Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical,
photocopying, recording, or otherwise — without the permission of Michael E. Porter.
Mark Kramer, Harvard Business School Copyright © President & Fellows of Harvard College.
Creating Shared Value: Global Momentum
Shared value projects, events, and workshops have been held in more than 44 countries
Annual Shared Value Awards in India, Korea, Columbia, Australia
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
The Process of Development
Economic Social
Development Progress
(GDP per capita)
Competitive Social
Success Progress
(Profitability)
$22 Trillion
$22.2
$20.0
$15.0
$10.0
$5.0
$3 Trillion
$3.2
$1 Trillion
$1.3
$0.0
Non-Profit Current Government Spending Corporate Revenue
Operating Expenses
Source: FSG estimates
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Societal and Corporate Success
Are Inextricably Linked
• The long-term competitiveness of companies depends on social
conditions
− An educated and skilled workforce
− Safe working conditions
− Sustainable use of natural resources
− A flourishing local economy
20171211—CSV Workshop Program Introduction Session Copyright 2017 © Professor Michael E. Porter
9
Intercorp: Corporate portfolio, Peru
Financial
Services
Education
Financiera
Inteligo
Oh!
Innova Grupo
Schools UTP
Interseguro Interbank
Zegel
IPAE
Healthcare
Retailing
Super-
mercados OE
Peruanas Oeschle
Inkafarma
Promart NGR
Real Estate
Development
Tourism
Real Plaza URBI
Casa
Domus Andina
InRetail
Hogares
10
20171211—CSV Workshop Program Introduction Session
10 Copyright 2016 © Professor Michael E. Porter
Intercorp’s Innova Schools
• Intercorp Group is a leading diversified business group with companies in
banking, insurance, retailing, real estate, education and health care
• Intercorp launched Innova Schools in 2011, an affordable chain of K-12 private
schools targeted at middle class families with a monthly tuition of $150
• The educational model was developed from scratch with innovation partners,
including the classrooms, the curriculum, teacher-training, and business model
• Innova offers competitive salaries and a career development path for teachers
20171211—CSV Workshop Program Introduction Session Copyright 2017 © Professor Michael E. Porter
14
What is Shared Value?
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
CORE SLIDE
17
20171211—CSV Workshop Program Introduction Session
17 Copyright 2016 © Professor Michael E. Porter
CSV Level 1
Value Proposition
What
Which Needs?
Customers?
• Premium? Parity?
Discount?
• Finding a unique value proposition often involves identifying new needs, new
ways of segmenting, or innovation in the product/service approach
• A novel value proposition often expands the market
20171211—CSV Workshop Program Introduction Session
18 Copyright 2016 © Professor Michael E. Porter
CSV Level 2
Productivity in the Value Chain
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Level 1 CSV Examples
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
21
CSV Level 1
Eyeglasses without Opticians
20171211—CSV Workshop Program Introduction Session Copyright 2017 © Professor Michael E. Porter
22
CSV Level 1
Health Insurance that Makes People Healthier
• Discovery pioneered the concept of a health and life insurance
plan paired with a wellness incentive program, called Vitality
• Combining health coverage with Vitality membership allowed
Discovery to achieve better health results and offer health
coverage at lower premiums
– 15% lower medical costs
– 8 year longer life expectancy
• Discovery is one of the world’s fastest growing and most
profitable health & life insurance companies in the world
− 17 million lives
− 40 million life years of proprietary data on incentives, behavior and
health outcomes
• It has spread the concept to other kinds of insurance and financial
services
– Auto insurance
– Retirement savings
– Credit cards
20171211—CSV Workshop Program Introduction Session
23 Copyright 2016 © Professor Michael E. Porter
CSV Level 1
Loans for Failed Entrepreneurs
Banco de Crédito e Inversiones (BCI), Chile
• BCI launched in 2007 the Nace fund to provide credit to small scale
entrepreneurs who did not qualify for conventional financing
• Unique lending criteria targeted entrepreneurs with a high level of
commitment and perseverance, as well as high quality business plans
• In addition to capital, Nace provides tools and advice to clients on
business planning and networking
• Since its inception, the program has extended $160 million in credit to
7,500 entrepreneurs, achieving a comparable default rate to BCI’s
conventional SME clients
• An estimated 15,000 new jobs have been created
• Nace profits have grown rapidly and it is considered to be an important
growth opportunity for the bank
24
20171211—CSV Workshop Program Introduction Session
24 Copyright 2016 © Professor Michael E. Porter
CSV Level 1
Mobile Money
• Revolution Foods identified the unmet need for healthy school lunches
