This essay aims to critical analyse the concept of Creating Shared Value written by Porter and Kramer (2011), discussing the Author background and language used, as well as the strengths of CSV that takes social responsibility to the centre of the business, meanwhile pointing some weaknesses and comparing with another concept called Corporate Social Responsibility. Is CSV the answer for all businesses problems?
Michael E. Porter can be consider one of the most respected gurus on management and competitiveness, well regarded among academic, corporation, government, non-government organizations around the world. ‘Author of 19 books and over 130 articles’ (“About Michael Porter - Institute For Strategy And Competitiveness - Harvard Business School,” …show more content…
Porter and Kramer may have drawn a biased picture of CSR in order to promote CSV. If compared the latest developments of CSR with CSV, might be clear that fundamentally the two concepts are very similar, both highlighting the importance of being social responsible and ethical in order to maximise profits and both theories aiming to be a long term solution to legitimize businesses towards social requirements as well as seek economic growth. Another critic from Crane et al (2014) is by the fact that CSV fail to address the conflicts between social and economic agenda, issue also seen on Carroll’s Pyramid of corporate social responsibility (Carroll, 1991) where in some cases fail to identify the boundaries between the four categories (Griseri, P. & Seppala, N. (2010)., n.d.). CSV works very well when Social and Economic agenda are benefited, Porter’s article (2011) cited Wal-Mart, that managed to save $200 million by reducing packaging and carbon emission just working on their logistics, however, CSV theory struggles when social and economic interests are in conflict, as an example, the so called Sweatshops on clothing industries (de los Reyes Jr., Scholz, & Smith, 2017). Clothing is one of the bigger industries in the world, supported by many global brands and while they claim to be following CSR or CSV practices, they fail to address the sweatshops’ problem improving working conditions or guaranteeing minimum wage on developed countries such as India, China and Thailand. To secure the continuity of CSR or CSV practices on disadvantaged economic
Michael E. Porter can be consider one of the most respected gurus on management and competitiveness, well regarded among academic, corporation, government, non-government organizations around the world. ‘Author of 19 books and over 130 articles’ (“About Michael Porter - Institute For Strategy And Competitiveness - Harvard Business School,” …show more content…
Porter and Kramer may have drawn a biased picture of CSR in order to promote CSV. If compared the latest developments of CSR with CSV, might be clear that fundamentally the two concepts are very similar, both highlighting the importance of being social responsible and ethical in order to maximise profits and both theories aiming to be a long term solution to legitimize businesses towards social requirements as well as seek economic growth. Another critic from Crane et al (2014) is by the fact that CSV fail to address the conflicts between social and economic agenda, issue also seen on Carroll’s Pyramid of corporate social responsibility (Carroll, 1991) where in some cases fail to identify the boundaries between the four categories (Griseri, P. & Seppala, N. (2010)., n.d.). CSV works very well when Social and Economic agenda are benefited, Porter’s article (2011) cited Wal-Mart, that managed to save $200 million by reducing packaging and carbon emission just working on their logistics, however, CSV theory struggles when social and economic interests are in conflict, as an example, the so called Sweatshops on clothing industries (de los Reyes Jr., Scholz, & Smith, 2017). Clothing is one of the bigger industries in the world, supported by many global brands and while they claim to be following CSR or CSV practices, they fail to address the sweatshops’ problem improving working conditions or guaranteeing minimum wage on developed countries such as India, China and Thailand. To secure the continuity of CSR or CSV practices on disadvantaged economic