Creating Shared Value

Salonen A.O., Camilleri M.A. (2020) Creating Shared Value. In: Idowu S., Schmidpeter R., Capaldi N., Zu L., Del Baldo M., Abreu R. (eds) Encyclopedia of Sustainable Management. Springer, Cham. https://doi.org/10.1007/978-3-030-02006-4_74-1

3 Pages Posted: 20 Oct 2020

See all articles by Arto A. Salonen

Arto A. Salonen

University of Eastern Finland

Mark Anthony Camilleri

University of Malta; University of Edinburgh

Date Written: August 14, 2020

Abstract

Creating Shared Value (CSV) is a concept that brings business and society together so that entrepreneurial activity is profitable and increases the well-being of citizens in the local community. CSV is a concept that brings business and society together so that entrepreneurial activity is profitable and increases the well-being of citizens in the local community. It is about enhancing the competitiveness of a company while simultaneously enhancing the social circumstances of the communities in which it operates. Enabling strong local ecosystems for business is a concrete way to create shared value. Strong ecosystems have a positive impact on productivity and innovation. They foster efficiency and ease of collaboration. Value can be created, for example, by relocating production back to its home markets. This is a special feature of CSV that cannot be found explicitly in related responsibility concepts. The implementation of CSV is based on five principles. First, ethics are integrated into the business strategy. Then shared values are identified by combining societal problems and the purpose of the business activities. After that the business activities are ready to be started. Progress is tracked during the process and insights will be utilized to upgrade business activities.

Keywords: Shared value, creating shared value, business and society, strategic CSR, stakeholder theory, corporate citizenship

JEL Classification: M1, M11, M14, M16

Suggested Citation

Salonen, Arto A. and Camilleri, Mark, Creating Shared Value (August 14, 2020). Salonen A.O., Camilleri M.A. (2020) Creating Shared Value. In: Idowu S., Schmidpeter R., Capaldi N., Zu L., Del Baldo M., Abreu R. (eds) Encyclopedia of Sustainable Management. Springer, Cham. https://doi.org/10.1007/978-3-030-02006-4_74-1, Available at SSRN: https://ssrn.com/abstract=3683975 or http://dx.doi.org/10.2139/ssrn.3683975

Arto A. Salonen

University of Eastern Finland ( email )

PO Box 111
Joensuu, 80100
Finland

Mark Camilleri (Contact Author)

University of Malta ( email )

Department of Corporate Communication,
Faculty of Media and Knowledge Sciences
Msida, MSD2080
Malta
79314808 (Phone)

HOME PAGE: http://https://www.um.edu.mt/profile/markacamilleri

University of Edinburgh

27 Buccheluech Place,
The Business School
Edinburgh, Scotland EH8 9JS
United Kingdom

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