Harvard Business School - Institute for Strategy and Competitiveness

Creating Shared Value

Economic policy and social policy have been largely separate agendas involving different participants. Many see the two as conflicting agendas because of the flaws in the capitalist system. However, there is no inherent conflict between capitalism and social needs. A productive and growing economy requires rising skill levels, a proliferation of new companies, safe working conditions, healthy workers who live in decent housing in safe neighborhoods, and a sense of opportunity. Social and economic policy must be integrated in addressing society’s ills and ensuring true progress.

FSG Social Impact Consultants. Founded in 2000 by Michael Porter and Mark Kramer, FSG is a nonprofit consulting firm specializing in strategy, evaluation, and research. FSG works across sectors in every region of the globe — partnering with foundations, corporations, nonprofits, and governments to develop more effective solutions to the world’s most challenging issues. FSG brings together leaders that are hungry to exchange information, to elevate learning and to create collective impact for shared priorities in social change.


		Featured
		Creating Shared Value: The Path Forward (slides) FSG CSV Leadership Summit May 31, 2012				53rd Annual McKinsey Award Winners announced: Michael E. Porter and Mark R. Kramer’s “Creating Shared Value” Recognized as Top Article of 2011 Harvard Business Review March 21, 2012


		Framework Publications
		Creating Shared Value by Michael E. Porter and Mark R. Kramer Harvard Business Review January-February 2011 The capitalist system is under siege... A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. They continue to view value creation narrowly, optimizing short-term financial performance in a bubble while missing the most important customer needs and ignoring the broader influences that determine their longer-term success. View longer article excerpt Purchase the article and join the discussion at Harvard Business Review				Measuring Shared Value: How to Unlock Value by Linking Business and Social Results by Michael E. Porter, Greg Hills, Marc Pfitzer, Sonja Patscheke, Elizabeth Hawkins October 2012 Measuring shared value allows companies to maximize opportunities for innovation, growth, and social impact at scale. This article explains the specific purpose of shared value measurement and offers a step-by-step process and pragmatic approaches to measurement with examples from leading companies. How Big Business Can Regain Legitimacy by Michael E. Porter BusinessWeek May 6, 2010 "Business must find a way to engage positively in society, but this will not happen as long as it sees its social agenda as separate from its core business agenda."


		Other Publications
		An Interview with Michael Porter: Social Entrepreneurship and the Transformation of Capitalism by Michaela Driver Academy of Management Learning & Education (AMLE) August 6, 2012


		Video
		Rethinking Capitalism:An Interview with Michael Porter Michael Porter explains why business leaders must focus on shared value — creating products and services that benefit not only the company but also society.

		The New Competitive Advantage: Creating Shared Value (slides) Michael Porter at the HBS Earth Week program April 20, 2011 video opens in RealPlayer				The Future of Corporate Citizenship: Creating Shared Value 100 Best Corporate Citizens Event at the NYSE New York, NY March 2, 2011
		Michael Porter on Creating Shared Value at the 2010 CECP Corporate Philanthropy Summit New York, June 2, 2010 nicely condensed in this six-minute video				Other video: Bloomberg interview at Davos January 29, 2011 Creating Shared Value: Connecting Business, Societal Value and Opportunity Michael Porter, Mark Kramer and Jane Nelson discuss creating shared value and give examples from HP, Nestlé and Novartis on how corporations can put this approach into practice.


