Shared Value

(Community Matters) part of a series of articles by MBA students at California College of the Arts dMBA program, in Triplepundit: People, Planet Profit

Michael E.Porter, the founding father and leader in this school of thought, pins shared value as the next evolution of capitalism, stating that “incorporating societal issues into strategy and operations is the next major transformation in management thinking.”

Profitability and growth from value sharing are achieved through three facets that are ‘mutually reinforcing’:

1. Re-identifying customer needs by addressing problems in communities and redesigning products and services to serve these needs
2. Innovating value-chains to enhance productivity and efficiencies
3. Enabling local development by taking into account local deficits and/or current offerings that are deemed insufficient

Underserved markets, pollution, large-scale inefficiencies and cultural barriers become opportunities in the world of CSV.  When organizations embrace CSV, they undertake the common goal of improving overall well-being and standards of living; the greatest factor in this equation is community.

HT: Amanda Chiampi