The Big Idea: Creating Shared Value Rethinking Capitalism by Michael E. Porter and Mark R. Kramer January–February 2011 ‐ http://hbr.org/2011/01/the‐big‐idea‐creating‐shared‐value/ar/pr What Is “Creating Shared Value”? - Policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates.

The concept of shared value—which focuses on the connections between societal and economic progress— has the power to unleash the next wave of global growth. An increasing number of companies known for their hard‐nosed approach to business—such as Google, IBM, Intel, Johnson & Johnson, Nestlé, Unilever, and Wal‐Mart—have begun to embark on important shared value initiatives. But our understanding of the potential of shared value is just beginning. There are three key ways that companies can create shared value opportunities: • By reconceiving products and markets • By redefining productivity in the value chain • By enabling local cluster development Every firm should look at decisions and opportunities through the lens of shared value. This will lead to new approaches that generate greater innovation and growth for companies—and also greater benefits for society.

Creating Shared Value & ‘Developing countries’
- Solving social problems has been ceded to governments and to NGOs. Corporate responsibilities programs—a reaction to external pressure—have emerged largely to improve firms’ reputations and are treated as a necessary expense. - Fair trade aims to increase the proportion of revenue that goes to poor farmers by paying them higher prices for the same crops. Though this may be a noble sentiment, fair trade is mostly about redistribution rather than expanding the overall amount of value created. - Early studies of