The key to business sustainability is changing how we think about competition and partnership. The business landscape is beginning to shift away from the traditional competition model, especially in Africa, to a form of capitalism that is more open to collaboration. When it comes to making a positive impact on the world, of course, there is immense power in joining forces to create collective impact at a scale far beyond what any one company could achieve alone.
One of the three pillars of the Shared Value business model is Enabling Local Cluster Development, which the Shared Value Initiative defines as “Improving the available skills, supplier base, and supporting institutions in the communities where a company operates to boost productivity, innovation, and growth”. In a nutshell, this is the development of and investment in the Shared Value ecosystem. In order to implement Shared Value successfully throughout the value chain, a business must work with the communities in which it operates, the non-government organisations that have the knowledge and experience to guide purpose-driven policy implementation, and the government entities responsible for regulation and maintaining the infrastructure essential to normal business operations.
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Mark Kramer describes the differences between sustainability, corporate social responsibility and creating shared value, and shows how the three concepts should work together in organizations.
Read more: Mark Kramer: Creating Shared Value
Professor Michael Porter of Harvard Business School spoke to an audience of senior corporate giving professionals at CECP's Corporate Philanthropy Summit on June 2, 2010 about the role of business in social and economic development. He introduced the concept of "Creating Shared Value" (CSV) as distinct from "Corporate Social Responsibility" (CSR) and explained how CSV can help advance both the corporate and social goals of a company.
Read more: What is 'Creating Shared Value'?
A collection of resources from Harvard Business School in which they explore the next transformation of business thinking, which lies in the principle of shared value: creating economic value in a way that also creates value for society, by addressing its needs and challenges.
Read more: Shared Value Resources from Harvard Business School
It’s the hot new buzzword in progressive business thinking – creating shared value, or CSV. Esteemed business thinkers Michael Porter and Mark Kramer introduced it in the January/February 2011 edition of Harvard Business Review, and it has stimulated lively debate since.
“We need to understand that what’s good for the community is actually good for business,” said Porter, explaining CSV at the World Economic Forum at Davos earlier this year. “If we can organise ourselves to do this stuff inside our operating units, rather than on the side, we can have a profound effect on many of the most important social issues of our time.” In Harvard Business Review, Kramer and Porter define creating shared value as “creating economic value in a way that also creates value for society by addressing its needs and challenges. Businesses must reconnect company success with social progress.”
Read more: Creating shared value: The new sustainability?