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The Enlightened Trend: Shared Value vs. Shareholder Value

93% of CEOs believe sustainability issues will be key to business success in the future.  The concept of creating shared value vs. shareholder value is beginning to penetrate the consciousness of many corporate boardrooms. This new report from FSG – the nonprofit consulting firm – gives best in class examples of social engagement strategies where corporate and social issues are aligned.

According to FSG, “the most advanced companies have begun to look at social engagement through a different lens entirely.  Rather than seeing business and society in opposition, they recognize the enormous potential of business to contribute to social progress.  At the same time, they understand that firms depend on healthy and well-functioning societies to thrive.  Such companies seek to create “shared value” –incorporating social issues into their core business strategies to benefit both society and their own long-term competitiveness.”

Says Harvard Business School professor Michael E. Porter, “What’s happening now is really a redefinition of the boundaries of capitalism.  Creating shared value is the next stage of evolution in the sophistication of the capitalist model.”

The report was sponsored by HP and features examples from global business leaders committed to creating shared value, including Alcoa, GE, Cisco, and Nestle among others.

You can download a pdf of the report here.