The Concept of Shared Value

Overview of shared value creation: The concept of shared value is now becoming a major concern. Most companies rely on the creation of shared value. For example, the famous policy of Intel Technology is that each employee participates in a seminar based on value creation. (Vadim Kotelnikov) According to the World Socialist Movement, capitalism has the process of the national economy privately owned. (2006) Capitalism can only lead to economic and social dilemmas.

The concept of shared value was born out of the breakthrough article Harvard Business Review wrote by Michael Porter and Mark Kramer in 2011 and defines shared value as a management strategy. Needs and challenges to create economic value while creating social value by coping with social problems "Many companies adopt this concept because they can focus on the development of business. In contrast, many people in the sustainability / corporate social responsibility (CSR) community criticize this concept as a new concept of old concepts, strategic corporate social responsibility is not charity but about value creation I believe it.

Turning to common values, a new way for business and society to create value is born. In other words, the concept of shared value is left to the driver's seat for the purchase, manufacture, distribution and sale of goods and services, the main purpose of which is to maximize their profit. In this framework, problems such as global warming, declining school and student performance, medical crisis, and almost all other environmental and social issues are considered through the calculation of profitability, not by enterprises and shared responsibility issues I will.

The company acts not for society as a whole, but for itself. Companies need to reverse this situation as well as profit, but they need to create shared value. According to Porter & Kramer (2011), "The concept of shared value can be defined as policy and operational practices that enhance the competitiveness of companies while promoting the economic and social conditions of communities that do business." Contact Us