Shared Value Measurement
When companies do not understand or rigorously track the interdependency between social and business results, they miss important opportunities for innovation, growth, and sustainable social impact at scale. An approach to shared value measurement that focuses on the interaction between business and social results is among the most important tools to drive shared value in practice.
Understanding the Purpose of Measurement
The Shared Value Measurement Process
Shared value measurement requires an iterative process that is integrated with business strategy, not a one-time or periodic effort separate from measuring business performance.
An integrated shared value strategy and measurement process includes four steps.
The Shared Value Measurement Process
The above steps originate from the article Measuring Shared Value: How to Unlock Value by Linking Social and Business Results (June 2011) by Michael E. Porter, Greg Hills, Marc Pfitzer, Sonja Patscheke and Elizabeth Hawkins.