Shared value to fix capitalism and unleash a new wave of growth

by Michael Porter
in HBR, February 2011

"Capitalism is under siege. Diminished trust in business is causing political leaders to set policies that sap economic growth. Business is caught in a vicious circle. The purpose of the corporation must be redifined around creating shared value". (...)


"Creating shared value should supersede corporate social responsibility (CSR) in guiding the investments of companies in their commodities. CSR programs focus mostly on reputation and have only a limited connection to the business, making them hard to justify and maintain over the long run. In contrast, creating shared value is integral to a company's profitability and competitive position. It leverages the unique resources and expertise of the company to create economic value by creating social value" (...)

"The principles of shared value apply equally to governments and non profit organizations." (...)

"The principle of shared value creation cuts accross the traditional divide between the responsibilities of business and those of government or civil society. From society's perspective, it does not matter what types of organizations created the value. What matters is that benefits are delivered by those organizations - or combinations of organizations - that are best positioned to achieve the most impact for the least cost" (...)