Summary: Porter & Kramer, 2011 - Week 3 Efb

Read the summary and the most important questions on Porter & Kramer, 2011 - Week 3 EFB

• 1 Porter & Kramer, 2011

• What is shared value? As argued by Porter & Kramer (this is not their literal definition of it as taken up in the article however)

  Shared value focuses on the connections between societal and economic progress. Shared value refers to initiatives that create both economic and societal value.

• 1.1 Shared value in practice

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• Interface Net-Works was founded in 1973 in Atalanta, U.S. and is a project that was designed to create shared value. Short- and long-term benefits can be distinguished. What are some of these?

  Short-term benefits: in terms of the environment = cleaning up the oceans/getting the nets out, creation of jobs so people save money.
  Long-term benefits: attitude changes, they put a monetary value on the nets and get an attitude change.

• What is for example a long-term benefit with regards to initiatives of organisations around plastic?

  Showing people that plastic should not be thrown away, but it can have value in use for other things.

• 1.2 Creating shared value

• What do Porter & Kramer argue in their 2011 paper in terms of creating shared value and its relationship to capitalism?

  They argue that creating shared value is a way of using capitalism for society.

• What is the main difference between CSR and CSV?

  CSR is about doing good with the funds that you have from profitable operations, redistributing what you already have. CSV is about increasing the amount of value by looking at opportunities for social and economic progress a.k.a. Joint company and community value creation.

• 1.2.1 CSR vs. CSV

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• What is the value for CSR and CSV?

  CSR: doing good; CSV: economic and societal benefits relative to cost.

• In terms of what a company does when it comes to CSR and CSV, what are the differences?

  CSR: citizenship, philanthropy and sustainability; CSV: joint company and community value creation.

• In terms of what brings about CSR and CSV, what are these two movements responses to?

  CSR: discretionary or in response to external pressure; CSV: integral to competing.

• When looking at the relationship of CSR and CSV to profit maximisation, what are the differences?

  CSR: separate from profit maximisation; CSV: integral to profit maximisation.

• How is the agenda determined of companies that engage in CSR opposed to those that are engaged in CSV?

  CSR: agenda is determined by external reporting and personal preferences; CSV: agenda is company specific and internally generated.