Porter’s Shared Value – An Analysis

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An Introduction

Capitalism has recently come under threat of social criticism. Business is increasingly been targeted for the problems, such as economics, society and environment. These problems are caused to change in external factors. The society is claiming that organizations are increasingly progressing at the cost of the community. The more organizations are indulging in corporate social responsibility, the more are they being accused for social issues. People have less trust on business and political leaders are setting up policies that are reducing competitiveness. In this article, we will discuss Porter’s Shared Value which is one of the strategy tools to enjoy competitive advantage.

Origin of Porter’s Shared Values

Creating Shared Value was brought into focus by Michael Porter and Mark Kramer in the article "Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society.

Definition of Porter’s Shared Value

Shared values are the practices and policies that increase the profitability and competitive advantage of a company. At the same time, the company advances economic and social conditions in the community where it operates. Shared value should not be confused with corporate social responsibility; it is a unique way to attain economic success.

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An Idea of Porter’s Shared Value

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