Shared Value in Finance: Revisiting Shared Value In Light of the Person-Centered Approach

31 Pages Posted: 15 Jul 2015

See all articles by Marta Rocchi

Marta Rocchi

University of Navarra; Pontificia Università della Santa Croce - MCE Research Centre

Ignacio Ferrero

School of Economics and Business

Date Written: June 30, 2014

Abstract

The publication of Michael Porter and Mark Kramer’s Creating Shared Value (Harvard Business Review, 2011) challenges both the academic literature on corporate social responsibility as well as business practice. Porter and Kramer argue that there is a better way of integrating social goals within business practice, without distracting a firm from its primary purpose of achieving profit. This paper aims to expand Porter and Kramer’s approach and to apply the shared value model to the financial sector, through analyzing the ways of systematic shared value creation in finance. We begin with an examination of Porter and Kramer’s concept. Next, we evaluate the impact of shared value creation on academic literature. We distinguish between four groups of works related to shared value: Porter’s work, Porter’s co-authors, supporters (divided into followers and innovators), and critics. After implementing these steps, we address the two-fold purpose of this paper: 1. To examine Porter and Kramer’s process-centered theory and 2. To investigate the financial application of a revised concept of shared value. In particular, we will explore the role of virtues as a missing pillar in Porter and Kramer’s original theory. Integrating the shared value approach with virtues leads us from their process-centered approach to the person-centered approach that we call Systematic Shared Value. We believe that finance professionals can apply this new paradigm, formulating new ways of shared value creation. We conclude the article by presenting a preliminary systematic approach to shared value creation in finance.

Keywords: shared value, finance, virtue ethics, Michael Porter, corporate social responsibility, person-centered approach

Suggested Citation

Rocchi, Marta and Ferrero, Ignacio, Shared Value in Finance: Revisiting Shared Value In Light of the Person-Centered Approach (June 30, 2014). Available at SSRN: https://ssrn.com/abstract=2629804 or http://dx.doi.org/10.2139/ssrn.2629804

Marta Rocchi

University of Navarra ( email )

Camino del Cerro del Aguila, 3
Pamplona, Navarra 31080
Spain

Pontificia Università della Santa Croce - MCE Research Centre ( email )

Piazza di Sant'Apollinare, 49
Roma, 00186
Italy

Ignacio Ferrero (Contact Author)

School of Economics and Business ( email )

Edificio Bibliotecas-Este
Pamplona, Navarra 31080
Spain

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