![]() And this innovation can only come from companies. In essence, it consists in meeting social needs which expand business opportunities, a virtuous cycle where innovation is the engine that increases social (and environmental) impact over time. Mark Kramer, Co-Founder and Managing Director of FSGĬareful, though: CSV does not mean sharing wealth that has already been created, nor balancing the interests of various stakeholders, as it is a market-competitive strategy that creates long-term value for society and the business at the same time. Profit is the most powerful means to solve social problems” “In contrast to politics, which claims that something is real, companies are dealing with reality and have to find solutions that work. This offers a far broader perspective because it recognises the close relationship between social wellbeing and economic success, and manages to bring them together, thereby replacing the trade-off that is typical of traditional economic thought. There are three ways – explains Kramer – for a company to build a relationship with society: Philanthropy (“giving back to society a part of the wealth”), Corporate Social Responsibility (“minimising damage and making business more responsible”) and the Creation of Shared Value. The most important thing is that they are ready to change their business model, rather than attempting to defend the status quo. So how can CSV solve a problem that is so dramatically urgent? Kramer believes that companies, which are seen as being mainly responsible for the present situation of environmental pollution, provide the only real resource for solving it. ![]() “The issue is urgent: we have to act right now with prepared and shared initiatives to reduce CO 2 emission levels or else the scenario in 2100 will be devastating,” explained O’Keeffe, after unrolling a graph that displayed how the temperature of the Earth remained relatively stable for thousands of years until a spike in the past century. This concept has not been confined to the lecture halls of Harvard, where Kramer teaches, but is leading the way for some of the world’s biggest companies – like Enel, whose sustainability strategy is inspired by the principles of CSV.Īt the #EnelFocusOn event, CSV was adopted as the method for attempting to tackle climate change, which Ryan O’Keeffe, Enel Director of Communications, defined in his opening remarks as “the greatest challenge of our time.” And how could it have been otherwise in this special week which saw the Big Apple host the General Assembly of the United Nations, the UN Global Compact Leaders Summit and the tenth edition of Climate Week. The article (co-written with economist Michael Porter) which baptised the new concept was published in the Harvard Business Review in 2011 and was immediately received as a revelation of something innovative in the relationship between business and society. Mark Kramer, Co-Founder and Managing Director of FSG (Foundation Strategy Group), is considered the father of CSV (Creating Shared Value), a paradigm that is changing the way of approaching business. The quip was originally made by the great late stand-up comedian George Carlin, but it was used by Mark Kramer, the keynote speaker at the event on 25 September, to frame the chosen theme: how creating shared value can tackle climate change. ![]() In a New York lashed with a sudden, torrential autumn rain, this spark of humorous intelligence helped warm the participants at the eleventh #EnelFocusOn. “People are worrying about saving the planet, but the planet is fine: it’s the people that are screwed!”. ![]()
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