Sustainable Development Through the Shared Value Model of Corporate Social Responsibility
Year: 2014
Type: preprint
Abstract: The definitional construct of sustainable development by the Brundtland Commission Report (1987) and the three-factor model of sustainable development encompassing environmental, economic and social sustainability has for long been the yardstick for assessing sustainability. The present paper attempts to answer questions regarding the role of corporate social responsibility (CSR), more specifically one particular model of CSR, the Shared value Model, in sustainable development. However, the four-component framework to sustainability of Aras and Crowther (as cited in Claydon, 2008-09) has been taken as a guideline. While the definitional construct of CSR has evolved over time, Drucker (1984) suggested that business can and must “convert” its social responsibilities into business opportunities. The idea was extended by Porter and Kramer (2011) in a seminal article which talked of creating “shared value” benefitting both the firm and the community. To answer the research question, namely, whether the implementation of the CSV model by Nespresso, a Nestle brand, is “sustainable”, the paper looks at the CSR initiative on the lines of the Shared Value Model by Porter and Kramer. Using secondary data from documented research, the paper analyzes the CSR initiative from the perspective of sustainability. The author concludes that the shared value model does indeed provide a feasible mode of sustainable development in this case by benefitting both the stakeholders and the firm.
Source: SSRN Electronic Journal
Author: Suddhachit Mitra
Institution: Institute of Rural Management Anand
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2196628343