An Extension of Porter and Kramer's Creating Shared Value (CSV): Reorienting Strategies and Seeking International Cooperation

Abstract

This paper improves the theory of creating shared value (CSV), a new way to achieve economic\n\nsuccess, which was introduced by Porter and Kramer. First, this study provides four types of\n\ncorporations (Stupid Corporation, Selfish Corporation, Good Corporation, and Smart Corporation)\n\ncategorized in terms of corporate and social benefits, and shows that the final destination for\n\ncorporations is to be smart, meaning the ethics and strategy as the firms basic measures to bolster\n\nvalue creation. Second, this paper provides four distinctive strategies in order to effectively create\n\nshared value, an extended version of three strategies presented by Porter and Kramer: defining core\n\ncompetence; reconceiving comprehensive targets; redefining productivity in the value chain; and\n\nenabling local or global cluster development. Defining core competence is newly added and\n\nreconceiving comprehensive targets is extended from Porter and Kramers notion of reconceiving\n\nproducts and markets. Above all, this paper highlights the importance of internationalization of CSV,\n\nunlike Porter and Kramers emphasis on domestic clusters. The paper demonstrates the usefulness of these improvements in explaining CSV activities in the real world.