How Shared Value Is Changing the Nature of Business Thought

Last year, Harvard Business School professor Michael E. Porter, who coined the term “shared value,” told an audience at the Shared Value Leadership Summit that he believes we are at an inflection point where investors will favor companies that support social and environmental change. He points to the fact: social responsibility has become imperative for business survival. I could not agree more. Whereas corporate engagement in society was once viewed as a business cost, to be traded off against profitability, today, companies are increasingly realizing that shared value — a management strategy and philosophy where companies seek to authentically engage with the communities in which they operate — creates a competitive advantage.

Rather than rolling out a meaningless CSR blanket

Creating shared value involves looking to society’s needs to drive business opportunities and customer understanding. It allows organizations to engage with people in a real, authentic, and productive Australia Phone Number Data way. This model is gaining momentum, in part because global consumers care very deeply about environmental and social issues and expect companies to play a major role in improving society. From strategy and product design to operations and internal communications, creating shared value is changing the way business leaders run companies, and technology is augmenting this global shift in powerful ways.

He predicts that assets in ESG

Environmental, social and governance exchange-traded funds (ETFs) will grow from a current $20 billion market share to more than $400 billion by 2028. With some enterprises, that might sound like lip service. In Australia Phone Number List a growing number of industries, however, it is indeed a business imperative. In order to appeal to investors, soon every company will not only need to deliver financial performance but also demonstrate their contribution to the outside world. Within five years all investors will be using ESG metrics to guide decisions, predicts Fink.

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