http://hbr.org/2011/01/the-big-idea-creating-shared-value
A year after its publication, I continue to marvel at the "shared value" frame. The authors make a case for replacing the outmoded and ideologically-charged concept of corporate social responsibility (CSR) by encouraging companies to commit to creating shared value (CSV). In summarizing the differences, the article explores the business drivers that move beyond doing good and challenges companies to make decisions based on assessing the economic and societal benefits of their operations relative to broadly defined costs.
Porter and Kramer do not disparage goodness made manifest in corporate citizenship and philanthropic efforts; rather they challenge companies to rethink the relationship between innovation and societal benefit. In one example, they contrast the good intentions of the fair trade movement, with companies who view their entire value chain as an opportunity to create value for society---beyond simply redistributing income. I was reminded of the role that economic power plays in ensuring a just and sustainable world and Martin Luther King, Jr.'s reflection on power and love came to mind.
“Power without love is reckless and abusive, and love without power is sentimental and anemic. Power at its best is love implementing the demands of justice, and justice at its best is power correcting everything that stands against love.” Rev. Dr. Martin Luther King, Jr.
Given the noble goals of the fair trade movement, I wonder if companies could accelerate societal benefit, and therefore justice, if transformational corporate practices made it possible for even the most vulnerable farmers to participate in innovation, augmenting good intentions? Could the practice of fair trade be "sentimental and anemic" without a commitment to CSV?
Creating Shared Value. Corporate Social Responsibility.
Either/Or or Both/And?
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