Creating Shared Value is about creating new operating policies and procedures that will allow a company to maximize its revenue, while also offering benefits that contribute to the local community.
The main concept is to tackle everyday problems through Capitalism. It is a reflection on Capitalism. It is an idea that is very well received as many people are against Capitalism today. “Creating Shared Value” will not work for every business, but it certainly opens the door for new ideas.
An example Michael Porter refers to is the environment. He says businesses think it is more expensive to care for the environment. That is not the case. Businesses can make money for being environmentally friendly eg. packaging.
In my opinion, “Creating Shared Value” is a great thing. It holds the key to unlocking the next wave of business innovation and growth. It will also reconnect company and community success in ways lost in an age of narrow management approaches, short – term thinking, and deeper divisions among the institutions of society. There are disadvantages for different businesses, but this will not work for everyone. Basically, if you cannot make money, don’t do it.
University Politehnica of Bucharest
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