Harvard business review shared value pdf

Attaining it will require managers to develop new skills and knowledge and governments to learn how to regulate in ways that enable shared value, rather than work against it.

In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community. You have 2 free article s left this month.

You are reading your last free article for this month. Subscribe for unlimited access. Create an account to read 2 more. Corporate social responsibility. Creating Shared Value. How to reinvent capitalism—and unleash a wave of innovation and growth. Porter and Mark R. Read more on Corporate social responsibility or related topics Social enterprise , Society and business relations and Competitive strategy.

Michael E. His latest paper is The Role of Business in Society. He is an academic advisor to the Leadership Now Project. Mark R. Kramer is a senior lecturer at Harvard Business School and a cofounder and a managing director of FSG, a global social-impact consulting firm. This is a subscriber-only article. Companies could bring business and society back together if they redefined their purpose as creating "shared value"-generating economic value in a way that also produces value for society by addressing its challenges.

Firms can do this in 3 ways: by reconceiving products and markets, redefining productivity in the value chain, and building supportive industry clusters near their locations. A number of leading firms have already embarked on such initiatives. Nestle, for example, redesigned its coffee procurement, providing small, impoverished farmers advice on agricultural practices; helping them secure plant stock, fertilizers, and pesticides; and paying them a premium for better beans.

Higher yields and quality increased the growers' incomes, the environmental impact of farms shrank, and Nestle's reliable supply of good coffee grew significantly.

Shared value was created. Shared value could transform capitalism. It could also drive the next wave of innovation and growth as it opens managers' eyes to immense human needs to be met, large new markets to be served, and the internal costs of social deficits-as well as the competitive advantages available from addressing them.

Brought to you by:. Article Bestseller. What's included: Educator Copy. Not teaching at a university? In the packaged food and beverage industry,…. Get access to this material, plus much more with a free Educator Account:. Already registered? Sign in. In the packaged food and beverage industry, pressure had mounted since the s to improve supply chain sustainability and provide healthier, more natural foods, leading to consolidation and causing sales to decline in the s.

Provide participants with an opportunity to discuss the approaches to implementing and communicating shared value. Nov 29, Revised: Oct 15,