Creating shared value: A systematic review, synthesis and integrative perspective

Abstract

Creating shared value (CSV) refers to a strategic process through which corporations can turn social problems into business opportunities. CSV's strategic approach in solving societal problems and its close relationship with strategic corporate social responsibility (CSR) and stakeholder theory have kept the concept in the spotlight in both the corporate and academic worlds. As a result, the literature on CSV is riddled with ambiguities, weak theoretical foundations and contradictions. To better understand and address these ambiguities, we conducted a systematic literature review of 242 articles published from 2010 to 2020. We begin with a comprehensive review of the field and develop a definition of CSV that distinguishes it from related concepts. Our review and analysis reveal, firstly, that CSV is a meaningful, incremental addition in the extant literature and not a revolutionary concept, nor a buzzword. Secondly, assuming that firms are rational, a firm's decision function when it comes to adopting a CSV strategy depends on opportunity costs and transaction costs. Thirdly, there is no single universal way to create shared value: multiple external and internal factors influence a firm's ability to pursue a CSV strategy effectively. Our discussion delineates the key differences between scholars of strategy and scholars of business ethics, and directs avenues for more constructive research. We also believe that this study will act as a guide for managers in adapting to CSV strategies, helping corporations adopt society‐friendly policies.

Creating shared value: the case of innovability at Suzano in Brazil

“…It is a systemic concept. Suzano demonstrates as suggested by Porter and Kramer (2011) and Menghwar and Daood (2021) that social and business results are interconnected. Business objectives are defined by the means that it is good for the company if it is good for the world.…”

“…For the authors, purpose-driven leadership is a key element to transform sustainability into strategy. Contesting Menghwar and Daood (2021), Crane et al (2014) and Beschorner's (2013 arguments, Suzano' participants considered SV strategies a fundamental tool to lead them to incorporate sustainability and innovation as part of the corporation strategy, which reinforces the argument by Bergquist and Eriksson (2019) and Porter and Kramer (2011) that businesses which create economic value by addressing the needs and challenges in society might enhance a competitive advantage.…”

Exploring the possibilities of creating shared value in Japan’s urban agriculture: using a mixed methods approach

“…In particular, it is important to exert a collective impact through collaboration between social enterprises and various stakeholders (Kania and Kramer 2011 ). On the other hand, Menghwar and Daood ( 2021 ) classified the factors that influence the realization of CSV into external factors and internal factors, and list three factors for each.…”

Being resilient for society: evidence from companies that leveraged their resources and capabilities to fight the COVID‐19 crisis

“…In other words, how can organizations deploy their resilience traits to serve society? Firms play an essential role in social value creation: indirectly through corporate philanthropy or social responsibility, and directly when they manage to tackle social issues aligned with their core value chain (Porter and Kramer, 2011;Menghwar and Daood, 2021). However, during the COVID-19 pandemic, firms are making considerable efforts to convert their production processes to cope with the shortage of supplies needed to curb the pandemic.…”