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Porter Kramer 2011 Creating Shared Value Pdf Download
084f2db8c6 And new value chain configurations will create demand for equipment and technology that save energy, conserve resources, and support employees. No company is self-contained. Here, companies will be less successful if they attempt to tackle societal problems on their own, especially those involving cluster development. This perspective has permeated management thinking for the past two decades. [The idea of shared value was initially explored in a December 2006 HBR article by Michael E. Major U.S. Firms have taken the broader context in which they do business as a given and resisted regulatory standards as invariably contrary to their interests. Profits involving a social purpose represent a higher form of capitalismone that will enable society to advance more rapidly while allowing companies to grow even more. In Kenya, Vodafones M-PESA mobile banking service signed up 10 million customers in three years; the funds it handles now represent 11% of that countrys GDP.
The blurring of the boundary between successful for-profits and nonprofits is one of the strong signs that creating shared value is possible. It is not philanthropy but self-interested behavior to create economic value by creating societal value. In the process of reexamining logistics, thinking about outsourcing and location will also be revised (as we will discuss below). Companies are widely perceived to be prospering at the expense of the broader community. In the process, the distinction between for-profits and nonprofits is blurring. Creating shared value will require concrete and tailored metrics for each business unit in each of the three areas. It worked intensively with its growers, providing advice on farming practices, guaranteeing bank loans, and helping secure inputs such as plant stock, pesticides, and fertilizers. When a firm builds clusters in its key locations, it also amplifies the connection between its success and its communities success. Not every company will have them in every area, but our experience has been that companies discover more and more opportunities over time as their line operating units grasp this concept. A host of factors, such as the growing social awareness of employees and citizens and the increased scarcity of natural resources, will drive unprecedented opportunities to create shared value.