Shared Value & Investors
When companies create shared value, they increase economic performance and create tangible societal benefits. This means the return to their investors can be measured in two ways—in profits as well as in societal impact. Shared value investing represents an evolution in the relationship between investors, business, and society.
Shared Value Investing
The Purpose of Investing
- The fundamental purpose of investing for society is to allocate capital to companies who can earn an attractive return
- Investors create the greatest societal value by selecting companies that will use capital well, monitoring their fundamental performance, and intervening to improve that performance
- The essential social role of investors is multiplied by recognizing and capitalizing on the shared value opportunity
Making the case for shared value
Shared value measurement, by directly linking social and business results, provides investors a direct line of sight between achieving social results and business performance.
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