...Shared Value Creation; Revolution or Rhetoric? Abstract The concept of Creating Shared Value(CSV), was made popular in a Harvard Business Review(2011)by M. Porter and R Kramer defines as, policies and operational practices that enhance the competitiveness of the company while transforming social problems which is related to the corporation into business opportunities and simultaneously yield greater profitability(Porter, Kramer,2011). As it sounds, it is a seductive promiseand has so far received obscene attention in the business markets and among business educators. Both authors seeks to regain trust in “business and society who has pitted against each other so long” …”Learning how to create shared value is our best chance to legitimize business”(Porter, Kramer, 2011) is how companies were viewed as prospering at the expense of the community. With both aims of evaluating and analysing the concept of creating shared value, in this paper, we suggest how CSV can help businesses harness its full potential by simply creating economic value while simultaneously creating value for society. Focusing on making the right kind profits, companies should look beyond just merely maximum profits but also integrates social benefits at the same time; starting a positive cycle which reconnects business with society. In CSV, it represents a new approach for businesses moving beyond CSR approaches in the past. However promising this bold new approach is, it has also created polarized...
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...Creating Shared Value Sean Brady Capella University October 28, 2012 Creating Shared Value In the article creating shared value the authors, M. Kramer and M. Porter discuss the current state of business value creation; and the efforts that need to be taken to create shared values. Currently businesses primarily concern themselves with profits and view value creation in such a way that they do not fully take advantage of their full potential. Additionally, the government has implemented policies that have only exasperated the drive from shared value creation. “Shared values form the basis for all relationships wherever we go in business and in life, we bring are own values along as well. When others share our values, this becomes a powerful and attractive force to bind us closer together. Shared values form the very basis for every relationship.” ("Shared," 2012) This is the very point that is made in this article; the business should not focus only on itself. When making decisions the business should look at its community and what it can do for that. “The concept of shared value resets the boundaries of capitalism. By better connecting companies' success with societal improvement, it opens up many ways to serve new needs, gain efficiency, create differentiation, and expand markets. The ability to create shared value applies equally to advanced economies and developing countries, though the specific opportunities will differ. The opportunities will also differ markedly...
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...Trust, Commitment and Value-Creation in Inter-Organizational Customer-Supplier Relationships Ricky Ryssel Siemens Business Services Management Consulting, Carl-Wery-Sraße 18, 81739 München, Germany Tel: +49 (89) 636-48887 E-mail: ricky.ryssel@mch20.sbs.de Thomas Ritter School of Management University of Bath, Bath BA2 7AY, U.K. Phone: +44 (1225) 32-33 19, E-Mail: t.ritter@bath.ac.uk Hans Georg Gemünden Institute of Technology and Innovation Management Technical University Berlin, HAD 29, Hardenbergstr. 4-5, D - 10623 Berlin, Germany Phone: +49 (30) 314-23 796 E-Mail: hans.gemuenden@tim.tu-berlin.de Abstract To strengthen their position in today’s highly competitive and fast paced business environment more and more supplier firms engage in relationships with their customers. These inter-organizational relationships have proven to create value for both parties involved. However, the management of such relationships requires resources and is a complex task. Recent advances in information technology offer new ways of managing inter-organizational relationships. The impact of those intra-organizational and inter-organizational information systems for creating value in business-to-business relationships has not been explored so far. In this paper, a conceptual model about the impact of information system deployment on value-creating functions of inter-organizational buyer-seller relationships is developed. Based on an empirical study with 60 German firms engaged in customer-supplier...
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...Creating Shared Value by Michael E. Porter and Mark R. Kramer January, 2011 The capitalist system is under siege. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community. Even worse, the more business has begun to embrace corporate responsibility, the more it has been blamed for society’s failures. The legitimacy of business has fallen to levels not seen in recent history. This diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth. Business is caught in a vicious circle. A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. They continue to view value creation narrowly, optimizing short-term financial performance in a bubble while missing the most important customer needs and ignoring the broader influences that determine their longer-term success. How else could companies overlook the well-being of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers, or the economic distress of the communities in which they produce and sell? How else could companies think that simply shifting activities to locations with ever lower wages was a sustainable “solution” to competitive challenges? Government...
