by Mark Lyster
Assessing the relationship
between sustainability and financial performance of the ASX 300:
Shared Value” perspective Preliminary Findings
In January 2011, Michael Porter and Mark Kramer published an article entitled ‘Creating Shared Value’ in the Harvard Business Review. Heralded with a front-‐page headline ‘How to fix capitalism – and unleash a new wave of growth’, the article captured the imagination of the business world. Porter and Kramer outlined a vision of ‘policies and operating practices which enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates.’
Net Balance is at the forefront of advising clients on CSV in Australia and is actively involved with the ‘Shared Value Initiative’ being led by FSG in the United States. In 2012 Net Balance co-‐hosted a full-‐day forum on Creating Shared Value with Mark Kramer.
This project set out to explore whether there might exist a positive correlation between CSV and financial performance, as has already been demonstrated for social and environmental performance. The research was conducted as a collaborative between the Net Balance Foundation, the University of Sydney Business School and CAER (Corporate Analysis Enhanced Responsibility).
The preliminary findings were presented by the Net Balance Foundation at a forum on 12 February 2013. They reveal that large companies are investing in CSV-‐type activities and that these investments appear to be associated with a good quality of management and investment in the future. While CSV does not appear yet to be linked to share price, it does lend itself to measuring returns and market growth.
For more information, see the full report http://www.netbalance.com/sites/all/themes/netbalance/research/CSV-Ph1_Report_Fin270213.pdf
For further information on Net Balance CSV capabilities, see: http://www.netbalance.com/sites/all/themes/netbalance/brochures/CSVcapstat_vea.pdf
Or contact:Sydney Mark Lyster: email@example.com, Les Hems firstname.lastname@example.org
Melbourne Cameron Neil email@example.com
Mark Lyster is a Director of Net Balance (firstname.lastname@example.org),
one of the world’s leading sustainability advisory firms.
Mark is based in Sydney.