Corporate Social Responsibility By Porter And Kramer Essay

Shared value is a business strategy which focuses on creating overall value while addressing social problems. This concept of management strategy was expressed in the â€Å"Creating Shared Value† article by Porter and Kramer. Shared value is not just an aspect of a company’s growth strategy or general business operations. It is well integrated in the way a company operates along with what their goals are as an organization. The value created for a company’s targeted end user also has some sort of social impact which benefits their company purpose. Creating social impact is a company goal and success is measured through creating a shared value network. Porter believes that â€Å"The ability to address social issues is integral to profit maximization instead of treated as outside the profit model.† He is addressing that profits are not measured by impact not just monetary gains for the company, we can change our mindset to think of profit in a different way. Profit can be a benefit or some sort of added value. In this approach Porter argues that â€Å"Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them.† This relationship is the driving force for a company’s development and future growth, and it goes beyond corporate strategy it also incorporates investments and key stakeholders for each company. Quantifying a monetary figure and amount for social impact may be extremely difficult, however it has progressed with awareness andShow MoreRelatedThe Link Between Corporate Social Responsibility And The Competitive Advantage Of A Company1332 Words   |  6 PagesIntroduction The purpose of this essay is to show that the link between Corporate Social Responsibility the competitive advantage of a company is often viewed to be positive if environmental limits, social needs corporate interests are all coordinated within the given framework (Porter Kramer, 2011). 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