Global Business Management Assignment: Shared Value and CSR Comparison

This essay delves into the concept of Creating Shared Value (CSV) and contrasts it with Corporate Social Responsibility (CSR). It explains how CSV, introduced by Porter and Kramer, emphasizes economic benefits through social engagement, differing from CSR's focus on social accountability. The essay highlights the CSV approach, where companies create economic value by addressing social issues, exemplified by companies like Tesla. It also discusses the importance of integrating social issues into business strategies to achieve economic and social value in a global context. The essay references several sources to support its arguments and concludes by emphasizing that CSV is a discipline used by companies to gain a competitive advantage and build social and economic values.

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What does “creating shared value” mean? How does this approach differ from the prior
approach to corporate social responsibility? How should a company create shared value
in an international business context?
The creation of shared values is a concept that is followed by companies for the
development of future markets while strengthening economies, communities and the
marketplace. CSV concept was published by Porter and Kramer in 2011; it is a conceptual
response to deficiencies in corporate social responsibility. CSV is different from CSR as
creating shred values underline that “social engagement must be economically beneficial for
a company and by relating it to strategic analysis” (Porter & Kramer,2019).
The concept of CSV highlights value creation by focusing on two dimensions that are
social and economic. By using the CSV approach the company creates economic value
through creating social value (Porter & Kramer,2019). However, the corporate social
responsibility concept is considered as the business model that helps firms to be socially
accountable to their stakeholders, to itself and to the public. Leandro & Neffa (2012),
suggested that CSV is the concept under the umbrella of CSR.
Creating Shared Value (CSR) Corporate Social Responsibility (CSR)
This is considered a positive approach to
solve social issues
Normative stance
The concern is to solve social issues and
create value for the business in the market
Under CSR social issues and economic
issues are treated separately
Actions of organizations are driven internally The action of organizations are driven
externally
Profits ( Economic Value) Assume generating profits
Focus on those social issues that are In CSR activities firms sacrifice the part of

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integrated with the company’s operations (In
this companies focus on creating economic
value through creating social value).
profits in social interest
Include strategic tools like value chain
analysis, diamond model, etc.
Detach from the organization strategic
framework
The creation of shared value is a concept that only focus on social issues that have
some impact on the business operations and that can help companies to generate economic
value (Pavlovich & Corner,2014). Further, CSV includes reconceiving markets and products,
reconfiguring the value chain in order to gain a competitive advantage with the aim of
improving life quality by the generation of economic benefit (Porter & Kramer,2019). .For
example, some companies like Body Shop, Starbucks and Innocent Drinks take issues that
can integrate with core business operations and with that create economic value through
providing social progress. Most businesses in this competitive scenario integrate social issues
with their business strategies in order to gain economic value and creating social value. A
most recent example of creating shared value is Tesla, the company changed its mission and
vision in order to solve the social issue that is climate change, pollution, and protection of
natural resources (Mendy,2019). With that, the company created economic value by
launching electric cars in order to solve a social issue.
CSR activities are used by all companies as it becomes the responsibility of each and
every organization to reduce the negative impact of its operations, In order to do so,
companies keep spend some part of their profit to solve social issues and to improve the
standard of living of people. The aim of CSR activities is not related to increasing the

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economic value of business rather its aim is to satisfy its stakeholders. Hence, both of the
concepts differ from each other in many aspects (Pavlovich & Corner,2014).
Pirson (2012), said that better ways of doing business ta the global level are to create
shared value. In order to create shared values companies need to take advantage of
opportunities by formulating strategies for solving the public problem and then integrating
those strategies in their business. This can be related to Tesla as Elon Musk took advantage of
this opportunity and use its organizational capabilities and resources to solve the social issue
at the global platform that is climate change (Mendy,2019). Hence, by focusing on global
consideration and integrating business strategies with social issues an organization can create
shared value at the global platform. The concept of shared value is not that different from
sustainability and CSR rather it is a new discipline with the same level of rigor and research.
Companies use this concept in order to gain competitive advantage and to build social values
with that to create economic value.

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References
Leandro, L., & Neffa, E. (2012). Is the integration of Shared Value Creation (SVC) with
strategy management of productive organizations an innovative approach to
environmental challenges faced by companies today. International Journal of
Business Management & Economic Research, 3(2), 484-489.
Mendy, J. (2019). Supporting the creation of shared value. Strategic Change, 28(2), 157-161.
Pavlovich, K., & Corner, P. D. (2014). Conscious enterprise emergence: Shared value
creation through expanded conscious awareness. Journal of business ethics, 121(3),
341-351.
Pirson, M. (2012). Social entrepreneurs as the paragons of shared value creation? A critical
perspective. Social Enterprise Journal.
Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.