Nov 18, 2011 in october 2011 sig hosted mark kramer, co. Cofounder and managing director of foundation strategy group fsg and creating shared value pioneer mark kramer and professor michael e. Building a global shared value community in collaboration with its partners, fsg has established the shared value initiative, a multistakeholder effort that aims to drive adoption and improve implementation of shared value strategies leadership council supporters. We believe that our company will be successful in the long term by creating value, both for our shareholders and for society. Pdf creating shared value in international business. Kramer cofounded fsg, a global social impact consulting firm, with harvard universitys michael e.
How creating shared value differs from corporate social responsibility. Shared value offers new opportunities for differentiation, innovation, and growth a new generation of social entrepreneurs is capturing these opportunities, often faster than mainstream businesses. Even the companies that are most advanced in pursuing shared value today lack the data they need to optimize its results. We realized that in order to take the idea to a global scale, corporate leaders needed a platform through which new and experienced shared value practitioners could learn, connect, and evolve shared value. A seasoning cube with a social impact produced at our flowergate factory in nigeria, maggis new naija pot seasoning responds to local tastes and the preferences of todays consumer for simple and familiar ingredients, while offering an improved nutritional profile that contains less salt. Mark oversees fsg s consulting practice and helps drive the vision and growth of the firm. Purpose this paper aims to offer scholars and practitioners critical arguments on the strengths and weaknesses of the shared value concept and of. Building competitiveness and prosperity through shared value. In fsgs measuring shared value publication, the authors note.
This playbook is designed to help you bring that practice to life. This paper aims to expand porter and kramers approach and to apply the shared value model to the financial sector, through analyzing the ways of systematic shared value creation in finance. Purpose playbook executive summary shared value initiative. How creating shared value differs from corporate social.
Shared value is not social responsibility, philanthropy, or sustainability, but a new way for companies to achieve economic success. Our activities and products should make a positive difference to society while contributing to nestles ongoing success. Our activities and products should make a positive difference to society while contributing to nestle s ongoing success. Ahowtoguideforthenewcorporaterevolution valerie bockstette and mike stamp. Sharing the value already created personal values balancing stakeholder interests. Adopting a shared value strategy often requires a major shift in thinking within a company. In this fsg, the term cpm refers to computershare plan. This paper aims to provide shared value as a new business model for pharmaceutical companies to create social and economic value. Microsoft powerpoint 20120531 fsg shared value leadership summit final postevent edits. Identify the social issue to target, make the business case, track progress, and measure results and use insights to unlock new value. Policies and practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Porter is a university professor based at harvard business school.
Creating shared value entails embedding a social mission in the corporate culture. Shared value could reshape capitalism and its relationship to society. But companies operate within an ecosystem of societal conditions that can block shared value strategies. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by. Sharing the value already created philanthropy personal values balancing stakeholder interests shared value strategies. Mark is cofounder and managing director of fsg and the author of influential publications on shared value, catalytic philanthropy, collective impact, strategic evaluation, and impact investing. Shared value 2 origins and development of shared value 2 creating shared value 4 the business perspective 5 shared value and the bottom of the pyramid 6 inclusive business models 6 2.
Based on the dedicative approach we analysed glaxo smith kline. It could also drive the next wave of innovation and productivity growth in the global economy as it opens managers eyes to. Mark kramer is cofounder and managing director of fsg. Creating shared value can be broken out into ten key building blocks from adopting a clear vision to measuring, learning from, and communicating performance. Org 2015 fsg creating shared value professor michael porter and mark kramer shared value holds the key to unlocking the next wave of business. In some cases, this is a matter of reemphasizing a firms. The share plan account is governed by a discrete set of terms and conditions.
Meeting with marc pfitzer of fsg in london shared value project. Fsg and the shared value initiativethe idea for a learning community devoted to shared value stemmed from initial success introducing the concept to corporate audiences. Csv explained institute for strategy and competitiveness. Our international teams work across all sectors by partnering with corporations. Porter is fsgs founder, board member and senior advisor. Redefining capitalism and the role of the corporation in society professor michael e. Business success with a higher purpose that in turn drives. How to unlock value by linking social and business results by fsg is licensed. Operated by fsg with support from a network of funders, the shared value initiative works with partners to curate. Fsg is a nonprofit consulting firm specializing in strategy, evaluation, and research. Stakeholders within government, civil society, philanthropic organizations, and private businesses can catalyze shared value by. We then move on to some of the complexities of balancing social porter and contesting the value of creating shared value. We believe that our company will be successful in the long term by creating value for both our shareholders and for society.
