium, the reputation of capitalism as an economic system comes under siege. Creating shared value is a framework for creating economic value while simultaneously addressing societal needs and challenges. The contribution of michael porter and mark kramer. Its the need for creating shared value csv, mark kramer said at shared value summit 2015 in gurgaons leela hotel on friday. Mark kramer, cocreator of the shared value concept svc and senior fellow at the csr initiative at harvard kennedy school, paints a picture of what business can do to make. On michael porter and mark kramer 2011, creating shared.
Shared value is not social responsibility, philanthropy, or even. Incorporate societal impact into your companys business strategy to drive growth, profitability, and competitive advantage. Creating shared value originates from an article penned by harvard professor michael porter and harvard. Michael porter and mark kramer were invited to respond to. Creating shared value csv the origin of the concept hbr michael porter and mark kramer blended value concept from jed emerson capitalism at the crossroads from stuart hart its definition policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the. Porter harvard business school shared value leadership summit boston, ma may 23, 20 creating shared value.
Michael porter and mark kramer, writing in hbr december, 2006 and januaryfebruary, 2011, advance the idea of creating shared value by developing strategies and. This article critiques porter and kramer s concept of creating shared value. Dec 23, 2011 the contribution of porter and kramer s concept of creating shared value to csr theory junge, natalie on. Pdf although michael porters and marc kramers article creating shared. 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. Their commentary follows along with a reply by crane and his coauthors. According to michael porter and mark kramer according to. Pdf although michael porters and marc kramers article creating shared value is a welcome attempt to mainstream business ethics among. Porter is a university professor at harvard, based at harvard business school in boston. Kramer 94 disruptive innovation for social change clayton m. Aug 10, 2010 he introduced the concept of creating shared value csv as distinct from corporate social responsibility csr and explained how csv can help advance both the corporate and social goals of a.
View a list of published and inprogress case studies about how companies around the world create shared value. Measuring the impact of shared value guardian sustainable. Feb 08, 2014 strategy and society michael kramer model 1. One of ten key trends in 2012 creating shared value, by michael e. Videowhat does the term creating shared value mean. 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. This article offers a fundamental critique of michael porter s and marc kramer s creating shared value csv concept. The contribution of porter and kramer s concept of creating shared value to csr theory. The onetrick pony approach by thomas beschorner a comment on michael porter and mark kramer 2011, creating shared value, harv bus rev 8912. For a previous discussion of shared value, see my summary of porter and kramer s 2006 article, strategy and society business organizations have increasingly been viewed as the. The concept was further expanded in the january 2011 followup piece entitled creating shared value. The concept of creating shared value csv was presented as the big. Creating shared value csv is an evolution in how companies view their role in society. The contribution of porter and kramers concept of creating.
The trailblazing researchers and business strategists michael porter and mark kramer first introduced shared value. Current cases include discovery limited, dow, and more. Corporate social responsibility from the viewpoint of social risk. Cofounder of fsg, a global social impact consulting firm. In creating shared value hbr januaryfebruary 2011, our fsg colleagues michael porter and mark kramer argue that achieving those twin goals represents the next. Although michael porter s and marc kramer s article creating shared value is a welcome attempt to mainstream business ethics among management practitioners, it is neither so radical nor such a departure from standard management thinking as the authors make it seem. Taken together, these building blocks form a blueprint for translating a shared value agenda into action. Csv is an approach that takes into account social problems which intersect with businesses and makes it a major part of the core business strategy of a company.
Mark kramer describes the differences between sustainability, corporate social responsibility and creating shared value, and shows how the three concepts should work. Kramer are the mckinsey award winners for creating shared value. Creating shared value csv, the model for corporate social responsibility developed by michael porter and mark kramer of harvard business school, has been surprisingly controversial. The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges. Following the hbr article creating shared value by michael porter and mark kramer published in january 2011 the author witnessed an online debate on the subject suggesting that csv was hardly any more than a strategic move to support fsg, the consultancy run by michael porter and mark kramer.
Businesses must reconnect company success with social progress. First, the authors summarise the positive and negative criticism. Companies can create economic value by creating societal value. The onetrick pony approach a comment on michael porter and mark kramer article pdf available january 20 with 2,838 reads how we measure reads. Shared value how to reinvent capitalismand unleash a wave of innovation and growth by michael e.
