Porter kramer 2011 creating shared value pdf file

One obvious example of a company that creates shared value is toms. Businesses, in particular financial institutions, are increasingly being viewed as having strived for excessive profits at the expense. Porter and kramer 2006, 2011 are very clear that shared value is not corporate social responsibility. 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. Redefining capitalism and the role of the corporation in society professor michael e. Kramer 2011 came up with the concept of creating shared value, according to which companies can. Companies are widely thought to be prospering at the expense of their communities. The actual term creating shared value csv goes back on the article the big idea. Shared value how to reinvent capitalismand unleash a wave of innovation and growth by michael e. It represents the first of a series of studies that will focus on shared value within particular sectors.

The concept of creating shared value csv was presented as the big. Demonstrating a commitment to corporate social responsibility. Creating shared value csv centre for business research. The idea of shared value was initially explored in a. Creating shared value originates from an article penned by harvard professor michael porter and harvard kennedy school of government senior fellow mark kramer. 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 concept of creating shared value csv was introduced and developed by porter and kramer 2011, p.

Shared value, shared value as defined by michael porter and mark kramer 2011, refers to the connection between social and economic progress. The pcbs are creating shared value in line with porter and kramer s shared value concept without referring to it. However, it is found that all pcbs are not giving equal importance to each and. The concept was further expanded in the january 2011 followup piece entitled creating shared value. Trust in business has fallen to new lows, leading government officials to set policies that undermine competitiveness and sap economic growth. We analyze, from the viewpoint of value creation, the evolution of corporate social responsibility csr thought from friedman critical view of csr to porter and kramer sharedvalue proposition, emphasizing, at the same time, its parallelism with the evolution of asset valuation models from the viewpoint of common stocks 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 policies that enhance the competitiveness of the company while advancing social and economic conditions of the community. 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. Mar 30, 2018 one obvious example of a company that creates shared value is toms. Comparing their definition of csv with carroll or kelly shows that csv is a more concrete concept than the. The pursuit of shared value represents the next evolution of. Although michael porters and marc kramers 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.

Every customer that buys a pair of toms shoes knows that one pair of shoes is. In recent years business has been criticized as a major cause of social, environmental, and economic problems. How to reinvent capitalismand unleash a wave of innovation and growth as well as subsequent reports by the associated social impact consulting group, fsg5. Creating shared value sean brady capella university october 28, 2012 creating shared value in the article creating shared value the authors, m. Understanding creating shared value conference paper pdf available september 2017. First, the authors summarise the positive and negative criticism which csv has received since 2011. 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. Michael porter, pope of corporate strategy, comments on his recent article about creating shared value. A new business strategy called shared value was proposed by porter and kramer in 2006 and developed in 2011. Pdf while capitalism has proven to be one of the most efficient economic. The last step of the evolution of porter and kramer 2 thought on the relationships between corporations and society is the concept of shared value. There is a lesson to be learned hearing a hardcore capitalist saying that companies need. This article seeks to provide theoretical evidence to trace the origins of the idea behind the model creating shared value csv, proposed by porter and kramer in 2011, whose originality is.

Apr 03, 2011 michael porter, pope of corporate strategy, comments on his recent article about 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. Further posting, copying, or distributing is infringement. Pdf kramer porter 2011 creating shared value wanting. This presentation draws on ideas from professor porters books and articles, in particular, competitive strategy the free press, 1980. 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. In the packaged food and beverage industry, pressure had mounted since the 1990s to improve supply chain sustainability and provide healthier, more natural foods, leading to consolidation and causing sales to decline in 2010. Kramer 2011 capitalism is under siege diminished trust in business is causing political leaders to set policies that sap economic growth business is caught in a vicious cycle the purpose of the corporation must be redefined around creating shared.

Download this document for management of organisations at maastricht university for free and find more useful study materials for your courses. Porter and kramer are the cofounders of both fsg social impact advisors and. Creating shared value hbr 2011 jan feb, at the end of the decennium, the reputation of capitalism as an economic system comes under siege. Porter discuss the current state of business value creation. According to porter and kramer, there are three ways in which is possible to create economic value by creating societal and shared vale. The link between competitive advantage and corporate social responsibility.

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. This article was the winner of the 2011 mckinsey award. 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. Pdf understanding creating shared value researchgate. The ultimate guide on creating shared value michael porter. Creating shared value in action a conversation with. To sum up, porter and kramers 2011 ways to create shared value are classified as follows. What are some good examples of corporates creating shared. The value chain depicts all the activities a company engages in while doing business porter and kramer 2006, and when societal progress and productivity in the value chain are. Investments in longterm business competitiveness that simultaneously address social and environmental objectives 3 f o r am edti lsc unf hv,p m. Impact of the concept of shared value sv on developing. First, the authors summarise the positive and negative criticism.

Csv explained institute for strategy and competitiveness. The concept recognizes that social troubles create internal costs for firms such as wasted energy or raw. This article offers a fundamental critique of michael porters and marc kramers creating shared value csv concept. Corporate social responsibility from the viewpoint of social risk. Creating shared value article harvard business school. 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. The corporation centered value creation perspective gives way to a cor porationstakeholders perspective. 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. Kramer, cofounder and general director of foundation strategy group. Porter and kramer 2011, creating shared value page 1 creating shared value michael e. Creating shared value concepts, experience, criticism.

It doesnt have to be this way, say porter, of harvard business school, and kramer, the managing director of the social impact advisory firm fsg. Corporate social responsibility from friedman to porter and. To sum up, porter and kramer s 2011 ways to create shared value are classified as follows. It could also drive the next wave of innovation and growth as it opens managers eyes to immense human needs to be met, large new markets to be served, and the internal costs of social deficitsas well as the competitive advantages available from addressing them. Michael porter and mark kramer introduce creating shared value into the theoretical debate in 2006 with nestle as a leading light in csv application porter and kramer, 2006. These are the sources and citations used to research creating shared value. Comparing their definition of csv with carroll or kelly shows that csv is a more concrete concept than the broad idea of csr. Creating shared value is a framework for creating economic value while simultaneously addressing societal needs and challenges. Sep 08, 20 a comment on michael porter and mark kramer 2011, creating shared value, harv bus rev 8912. Kennedy school of government in cambridge, massachusetts. Investments in longterm competitiveness creating shared value.

The journey of creating shared value social ventures australia. First of all, they argued for redefining productivity in the value chain. 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. Businesses must reconnect company success with social progress. When businesses act as businessesnot as charitable donorsthey can improve profitability while also improving environmental performance, public health and nutrition, affordable housing and financial security, and other key. How to reinvent capitalismand unleash a wave of innovation and growth with a subtitle. How creating shared value differs from corporate social. Creating shared value the link between competitive advantage and csr duration. Said business school, university of oxford 7,236 views 37. 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. They claim a slight development was porter and kramers 2011 attempt to broaden the concept of shared value beyond the arena of corporate social responsibility with a greater focus on the nature of capitalism and markets, noting dislocations with current capitalism, emphasising the inherent social nature of markets, and suggesting that by. A comment on michael porter and mark kramer 2011, creating shared value, harv bus rev 8912. How to reinvent capitalism and unleash a wave of innovation and growth.