required for students to grow, learn, and maintain health
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Level 2 CSV Examples
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
27
CSV Level 2
Local Workforce Development
• Coca Cola Brazil has established Coca-Cola Coletivo, a program designed to
increase the employability of low income youth in Brazilian Favelas through training
in retailing, business development, and entrepreneurship
• The initiative pairs youth with local retailers to get their first job experience, while
retailers improve their operations with trainee assistance
Economic value
• Improved retailer operations has increased sales of Coca-Cola products
Community value
• 160 Coletivos in Brazil are training 65,000 youth per year
Source: FSG 28
20171211—CSV Workshop Program Introduction Session
28 Copyright 2016 © Professor Michael E. Porter
CSV Level 2
Integration with Native Forest
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
CSV Level 2
Employee Health
• Medical costs have fallen by $225 per participating employee per year
• So far J&J has saved over $250M in healthcare costs, or a 270% ROI for
every dollar the company has spent on the program
• Employee productivity and retention have improved
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
CSV Level 2
Training Supply Chain Workers
• The Gap’s P.A.C.E. program provides 65+ hours of training in life skills,
education, and technical skills for women in its supply chain
• P.A.C.E. is delivered in partnership with the International Center for Research
on Women as well as NGOs Swasti and CARE
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Level 3 CSV Examples
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
32
Shared Value can shift the Frontier Between
Markets and Market Failures
Government
and NGOs
Market
Failures
Shared
Value
Conventional
Markets
Business
20171211—CSV Workshop Program Introduction Session Copyright 2017 © Professor Michael E. Porter
33 33
CSV Level 3
Yara Agricultural Corridor, Tanzania
• Yara International is the world leading fertilizer company serving smallholder
farmers through custom product offerings and educational programs
• Yara could not fix the problem alone – but could lead change
– Worked with World Economic Forum to coordinate 68 different organizations in
a $3 billion plan to develop agricultural corridor SAGCOT
– World Bank and USAID funded infrastructure
– Corporations invested capital and expertise
– Government changed policies, tariffs and tax structures
• Within 3 years, SAGCOT raised productivity for hundreds of thousands
of farmers, increasing their sales by 50% and Yara achieved
incremental profit in a commodity business
34
20171211—CSV Workshop Program Introduction Session
34 Copyright 2016 © Professor Michael E. Porter
CSV Level 3
Japanese Tea Cluster
• The company has trained 4 million young people from 165 countries in
ICT skills
• 70% of graduates have attained a new job, or a better job at their existing
employer
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Business and NGOs Bring
Complementary Assets to Shifting the
Competitive Context
Business NGOs
• Civil society
• Global customers
• Public sector leaders
• Supplier networks Relationships
• Providers to the
• Government leaders
base of the pyramid
• Specialized product • Needs of the
knowledge underserved
• Marketing and Knowledge • Scientific and
distribution skills technical
• Intellectual property knowledge
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Collective Impact Offers a Model for Level 3 CSV
1 Common • Common understanding of the problem
agenda • Shared vision for change
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
* Indicates FSG Client
Level 3 Shared Value Can Be the Most Challenging
and the Most Rewarding
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Companies Are Not Typically Structured
to Find and Manage Level 3 Opportunities
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Identifying Opportunities for Level 3 Intervention
• Strategic significance and long-term commitment
– For Novartis, sales growth in emerging markets is key to their competitive success
• Where do socio-economic conditions suggest future increases in diabetes?
• Where is Insulin penetration low and healthcare infrastructure adequate?
– Indonesia: 7.6M people with diabetes, 60% untreated, <1% fully managed
• Cost/Benefit analysis
– Which constraints in the Diamond offer the greatest opportunity?
• Patient awareness, training of medical personnel, and access to care
– What investments is required and what reward is achievable?
• Projected investment $14M and projected increase in sales of $112M annually
by 2020
• Feasibility
– Is the total potential shared value created sufficient to motivate partners?
• $5.8B in saved government costs, 4.6M life years of health, $1.2T increase in
GDP
– Are government policies and social conditions favorable?
– Is there a sense of urgency that makes intervention timely?
