Creating shared value - Mark Kramer

Sept 12 from St Louis
Sustainable Ag Conference

Creating shared value redefines the role of business in society

Business must create economic value by creating societal value
all profit is not equal -when the business is contributing to the the society where it is placed, it creates more value
The challenge of incorporate the social is the challenge / solution for next years

Business has an essential role in social (and environmental) issues

Products need to be create (and are been created already) to help solve social pb.
Classic economics mislead: so called externalities have impact in the business
(he didn't mentioned but I believe it's about internalize externalities)

Shared value is policies and practices that enhance the competitiveness of a company while simultaneously advancing the Soc./Econ condition in the society where we operate.

Is not about 'Fair trade' - fair trade is share the value already created. It's not increasing the productivity.
Increasing the productivity, you increase the pie.

It's not about personal value.

Share value doesn't replace CSR/footprint goes beyond it.
When you begin to solve others problems you can also help your reputation.

It's look the problems, all the aspects, in it's own chain.

Reconciling prod mark
Redefine productivity in value chain
Enabling local society success

The success of a company is the result of the the success of all the chain, local society, its environment, employees, suppliers....

Ex a company that can provide water for a low price where it's necessary

Nestle healthy kids programs run in partnership with academy, NGO, etc in 58 countries
Fibria (brazilian pulp production) also integrate the triple bottom line through mosaic and small farmers
Cisco - network academy

Shared value company all employees understand its role. Needs innovation. Transform and impact.
A transformation of business practice around shared will enable the corporation ton earn credibility.

Think about the problems your consumers have.
Think about those that have been poorly served.
Requires a vision, that needs to be on the top, going beyond it:
What are the most important issues,
The role of each one
Delivery!

For me... Its about sustainability but presented in a way that business leaders can understand easier!
For our path it's great!