“In recent years business increasingly has been viewed as a major cause of social,
environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community.”
Michael Porter (professor at Harvard University) has come up with this ‘Shared value’ concept. It’s about creating more value, by invloving the consumers more, by not only looking at pure economical value-creation, but also Social value creation.
“….companies remain stuck in a “social responsibility” mind-set in which societal issues are at the periphery, not the core.”
As corporate social responsibility is seen as a ‘cost post’ to profit maximalization, and it is only limited to the CSR budget, Shared Value is about mobilizing the entire budget of the corportation.
It could be described as a new way of doing business, which i think would be an improvement in the efficiency of the contemporary economic system.
“Capitalism is an unparalleled vehicle for meeting human needs, improving efficiency, creating jobs, and building wealth. But a narrow conception of capitalism has prevented business from harnessing its full potential to meet society’s broader challenges..”
It is further explained in the article. Pleas read (not long)
“The big Idea: creating shared value” – Michael Porter and Mark Kramer
Here you can see professor Porter explaining himself the problem pretty enthusiasticly, and the solution!