Social entrepreneurs as the paragons of shared value creation? A critical perspective

Abstract

Purpose The financial crisis of 2007/2008 has caused many to question the basic premises of the current business system. Porter and Kramer suggest that the purpose of the corporation needs to be redefined. They posit that the corporation, rather than merely pursuing financial value creation set out to pursue shared value creation. They further declare social entrepreneurs the paragons of said shared‐value creation. The purpose of this paper is to explore that claim. Design/methodology/approach This paper critically analyzes the pathway of shared‐value creation in three leading social enterprises employing a genealogical perspective. Findings It is found that very innovative shared‐value creating ventures opted out of balance‐oriented, shared‐value creation strategies and embraced either financial or social‐value primacy strategies over time. The findings thus question the power of the shared‐value creation notion when viewed as balance orientation. Originality/value The paper presents a new concept, a new methodology, and interesting case studies.