Lately, business has been criticized as a major cause of social, environmental, and economic problems. In short, companies are thought to be making money at the expense of their communities. This might explain why many of them turn to Corporate Social Responsibility programs to reconnect with society. But a program that has an agenda determined by external reporting and personal preferences has limited impact. While we assume those activities reduce the harm coming from corporate activities, it does not really create value per say. Not surprisingly, CSR fatigue is starting to settle in just like green fatigue has in the media.
Enter the Share value Concept…
Michael Porter of Bishop William Lawrence University and Mark R. Kramer managing director of the social impact advisory firm FSG argue that «companies could bring business and society back together if they refine their purpose as creating a «Shared Value», generating economic value in a way that ALSO produces value for society by addressing its challenges. Firms can do this in three distinctive ways: by reconceiving products and markets, redefining productivity in the value chain, and building supportive industry clusters at the company’s locations.»
Their proposal is a shift from a financial economy to a product economy that can generate a Shared Value. A nice way to put a societal spin to the old product-driven economy.
An interesting idea that I believe has a lot of potential.
Creating Shared Value…coming to a community near you!
- Gaven Dumont