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

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