Porter and mark kramer, identified measurement as a key driver of shared value adoption. New opportunities for company performance and purpose. Creating shared value pursuing financial success in a way that also yields societal benefitshas become an imperative for corporations. Under this framework, economic value could expand while simultaneously solving societal challenges and needs. Despite the widespread embrace of the shared value concept, however, the tools to put this concept into practice are still in their infancy. Fsg offers a range of shared value services to companies, from targeted efforts to address specific questions about how a company can create shared value to indepth multiyear engagements that accompany clients from earlystage vision through implementation to realize business opportunities. The weaknesses of the shared value concept despite its strengths, the shared value concept and its framing is undermined by a number of critical shortcomings. Creating shared value as business strategy harvard business. Mar 21, 2012 the economist cites shared value as a trend in 2012 per research by j. Shared value offers corporations the opportunity to utilize their skills, resources, and management capability to lead social progress in ways that even the bestintentioned governmental and social sector organizations can rarely match. Creating shared value is a framework for creating economic value while simultaneously addressing societal needs and challenges.
Michael porter and mark kramer first wrote about shared value in their 2006 aricle. Walter thompson, based on its polling data and surveys of markets around the world. Nestle in society creating shared value and meeting our commitments 2014, 2014 your bibliography. 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. Creating shared value entails embedding a social mission in the corporate culture and channeling resources to the development of innovations that can help solve social problems. Building competitiveness and prosperity through shared value dane smith. Shared value, a business discipline where companies use their core business to drive societal change and enhance their competitiveness, is the most powerful practice to fulfill corporate purpose aspirations. Taken together, these building blocks form a blueprint for translating a shared value agenda into action.
The ultimate guide on creating shared value michael porter. And governments need to recognise the policies that can steer business toward creating shared value, rather than restrain it. In fsg s measuring shared value publication, the authors note. Pdf creating shared value as a new business model for. Measurement approaches that link social and business results are vital to unlocking shared value for companies and scalable solutions to social problems. If the inline pdf is not rendering correctly, you can download the pdf file here. Aboutfsg discovering better ways to solve social problems fsg is a nonprofit consulting firm specializing in strategy, evaluation, and research. Shared value is a management strategy in which companies find business opportunities in social problems. Creating shared value csv is fundamental to how we do business at nestle. When enterprises act as business operations and not as charities, they can turn profitable and work towards improving the world. Collective impact provides the framework businesses need to foster and participate in. It could also drive the next wave of innovation and productivity growth in the global economy as. The economist cites shared value as a trend in 2012 per research by j. Beyond corporate social responsibility csr and creating shared value csv.
Success requires an explicit companywide shared value vision, a focused strategy, a willingness to apply assets and expertise across functions, and performance management that focuses both on results and continuous learning. Dan gray, visiting fellow, ashridge centre for business and sustainability our first topic explores the principles of creating shared value csv. 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. Visit fsg s knowledge exchange to learn more about shared value.
Encouraging sustainable business practices means seeing beyond green to redesigning businesses for shared value. Measuring the impact of shared value guardian sustainable. This document is the combined financial services guide fsg for cpm and cpu share plans and contains detailed information specific to the share plan account which you have elected to use. How multinational corporations are redefining business strategies to reach poor or vulnerable populations. Shared value, fsg is spreading the shared value culture through research, reports, and by promoting and encouraging shared value practices through consulting activities. Companies using shared value to drive impact shared. Kramer, managing director, please contact michelle morgannelsen.
Shared value practitioners launched with fsg support shared value initiative. When businesses act as businessesnot as charitable donorsthey can improve profitability while also improving environmental performance, public health and nutrition, affordable housing and financial. Fsg s research in india has identified a number of highly. The solution, as espoused by michael porter, revolves around creating shared value csv. Enhancing the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates shared value is not. Its specific practice areas are social impact, collective impact, creating shared value, education and youth, global health and strategic evaluation. The shared value initiative is a global platform for. Many of the companies discussed in this article are fsg clients or have financially supported fsg s research. Nestle in society creating shared value and meeting our commitments 2014.
812 1317 95 365 401 661 859 48 444 613 369 1232 1049 1244 1644 1110 1305 456 1624 250 275 1135 693 746 1031 587 118 73 1143 1241