Shared value is a business approach that focuses on creating economic value in a way that also generates positive social and environmental impacts. The concept of shared value was popularized by Michael Porter and Mark Kramer in their Harvard Business Review article "Creating Shared Value."
According to Porter and Kramer, the traditional view of corporate social responsibility (CSR) is that companies should focus on "doing well by doing good," meaning that they should strive to be profitable while also addressing social and environmental issues. In contrast, the shared value approach argues that companies can create economic value by addressing social and environmental challenges as part of their business strategy.
In practice, this means that companies should look for ways to create economic value by addressing social and environmental needs that are closely linked to their core business operations. For example, a company that manufactures household cleaning products might create shared value by developing eco-friendly products that are less harmful to the environment, or by partnering with organizations that provide clean water and sanitation services in developing countries.
By focusing on shared value, companies can not only improve their financial performance but also make a positive impact on society and the environment.