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. The objective is to evaluate whether the applied strategy can be considered as a case of shared value. I recently attended the announcement of cr magazines 100 best corporate citizens list at the new york stock exchange, for which the closing keynote was professor michael porter of harvard business school. The strengths of the idea are highlighted in terms. Porter, harvard business school c r eatingsh dv lu. Creating shared value csv centre for business research.
Kramer is a reflection on the main changes of shared value, at the global and regional levels, describing shared the value. Creating shared value as a differentiation strategy the. In this article, michael porter and mark kramer propose a fundamentally new way. Creating shared value can be broken out into ten key building blocks from adopting a clear vision to measuring, learning from, and communicating performance. We need to understand that whats good for the community is actually good for business, said porter. Creating shared value is the practice of creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses, in particular financial institutions, are increasingly being viewed as having strived for excessive profits at the expense. Sep 06, 2012 michael porter sees huge opportunities for corporations to use capitalism as a driver to tackle social problems via the creation of shared value. Creating shared value has become a buzzword in recent years, in business. Business and society, corporate social responsibility, stakeholders, philanthropy, partnerships, ethics c reating shared value csv, the concept popularized by porter.
Professor porter provided an overview of his and mark kramer s creating shared value. Shared value is defined as policies and practices that enhance the. This article critiques porter and kramers concept of creating shared value. Competitive advantage through social impact, to be held at harvard business school in boston, 11 december 2017. According to michael porter and mark kramer, an essential. Kennedy school of government in cambridge, massachusetts. Reporting by michelle matthews creating shared value.
By reconceiving products and markets by redefining productivity in the value chain by enabling local cluster development every firm should look at. It encompasses social license to operate, corporate social responsibility, and corporate philanthropy by tying these activities to core business activities. Ahowtoguideforthenewcorporaterevolution valerie bockstette and mike stamp. Creating shared value af michael porter og mark kramer. Creating shared value by michael porter and mark kramer. Bishop william lawrence university professor at harvard business school. Creating shared value csv is the business model that will accelerate the achievement of the sustainable development goals sdgs. The link between competitive advantage and corporate social responsibility. In our research, we propose to devise an individual and organizational learning process based on the assumption that creating shared value according to m. Kramer shares his thoughts at the shared value summit. In recent years business increasingly has been viewed as a major cause. Porter and kramer are the cofounders of both fsg social impact advisors and.
Michael porter and mark kramer were invited to respond to this article. Kramer is a senior lecturer at harvard business school and a cofounder and a managing director of fsg, a global socialimpact consulting firm. Creating shared value csv the origin of the concept hbr michael porter and mark kramer blended value. The issue of csr vs business performance has been a longstanding debate key questions are corporates responsible for social consequences of their activities. Redefining capitalism and the role of the corporation in society professor michael e. How to reinvent capitalismand unleash a wave of innovation and growth, michael porter and mark kramer 2011 suggest what they see as a. On the surface of it, the proposition is fairly straightforward. By now, you will probably have read about michael porter and mark kramer s latest foray into csr creating shared value. Michael porters and marc kramers creating shared value csv concept. Kramer has established himself as a prominent commentator on philanthropy, corporate social. Porter, a worldrenowned economist, george serafeim, a professor at harvard business school and mark kramer, have throughout their careers brought economic. For further materials, see the website of the institute for strategy and competitiveness. According to michael porter and mark kramer, creating shared value can be defined 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. How to fix capitalism and unleash a new wave of growth.
Porter, speaking at the nestleiblf creating shared value forum. Amazing organisations such as one young world and those listed below are leading the way through teaching and implementing shared value. Creating shared value how to reinvent capitalism and. The ultimate guide on creating shared value michael porter. Jun 25, 20 creating shared value how to reinvent capitalism and unleash a wave of innovation and growth tuesday, 25 june 20 by michael e. A comment on michael porter and mark kramer 2011, creating shared. This paper aims to create empirical evidence regarding shared value strategies recently propagated by michael porter and mark kramer.
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