By Sietske Jacobs, Global Director, Initiate
In their ‘Creating Shared Value’ article, published in the Harvard Business Review in 2011, Michael Porter and Mark Kramer argued that companies can go beyond corporate social responsibility and gain competitive advantage by including social and environmental considerations in their strategies.
According to them, treating societal challenges as business opportunities is the most important new dimension of corporate strategy and the most powerful path to social progress.
And in their subsequent Harvard Business Review article ‘The Ecosystem of Shared Value’, they stated: “Shared value results from policies and practices that contribute to competitive advantage while strengthening the communities in which a company operates.
Companies can create shared value in three ways: by reconceiving products and markets; redefining productivity in the value chain; and strengthening local clusters.”
Shared value and the energy industry are intrinsically linked. We are moving to a world where we want to consume less and in a more distributed and green way by offering solutions that add value to society as a whole. This is a business opportunity for companies by positioning themselves as technology partners that can help to create a prosperous energy sector and enable society to thrive.