Engineered by Michael Porter and Mark Kramer to re-anchor corporate social responsibility, this framework focuses on creating business policies that drive company competitiveness while simultaneously improving adjacent social conditions. This model represents pure economic value creation, completely moving past standard corporate philanthropy or passive charity donations.
[Civic / Social Needs] <---> [Corporate Capabilities]
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[SHARED VALUE REGIONS]
- Redefining products and target markets
- Reconfiguring supply chain productivity
- Building localized industrial clusters
- Redefining Products and Markets: Identifying unaddressed social needs, underserved geographic regions, and environmental deficiencies to design profitable commercial products that naturally resolve those civic challenges.
- Reconfiguring Supply Chain Productivity: Optimizing internal logistics, manufacturing processes, and resource utilization to cut corporate costs while simultaneously improving environmental metrics and labor standards.
- Building Local Industrial Clusters: Constructing a robust community ecosystem of suppliers, infrastructure nodes, and educational programs near company hubs to drive business efficiency while boosting regional employment and economic resilience.
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