What is Shared Value?

“Shared value is not social responsibility, philanthropy, or sustainability, but a new way for companies to achieve economic success.”


Michael E. Porter and Mark Kramer, “Creating Shared Value”, Harvard Business Review

Video courtesy of FSGImpact

The concept of Shared Value recognises that markets are not only defined by conventional needs, but by societal needs as well.

The Shared Value Initiative defines Shared Value as “a management strategy in which companies find business opportunities in social problems … shared value focuses company leaders on maximizing the competitive value of solving social problems in new customers and markets, cost savings, talent retention, and more”.

 

Social good is becoming a more prominent driver of business strategy, enabling companies to differentiate themselves and appeal to the ever-more-savvy consumer. In this way, and through collaboration with NGOs, governments, and other stakeholders, business can effect real change while doing good business.