PDF Creating Shared Value as Business Strategy
Creating Shared Value as Business Strategy
Professor Michael E. Porter Harvard Business School
Shared Value Leadership Summit Boston, MA
May 23, 2013
The ideas drawn from "Creating Shared Value" (Harvard Business Review, Jan 2011) and "Competing by Saving Lives" (FSG, 2012). No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means--electronic, mechanical, photocopying, recording, or otherwise--without the permission of Michael E. Porter. For further materials, see the website of the Institute for Strategy and Competitiveness, isc.hbs.edu, and FSG website, .
Shared Value Continues to Gain Global Momentum
? In the last 2 years, we have been involved in shared value projects, events, and workshops in 44 countries
20130523--Shared Value Leadership Summit--FINAL--Prepared by FSG and RA Jem Hudson
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Copyright 2013 ? Professor Michael E. Porter
The Role of Business in Society
Evolving Approaches
Philanthropy
? Donations to worthy social causes
? Volunteering
Corporate Social Responsibility (CSR)
? Compliance with community standards
? Good corporate citizenship
? "Sustainability"
Creating Shared Value (CSV)
? Integrating societal issues and challenges into economic value creation
20130523--Shared Value Leadership Summit--FINAL--Prepared by FSG and RA Jem Hudson
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Copyright 2013 ? Professor Michael E. Porter
Levels of Shared Value
I: Reconceiving needs, products, and customers
? Meeting societal needs through products ? Addressing unserved or underserved customers
II: Redefining productivity in the value chain
? Using resources, suppliers, logistics, and employees more productively
III: Improving the local business environment
? Improving the skills, supplier base, regulatory environment, and supporting institutions in the communities in which a company operates
20130523--Shared Value Leadership Summit--FINAL--Prepared by FSG and RA Jem Hudson
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Copyright 2013 ? Professor Michael E. Porter
Measuring Shared Value
? Measure the direct link between social impact and economic impact ? Line of sight
? Measures are unique to the type of shared value being created ? The shared value is intentional and focused
? Some stakeholders still believe economic success is inconsistent with social benefit
20130523--Shared Value Leadership Summit--FINAL--Prepared by FSG and RA Jem Hudson
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Copyright 2013 ? Professor Michael E. Porter
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