The concept of Creating Shared Value (CSV) was introduced by Michael E. Porter and Mark R. Kramer in their seminal Harvard Business Review article, Creating Shared Value (2011). It evolved from earlier theories of Corporate Social Responsibility (CSR) but shifted the focus from reputation and philanthropy to strategic integration — positioning social and environmental challenges as opportunities for innovation and growth. Shared Value builds upon Stakeholder Theory (Freeman, 1984) and resonates with the principles of Civil Economy and Sustainability Management, emphasizing that the competitiveness of a company and the well-being of the communities it serves are mutually dependent.

Shared Value represents a new approach to capitalism — one that redefines the relationship between business success and societal progress.

Instead of treating social responsibility as a cost or a moral obligation, it considers it a core source of competitive advantage.

Organizations create shared value by identifying intersections between their business objectives and societal needs, leading to innovation, efficiency, and legitimacy.

Porter and Kramer identify three main ways to generate shared value:

1. Reconceiving products and markets – developing offerings that meet social needs or reach underserved populations.

2. Redefining productivity in the value chain – improving resource efficiency, working conditions, and local supplier relationships.

3. Enabling local cluster development – strengthening the social and institutional ecosystem in which a company operates.

In Impact Marketing and Enlightened Management, Shared Value extends beyond economic alignment to include moral and generative alignment — the idea that true prosperity emerges when People, Purpose, and Planet (P³) interact to generate long-term, multidimensional value.

Thus, shared value becomes not just an outcome but a philosophy of reciprocity, where business and society evolve together within an ethical and sustainable framework.

A food company that sources ingredients locally to support farmers, invests in reducing waste through circular packaging, and simultaneously builds consumer trust is creating shared value. This approach enhances profitability, reduces environmental impact, and strengthens community well-being — proving that competitiveness and responsibility can coexist.