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A report by Social Impact Consultants, FSG, on Creating Shared Value, states that companies need to make CSV at the core of their vision and what they do, create a strategy tailored to a company’s products and value chain, that creates economic and social value through identifying clear goals and specific societal issues and problems that are connected to their business.

Furthermore, companies must engage employees and partners across the company, as well as external partners and stakeholders for effective delivery of CSV initiatives.

Sivakumar Alaguchami, Manager Quality at Cert Infotrack Telematics Pvt.

Ltd., states “Process innovation is the need of the hour to look in all directions that could improve the business performance”.

In 2010, a roundtable headed by John Kania and Mark Kramer on Shared Value was held at Goldman Sach’s headquarters in New York city, attended by 10 major corporations.

A recent study comparing stock market performance between companies that adopted environmental and social policies and companies that didn’t, found that the “High Sustainability” companies had “an abnormal stock market performance that was 4.8% higher that the “low sustainability” companies on a value-weighted basis”. More and more socially responsible companies are moving away from the conventional definition of CSR – which largely focuses on improving the reputation of the corporation in compliance with environmental and social regulations, and charitable giving which is often not connected to the company’s business – to a concept which is gradually changing how companies approach their business and their responsibility to business and society: “Creating Shared Value” (CSV). Founded by FSG co-founders Mark Kramer and Michael Porter, the concept of “Creating Shared Value” was first introduced in the Harvard Business Review article “Strategy & Society: The Link between Competitive Advantage and Corporate Social Responsibility”, and expanded in their last article “Creating Shared Value” (January 2011 issue).The key issues include sustainability and innovation, social business, management innovation, and new intelligent enterprise.The link between business and society Companies are now beginning to understand that in order to create bigger returns on investment and profits, they need to give more emphasis to the social value of business as well, and move beyond the goal of just profit maximization.Every corporation has a set of organization structures that are designed to keep its operations running smoothly.Management and process innovation will always face resistance from other units and institutions in the value chain, and successful implementation of any change requires that management will need to compromise and work with them.

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However, in implementing this framework to create shared value, companies can face a number of hurdles.