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...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 p...
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...My personal ideas behind the Shared Value Principle. Since the last decade, and under the concept of Corporate Social Responsibility (CSR), myriad companies have been working very hard to be in compliance with the new laws and ethical standards. The actions imposed by governments are still considered by firms as a legal responsibility to prevent damage to environment. Notwithstanding, they also think that it is an effective means of improving their reputation vis-à-vis the communities in which they work. Usually accepted a necessary expense, I am of the opinion that the CSR old-fashioned perspective is little by little in the process of being replaced by a new one… The Creation of Shared Value (CSV). Still in its genesis, Shared Value tries to make business and society work in complete harmony. Although it follows the same CSR’s rationalization of doing well by doing good, it differs in the sense that CSV creates both societal and economic value by simply addressing population’s needs. The purpose of creating value is to find a connection with current and prospective costumers. Through the social interest, firms are able to help communities while still making profit out of the situation. By concentrating on customers’ needs, companies are complementing missions and ensuring future without forgetting that these are the needs that at present define the market. I then define Shared value as a set of good practices that a company must exploit to get the best competitive advantage...
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...Ones and Dilchert’s article: the creation of organizational cultures. Here, we will develop the idea of how culture, value creation, and competitive advantage are linked to environmental sustainability. We will briefly illustrate our arguments with findings from our case-study research in the hospitality industry in 13 Iberoamerican countries.1 1. Ours is research in progress, based on qualitative and mixed research methods. It aims to analyze the role of sustainability in the hospitality sector in Iberoamerica: Spain, Portugal, and Latin America (concretely, in Chile, Brazil, Peru, Argentina, Mexico, Colombia, Venezuela, Uruguay, Costa Rica, Nicaragua, and the Dominican Republic). Organizational culture and sustainability Sustainability and Organizational Culture There is a nascent body of literature that aims to understand how companies can embed sustainability in their organizational cultures (Howard-Grenville & Bertels, 2012). For these authors, culture has been conceptualized as shared norms or values (reinforced through the role of leaders and ‘‘champions,’’ the allocation of resources, the use of incentives, and the existence of corporate policies), as a frame or filter (that is, as recursive connections between people’s day-to-day actions and the meanings associated with them), and as a toolkit (made malleable by individual actors who use cultural resources in new ways). Among the myriad of conceptualizations available, Ulrich and Brockbank...
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...understandable to a particular group. That is, the system of shared values, beliefs, behaviours, and artefacts making up a society’s way of life. Culture can either be represented fin form of material or non material culture. The definitions and specific traits of each of them are discussed below. Material culture is a term representative of the physical creations made, used, or shared by the members of a certain society; it is the society’s buffer against the environment. The components of material culture are all the creations (objects) of the human kind and mind, for example, cars, faucets, computers, trees, minerals just to mention but a few. The transformation of raw material into useable forms through the employment of knowledge is paramount in the achievement of material culture. For example, we make living abodes to shelter ourselves from the adversities of weather and for our own privacy at the basic level, beyond this we make, use, and share sophisticated, interesting and essential items relaying our cultural orientation. For instance, the types of clothes one wears reflect so much into the culture we subscribe to like school, religion, or where the last vacation was spent. Non-material culture on the other hand is the abstract or un-seen human creations by the society fashioned towards the behavioural influence of the said society. The components for the non-material culture include symbols, languages, values, and norms. For instance, the activities a society part...
