Businesses can create economic value by leveraging the creation of societal value. What is the CORE strategy (Porter & Kramer, 2011)?
- Organisations have to understand the society’s fundamental needs, which are greatest unmet needs in the Global Economy;
- Focus on the most basic question: “which are the good products for our customers?”;
- Re-definition of all the strategic elements invovled in the the value chain: customers, suppliers, employees, etc.
- Improvement of local clusters development, as a support for the business activities.
By bridging companies’ success with societal improvements, it opens up many ways to serve new needs, gain efficiency, create differentiation, and expand markets. The ability to create Shared Value applies equally to advanced economies and developing countries, though the specific opportunities will differ.
For further details see: Porter, M. E., & Kramer, M. R. (2011). The big idea: creating shared value. Harvard Business Review, 89(1), 2.