Shared Value is a management strategy focused on companies creating measurable business value by identifying and addressing social problems that intersect with their business. The shared value framework creates new opportunities for companies, civil society organizations, and governments to leverage the power of market-based competition in addressing social problems.

The concept of Shared Value was defined in the Harvard Business review article “Creating Shared Value” wrote in January/February 2011 by two professors Michael Porter and Mark Kramer.

Created Shared Value operates in three levels:

  • Reconceiving Products and Markets: Defining markets in terms of unmet needs or social ills and developing profitable products or services that remedy these conditions.
  • Redefining Productivity in Your Value Chain: Increasing the productivity of the company or its suppliers by addressing the social and environmental constraints in its value chain.
  • Cluster Development: Strengthening the competitive context in key regions where the company operates in ways that contribute to the company’s growth and productivity.

The Shared Value framework defines a new role for business in a society that goes beyond traditional models of corporate social responsibility. Shared Value offers new ways for other societal actors to engage with corporations in delivering social impact for Investors, NGOs, Individual practitioners, academics, students and also for Philanthropic and government bodies. These are the most important companies which deal with Shared Value:

  • General Electric has developed a new healthymagination products to deliver high-quality low-cost care to mothers in developing countries.
  • InterContinental Hotels Group has implemented green engage innovative cost-saving online tools to help control energy consumption.
  • Nestle has given resource trap farmers in developing economies financial and technical assistance create a better supplier network.
  • Walmart has saved $200M in distribution costs while growing the quantities being shipped by reducing packaging and improving delivery logistics.
  • BD developed a new type of safety syringe to reduce healthcare worker needle-stick injuries. This product innovation grew to $2 billion, approximately a quarter of company’s revenue.
  • Cisco reduced a key constraint its addressable server market by launching the Networking to train over four million network administrators globally.

 

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