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... SECI, Ba and Leadership: a Uni®ed Model of Dynamic Knowledge Creation Ikujiro Nonaka, Ryoko Toyama and Noboru Konno Despite the widely recognised importance of knowledge as a vital source of competitive advantage, there is little understanding of how organisations actually create and manage knowledge dynamically. Nonaka, Toyama and Konno start from the view of an organisation as an entity that creates knowledge continuously, and their goal in this article is to understand the dynamic process in which an organisation creates, maintains and exploits knowledge. They propose a model of knowledge creation consisting of three elements: (i) the SECI process, knowledge creation through the conversion of tacit and explicit knowledge; (ii) `ba', the shared context for knowledge creation; and (iii) knowledge assets, the inputs, outputs and moderators of the knowledge-creating process. The knowledge creation process is a spiral that grows out of these three elements; the key to leading it is dialectical thinking. The role of top management in articulating the organisation's knowledge vision is emphasised, as is the important role of middle management (`knowledge producers') in energising ba. In summary, using existing knowledge assets, an organisation creates new knowledge through the SECI process that takes place in ba, where new knowledge, once created, becomes in turn the basis for a new spiral of knowledge creation. = 2000 Elsevier Science Ltd. All rights reserved. As Alvin Tof¯er...
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...Resource Architecture: Relational Archetypes and Value Creation Sung-Choon Kang Cornell University Shad S. Morris Cornell University Scott A. Snell Cornell University, ss356@cornell.edu Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/cahrswp Part of the Human Resources Management Commons This Article is brought to you for free and open access by the Center for Advanced Human Resource Studies (CAHRS) at DigitalCommons@ILR. It has been accepted for inclusion in CAHRS Working Paper Series by an authorized administrator of DigitalCommons@ILR. For more information, please contact hlmdigital@cornell.edu. Extending the Human Resource Architecture: Relational Archetypes and Value Creation Abstract Theories of knowledge-based competition focus on internal resources as the source of value creation. The HR architecture (Lepak & Snell, 1999) brought human resource management directly into this forum by developing a model of human capital allocation and management. We attempt to extend the HR architecture by introducing a framework of relational archetypes—entrepreneurial and cooperative—that are derived from unique combinations of three dimensions (cognitive, structural, and affective) that characterize internal and external relationships of core knowledge employees. Entrepreneurial archetypes facilitate value creation from external partnerships while cooperative archetypes facilitate value creation from internal partnerships. This paper identifies...
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...Shared value concept-共同价值观- CRS内容 | 定义 | Shared value is a management strategy focused on companies creating measurable business value by identifying and addressing social problems that intersect with their business. The shared value framework creates new opportunities for companies, civil society organizations, and governments to leverage the power of market-based competition in addressing social problems. | 3 waysshared value can be created | Reconceiving products and markets – Defining markets in terms of unmet needs 未满足的需求or social ills and developing profitable products or services that remedy these conditions. * Example: BD developed a new type of safety syringe to reduce healthcare worker needle-stick injuries. This product innovation grew to $2 billion, approximately a quarter of the company’s revenue. Redefining productivity in the value chain – Increasing the productivity of the company or its suppliers by addressing the social and environmental constraints in its value chain. * Example: By reducing packaging and improving delivery logistics, Walmart saved $200M in distribution costs while growing the quantities being shipped Local cluster development – Strengthening the competitive context in key regions where the company operates in ways that contribute to the company’s growth and productivity * Example: Cisco reduced a key constraint to growing its addressable server market by launching the Networking Academy to train over four million network administrators...
