I Pledge On My Honor That I Have Not Violated Central Michig

I Pledge On My Honor That I Have Not Violated Central Michigan Unive

I Pledge On My Honor That I Have Not Violated Central Michigan Unive

“I pledge on my honor, that I have not violated Central Michigan University’s academic integrity policy.”

Compare: The article and chapter both relate to a shared value creation framework that proposes managers maintain a dual focus on shareholder value creation and societal value creation. Shared value recognizes that markets are defined not only by economic needs but also by societal needs and challenges. A corporation is considered a social establishment that exists to fulfill social needs, with profit being a motivation for action rather than the sole reason for existence (Page 77, Creating Shared Value; Page 425, Textbook).

Contrast: In contrast, the article specifically states, “Shared value, then, is not about personal values. Nor is it about ‘sharing’ the value already created by firms or a redistribution approach. Instead, it is about expanding the total pool of economic and social value” (Page 65, Creating Shared Value). The article emphasizes that shared value goes beyond redistribution and aims to increase the overall value that benefits both society and firms.

The article elaborates that if many more companies focused on creating shared value, we would see significant changes, including stronger political support for sustainable policies, companies addressing a broader set of environmental problems with less press and more creativity, and proactively preventing environmental issues before they occur (Page 73, Creating Shared Value).

Additionally, Emily Rawson, Drew Van Hees, and Kevin Bringhurs contribute to the discourse by discussing how to create inclusive, sustainable, and profit-generating ecosystems. They highlight that economic globalization has led many companies to establish factories in foreign countries with lower costs, often in regions plagued by poverty. The authors argue that corporations should seek projects that generate economic benefits for themselves while also creating socio-economic gains for all actors involved in the new ecosystem (Page 129).

Following a sustainable development strategy, companies should benefit both themselves and local communities, which requires reaching beyond internal capabilities and partnering with other private-sector entities, governments, communities, and nonprofits to develop ecosystems that deliver shared value (Page 133). This approach aligns closely with the shared value creation framework outlined in the textbook, which advocates that managers maintain a dual focus on shareholder value and societal value (Page 424, Textbook).

Paper For Above instruction

The concept of shared value creation has garnered increasing attention among scholars and business practitioners as a means to reconcile economic success with societal well-being. This framework challenges traditional paradigms that consider profit maximization as the primary goal of business and instead advocates for a dual focus that integrates social impact into corporate strategy. The theoretical underpinnings of shared value suggest that economic and social interests are mutually reinforcing rather than mutually exclusive, shifting the paradigm towards a more sustainable model of capitalism. This paper explores the shared value creation framework, its juxtaposition with traditional views, and its application in contemporary global business practices.

At its core, shared value creation posits that corporations can generate economic benefits while simultaneously addressing societal challenges. Michael Porter and Mark Kramer (2011) pioneered this concept, arguing that businesses can unlock new avenues for growth by identifying opportunities embedded in societal problems. For instance, addressing health issues, environmental sustainability, or improving education can open new markets and reduce costs in operations. The shared value model diverges from corporate social responsibility (CSR) or philanthropy, which often treat social initiatives as separate from core business strategies. Instead, shared value integrates societal improvement directly into profitability and competitiveness, thus fostering a more holistic approach to corporate success.

The difference between shared value and traditional CSR is articulated in the literature. CSR often involves discretionary acts such as donations or voluntary programs, which are peripheral to the company's core operations. Conversely, shared value is about embedding social objectives within the company's value chain, from product design to supply chain management and community engagement. This approach ensures that societal benefits are integral to the firm's strategic planning, leading to sustainable competitive advantages. For example, Nestlé’s efforts to improve water efficiency not only contributed to ecological conservation but also reduced production costs, exemplifying how societal and economic goals can align.

Moreover, the article emphasizes that creating shared value expands the overall economic and social value of a community or ecosystem. It is not merely about redistribution, which can sometimes be a contentious or limited approach, but about expanding the total pool of value that benefits all stakeholders. This is especially crucial in a world where societal and environmental challenges like climate change and inequality threaten long-term economic stability. Companies adopting shared value strategies can influence policy, foster innovation, and build reputation, ultimately leading to enhanced profitability and societal benefits.

The practical implications of shared value are evident in corporate initiatives aimed at sustainable development. For example, Unilever’s Sustainable Living Plan strives to decouple growth from environmental impact while increasing positive social impact through improved livelihoods in supply chains. Such initiatives demonstrate how companies can leverage their core competencies to address societal problems effectively. These strategies often require rethinking traditional business models to incorporate social goals, which can lead to the creation of new markets, efficiencies, and innovations—key drivers of competitive advantage.

The article also discusses the importance of a broader ecosystem approach, highlighting that companies do not operate in isolation. Success in creating shared value depends on collaborations across sectors, including public-private partnerships and involvement of local communities. The authors suggest that sustainability and shared value creation require reaching beyond internal resources to engage with external actors who can contribute different capabilities and insights. This cross-sector cooperation enhances the capacity to tackle complex challenges such as poverty, health disparities, and environmental degradation.

In conclusion, the shared value creation framework represents a transformative shift in how corporations conceptualize their role in society. By aligning economic and social objectives, companies can foster sustainable growth while addressing pressing societal needs. The approach moves beyond philanthropy or CSR and advocates for integrating societal value into the core business strategy, which can lead to stronger economic performance and social impact. As businesses increasingly operate within interconnected global ecosystems, adopting shared value principles will be essential for creating resilient, inclusive, and sustainable organizations that thrive in the long term.

References

• Porter, M. E., & Kramer, M. R. (2011). Creating Shared Value. Harvard Business Review, 89(1/2), 62-77.
• Porter, M. E., & Kramer, M. R. (2019). Creating Shared Value: Redefining Capitalism and the Role of Business in Society. Harvard Business Review.
• Crane, A., Palazzo, G., Spence, L. J., & Matten, D. (2014). Contesting the Value of CSR. California Management Review, 56(2), 130-153.
• Porter, M. E., & Van der Linde, C. (1995). Green and Competitive: ending the stalemate. Harvard Business Review, 73(5), 120-134.
• Schultz, M., & Parga, T. (2019). Sustainable Business Strategy: A Guide to Creating Competitive Advantage and Increasing Shareholder Value. Routledge.
• Yunus, M. (2010). Building Social Business: The New Kind of Capitalism That Serves Humanity's Most Pressing Needs. Public Affairs.
• Zadek, S. (2004). The Path to Corporate Responsiblity. Harvard Business Review, 82(12), 125-132.
• Elkington, J. (1997). Cannibals with Forks: The Triple Bottom Line of 21st Century Business. Capstone Publishing.
• Sridhar, S., & Rao, P. (2016). Creating Shared Value & Its Implications for Corporate Governance. Journal of Business Ethics, 134(2), 289-303.
• Husted, B., & Allen, D. B. (2007). Corporate Social Strategy in Multinational Companies: From CSR to Creating Shared Value. Journal of Business Ethics, 74(4), 473-489.