Porter, M. E. (2014). Creating Shared Value: Becoming a Movement. In: Shared Value Leadership Summit. New York, 13 May 2014. Boston: Harvard Business School. 원문보기
자료정리: 김예영
The Power of Capitalism in Social Improvement
NGOs and Shared Value
Advancing an NGO’s mission through shared value partnerships with companies (and sometimes other stakeholders)
- PATH partnered with BD to develop and distribute technology for safe injection in low-resource settings
- CARE partnered with Unilever to develop a distribution model in rural Bangladesh that provided training and created thousands of jobs for low-income women
- TechnoServe partnered with Ethiopia’s Nib International Bank and the IFC to administer working capital loans to 62 cooperatives made up of 45,000 coffee farmers
Leading Extractives Companies Are Investing in Shared Value
| ANGLO AMERICAN | Anglo American’s eMalahleni water treatment plant in South Africa treats waste water from its mines to drinking water standard, meeting 20% of daily water needs in the water-starved community while offsetting 60% of the costs of operations |
| BHPbilliton | BHP Billiton invested $50M in northern Chile to create a cluster of world-class mining suppliers. The 36 suppliers involved employ 5,000 people, and BHP Billiton has achieved $121M in NPV of cost savings |
| RIO TINTO | Rio Tinto’s Diavik Diamond Mine in Northern Canada worked with communities, contractors, local governments and education institutions to develop a local workforce and supplier base – Rio Tinto now hires 62% of employees and sources 71% of goods and services locally, saving transportation costs in a remote area |
From Initiatives to Enterprise Level Shared Value Programs
| Nestlé | Nestlé aligned corporate vision with a social purpose and set enterprise-wide shared value goals to guide business planning |
| DOW | Dow introduced the Breakthroughs to World Challenges Initiative to challenge all business units to pursue shared value |
| NOVARTIS | Novartis established a social business group with seed capital and a cross-functional team to incubate key shared value initiatives like Arogya Parivar in India |
| BD | Becton Dickinson implemented a shared value leadership education program at headquarters level and in major markets (e.g., Brazil) to deepen BD’s ability to implement shared value globally |
| INTEL | Intel tied a portion of incentive compensation to performance on social and environmental priorities |
From Product to Purpose Based Strategic Positioning
| Traditional Positioning | New Positioning | |
| Nestlé | Food and Beverage Company | Nutrition, Health and Wellness Company |
| IBM | Computers and technology | “Smarter Planet” |
| Pearson | Textbook Publishing | Improving Educational Outcomes |
| Discovery Health Insurance | Health Insurance | “Making People Healthier and Enhancing Their Lives” |
- Defining the social purpose underlying a company’s products and activities opens new opportunities for growth and profitability, while motivating and attracting consumers, business partners, employees, shareholders, and the public
Investors and Society
| Economic Purists | Ethical Investing | Sustainability Investing | Impact Investing | Shared Value Investing |
| Nonfinancial factors are irrelevant to security analysis | Negative screens that exclude “bad” industries or companies | Rank companies on comprehensive list of ESG criteria | Invest in profit making businesses with a core social purpose | Identifying companies that are improving economic value through addressing social problems and opportunities |
| Taking social factors into account is inconsistent with fiduciary responsibility by necessarily resulting in suboptimal financial returns | Unrelated to company financial performance | Many factors are not material to social or economic performance | •Mostly private equity
•Limited number of “pure play” companies traditional investment |