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...management - the knowledge management nexus (KMN) - forms the core of BSD. KMN continually rationalises and revitalises the BSD. An inclusive concept of knowledge spectrum as the quintessential resource for value creation is elaborated briefly in terms of its dynamic configuration. A firm's intellectual capital (IC) is seen as the resultant of its KMN. IC represents a firm's meta-capability toward overcoming challenges and exploiting opportunities in its continual pursuit of value creation. Various methods, frameworks of KM discussed in class were : THE SKANDIA NAVIGATOR 1. Financial focus of the Skandia Navigator captures the financial outcome of our activities. It is here where we establish the long term goals and also a large part of the overall conditions for the other perspectives. This could be profitability and growth that shareholders demand. 2. Customer focus gives an indication on how well the organization meets the needs of its customers via services and products. 3. Process focus of the Skandia Navigator captures the actual processes of creating the services and the products which our customers desire. 4. Renewal and development focus aims at reassuring the organizations long term renewal and in part its sustainability. 5. Human focus: The process of knowledge creation is visualized in this focus area. It is also essential that the employees are happy with their work situation, satisfied employees lead to satisfied customers, improving...
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...Creating Shared Value MBA6008, Global Economic Environment June 6, 2014 The article “Creating Shared Value“ is a business concept created by the Harvard Business Review and written by Michael Porter and Mark Kramer on January 1, 2011. The article deals with the idea of innovating the purpose of a corporation and their relationship to the social environment in order to identify unknown customer needs and to expand the relationship with the communities in order to be mutually dependent. Porter and Kramer urge leaders to recognize that "shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success". They advocate that creating shared value will drive the next wave of innovation and growth in the global economy (Porter & Kramer, 2011). Several large corporations have already started implementing a shared value initiative – such as Google, IBM and Wal-Mart (Porter at el, 2011). Shared value creates economic value for the corporation through innovations that address society's needs and challenges. Companies create shared value in three ways: 1. By redefining products and markets 2. By redefining productivity in the value chain 3. By enabling local cluster development 1Arguably, products and markets are the greatest unmet needs in the global economy (Porter at el, 2011). Too many companies fail to reevaluate their strategy and ask themselves if their product is right for the customer. 2A company’s...
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...– A meso-level theoretical model is developed that outlines the relationship between self- and shared leadership, focusing on the intermediary processes of trust, potency, and commitment that may lead to the development of shared leadership and ultimately more innovative knowledge creation. Findings – Nine propositions are developed, addressing the relationships between self- and shared leadership, concluding with some of the theoretical and practical implications of the model and specific recommendations for future empirical work in this area. Research limitations/implications – An important boundary condition of the model is that it assumes team and organizational incentives are in place to encourage team building and the facilitation of team over individual achievements. Practical implications – Conceptualizing leadership in this way leads to numerous unanswered questions regarding how team dynamics influence, and are influenced by, various forms of leadership (including lateral, upward, and downward influence attempts). Greater dialogue between the team dynamics literature and the leadership literature may lead to new insights into how shared leadership is influenced by a variety of team characteristics, including team ability, size, member maturity, familiarity, likeability, cohesion, etc., all of which are potential areas for future research. Originality/value – Important research questions that stem from consideration of these two theories in concert will...
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...organisation leaders in facilitating organisational learning. One of the most fundamental theory to help us understand organisational learning is the concept of single-loop learning and double-loop learning developed by Argyris and Schon (1978). Single-loop learning is associated with the detection and correction of error without amendment made to the master program, which is the guide for daily operations in an organisation. It is only suitable for repetitive job tasks where minor problems can be solved immediately. Restricted to only making small changes, single-loop learning is not learning (Buchanan and Huczynski, 2004). Thus, the double-loop learning, in order to solve more complex issues. Double-loop learning happens when the underlying values of the master program are changed. This would involve challenging norms rather than blindly accepting them. While single-loop learning and double-loop learning theory focuses on outcomes, Kolb (1984) proposes another type of learning which focuses on process, which is the experiential learning theory. It is a theory that merges experience, cognition, behaviour and perception. One of the models of experiential learning theory is the Lewinian Experiential Learning Model. The model emphasises a four-stage cycle, it begins with concrete experience, followed up by observations and reflection based on data collected. Analysis of the data is then made, contributing to conclusions that actors can use in behaviour modification (Kolb, 1984). ...
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