This paper will address the ever-growing problem for business around the world, moving forward in the 21century. How can they continue to accelerate growth and keep their competitive advantage? Furthermore, in which way should their path to economic prosperity go, when complains from the surrounding world against the world of business is at a high, with the blame of causing social, environmental and economic problems at their own expense. The path seems to be bumpy when trying to please both parties, the society and companies. Michael E. Porter and Mark P. Kramer addresses this problem in their published article from 2011 called Creating Shared Value – How to reinvent capitalism, and unleash a wave of innovation and growth. Partially based on their article I will take on solving the question: How can Porter and Kramers framework be a path to businesses continuing accelerate growth adding to shareholder value but at the same time adding value to society. The papers research design will take its foothold in gathering qualitative data from empirically sources, published working papers, business cases and theoretically frameworks to test the framework of creating shared value. Besides testing the framework the theoretical way, the framework will also be tested in the practically way through two case analysis of two major companies. The findings will show results in the theoretical way and in the practically way. Put these to answers together and the paper finds that, in order for a company to reach a multiple scenario where both economic growth is achieved, and on the other hand society welfare gains, the answer lies in shared value creation. Previously theory and case studies, processed in this paper, supports the way that creating shared value, takes on solving the challenge of creating value to both society and business. And like the authors Porter and Kramer states, perhaps this could be the next wave of innovation and growth.
|Educations||Graduate Diploma in International Business, (Diploma Programme) Final Thesis|
|Number of pages||73|