Creating Shared Value
Net Balance is part of the Shared Value Initiative (SVI), a global community of practice committed to driving adoption and implementation of shared value strategies among leading companies, civil society, and government organisations.
Launched at the Clinton Global Initiative (CGI) Annual Meeting in 2012, SVI is supported by leading global corporations, not-for-profits and foundations committed to creating shared value between business and society. Net Balance is part of a network of independent companies trained to provide shared value consulting services having been selected for our thought leadership, consulting expertise and experience in the area.
What is Creating Shared Value?
The term creating share value (CSV) was coined by Professor Michael Porter and Mark Kramer in a publication ‘Creating Shared Value- How to reinvent capitalism’ (Harvard Business Review, January/ February 2011). It was followed up by a paper from their colleague Marc Pfitzer, Innovating for Shared Value (Harvard Business Review, September 2013).
CSV is reflective of a major shift in corporate strategy development, where profit and societal issues are intrinsically linked with the aim of creating shared value.
Traditionally the intent of corporate strategy is to ensure profit, while the intent of corporate social responsibility is to address social or environmental issues that are often separate to core business. The strategic intent of CSV is to generate profit while addressing these issues.
Innovative businesses are using CSV to assess social and environmental issues as commercial opportunities. It is about creating business value by creating societal value.
Innovation and creativity are key to CSV, which is about weaving social need in to the fabric of business and creating new ways of doing things. Importantly it is evidence-based. It is not about intention, but measureable impact in solving identified problems.
Net Balance believes businesses are uniquely positioned to leverage their size and resources to address environmental and societal problems sustainably and at scale.
Net Balance CSV Green Paper
Net Balance is developing a green paper exploring the role of CSV in Australia. A draft of the report can be found here. Companies taking part in the research are National Australia Bank, BT Financial, Lion, Stockland, PwC, Nestle and Toyota Australia.
How Net Balance can work with you
We view CSV as fundamentally a growth strategy that enables business to expand existing markets or create new markets for products and services that address communal needs. It can also improve supply chain productivity, reducing costs whilst minimising societal and environmental impacts.
CSV is a valuable addition to evolving your sustainability and corporate social responsibility agendas. It does not replace these well-known frameworks but builds on their core principles and aspires to create business value from strategically addressing societal and environmental issues with new or reframed products, services, business models or supply chains.
Net Balance can work with you to explore how CSV may be applicable to your organisation, help develop your CSV strategy and evaluate the outcomes.