		In the news
		Unilever Wants Short, Soapy Showers and Long-Term Investors by Matthew Boyle Bloomberg News July 5, 2012 Why Go it Alone in Community Development? by Andrew MacLeod HBR Blog Network June 13, 2012 The Second Russian Forum on Corporate Social Responsibility "Creating Shared Value: Inspiring Responsible Behavior" The Moscow Times June 9, 2012 Shared Value: how corporations profit from solving social problems Mark Kramer The Guardian June 8, 2012 What is 'Creating Shared Value'? James Epstein-Reeves Forbes - The CSR Blog June 4, 2012 Within companies, creating shared value means treating employees properly as an asset that comes with a cost HR Magazine UK May 30, 2012 Michael Porter: Businesses Need an Image Repair Forbes India May 25, 2012 When Profit and Social Responsibility Collide Andreas Souvaliotis Huffington Post Canada April 8, 2012 Aligning the Goals of Development and Business Maura O'Neil USAID Frontlines March/April 2012 Healthy competition can save lives through shared value Kyle Peterson The Guardian Sustainable Business Blog March 20, 2012 Global healthcare companies are adapting to meet the needs of the developing world while turning a healthy profit How Kenya Is Building a Sustainable Banana Alan Bjerga Bloomberg January 24, 2012 FSG director dubs norm on corporate social responsibility 'flawed' Sangeeth Sebastian Mail Online India January 24, 2012 Helping companies do the right thing Gail Johnson Globe and Mail January 24, 2012 Charity needs capitalism to solve the world’s problems (registered access only) Bill Clinton Financial Times January 20, 2012 Recession, Responsibility, and Results Richard Crespin Forbes - The CSR Blog January 17, 2012 Flying into heavy corporate fog Christopher J Tipler Business Spectator Australia November 8, 2011 Capitalism 2.0: Corporate Social Responsibility Is Not the Enemy of Profits Andreas Souvaliotis Huff Post Business Canada November 8, 2011 Business must engage in battle for hearts and minds Peter Shergold The Australian October 18, 2011 Can The Private Sector Drive Meaningful Social Progress? The Case of Global Handwashing Day Sarika Bansal, contributor Forbes October 13, 2011 Is Corporate Social Responsibility "Hypocritical Window Dressing"? Arjan Schütte Forbes August 17, 2011				First, Make Money. Also, Do Good Steve Lohr The New York Times August 13, 2011 Welcome to the next level Von Florian Rittmeyer interviews Michael Porter Schweizer Monat August 2011 Do good or get rich? - you can do both by Phil Preston Business Spectator July 22, 2011 Development - Risk and reward as business shifts towards sustainability by Donald Gibson Business Day (South Africa) July 14, 2011 Mutual benefit: investing in the social by Brenda Kowske Financial Director (UK) July 11, 2011 Strategic CSR becomes CSV by Pipat Yodprudtikan The Nation (Thailand) July 5, 2011 India Journal: Where’s the Upside at the Base of the Pyramid? by Lindsay Clinton The Wall Street Journal March 31, 2011 Businesses have big stake in improving their communities by Bruce DeBoskey The Denver Post March 20, 2011 Make money and do good is the new corporate buzz by Michelle Nichols Reuters February 28, 2011 Business ready for 'shared values,' but government lags by Judith Maxwell The Globe and Mail February 17, 2011 Achieving the Big Society by Steven Dodds in MarketingWeek February 3, 2011 Porter Interview about Corporate Strategy (video) by Tom Keene Bloomberg at Davos January 28, 2011 U.S. Competitiveness Problem? (video) by Andrew Ross Sorkin CNBC Squawk Box at Davos January 27, 2011 Beyond shareholder capitalism by Will Straw The Guardian January 27, 2011 Clinton says SMEs key to long-term prosperity by Siraj Wahab Arab News January 26, 2011 Why not all profit is equal by Harvey Schacter The Globe and Mail January 24, 2011 The Time Has Come for Holistic Business Strategy by Brian Solis Fast Company January 21, 2011 Revisiting the rights and responsibilities of business by Bill George Minneapolis Star Tribune January 15, 2011 Making the Case for “Shared Value” for Business and Society by Michael Connor Business Ethics January 12, 2011 How to Fix Capitalism, But Not the Media by Charles Warner The Huffington Post January 6, 2011 Can Business Model Innovation help curb obesity? by Kay Plantes WTN News January 6, 2011 Global Business BBC January 2, 2011 Rethinking Capitalism - the Next Major Business Transformation by Sean Silverthorne BNET


