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Creating shared value
Authors :Michael E. Porter
Mark R. Kramer
Presenter : Liu Qunling
May 24th,2011
January–February 2011 Harvard Business Review
Introduction
The roots of shared value
3 How shared value is created
The principles of Shared value creation
5 Conclusion
1
1.1 The related concepts——SV
Shared Value (SV)——
Policies and practices that enhance the competitiveness of a company while advancing economic and social conditions in the communities in which it
operates at the same time.
• Creating shared value ( CSV ) — —
It isn’t redistribution approach.
It is about expanding the totalpool of economic
and social value.
1.1 The related concepts—CSR
Corporate Social Responsibility (CSR)——
Companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
CSR programs are started mostly for commercial benefits through raising their reputation with the public or the government.
1.1 The related concepts—CSR
C R
CSCVSV
Value: economic and societal benefits relative to cost
Joint company and community value creation
Integral to competing
Integral to profit maximization
Realigns the entire company budget
Impact limited by corporate
footprint and CSR budget
Example: Fair trade purchasing
Citizenship, philanthropy,
sustainability
Example: Transforming procurement to increase quality and yield.
Separate from profit maximization
In response to external pressure
1.2 The differences between CSR and CSV
Value:doing good
Problem resulted
Solution
7
Background
2.The roots of shared value
2.1 Background—Business and Society are disconnect
A narrow model of value creation ——
A firm is largely a self-contained entity, social or community issues fall outside its business scope.
• Government and civil society often attempt to address societal issues at the expense of business.
E.g. Taxes, regulations, penalties
• Companies are perceived to be prospering at the expense o
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