A new way of doing business: Creating Shared Value

Recently Porter published an article about doing business in the 21st century. His vision? The traditional capitalist way of doing business is under siege, and companies need to reinvent the way they work.
And corporate social responsibility programs are not the solution. According to Porter, Creating Shared Value is. At the center of what companies do, not at the periphery. By doing business that benefits both the economy and the society.



Some outtakes:

“I don’t want to give margins away if I don’t have to…”
A better system is not about re-distributing the pie, but about growing it; so everyone benefits.
Create a win-win-win situation

“We have already replaced our coffee cups for carton ones, and we drive all a fuel efficient car …”
Innovating in the surrounding processes of your business is easy and safe. It is a good signal, but the real impact is limited.
Look at the areas where your company can really make a difference. Then innovate on the core of your company.

“Due to our position in the chain it is really different to make a difference.”
Invest your efforts in topics that really matter.
Porter defined several areas where you can make a difference, depending on your activities and industry.



Some pointers for companies in The Netherlands?

Supplier access and viability
Large companies with bargaining power (eg. Akzo Nobel, KPN, Ahold, Jumbo, DAF Trucks, Heineken)

Employee skills
Companies that highly depend on people as most important asset (eg. ING, ABN Amro, Aegon, Randstad, national and local governments)

Worker safety
Most accidents happen in the agriculture, construction, and transport industry (eg. Bam, Heijmans, VolkerWessels, Ballast Nedam, ProRail)

Employee health
Sectors with high working pressure and sick leave. eg. Police department, hospitals, and elderly care homes

Energy use
Transport and (mass) production companies, as well as grid operators (eg. Enexis, Alliander) and energy suppliers (eg. Eneco, NUON, Essent)

Environmental impact
Large manufacturers with impact during the production and during the use and dismissal of their products (eg. Unilever, P&G, Hunter Douglas, Philips)

Water use
Companies that consume a lot of water, eg. agricultural sector, or the retail/ clothing industry with outlets in The Netherlands (water for producing cotton and textile) eg. H&M, Puma, Nike, G-Star

Here you find the article and a movie from Porter on Corporate Shared Value