Creating Shared Value Definition
The concept of Creating Shared Value (CSV) was first introduced by Michael Porter and Mark Kramer in the Harvard Business Review article ‘Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility’
Porter and Kramer argue that the best way for companies to address social issues is to focus on their core competencies and connect them to societal needs. In other words, businesses should not only look at how they can be profitable, but also how they can use their resources and capabilities to help solve social problems.
There are three main ways that businesses can create shared value:
1. By reconceiving products and services
2. By redefining productivity in the value chain
3. By building supportive ecosystem.
Let’s take a more detailed look at each of these CSV strategies:
1. Reconceiving Products and Services: This strategy involves looking at how a company’s products or services can be improved or redesigned to better serve society. For example, a company might develop a new product that is more energy-efficient or environmentally friendly. Or, a company might redesign its distribution system to make it more accessible to underserved populations.
2. Redefining Productivity in the Value Chain: The second way businesses can create shared value is by redefining productivity in their value chains. This means finding new ways to increase efficiency while also reducing environmental impact and improving social conditions for workers. For example, a company
