December 22, 2011 1 Comment
FSG, defining itself as social impact consultants, is a non profit consulting firm specializing in strategy, evaluation, and research. Having Michael Porter (from Porter’s five forces analysis) in its board of direction, it is not a surprise they released an introductory video about his idea of the moment: creating shared value.
As explained elsewhere (e.g. on the FSG website itself, on wikipedia, in The New York Times or in the original article in HBR), creating shared value is about developing deep links between their business strategies and corporate social responsibility. Companies can create shared value opportunities in three ways:
- redefining the products, services and the markets that you serve (Novartis example in the video)
- redefining the value chain (Nestlé and HP examples in the video)
- enabling cluster development
IMHO there are two things that annoy me in this idea.
First, there is a lot about ecology, about how companies reduced their waste footprint, how they (help) reduce energy consumption, etc. I know that the earth is facing huge ecological issues but I don’t think it’s necessary to create new words for the same ideas.
Then, I would like to see more example about cluster development. Not only read more example in current practise. But also see more companies applying this idea of cluster development. A company can easily act in order to get more reliable and more “sustainable” suppliers (again new words for a new idea?). Do you know examples of companies that successfully acted to get a functioning infrastructure of roads and telecommunications or to get an effective and predictable legal system and at the same time created value for itself? There is an example about Yara improving ports and roads in Mozambique and Tanzania to help delivery its fertilizers and agricultural products. Are public–private partnership some kind of cluster development too? Although done since many years, are private investments in public universities now also considered as cluster development?
The discussion at the end of the HBR article is also worth reading.
What is your opinion about that?