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Mark Kramer
Founder & Managing Director, FSG
Senior Fellow, Harvard University
prepared for:
Its an
It is not a It is a problem Lets solve opportunity to
problem the problem create shared
value
- Lets minimize the
- Lets ignore or problem and - We need to add costs - We can lower costs,
understate the throw some to fix the problem grow revenues, or
problem money at it to differentiate our value
- We need to report
show were proposition by
- Lets minimize our transparently on our
contributing addressing social
responsibility results
problems
- Philanthropy is about - CSR & - We can use our core
Philanthropy is - Even social problems
personal values business capabilities
about corporate we dont usually affect
to find solutions
reputation pose opportunities
Quality
Education
& Skills
Poverty in Regulatory
Companys Environ-
Communty ment
Environ- Poor
Company
mental Infrastruc-
Impact Productivity ture
Energy
Health and
Use
Nutrition
Water Use
3. Businesses help solve social problems 3. Businesses help solve social problems
because it is their responsibility to because they make it their purpose and
give back a source of competitive advantage
Example Example
Fair trade purchasing Transforming sourcing to increase
quality and yield
Firm Infrastructure
(e.g. Financing, Planning, Investor Relations) Employee Health
Human Resource Management Education
(e.g. Recruiting, Training, Compensation System) Workforce
Development
Technology Development
Agricultural(e.g. Product Design, Testing, Process Design, Material Research, Market Research)
M
Productivity
Procurement a
(e.g. Components, Machinery, Advertising, Services) r
g
Inbound Operations Outbound Marketing After-Sales i
Logistics Logistics & Sales Service
n
(e.g. Incoming (e.g. Assembly, (e.g. Order (e.g. Sales (e.g.
Material Component Processing, Force, Installation,
Customer
Storage, Data Fabrication, Warehousing, Promotion, Customer
Roads
Collection, Branch Report Advertising, Support, Behaviors
Service,
Transport Operations) Preparation) Proposal Complaint
Customer
Companies Writing, Web Resolution,
Access) site) Repair)
16 2010 FSG
FSG.ORG
Shared value thinking will drive the next wave of innovation, productivity
enhancement, and economic growth