Creating Shared Value by Business Name of the Student Name of the University Author note: Porter and Kramer 2011

Running head: CREATING SHARED VALUE BY BUSINESS
Creating Shared Value by Business
Name of the student
Name of the University
Author note

CREATING SHARED VALUE BY BUSINESS1
The title of the article is “Creating Shared Value” and it has been written by Michael
E. Porter along with Mark R. Kramer. The article was published in Harvard Business Review
in the year 2011 (Porter and Kramer 2011). The article discusses that corporation can create
shared value if they provide societal benefits. The article states that companies can be
economically successful in the event of catering to the needs of the society. This article states
that the social harms can cause the firm to incur internal cost that can cause the firm to suffer
loses. I think that the article has rightly pointed out that there exist connection between
societal and the economic progress of a country.
The purpose of the article is to talk about how a business can create opportunities for
itself by reconceiving the products along with markets. The article has talked about the
decisions of a form should be viewed through lens of the shared value. The intended audience
of the article are the new business ventures and the entrepreneurs who want to survive within
the competitive market. The source is reliable as it has been brought out in the reputed
journal of “Harvard Business Review”. The source is important as this journal is universally
acclaimed and the ideas of the journal are made use of by the reputed managers and the
business in the world. The article talks about the fact that competitiveness of the company is
closely intertwined with health of communities (Porter and Kramer 2019). This article states
that business needs successful community for creating demand for the products. Successful
business can help the people in the communities in getting jobs and it can pave the way for
giving wealth creation opportunities to the citizens.
The article deals with the idea of value creation in relation to a business that can help
a firm in getting competitive advantage. The article talks about that the configuration of value
chain can help a firm in rising above the competitors. This article discusses how the concept
of the shared value can reset boundaries in relation to capitalism. The connecting of the
success of a company with that of societal improvement can help in opening ways that can

CREATING SHARED VALUE BY BUSINESS2
increase the efficiency of a firm. The demand for the products that can help in meeting the
needs of the society is increasing in the present age (Beschorner 2014). The article talks about
how the food companies that traditionally concentrates on taste is focussing on better
nutrition that can help in driving profit for the firm. According to me, the article has rightly
pointed out the link that exists between societal concerns and that of productivity benefit in
relation to a firm. I think that the article has aptly pointed out how the factors like employee
skills, employee health, worker safety, energy use and water use can increase the profit that is
made by a firm. The article provides enough evidence for supporting the points as it has
provided examples of companies that have successfully made profits by indulging themselves
in charitable acts. The article has given the example of Thomson Reuters within India that has
been able to profit by providing agricultural advice. The agricultural service provided by it
reaches a large number of farmers which has tripled the income of the farmers (Schwartz
2017). The article has discussed how the excess packaging in relation to the products proves
to be costly both for environment and the business. It has also brought forth the example of
Wal-Mart that has reduced the packaging and the rerouting of its trucks that has helped it in
saving around $ 200 million (Hsiao and Chuang 2016).
The companies should create programs that can support the purpose of a company and
the objectives should be measured on the regular basis. The companies in the present age
focusses on defeating poverty along with advancing of education that helps them making
profit in the long run. A non-profit company can help in solving the global issues as it looks
beyond profit and lends its hand that can help in serving the broader community (Turner and
Mann 2017). National governments does not have resources for addressing global issues and
international community does not have actionable agreements that can provide the adequate
resources. The non-profit companies have worldwide influence that can help them in
accomplishing their purpose. A self-regulated business can aid the performance of the firms