Recently, several economics and business scholars argued that is nothing new on the concept of Shared Value. However, we think that Shared Value is a conceptualization able to change and deliver real sustainability. The following sections present a summary of the debate.
CSV vs CSR.
Creating Shared Value (CSV) might supersede Corporate Social Responsability (CSR) in guiding the investments of organisations within their communities. CSR programs focus mostly on reputation and have only a limited connection to the business, making them hard to justify and maintain over the long run. In contrast, CSV is the main driver of the company’s profitability and competitive position. It leverages the unique resources and expertise of the company economic value by creating social value.
The following table compare the main features of CSR and CSV:
|Corporate Social Responsibility (CSR)||Creating SHARED VALUE (CSV)|
Value: doing good
Value: economic and societal benefits relative to cost
|Recipients: Citizenship, philanthropy,
|Joint value creation for business and society|
|Discretionary practice or in response to
|Joint planning & strategy|
|Agenda is driven by external reporting and personal preferences||Agenda is business centric and internally generated|
|Limited impact of corporate footprint and CSR budget||Realigns the entire company budget|
|Example: Fair trade purchasing||Example: transforming procurement to increase quality and yield|
Source: Porter, M. E., & Kramer, M. R. (2011). The big idea: creating shared value. Harvard Business Review, 89(1), 2.