Our understanding and practice of business sustainability expanded in this new century, far beyond “going green” and corporate social responsibility (CSR). Creating shared value (CSV) is among the major trends in the field.
Despite acclaim for CSV and related concepts, the thorny issue of how to effectively manage the process of simultaneously creating social and business values remains a puzzle. This report aims to untangle the complexity of managing CSV by shedding light on three fundamental questions: 1) What is CSV capability? 2) Why do managers develop CSV capability? 3) How can managers develop CSV capabilities to achieve their goals?
This report presents a 4A framework of CSV capability, which explains approaches to achieving SVO and shows how managers develop and execute CSV capability by accomplishing four interrelated tasks—avoiding destructive tradeoffs, adapting to internal and external changes through constructive tradeoffs, accruing competitive advantages through synergies, and aligning CSV capabilities with shared value optimization (SVO).