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Companies Must Overcome Three Obstacles
to Level 3 Shared Value
• Lack of legitimacy
– A collective impact approach confers legitimacy through cross-sector
accountability
• BASF has worked to co-develop an agenda that suits other stakeholders in
advancing Vitamin A intake, rather than developing a branded effort to take credit
• Free-Riders
– Companies build a sustained advantage from developing strong
relationships when they lead change
• Novo Nordisk achieved a 59% insulin market share in China vs. market
shares of 15% and 5% for its 2 main competitors and developed a competitive
advantage by being the leader in driving change
• Investment justification
– A strong business case and commitment of long-term resources is
essential
• Danone created a $100 million Ecosystem Fund to release the pressure on
business unit’s P&L of improving competitive context,
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Integrating Across the Three Levels
Novartis in Rural India
1 2 3
Reconceiving Needs, Redefining Productivity Enabling Local Cluster
Products, and Customers in Value Chain Development
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Three Categories of CSV Companies
• Born CSV
– Positive social impact is the core competitive advantage from the start
• Discovery
• VisionSpring
• Revolution Foods
• Transitional CSV
– Inherently positive/neutral impact, beginning to differentiate through
CSV
• BCI
• Becton Dickinson
• Novartis
• Transformational CSV
– Historical business has negative impact, must re-invent the company
• Nestle
• Enel
20171211—CSV Workshop Program Introduction Session Copyright 2017 © Professor Michael E. Porter
47
Many businesses models were developed before
modern awareness of the importance of social factors
• Life insurance developed before any understanding of the influence of lifestyle
choices on health and the power of behavioral economics
• Food & beverage products were developed before any understanding of the
health effect of salt, fat, and sugar
• Thermal power plants were developed before knowledge about climate change
• Consumer goods were developed based on affordability and infrastructure in
developed markets, before knowledge about the importance of emerging markets
• Hiring and employment practices were based on a well-educated workforce
• Raw material sourcing took shape before knowledge of agricultural practices and
environmental impacts of smallholder farmers
Threat of Substitute
Products or Services
Threat of New
Entrants
• Government
regulation Threat of New
Entrants
• Sugar tax
• Activist investors
• Organic & healthy food companies
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
F&B Industry Response
• Coke, Pepsi, Mondelez
– Slowly shifting portfolio to healthier products (with reduced market share)
– Cutting costs and restructuring
– Blaming the consumer
– Lobbying against sugar taxes
• Danone
– Selling all unhealthy foods
– Focusing on dairy and infant nutrition
• Nestle
– Nestle Health Science - $1.8B R&D spend
– Nutritional supplements with proven health outcomes
• Reducing post0surgical infections
• Epiliepsy
• Drug-resistant depression
– Paid for by health insurers
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
Four Challenges of Creating Shared Value
20171211—CSV Workshop Program Introduction Session Copyright 2017 © Professor Michael E. Porter
52 52 sharedvalue.org
Teaching Note on CSV
5-718-480
NOVEMBER 28, 2018
This note outlines courses to teach the basic concepts of Creating Shared Value (CSV) in modules of
varying length and targeted toward multiple audiences. The modules focus on rethinking the role of
business in society by incorporating a social purpose into core competitive strategy. The CSV approach
treats social issues as a source of economic opportunity and competitive differentiation for business, rather
than a social obligation or cost of doing business. The cases demonstrate the power of companies of all
sizes, especially multinationals, to gain competitive advantage while achieving social impact at large scale.
20171211—CSV Workshop Program Introduction Session Copyright 2017 © Professor Michael E. Porter
53 53 sharedvalue.org
Selected HBS Teaching Cases
Home Developed/
Case Title Industry Social Issue
Country Emerging
Developed &
Discovery Ltd. Insurance South Africa Health
Emerging
Agriculture, Economic
Yara International: Africa Strategy Fertilizer Norway Emerging
Development
SVI
Networ
k
SVI
Networ
• Shared Value Research k
• 15 HBS teaching cases and Course Module Note
• Teaching Notes for all cases by end of January, 2019
• Protagonist videos available
• 2 follow-on HBR articles: Innovating for Shared Value, Ecosystem of Shared Value
• Shared Value Fortune’s Annual “Change the World” List
• FSG research reports
• Industries: Extractives, Insurance, Banking
• Issues: Global Health, Education, Racial Equity, entry-level employment
• Regions: Chile, India
• Measurement:, Measuring CSV, Measuring CSV in health
• Research in Process
• 3 additional cases
• 2 draft HBR articles: Investing in Shared Value, Unlocking Level 3 Shared Value
[Additional resources at SharedValue.org]
20171211—CSV Workshop Program Introduction Session Copyright 2016 © Professor Michael E. Porter
CSV Research Agenda
• Government Policy