Measuring shared value in multinational corporations

Abstract

Purpose

According to the paper “Creating shared value” (CSV) (Porter and Kramer, 2011), three specific strategies will expand the firm’s pool of available economic and social values and improve businesses’ competitive position over time. However, firms’ performances are not systematically compared to validate this claim. The purpose of this paper is to suggest a path towards delineating CSV to validate the claim and to contribute to the foundation of an industry-specific ranking based on CSV.

Design/methodology/approach

This paper attempts to delineate CSV based on relevant literature, including the critique of CSV, to measure CSV empirically. The suggested indicators of CSV are based on an interpretation of Porter and Kramer (2011) referring to a market-centric approach to corporate social responsibility (CSR).

Findings

None of the CSV strategies proposed by Porter and Kramer (2011) are new to the academic literature, though several scholars argue that these strategies, taken together, characterize prosperous multinational corporations (MNCs).

Research limitations/implications

The relevance and usefulness of the indicators presented here will vary among industries.

Practical implications

CSV indicators may be the source for an industry-specific ranking of MNCs. An index based on these indicators may reveal systematic differences between industries.

Social implications

A CSV index would include synergies between commercial and CSR-related performances of firms. If a CSV index attracts international attention, the rank of an MNC would indicate to what degree MNCs succeed in integrating their commercial and CSR-related strategies and influence the valuation of firms.

Originality/value

A CSV index based on these indicators enables to rank MNCs according to both commercial, social and environmental criteria, and thereby transcend the divide between CSR indexes and commercial indexes.

Citation

Laudal, T. (2018), "Measuring shared value in multinational corporations", Social Responsibility Journal, Vol. 14 No. 4, pp. 917-933. https://doi.org/10.1108/SRJ-08-2017-0169