		Presentations
		Business and Social Good: What is the Role of Investors? New York, NY October 3, 2012 The New Competitive Advantage: Creating Shared Value New York, NY October 3, 2012 Strategic Positioning in a Challenging World: Creating Shared Value Porter Prize India Boston, MA / New Delhi, India September 28, 2012 Strategic Positioning in a Challenging World: Creating Shared Value Montreal, Canada September 10, 2012 New Opportunities for Company Performance and Purpose: Creating Shared Value Discovery Invest Leadership Summit Johannesburg, South Africa August 30, 2012 New Opportunities for Company Performance and Purpose: Creating Shared Value Hitachi Innovation Forum 2012 Boston, MA (via video conference) July 19, 2012 New Opportunities for Company Performance and Purpose: Creating Shared Value Mitsui-HBS Global Management Academy Boston, MA July 12, 2012 The Role of Business in Social and Economic Development: Creating Shared Value World Bank CSV Discussion Washington, D.C. August 2, 2012 See related World Bank blog post. The Role of Sports in Society: Creating Shared Value ICSS Conference Boston, MA / Doha, Qatar March 14, 2012				Competing by Saving Lives: How Pharmaceutical and Medical Device Companies Create Shared Value in Global Health FSG Global Health event New York March 8, 2012 Strategy and the New Competitive Advantage: Creating Shared Value Ford Canada Top 100 Boston, MA March 7, 2012 The Role of Business in Society: Creating Shared Value Babson Entrepreneurship Forum Boston, Massachusetts Sunday, November 13, 2011 Harnessing the Power of Capitalism: Creating Shared Value UBS Sustainable Innovation Conference New York October 19, 2011 related: Huff Post, event info Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society Mitsui-HBS Global Management Academy Boston, MA July 12, 2011 40 attendees. Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society Unilever CEO Forum June 22, 2011 44 attendees Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society at the FSG Leadership Summit on CSV Cambridge, MA June 9, 2011 60 attendees. The New Competitive Advantage: Creating Shared Value Australian Chambers Business Congress via video conference June 3, 2011 Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society Chile May 16-17, 2011 750 attendees at two events


		Recommended Links
		Sustainable business: Shared value in practice A Chartered Global Management Accountant report April 2012 more at CMGA.org Competing by Saving Lives: How Pharmaceutical and Medical Device Companies Create Shared Value in Global Health by Kyle Peterson, Matthew Rehrig, Mike Stamp, and Samuel Kim, foreword by Michael Porter An FSG Knowledge Exchange article Related motion graphic:				Creating Shared Value: Profiteering and Assisting (free registration required) SYN Mijoo Samsung Economic Research Institute April 2012 Business models that generate corporate social value in Bottom-of-the-Pyramid economies produce both profits and goodwill. 2011 100 Most Influential People in Business Ethics Ethisphere.com January 2012 Tomorrow's Markets: Global Trends and Their Implications for Business Preface by Michael E. Porter (pdf) Link to full document at WBCSD site April 3, 2002 Businesses that wish to survive and thrive in a global economy must respond to major social and environmental trends that are reshaping markets.This report outlines 19 trends that are reshaping global markets and discusses the rising interest in using market solutions to address some of the world's most pressing problems. United Nations Environment Program World Business Council for Sustainable Development World Resources Institute


		Creating Shared Value - Content by COUNTRY
		*Australia* The New Competitive Advantage: Creating Shared Value Australian Chambers Business Congress via video conference June 3, 2011 *Chile* Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society Chile May 16-17, 2011				Colombia The Bogotá Chamber of Commerce Redefined around CSV in 2012


		Creating Shared Value - Content by ORGANIZATION TYPE
		*Chambers of Commerce* The Bogotá Chamber of Commerce Redefined around CSV in 2012 The New Competitive Advantage: Creating Shared Value Australian Chambers Business Congress via video conference *Companies* Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society Unilever CEO Forum June 22, 2011 Within companies, creating shared value means treating employees properly as an asset that comes with a cost HR Magazine UK May 30, 2012 *NGOs* The Future of Corporate Citizenship: Creating Shared Value 100 Best Corporate Citizens Event at the NYSE New York, NY March 2, 2011				*Industry Groups* The Role of Sports in Society: Creating Shared Value ICSS Conference Boston, MA / Doha, Qatar March 14, 2012 Competing by Saving Lives: How Pharmaceutical and Medical Device Companies Create Shared Value in Global Health by Kyle Peterson, Matthew Rehrig, Mike Stamp, and Samuel Kim, foreword by Michael Porter An FSG Knowledge Exchange article


	For information about materials not available online, please email isc@hbs.edu.