Shared Value In Literature

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Shared value in the literature Shared value is not a new concept and has been used in a rather hazy manner but its more precise definition dates back to the 1980’s when shared values were seen as ‘‘clearly articulated organizational values make a significant difference in the lives of employees, as well as in their organization’s performance’’ (Posner et al., 1985, p. 293). Though not todays more precise definition it is clear that already there was an understanding that companies should take an interest in social matters as well as the usual performance driven objectives. More recently shared value has been placed in the spotlight thanks to Porter and Kramer who first published an article in 2006 before refining it in 2011. They argue…show more content…
The point to Wal-Mart who was able to reduce its packaging waste and reroute its trucks, thus cutting 100 million miles from its delivery routes and saving 200 million dollars even as it shipped more products. Other examples include Itunes, Kinddle and Google Scholar who are realizing that different distribution methods waste less paper and plastic. More original ideas can be found with Unilever which has created direct to home distribution in small villages in India by training and offering micro credit to underprivileged entrepreneurial women. They now have 45 000 workers covering 100 000 villages (Porter&Kramer, 2011, p.…show more content…
“Productivity and innovation are strongly influenced by “clusters,” or geographic concentrations of firms, related businesses, suppliers, service providers, and logistical infrastructure in a particular field—such as IT in Silicon Valley, cut flowers in Kenya, and diamond cutting in Surat, India.” (P.12, Porter&Kamer, 2011). Clusters are not just business but can also be institutions (like academic programs) and public assets ( such as universities, clean water, market transparency…) However as companies have distanced themselves from societies so has their influence and costs have increased. Firms can improve local clusters by addressing gaps or failures in the surrounding system and/or the clusters already in place. Cluster thinking has (..) been missing in many economic development initiatives, which have failed because they involved isolated interventions and overlooked critical complementary investments. With the creation of clusters comes a direct link between the success of a local community and the business set in said
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